This page lists the portfolio holdings of Bruce Berkowitz.
Stock Holdings
Bruce Berkowitz - Fairholme
Period: Q2 2010
Portfolio date: 31 May 2010
No. of stocks: 26
Portfolio value: $9,902,331,000
| Symbol | Stock | % of portfolio | Shares | Recent activity | |
| SHLD | hist | Sears Holdings Corp. | 11.44 | 12,860,071 | Reduce 3.16% |
| AIG | hist | American Int'l. Group | 10.19 | 28,509,000 | Buy |
| GS | hist | Goldman Sachs Group | 8.13 | 5,578,900 | Buy |
| C | hist | Citigroup Inc. | 8.07 | 201,896,100 | Add 4.21% |
| BAC | hist | Bank of America Corp. | 6.62 | 41,626,700 | Add 16.23% |
| JOE | hist | St. Joe Co. | 6.43 | 23,036,502 | |
| HUM | hist | Humana Inc. | 5.96 | 12,811,600 | |
| ACF | hist | AmeriCredit Corp. | 5.45 | 24,959,145 | Reduce 20.86% |
| RF | hist | Regions Financial Corp. | 5.21 | 67,636,004 | |
| BRK.A | hist | Berkshire Hathaway CL A | 4.23 | 3,959 | Add 7.35% |
| SPR | hist | Spirit AeroSystems Holdings Inc. | 4.02 | 20,430,500 | Reduce 12.72% |
| HTZ | hist | Hertz Global Hldgs Inc. | 3.90 | 34,004,900 | Reduce 31.29% |
| CIT | hist | CIT Group | 3.72 | 10,000,829 | Reduce 9.57% |
| CMCSK | hist | Comcast Corp. CL A Spl | 3.55 | 20,429,800 | |
| BRK.B | hist | Berkshire Hathaway CL B | 2.73 | 3,826,350 | Reduce 5.37% |
| LUK | hist | Leucadia National Corp. | 2.68 | 12,123,274 | |
| ESVIF | hist | Ensign Energy | 1.51 | 11,912,000 | Reduce 1.59% |
| MBI | hist | MBIA Inc. | 1.44 | 19,108,500 | Buy |
| CMCSA | hist | Comcast Corp. | 1.35 | 7,394,900 | |
| WCG | hist | Wellcare Health Plans Inc. | 1.16 | 4,228,200 | |
| RRR | hist | RSC Holdings Inc. | 0.75 | 10,223,900 | Add 0.00% |
| MS | hist | Morgan Stanley | 0.56 | 2,050,100 | Buy |
| JZEOF | hist | JZ Equity Partners | 0.46 | 10,855,645 | Reduce 1.07% |
| FUR | hist | Winthrop Realty Trust Inc. | 0.38 | 2,939,448 | Reduce 1.65% |
| TAL | hist | TAL International Group Inc. | 0.05 | 201,049 | Reduce 9.29% |
| CWX.TO | hist | CanWel Buildings Corp. | 0.01 | 196,317 | Reduce 59.85% |
Sector % analysis
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| Consumer Discretionary | |
| Services | |
| Health Care | |
| Industrial Goods |
Articles & Commentaries
28 Aug 2010 Video: Bruce Berkowitz on Consuelo Mack WealthTrack
Bruce Berkowitz,. Morningstar’s Fund Manager of the Decade is raising eyebrows by investing more than half of his Fairholme Fund in beaten down financial stocks. He’ll explain why he believes it will pay off...
Bruce Berkowitz,. Morningstar’s Fund Manager of the Decade is raising eyebrows by investing more than half of his Fairholme Fund in beaten down financial stocks. He’ll explain why he believes it will pay off...
04 Aug 2010 How Fairholme Is Breaking Wall Street's Rules
It is a double irony that Mr. Berkowitz happened to launch Fairholme in 1999, near the peak of the big 1990s bubble. That was the high water mark of two myths: That stocks 'always outperform,' and that you can't possibly beat the market, so you should stop trying and just give in to index funds. The decade since has buried both of those myths. And Mr. Berkowitz, and his investors, have been dancing on their graves.
It is a double irony that Mr. Berkowitz happened to launch Fairholme in 1999, near the peak of the big 1990s bubble. That was the high water mark of two myths: That stocks 'always outperform,' and that you can't possibly beat the market, so you should stop trying and just give in to index funds. The decade since has buried both of those myths. And Mr. Berkowitz, and his investors, have been dancing on their graves.
