Bruce Berkowitz

Bruce Berkowitz

Last Update: 08-14-2017
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 9
Number of New Stocks: 0

Total Value: $982 Mil
Q/Q Turnover: 4%

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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Bruce Berkowitz Comments on Sears Canada Guru stock highlight
Sears Canada (TSX:SCC) (not to be confused with Sears) self-inflicted a court-led restructuring that will guarantee tens of millions of unnecessary professional costs. We are studying ways to recover what appears lost. More...

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Bruce Berkowitz Comments on St. Joe Guru stock highlight
St. Joe (NYSE:JOE) owns 120,000 contiguous acres with entitlements to build homes and grow jobs for generations to come – at near zero land costs. CEO Jorge Gonzalez and team are making investments that will add value to this land with projects generating recurring revenue. It is my belief that GKN Aerospace may be just the first of many high-tech companies that will move to Northwest Florida. Great jobs build strong communities with top-notch education and healthcare.If you are considering any type of corporate relocation or expansion, please call Jorge at (850) 544-3177 to find out why one of the largest global aerospace companies chose St. Joe to build their first facility in Florida. More...

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Bruce Berkowitz Comments on Sears Guru stock highlight
From the ashes of failed retailers often come great real estate companies. Malls and shopping centers are not in permanent decline. Sears (NASDAQ:SHLD) spin-off, Seritage Growth Properties, has re-tenanted over three million square feet at more than three times old rents since 2015, and demand continues to grow. Investors may disagree on the exact path forward for Sears, but the company owns many valuable assets and there is huge value in optimizing all of them. In the first half of the year, Sears sold the Craftsman name for a net present value of $900 million. Real estate sales added another $400 million. Sears remains extremely competitive in all aspects of hardline retail. Company vendors are estimated to earn $5 billion annually from relationships with Sears. There is no reason why Sears cannot share in this success and monetize assets through innovative partnering.Sears continues to accelerate the pace of its operational restructurings, and is heading toward More...

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Bruce Berkowitz Mid-Year Manager's Letter From Fairholme Berkowitz discusses Sears, St. Joe, Imperial Metals, et al. Bruce Berkowitz - Bruce Berkowitz Mid-Year Manager's Letter From Fairholme
July 31, 2017 More...

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Berkowitz Raises Stake in St. Joe Guru's holding exceeds 36% of company's shares Bruce Berkowitz, Fairholme Fund - Berkowitz Raises Stake In St. Joe
Bruce Berkowitz (Trades, Portfolio), founder and managing member of the Fairholme Fund (Trades, Portfolio), raised his stake in The St. Joe Co. (NYSE:JOE), a Florida-based land development company, by 1.37% on July 14 with the purchase of 343,428 shares for $18.55 per share. The purchase had a 0.61% impact on the portfolio. More...

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Bruce Berkowitz Comments on Seritage Guru stock highlight
Daniel Schmerin: To what extent does Seritage get dragged down by the challenges that Sears has faced in its retail operations? Can Seritage effectively absorb properties that Sears is turning over to them, while continuing the pace of redevelopment on its other projects?Bruce Berkowitz (Trades, Portfolio): There’s no doubt that Seritage has been tarnished by perceptions of Sears. But the company will be able to continue its pace of redevelopment, especially given the nature of the calls and the puts. Seritage will call a property when they have tenants lined up for that space with much higher rental rates. And if Sears puts part or all of a property to Seritage, then Seritage receives one year’s worth of rent and operating expenses and most likely, they’ve already identified potential customers for the space. So, I don’t envision More...

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Bruce Berkowitz Comments on Sears Canada Guru stock highlight
Daniel Schmerin: Turning to Sears Canada (NASDAQ:SRSC), is it inaccurate to think of Sears Canada as a mini version of Sears? What makes you think that Sears will not follow the same path as Sears Canada? More...

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Bruce Berkowitz Comments on Sears Holdings Guru stock highlight
Bruce Berkowitz (Trades, Portfolio): Fairholme’s latest internal figures have Sear (NASDAQ:SHLD) at a net asset value (NAV) of over $90 per share. This figure has been dramatically reduced over time due to the retail cash burn. We come up with the $90+ per share based upon the remaining real estate of the company – including long-term leases, which we have significantly discounted to be conservative – and, of course, the other major asset values including the remaining brands and approximately $3 billion of paid-for inventory. So it’s the owned real estate, leases, and the brands that account for the majority of our estimated NAV.In terms of real estate, the company’s been actively selling real estate over the years. Since 2012, the company sold more than 50 million square feet of owned real estate for more than $4 billion. That’s about $80 per square More...

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Bruce Berkowitz Comments on St. Joe Guru stock highlight
Daniel Schmerin: Bruce, I’d like to return to The St. Joe Company (NYSE:JOE) (“St. Joe”) and wrap up. You recently said that if you could only invest in one of our positions, St. Joe would be it. A shareholder asks a slightly different question: If you had no investment positions at all, what is the first investment you would put money into today? Would it still be St. Joe?Bruce Berkowitz (Trades, Portfolio): Yes, it would.Daniel Schmerin: So what is happening at St. Joe these days that gives you cause for optimism and what is the timeline for meaningful profitability?Bruce Berkowitz More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac Guru stock highlight
Daniel Schmerin: The remaining Fannie Mae (FNMA) and Freddie Mac (FMCC) questions pertain to the ongoing litigation so I’d like us to turn to David Thompson from Cooper & Kirk, whose team has been representing the Fairholme Fund (Trades, Portfolio) on behalf of all our shareholders. David, I get to speak to you every day but our shareholders do not, so given the large number of questions that we’ve received on this topic I wonder if you could begin by providing some historical context.How do these cases compare to Glendale Savings or the Winstar litigations? And have you ever seen such blatant overreach by the administrative state before?David Thompson: Dan, I think there More...

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Bruce Berkowitz's 2nd Quarter Fairholme Capital Management Public Conference Call Part II June 2017 conference call with Fairholme founder and chief investment officer Bruce Berkowitz - Bruce Berkowitz's 2nd Quarter Fairholme Capital Management Public Conference Call Part II
Daniel Schmerin: The remaining Fannie Mae and Freddie Mac questions pertain to the ongoing litigation so I’d like us to turn to David Thompson from Cooper & Kirk, whose team has been representing the Fairholme Fund (Trades, Portfolio) on behalf of all our shareholders. David, I get to speak to you every day but our shareholders do not, so given the large number of questions that we’ve received on this topic I wonder if you could begin by providing some historical context. More...

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Bruce Berkowitz's 2nd Quarter Fairholme Capital Management Public Conference Call Part I June 2017 conference call with Fairholme founder and chief investment officer Bruce Berkowitz - Bruce Berkowitz's 2nd Quarter Fairholme Capital Management Public Conference Call Part I
Moderator: Daniel Schmerin More...

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The Superconcentrated Portfolio of Bruce Berkowitz The guru has committed his flagship mutual fund’s future to just a couple of stocks including one in a disrupted industry Bruce Berkowitz,Fairholme Fund - The Superconcentrated Portfolio Of Bruce Berkowitz
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GURUS, INVESTING GURUS, BRUCE BERKOWITZ, FAIRHOLME CAPITAL, FAIRHOLME FUND, VALUE, BUY AND HOLD, CONVICTION, CONCENTRATED, MUTUAL FUNDS, FUNDAMENTAL, BOTTOM UP, DISCOUNT


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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


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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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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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