Value Investing Pro

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It’s hard not to listen to Bruce Berkowitz. The firm named after a street he grew up in has compounded a track record many firms can only dream of. Berkowitz avoided most financials after he found their reports too difficult to understand. In addition, he sold the majority of his energy holdings just as commodity prices were peaking .  After selling energy stocks near the peak, Bruce went overweight on health care and defense stocks putting about 20% of the funds assets in Pfizer (PFE) and Forest Laboritories (FRX). Now in his latest interview with Forbes, Bruce touches on several points such as the recent market correction, junk bond yields, health care, etc..

Bruce Berkowitz On American Express and Financials

Bruce Berkowitz Forbes 2009 Interview

Notes On Bruce Berkowitz Forbes Interview

• The Fairholme Fund (FAIRX) has over $10B in assets
• Currently charges a fixed 1% fee
• Has the majority of his wealth in the fund (Fairholme) to feel the pain and joys of his shareholders
• Tries to have 15 to 25 companies in the fund. Also, tries to keep cash in “the mid teens”
• Value Investing is all about what you give and what you get over time
• Health care stocks continue to be bargains as they currently have double digit free cash flow yields
• Has repurchased Berkshire Hathaway
• There are still a lot of good stuff out there (bargains)

Fairholme Returns and Fairholme Holdings

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