Citigroup (NYSE:C) was purchased at approximately ten times earnings and a discount to book value, a modest valuation for an essential, global financial institution. Recently approved by the Federal Reserve, Citigroup’s capital allocation plan calls for substantially all earnings to be used for share repurchases, which should drive per share earnings growth.
From Bruce Berkowitz (Trades, Portfolio)'s second quarter 2018 Fairholme Fund (Trades, Portfolio) shareholder letter.
