Bruce Berkowitz

Bruce Berkowitz

Last Update: 2014-10-03
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 55
Number of New Stocks: 8

Total Value: $9,941 Mil
Q/Q Turnover: 0%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bruce Berkowitz' s Profile & Performance

Profile

Bruce Berkowitz is the founder and the Managing Member of the Fairholme Fund. Prior to forming Fairholme Capital Management, Mr. Berkowitz was a Managing Director of Smith Barney, Inc. from December of 1993 to October of 1997.

Web Page:http://www.fairholmefunds.com/

Investing Philosophy

Bruce Berkowitz concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz?investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst ?an event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Fairholme Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201335.5431.554.0
201235.8115.420.4
2011-32.422.08-34.5
3-Year Cumulative24.4 (7.5%/year)55 (15.7%/year)-30.6 (-8.2%/year)
201025.4715.0610.4
200939.0126.4612.5
5-Year Cumulative117 (16.8%/year)125.5 (17.7%/year)-8.5 (-0.9%/year)
2008-29.7-377.3
200712.355.616.7
200616.7115.790.9
200513.744.918.8
200424.931212.9
10-Year Cumulative184.2 (11%/year)104.1 (7.4%/year)80.1 (3.6%/year)
200323.9628.7-4.7
2002-1.58-22.120.5
20016.18-11.918.1
200046.54-9.155.6

Top Ranked Articles

Bank of America (BAC) with a compelling entry point for long term investors
Though It Hurts, Bruce Berkowitz Is No Bill Miller
There are a lot of analogies in the media these days to compare Fairholme Fund’s Bruce Berkowitz with Legg Mason Value Trust’s Bill Miller, as Berkowitz’s Fairholme Fund suffered its worst year of performance after years of tremendous outperformance. Many articles are predicting that Bruce Berkowitz is the next Bill Miller. Investors certainly treated Bruce Berkowitz the same way they treated Bill Miller. At the peak of Miller’s fame, after he had beaten the market average S&P 500 by 15 consecutive years, the size of his fund reached $20 billion in 2006. He suffered a 6.66% loss in 2007, while the market advanced in 2007, and a 55% loss in the market crash of 2008. Investors fled out of his fund. As of July 31, 2011, the fund has only $3.3 billion left, about 16% of the assets under management at its peak. Read more...
Chesapeake Energy – Ready to Rise
One of the gurus I pay attention to is Bruce Berkowitz who is the manager of Fairholme Funds and famed for his analysis and sticking to his convictions when he feels the facts are on his side, even if his stocks are down substantially from his purchase price. Given the recent disclosure by GuruFocus that Bruce Berkowitz has re-initiated a position in Chesapeake Energy (CHK) in first quarter 2013 and the oil and gas sector being out of favor, I decided to take a look at Chesapeake Energy (CHK). Read more...
Concentrates his bets, Bruce Berkowitz focuses on Berkshire Hathaway and Canadian National Resources
Bruce Berkowitz, manager of Fairholme Fund, started his fund 8 years ago. Over the past 8 years his fund has appreciated by 17.40% per annum compared to a gain of 1.71% per annum for the S&P 500 Index. With this article we like to review how Bruce Berkowitz achieved this outstanding result. Read more...
Answers from Bruce Berkowitz of Fairholme Fund; Comment on Banks, Insurers and St. Joe
In January we announced that our users can ask questions to Bruce Berkowitz of Fairholme Fund and we received tremendous responses. Now here are the answers back from Mr. Berkowitz in a joint interview with Advisor Perspective. Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

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Smart Money Trickling Into Transocean for Deep Value in Underwater Oil Driller Bruce Berkowitz,Jean-Marie Eveillard,David Dreman, - Smart Money Trickling Into Transocean For Deep Value In Underwater Oil Driller
The outlook on Transocean (RIG) is very grim as oil sells at four-year lows – near $80 a barrel. Transocean’s stock price is off 82% from its 2007 apex above $170 a share. But shares may already reflect the negative prospects for the oil industry. Exceptional value is born from new lows and bleak prospects – not when everyone sees improvements on the horizon. More...

OIL PRICES, ENERGY, OIL AND GAS, CONTRARIAN INVESTING, BRUCE BERKOWITZ, CARL ICAHN, DAVID DREMAN, JEAN-MARIE EVEILLARD


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How Many Sears Stores Are Closing? Bruce Berkowitz,Chuck Royce - How Many Sears Stores Are Closing?
What does the future hold for Sears (SHLD)? Whatever it is, it doesn’t look very promising, and would-be investors might be wise to wait and see. More...

