GuruFocus Reported this morning that Bruce Berkshowitz has sold out his stake in Berkshire Hathaway, the entire stake, not a single shares left. Morningstar has this Article explain why:
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It's not often you give one of your idols his walking papers. But that's what happened in late 2008 when Bruce Berkowitz of Fairholme (FAIRX) eliminated his stake--once as high as 20% of assets--in Berkshire Hathaway (BRK-B) (see Page 9 of Fairholme's Feb. 11 conference call). Berkowitz doesn't think Buffett is washed up. Far from it. But he's taking the Oracle of Omaha at his word. Buffett himself says Berkshire's size makes it unlikely the firm will return better than a percentage point or so more than the S&P 500 going forward. Berkowitz thinks Fairholme can do better.
That's not hubris. Berkowitz says he's not smarter than Buffett--just smaller. And that gives him a wider range of opportunities in a target-rich environment than Berkshire has due to its girth. The same goes for most Buffett-inspired funds.
Continue to read the complete story at morningstar.com
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It's not often you give one of your idols his walking papers. But that's what happened in late 2008 when Bruce Berkowitz of Fairholme (FAIRX) eliminated his stake--once as high as 20% of assets--in Berkshire Hathaway (BRK-B) (see Page 9 of Fairholme's Feb. 11 conference call). Berkowitz doesn't think Buffett is washed up. Far from it. But he's taking the Oracle of Omaha at his word. Buffett himself says Berkshire's size makes it unlikely the firm will return better than a percentage point or so more than the S&P 500 going forward. Berkowitz thinks Fairholme can do better.
That's not hubris. Berkowitz says he's not smarter than Buffett--just smaller. And that gives him a wider range of opportunities in a target-rich environment than Berkshire has due to its girth. The same goes for most Buffett-inspired funds.
Continue to read the complete story at morningstar.com
