Bruce Berkowitz

Bruce Berkowitz

Last Update: 05-31-2017
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 9
Number of New Stocks: 1

Total Value: $1,033 Mil
Q/Q Turnover: 3%

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 (%)
201625.6811.9613.7
2015-11.481.38-12.9
2014-2.7213.69-16.4
3-Year Cumulative8.2 (2.7%/year)29 (8.9%/year)-20.8 (-6.2%/year)
201335.5432.393.2
201235.811619.8
5-Year Cumulative99.2 (14.8%/year)98.2 (14.7%/year)1 (0.1%/year)
2011-32.422.11-34.5
201025.4715.0610.4
200939.0126.4612.5
2008-29.7-377.3
200712.355.496.9
10-Year Cumulative85.5 (6.4%/year)95.7 (6.9%/year)-10.2 (-0.5%/year)
200616.7115.790.9
200513.744.918.8
200424.9310.8814.1
200323.9628.68-4.7
2002-1.58-22.120.5
15-Year Cumulative275.2 (9.2%/year)164.2 (6.7%/year)111 (2.5%/year)
20016.18-11.8918.1
200046.54-9.155.6

Top Ranked Articles

Excerpt from “Invest Like a Guru” Chapter 2 Take a peek if you haven't read the book
Excerpt from Chapter 2 of the new book by GuruFocus Founder Dr. Charlie Tian, “Invest Like a Guru: How to Generate Higher Returns At Reduced Risk With Value Investing”. The book is available on Amazon. Read more...
Sears Sells Craftsman Brand to Stanley Black & Decker Company announces 150 store closures
Sears Holdings Corp. (NASDAQ:SHLD) announced today it is selling its well-known Craftsman tool brand to Stanley Black & Decker (NYSE:SWK) and will be closing 150 stores. Read more...
Bruce Berkowitz Comments on Fannie Mae and Freddie Mac Guru stock highlight
Odds favor Fannie Mae (FNMA) or Freddie Mac (FMCC) helped your parents and you obtain a first home, and that the same will be true for your children and grandchildren. Fannie Mae and Freddie Mac guarantee the timely payment of principal and interest demanded by lenders. Investors just like you own and fund their operations. Yet, we fight an expropriation of our principal by the government. Here’s where we stand: prosperity exists in a capitalist society only when contracts are honored. The rule of law must be respected and cannot be eliminated by fiat. If you disagree, just see the despair in Venezuela. We look forward to a decision from the United States Court of Appeals for the District of Columbia Circuit that protects and preserves our investments in Fannie Mae and Freddie Mac. Signs indicate that we are nearing the end of our “Alice in Washington” journey.
Read more...
Bruce Berkowitz Comments on Atwood Oceanics Guru stock highlight
Stressed energy markets led us to invest in senior bonds of offshore driller Atwood Oceanics (NYSE:ATW). The bonds were purchased at attractive prices relative to the backlog of future cash flow from drilling operations and the value of Atwood’s modernized fleet. Thus far, Atwood has weathered tough conditions as the industry slowly rebalances between rig supply and demand in a lower commodity price environment. Atwood’s management has reduced cash operating costs by 25% while extending contracts with customers and suppliers. Atwood also reduced the outstanding senior bond class by over 30% through debt repurchases and raised liquidity through an equity offering. All actions combine to give us comfort that Atwood is positioned to capitalize on the eventual upcycle. Read more...
How to Brainstorm Stock Ideas Finding your own investment partner will make you a better investor
Someone emailed me this question: Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

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Rating: 3.0/5 (1 vote)

Where to Find Value in a Lofty Market It becomes much easier to find great investments venturing a little further from home Bruce Berkowitz,Murray Stahl,Bill Ackman - Where To Find Value In A Lofty Market
You don't have to take my word for it. I've reported right here on GuruFocus how Bruce Berkowitz (Trades, Portfolio), Murray Stahl (Trades, Portfolio) and Bill Ackman (Trades, More...

LONG, VALUATION, ENERGY, EMERGING MARKETS, CHINA, ETFS


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Lands’ End’s Losses Widen, Shares Fall 6% New CEO looking to turn company around Edward Lampert,Bruce Berkowitz,Mario Gabelli,Murra - Lands’ End’s Losses Widen, Shares Fall 6%
Specialty retailer Lands’ End Inc. (NASDAQ:LE) posted disheartening first-quarter 2017 earnings on June 6, reporting a $7.8 million loss, worse than the $5.8 million loss it reported in the comparable quarter of 2016. More...