Sears, Kmart, Retail


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Analyzing Altria´s Drivers and its Impressive Return on Equity
In this article, let´s see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the Return on Equity (ROE), and we are going to analyze it in the case of Altria Group Inc. (MO), a $93.34 billion market cap company, which is the largest U.S. cigarette producer with roughly 50% share. More...

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Sears Holdings Corporation Provides Update on actions to generate liquidity, fund its transformation and evolve its capital structure
HOFFMAN ESTATES, Ill., Oct. 2, 2014 /PRNewswire/ -- Sears Holdings Corporation ("Holdings," or the "Company") (SHLD) today announced that the Company expects to generate up to U.S.$380 million in proceeds from its interest in Sears Canada Inc. ("Sears Canada") by earlyNovember 2014, assuming the completion of its previously announced rights offering of Sears Canada shares to the Company's stockholders and the exercise of all such rights. Of this amount, the Company expects to receive at least $168 million in mid-to-late October from the exercise of the rights distributed to them by ESL Partners, L.P. and Edward S. Lampert, Chairman and Chief Executive Officer of Holdings and Chairman and Chief Executive Officer of ESL Investments, Inc., which collectively with their affiliates own 48.5% of Holdings' outstanding common stock. More...

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Rating: 3.0/5 (3 votes)

Bruce Berkowitz on Wealth Track Bruce Berkowitz - Bruce Berkowitz On Wealth Track
A rare interview with Bruce Berkowitz (Trades, Portfolio) of The Fairholme Fund (Trades, Portfolio). Launched at the height of the tech bubble in late 1999, The Fairholme Fund (Trades, Portfolio) has been the top performer in Morningstar’s Large Value category since inception, delivering 13% annualized returns and beating its nearest competitor by a margin of 2.4% points a year. Berkowitz believes in “ignoring the crowd”. He’ll explain why nearly 80% of his portfolio is in four financial stocks shunned by most investors. More...

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The Ultimate Concentrated Value Investor - Bruce Berkowitz
Since inception in 1999 the Fairholme Fund (Trades, Portfolio) managed by Bruce Berkowitz (Trades, Portfolio) is the single top performing mutual fund. More...

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Bruce Berkowitz’s Fairholme Buys 7 New Stocks Bruce Berkowitz - Bruce Berkowitz’s Fairholme Buys 7 New Stocks
Bruce Berkowitz (Trades, Portfolio) led returns among gurus in the first quarter of the year with outsized holdings of enormous national home mortgage entities that almost fell during the financial crisis, Fannie Mae (FNMA) and Freddie Mac (EMCC). More...

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Rating: 5.0/5 (2 votes)

Fannie, Freddie Western Ruling Immaterial Bruce Berkowitz - Fannie, Freddie Western Ruling Immaterial
Currently the government is being sued by multiple hedge funds and Bruce Berkowitz (Trades, Portfolio)'s Fairholmes Funds over Fannie and Freddie. These investment firms are suing the government because the government acted illegally by getting Freddie and Fanni to pay the government nearly all of the firms' massive profits in the form of dividends. The investment funds alleged that both the Treasury and the FHFA violated the Administrative Procedure Act by exceeding their authority under the Bush-era Housing and Economic Recovery Act. They claim this voilation occurred in August 2012, when the Treasury and FHFA amended the peferred stock purchase agreement to implement a full income sweep under which Fannie and Freddie's profits will go to the Treasury. The plan in these lawsuits is to get a judge to rule that amending the preferred More...

FANNIE,FREDDIE,HOUSING,REINSURANCE,HEDGE FUNDS,VALUE INVESTING,MUTUAL FUNDS,LAWSUIT,


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Rating: 3.0/5 (2 votes)

Absolute Valuation Model Indicates that Altria Is a Good Buy Bruce Berkowitz,James Barrow - Absolute Valuation Model Indicates That Altria Is A Good Buy
In this article, let´s consider Altria Group Inc. (MO), an $84.83 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively overvalued (PE 19.7x vs Industry Median 19.5x). More...

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Bruce Berkowitz Comments on Sears Holdings Corp
Sears (SHLD) remains the Fund’s least successful investment, yet has the highest potential based on our estimates of tangible values. More...