30 Jul 2010 Fairholme Fund - Q2 2010 Commentary
Over one-half of The Fairholme Fund’s assets are invested in securities of mostly hated financial services and real estate related companies. After all, “there is no job growth without economic growth; no economic growth without access to credit; no access to credit without a stable, functioning financial system. Financials tend to lead markets into and then out of recessions followed by asset deflation and then inflation. Never being 100% certain as to events and timing, approximately 20% of the Fund’s assets are in relatively, short-maturity corporate debt and cash equivalents.
Over one-third of The Fairholme Focused Income Fund is invested in short-term credits of American International Group, Inc. (“AIG”), General Growth Properties, Inc. (“GGP”) and others that are perceived to be or are in actual financial stress. Underlying equities lead us to believe that all are “money good.” Nearly two-thirds of the Fund is invested in cash and what we consider to be cash equivalents.
You should also note our large and growing debt and equity holdings of AIG and GGP. Like their industry brethren, both were in critical condition from last year’s credit freeze and both appear to be thawing from near-death experiences. We believe a moderate climate will allow AIG to repay U.S. taxpayers and GGP to emerge from its self-induced bankruptcy. Further, Fairholme Funds has agreed to buy new GGP trust shares, subject to numerous terms and conditions.
Portfolios are positioned for today’s nascent recovery with its fits and starts. Don’t Lose remains Rule #1 as we strive to be greedy when most remain fearful about the future.
Over one-half of The Fairholme Fund’s assets are invested in securities of mostly hated financial services and real estate related companies. After all, “there is no job growth without economic growth; no economic growth without access to credit; no access to credit without a stable, functioning financial system. Financials tend to lead markets into and then out of recessions followed by asset deflation and then inflation. Never being 100% certain as to events and timing, approximately 20% of the Fund’s assets are in relatively, short-maturity corporate debt and cash equivalents.
Over one-third of The Fairholme Focused Income Fund is invested in short-term credits of American International Group, Inc. (“AIG”), General Growth Properties, Inc. (“GGP”) and others that are perceived to be or are in actual financial stress. Underlying equities lead us to believe that all are “money good.” Nearly two-thirds of the Fund is invested in cash and what we consider to be cash equivalents.
You should also note our large and growing debt and equity holdings of AIG and GGP. Like their industry brethren, both were in critical condition from last year’s credit freeze and both appear to be thawing from near-death experiences. We believe a moderate climate will allow AIG to repay U.S. taxpayers and GGP to emerge from its self-induced bankruptcy. Further, Fairholme Funds has agreed to buy new GGP trust shares, subject to numerous terms and conditions.
Portfolios are positioned for today’s nascent recovery with its fits and starts. Don’t Lose remains Rule #1 as we strive to be greedy when most remain fearful about the future.
13 Jul 2010 Berkowitz increases stake in AIG
Bruce Berkowitz of Fairholme Capital Management indicated an increased stake in AIG in a Filing on Monday. As of June 30th, the firm showed an ownership of 32,789,000 shares of AIG, representing 24.3% of the shares outstanding.
Bruce Berkowitz of Fairholme Capital Management indicated an increased stake in AIG in a Filing on Monday. As of June 30th, the firm showed an ownership of 32,789,000 shares of AIG, representing 24.3% of the shares outstanding.
10 May 2010 Fairholme increases stake in AIG to 19%
In a SEC filing, Fairholme, run by value investor Bruce Berkowitz, revealed a holding of 25 million shares in AIG at the end of the 1st quarter. Fairholme now owns about 19% of AIG's shares outstanding.
In a SEC filing, Fairholme, run by value investor Bruce Berkowitz, revealed a holding of 25 million shares in AIG at the end of the 1st quarter. Fairholme now owns about 19% of AIG's shares outstanding.
16 Mar 2010 Berkowitz Invests in AIG, ‘Still a Good Company’
Fairholme began acquiring the securities in the second half of 2009 “as we started to see cash flows of AIG turn positive,” Berkowitz said. “It is still a good company with a good global brand.” He said he has not disclosed the stakes in public reports...
Fairholme began acquiring the securities in the second half of 2009 “as we started to see cash flows of AIG turn positive,” Berkowitz said. “It is still a good company with a good global brand.” He said he has not disclosed the stakes in public reports...