LANDS END, EARINGS, 1Q, LOSS, CEO


  • Currently 4.67/5

Rating: 4.7/5 (9 votes)

Excerpt from “Invest Like a Guru” Chapter 2 Take a peek if you haven't read the book Bruce Berkowitz - Excerpt From “Invest Like A Guru” Chapter 2
Excerpt from Chapter 2 of the new book by GuruFocus Founder Dr. Charlie Tian, “Invest Like a Guru: How to Generate Higher Returns At Reduced Risk With Value Investing”. The book is available on Amazon. More...

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Rating: 0.0/5 (0 votes)

Insiders Love These Stocks, but Should You? These stocks have the highest insider buying of the past 3 months Michael Price, Bruce Berkowitz - Insiders Love These Stocks, But Should You?
It is never wise to blindly follow a hedge fund manager into a position. There are multiple reasons for this. More...

VALUE, VALUE INVESTING, INSIDER BUYING, MANAGEMENT BUYING


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Bruce Berkowitz Invests in Shopping Malls Fairholme leader expands retail holdings Bruce Berkowitz - Bruce Berkowitz Invests In Shopping Malls
Bruce Berkowitz (Trades, Portfolio)’s Fairholme Capital Management introduced one new stock into its portfolio in the first quarter, Washington Prime Group Inc. (NYSE:WPG). More...

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Bruce Berkowitz Loading Up on Seritage Growth Properties Insider buys 110,500 shares of company Bruce Berkowitz - Bruce Berkowitz Loading Up On Seritage Growth Properties
Insider Bruce Berkowitz (Trades, Portfolio) has purchased 110,500 shares of Seritage Growth Properties (NYSE:SRG) between March 9 and April 6, according to the Securities and Exchange Commission (SEC). More...

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Edward Lampert Invests in Sears Holdings Company's CEO and 10% owner buys more than half a million shares Edward Lampert,Bruce Berkowitz - Edward Lampert Invests In Sears Holdings
Edward Lampert (Trades, Portfolio) (Insider Trades), CEO and 10% owner of Sears Holdings Corp. (SHLD), acquired 525,936 shares on March 24. The average price per share was $7.93 for a total transaction of $4,170,672. More...

EDWARD LAMPERT, SEARS HOLDING CORP, INSIDER TRADES


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Largest Insider Trades of the Week Oracle, Mylan among top trades Bruce Berkowitz - Largest Insider Trades Of The Week
The GuruFocus All-in-One Screener can be used to find insider trades from the past week. Under the Insiders tab, change the settings for All Insider Buying to “$5,000,000+,” the duration to “March 2017” and All Insider Sales to “$5,000,000+.” More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Buys More Shares of Sears as Stock Tumbles Sears says it may not make it another year and Fairholme Fund increases position Bruce Berkowitz - Bruce Berkowitz Buys More Shares Of Sears As Stock Tumbles
Hopes raised by a chairman’s letter on future strategy March 9 were crushed Wednesday when Sears Holdings listed a “going concern” statement in its annual report. The same day, Bruce Berkowitz (Trades, Portfolio) increased his position in the dying retailer 2.05% in his third purchase of the month. More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