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Bruce Berkowitz Comments on Bank of America
Bank of America (BAC) common stock is the Fund’s third largest position. Acquiring and then fixing Countrywide Financial has cost the bank tens of billions. Finishing the task will, in our view, allow much more to drop to the bank’s bottom line. More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac
Fannie Mae (FNMA) and Freddie Mac (FMCC) preferred stocks and common shares constitute approximately 15% of the Fund’s portfolio. We believe that the two companies may be the most important financial institutions in the United States – perhaps the world – and directly support housing affordability and accessibility, including the uniquely American 30-year fixed-rate mortgage. They are a major reason why our country did not enter a second Great Depression, and are proving to be the most successful taxpayer investments of the Great Recession. More...

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Bruce Berkowitz Comments on American International Group Inc
AIG (AIG) common stock and warrants are nearly one-half the value of the Fund’s portfolio due to appreciation of these securities – even after realizing profits on the sale of millions of shares of AIG common stock. More...

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Bruce Berkowitz's Fairholme Fund Second Quarter 2014 Shareholder Letter
To the Shareholders and the Directors of The Fairholme Fund (Trades, Portfolio): More...

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Guru Held Stocks Trading At Deep Discounts To Graham Number Bruce Berkowitz,First Pacific Advisors - Guru Held Stocks Trading At Deep Discounts To Graham Number
At GuruFocus, we have a conservative valuation measurement called the Graham Number. The calculation of the number is: More...

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Rating: 4.4/5 (18 votes)

Insisting on Being Clever Bruce Berkowitz - Insisting On Being Clever
As I was driving home the other day and listening to Howard Marks (Trades, Portfolio)’ fantastic book “The Most Important Thing” on Audible, I heard a great line that I think is relevant to today’s environment: More...

LONG WTW


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A Look at the Real Estate Companies Held by the Most Gurus Bruce Berkowitz,Fairholme Fund - A Look At The Real Estate Companies Held By The Most Gurus
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see real estate-focused companies which are held by the most gurus. The following five real estate companies are held by the largest number of gurus during the past quarter. More...

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Carl Icahn Buys Fannie Mae, Freddie Mac from Bruce Berkowitz Fairholme Fund,Bruce Berkowitz - Carl Icahn Buys Fannie Mae, Freddie Mac From Bruce Berkowitz
In the pattern of Bruce Berkowitz (Trades, Portfolio), Bill Ackman (Trades, Portfolio) and Richard Perry (Trades, Portfolio), corporate activist Carl Icahn (Trades, Portfolio) has purchased shares of Fannie Mae (FNMA) and Freddie Mac (FMCC), according to court documents released today. Three of Icahn’s funds in March purchased the shares More...

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Rating: 4.5/5 (6 votes)

Bruce Berkowitz Cuts Berkshire Stake in Half, Buys Vodafone and AT&T in Q1 Bruce Berkowitz - Bruce Berkowitz Cuts Berkshire Stake In Half, Buys Vodafone And AT&T In Q1
Bruce Berkowitz (Trades, Portfolio), a fund manager known for consistently correct prescient bets on undervalued assets, has recently piled his Fairholme Fund (Trades, Portfolio) high with shares of Fannie Mae and Freddie Mac, mortgage entities whose fates hang in a legislative balance. He has also been both a fan of Warren Buffett (Trades, Portfolio) and a holder of his company, Berkshire Hathaway (BRK.A)(BRK.B). But in the first quarter, he cut the holding, which had been his tenth largest, in half, and More...

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Top Five Guru-Held Financial Services Companies James Barrow,Bruce Berkowitz - Top Five Guru-Held Financial Services Companies
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which financial services companies are held by the most gurus. As of the first quarter, the following five financially-based companies are held by the largest number of gurus. More...

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User Comments

Mocheng
ReplyMocheng - 1 month ago
On the homepage, it said Bruce added more SHLD, but it's not showing when I clicked to view details, is there anyway to find out how many shares he added?
Gurufocus
ReplyGurufocus - 10 months ago
"where's the fannie and freddie?"

They are in the portfolio of Fairholme Fund:

http://www.gurufocus.com/holdings.php?GuruName=Fairholme+Fund
A632784
ReplyA632784 - 10 months ago
where's the fannie and freddie??????????????????
Gegogego
ReplyGegogego - 11 months ago
Why are Freddie Mac and Fannie Mae not listed in current holdings or recent buys?

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