04 Feb 2010 Video/Transcript: Bruce Berkowitz interviewed by Morningstar
The Fairholme manager explains the reasoning behind recent stock sales--including Pfizer--and the portfolio's shift from defense to offense...
The Fairholme manager explains the reasoning behind recent stock sales--including Pfizer--and the portfolio's shift from defense to offense...
14 Jan 2010 Video: Bruce Berkowitz on Bloomberg
Bruce Berkowitz, head of the $11.2 billion Fairholme Fund, talks with Bloomberg's Margaret Brennan about his investment...
Bruce Berkowitz, head of the $11.2 billion Fairholme Fund, talks with Bloomberg's Margaret Brennan about his investment...
07 Jan 2010 Video: Bruce Berkowitz on CNBC
The Fairholme Fund's Bruce Berkowitz, Morningstar's domestic fund manager of the year, shares his investment secrets with CNBC...
The Fairholme Fund's Bruce Berkowitz, Morningstar's domestic fund manager of the year, shares his investment secrets with CNBC...
07 Dec 2009 Video: Bruce Berkowitz of Fairholme on CNBC
“There continues to be value in the market in certain sectors—we’re very focused on health care and some of the health insurers”...
“There continues to be value in the market in certain sectors—we’re very focused on health care and some of the health insurers”...
19 Nov 2009 Fairholme Fund's Bruce Berkowitz interviewed on Wealthtrack
Why Pfizer? Investing is all about what you pay and what you get. And for the prices we pay, we think the amount of cash that owners will eventually get will show a nice return in a company with a very solid triple-A like balance sheet run by a fairly new management team that's heading in the right direction: very defensive, recession-proof, everyone's again with the new administration coming down hard on anything that's health-related. It's caused the price the really ratchet down and the stock price. So that was the advantage. It was really a cheap price relative to the cash flows...
Why Pfizer? Investing is all about what you pay and what you get. And for the prices we pay, we think the amount of cash that owners will eventually get will show a nice return in a company with a very solid triple-A like balance sheet run by a fairly new management team that's heading in the right direction: very defensive, recession-proof, everyone's again with the new administration coming down hard on anything that's health-related. It's caused the price the really ratchet down and the stock price. So that was the advantage. It was really a cheap price relative to the cash flows...
24 Aug 2009 Video: Bruce Berkowitz interview with Steve Forbes
Bruce Berkowtiz talks to Steve Forbes about Fairholmes investment strategy and value investing...
Bruce Berkowtiz talks to Steve Forbes about Fairholmes investment strategy and value investing...
23 Aug 2009 Forbes interview with Bruce Berkowitz of Fairholme Funds
The health care companies are being vilified as the culprits when they give essential services, there's no real substitution at this point for their products and services and they make a nice profit but not too much of a profit, so it's not like they're gauging or there's some kind of egregious situation. So that's where we are. If you think about health care, it's very important to everyone and who's going to do it besides the companies that we own in our portfolio that are now doing it. Maybe that changes 10 to 15 years from now, but it's not changing tomorrow.
The health care companies are being vilified as the culprits when they give essential services, there's no real substitution at this point for their products and services and they make a nice profit but not too much of a profit, so it's not like they're gauging or there's some kind of egregious situation. So that's where we are. If you think about health care, it's very important to everyone and who's going to do it besides the companies that we own in our portfolio that are now doing it. Maybe that changes 10 to 15 years from now, but it's not changing tomorrow.
31 Jul 2009 Fairholme - Q2 2009 Commentary
Cheap stocks are not necessarily good investments. A cheap stock can become cheaper, as was proven over and over again over the past twelve months. Many once-unassailable blue-chip stocks were brought to their knees. World-class banks and financial companies required government assistance to weather the maelstrom. General Motors went through bankruptcy, which would have been unthinkable a decade ago.
Successful investing is about getting much more cash over time than you give. Buying cheap relative to expected cash flows is half the battle. Today, even though the market is up significantly from the March lows, the investments we own appear undervalued reflecting the market’s hangover from years of irrational exuberance.
For sure, it will take a long time to repair the damaged balance sheets of individuals, corporations and entire nations. Still, we are hopeful that the global economy is on the mend. One of our canaries in the economic coal mine is Hertz Global Holdings. In a June 25 interview on CNBC, Hertz CEO Mark Frissora said “we’ve seen continuous improvement every single week for the last 10 weeks in the US rent-a-car space on improving demand for the summer season. We’ve been buying a lot of cars the last eight weeks…. We’re scrambling to buy as many cars as we can.” Others are beginning to chirp, but are less sanguine.