How to Brainstorm Stock Ideas Finding your own investment partner will make you a better investor Warren Buffett,Bruce Berkowitz - How To Brainstorm Stock Ideas
Someone emailed me this question: More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Fairholme's Berkowitz Responds to Court Ruling Against Hedge Fund Suits of Fannie Mae 'This is far from over,' Berkowitz said Bruce Berkowitz - Fairholme's Berkowitz Responds To Court Ruling Against Hedge Fund Suits Of Fannie Mae
Bruce Berkowitz (Trades, Portfolio), who has about 30% of his Fairholme Fund (Trades, Portfolio)s in the government sponsored mortgage entities, responded to a judge's ruling against his and hedge funds' right to sue on Wednesday in the release below: More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Sells Final Financial Crisis Bet Bank of America Exit also narrows portfolio to several contrarian stocks Bruce Berkowitz - Bruce Berkowitz Sells Final Financial Crisis Bet Bank Of America
Completing his exit from Bank of America (NYSE:BAC) in the fourth quarter also erased the final holdover from Bruce Berkowitz’s famed bets on distressed financials brought to their knees in the 2008 market crisis. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Bruce Berkowitz Comments on Atwood Oceanics Guru stock highlight
Stressed energy markets led us to invest in senior bonds of offshore driller Atwood Oceanics (NYSE:ATW). The bonds were purchased at attractive prices relative to the backlog of future cash flow from drilling operations and the value of Atwood’s modernized fleet. Thus far, Atwood has weathered tough conditions as the industry slowly rebalances between rig supply and demand in a lower commodity price environment. Atwood’s management has reduced cash operating costs by 25% while extending contracts with customers and suppliers. Atwood also reduced the outstanding senior bond class by over 30% through debt repurchases and raised liquidity through an equity offering. All actions combine to give us comfort that Atwood is positioned to capitalize on the eventual upcycle. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Chesapeake Energy Guru stock highlight
In early 2016, news on all things related to oil and natural gas devoted little coverage to how declining commodity prices were forcing energy companies to reduce supply, lower debt, and cut operating costs. Time and again, history shows that a commodity price forges its own anchor. Our credit investments in Chesapeake Energy (NYSE:CHK) performed exceptionally well in 2016 due to the combination of operational efficiencies driving down unit costs, higher natural gas prices, and success with debt buybacks and asset sales. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Comments on Imperial Metals Corp Guru stock highlight
Imperial Metals Corporation (TSX:III) More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Comments on St. Joe Guru stock highlight
To outperform in sports, you must go to where the ball will be – not where it already is. The same is true of investing and our investment in St. Joe (NYSE:JOE). Northwest Florida Beaches International Airport, the newest U.S. international airport, is approaching 1,000,000 “travel legs” per year. Becca Hardin, President of the Bay Economic Development Alliance, which helps bring business to the airport and surrounding area, recently commented: “We’ve got a couple of really hot prospects that are looking at some sites in VentureCrossings … We think 2017 is going to be the year that some of these projects come into fruition and we will be able to announce them.”7 Joe is growing and has the assets and entitlements to meet multi-generational demand for affordable housing, commercial facilities, healthcare, education, and transportation. See for yourself at www.venturecrossings.com and www.watersound.com – you’ll get the idea. As St. Joe’s Chairman, I cordially invite you to visit the beginning of Florida’s newest metropolis. More...

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Bruce Berkowitz Comments on Seritage Guru stock highlight
Fortune Magazine notes that “there is still a lot of life in that American mainstay, the suburban mall,” but the tenant mix is shifting to accommodate new consumer preferences.5 Indeed, growing demand for “very un-mall-like grocery stores, spin-class fitness shops, and entertainment centers” presents attractive opportunities for landlords such as Seritage, who can convert existing retail square footage to “non-retail spaces that people want.”6 In 18 months, Seritage (NYSE:SRG) has re-leased 2.2 million square feet and commenced or completed 48 wholly owned redevelopment projects. Sears now represents 65% of signed lease revenue; down from 90%. Headlines overlook this renter diversification and ignore Seritage’s acceleration with large mixed-use redevelopments in Santa Monica (California), Aventura (Florida), Hicksville (New York), and Redmond (Washington). More...

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Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Sears Guru stock highlight
Focusing on tangible assets has served us over many years, but most believe Sears (NASDAQ:SHLD) to be the exception to the rule. Disruptive technologies; near-zero cost of capital; and few, if any, legacy obligations provide young competitors with great advantages over old-line operators. Today, Airbnb is the largest lodging company in the world without owning a single hotel room. Uber is the world’s largest taxi company without owning a car (and perhaps soon without utilizing a single driver). Intuit’s Rocket Mortgage lends only via the net. Amazon crushes competition without a physical retail footprint. Mega-tech companies are now trusted in all aspects of personal and corporate life. I’m reminded of this every day by my Fairholme team, our clients, fellow directors at Sears, and friends. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Bruce Berkowitz Comments on Fannie Mae and Freddie Mac Guru stock highlight
Odds favor Fannie Mae (FNMA) or Freddie Mac (FMCC) helped your parents and you obtain a first home, and that the same will be true for your children and grandchildren. Fannie Mae and Freddie Mac guarantee the timely payment of principal and interest demanded by lenders. Investors just like you own and fund their operations. Yet, we fight an expropriation of our principal by the government. Here’s where we stand: prosperity exists in a capitalist society only when contracts are honored. The rule of law must be respected and cannot be eliminated by fiat. If you disagree, just see the despair in Venezuela. We look forward to a decision from the United States Court of Appeals for the District of Columbia Circuit that protects and preserves our investments in Fannie Mae and Freddie Mac. Signs indicate that we are nearing the end of our “Alice in Washington” journey. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Bruce Berkowitz's Full-Year Fairholme Fund Letter Berkowitz discusses such holdings as Sears, Fannie Mae and St. Joe in annual letter Bruce Berkowitz - Bruce Berkowitz's Full-Year Fairholme Fund Letter
January 30, 2017 More...

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