Berkowitz’s Top Stocks

In a recent Fortune article, top fund manager Bruce Berkowitz discusses his fund’s struggles in 2011 and its bounce-back in 2012, as well as some of his favorite stocks in the market right now. “I think it’s fair,” Berkowitz said of criticism he received when his fund, which had been extremely successful over the long term, was hit hard in 2011. “What’s not fair is to believe that a manager or a businessperson is in such control of companies that they can control any one-year period or two-year period. I’ve not seen it done. There’s a reason Warren Buffett judges […]

Berkowitz Still Going Against The Crowd On Financials

Top fund manager Bruce Berkowitz remains high on beaten-down financial stocks, saying that many have improving business trends and balance sheets and extremely cheap shares. Berkowitz tells WealthTrack’s Consuelo Mack that he started buying “systemically important companies” at huge bargains after the government recapitalized them, and after busines trends were recovering. Many were priced below liquidation value back then, he says — and they still are. But, he says, investors let fears keep them from believing the facts, and they have shunned financials. Berkowitz talks about the importance of ignoring the crowd, and why he’s comfortable running a concentrated portfolio.

Berkowitz’s Checklist and Lessons

After struggling in 2011, Morningstar Fund Manager of the Decade Bruce Berkowitz is rebounding strong in 2012, with his Fairholme fund in the top 1% of funds in its category year-to-date, according to Morningstar.com. And at a recent Columbia Investment Management Association conference, Berkowitz laid out his checklist for analyzing a company and its stock, and Market Folly offered a summary: 1. Can you kill it? Is there adult supervision at the company? 2. Is the company essential? Does it depend upon the kindness of strangers? 3. What can the company make? Profitability for owners. 4. Management – honest in past […]

Berkowitz Undeterred

Bruce Berkowitz, who was one of Morningstar’s Fund Managers of the Decade in the 2000s but saw his flagship portfolio hit very hard in 2011, is sticking to his guns. “Improving book value levels and ratios show companies recovering from tough times, prepared for uncertainty, and capable of profits without excess leverage,” Berkowitz writes in Fairholme Capital’s year-end manager’s report (click here for a PDF copy). “The Fund’s performance last year makes little sense in light of such positive trends and we can only hypothesize from public comments that investors did not fathom our financials’ assets. There appears little understanding […]

Berkowitz: For Banks, Focus on Today’s Data — Not Unfounded Future Fears

Bruce Berkowitz, who in 2010 was named one of Morningstar’s Fund Managers of the Decade but has been hit hard in the past year, says he continues to be high on unloved financial stocks that have been dragging his portfolio down. Berkowitz tells WealthTrack’s Consuelo Mack that all of the negativity about financials has driven many of their stock prices down to incredibly attractive levels. “The negatives are all uncertainty about the future. And what I try and do is focus on the facts of today,” he says. “So, when you look at the income statements, they’re making huge cash […]