At this time, healthcare and defense remain significant sectors for the Fund. We believe many companies in these sectors are undervalued as they offer essential services and products, have few if any substitutes and have strong cash flows. What’s more, their margins are high enough to assure a steady stream of profits but not so high as to draw in competitors. We believe they are in the sweet spot.
Since our start about nine and a half years ago through June 30, 2009, the Fund has appreciated at an average annualized rate of 12.06% compared to an average annualized loss of 3.06% for the S&P 500 Index. A $10,000 investment at The Fairholme Fund’s inception has grown to $29,507 after expenses while $10,000 invested in the S&P 500 Index for the same period has shrunk to $7,445 before expenses.
The Fund’s tenets are as always: Vigilance, Focus, Commitment and Value.
Cheap stocks are not necessarily good investments. A cheap stock can become cheaper, as was proven over and over again over the past twelve months. Many once-unassailable blue-chip stocks were brought to their knees. World-class banks and financial companies required government assistance to weather the maelstrom. General Motors went through bankruptcy, which would have been unthinkable a decade ago.
Successful investing is about getting much more cash over time than you give. Buying cheap relative to expected cash flows is half the battle. Today, even though the market is up significantly from the March lows, the investments we own appear undervalued reflecting the market’s hangover from years of irrational exuberance.
For sure, it will take a long time to repair the damaged balance sheets of individuals, corporations and entire nations. Still, we are hopeful that the global economy is on the mend. One of our canaries in the economic coal mine is Hertz Global Holdings. In a June 25 interview on CNBC, Hertz CEO Mark Frissora said “we’ve seen continuous improvement every single week for the last 10 weeks in the US rent-a-car space on improving demand for the summer season. We’ve been buying a lot of cars the last eight weeks…. We’re scrambling to buy as many cars as we can.” Others are beginning to chirp, but are less sanguine.
At this time, healthcare and defense remain significant sectors for the Fund. We believe many companies in these sectors are undervalued as they offer essential services and products, have few if any substitutes and have strong cash flows. What’s more, their margins are high enough to assure a steady stream of profits but not so high as to draw in competitors. We believe they are in the sweet spot.
Since our start about nine and a half years ago through June 30, 2009, the Fund has appreciated at an average annualized rate of 12.06% compared to an average annualized loss of 3.06% for the S&P 500 Index. A $10,000 investment at The Fairholme Fund’s inception has grown to $29,507 after expenses while $10,000 invested in the S&P 500 Index for the same period has shrunk to $7,445 before expenses.
The Fund’s tenets are as always: Vigilance, Focus, Commitment and Value.
28 May 2009 Video: Bruce Berkowitz on Bloomberg
Bruce Berkowitz of Fairholme likes Pfizer, Sears and Boeing...
Bruce Berkowitz of Fairholme likes Pfizer, Sears and Boeing...
28 May 2009 Video: Bruce Berkowitz on CNBC
How to make money by counting cash, with Bruce Berkowitz, Fairholme Capital Management president...
How to make money by counting cash, with Bruce Berkowitz, Fairholme Capital Management president...
06 Apr 2009 I think almost our entire portfolio is selling at a back-up-the-truck price!
Outstanding Investor Digest - Q&A with Fairholme’s Bruce Berkowitz.
...one of the definitions of a bear market is that there are more great ideas than money out there. And that’s what we’re facing today. There are just so many ways, in my opinion, to make significant money over the next decade or two...
Outstanding Investor Digest - Q&A with Fairholme’s Bruce Berkowitz.
...one of the definitions of a bear market is that there are more great ideas than money out there. And that’s what we’re facing today. There are just so many ways, in my opinion, to make significant money over the next decade or two...
31 Jan 2009 Fairholme fund Q4 2008 commentary
History has shown that it pays to be selectively bullish when most are indiscriminately bearish. Therefore, as the crowd sold, we bought common stocks of essential health care, defense and infrastructure-related companies and, ...
History has shown that it pays to be selectively bullish when most are indiscriminately bearish. Therefore, as the crowd sold, we bought common stocks of essential health care, defense and infrastructure-related companies and, ...