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FAIRHOLME FUNDS’ BRUCE BERKOWITZ’ DEEP VALUE, CONTRARIAN APPROACH THAT’S STILL BEATING THE MARKET

Bruce Berkowitz is the founder and CEO of Fairholme Capital Management and a legendary value investor. In this exclusive interview, he talks about his deep value, contrarian approach, his current strategy, and the lessons he’s learned over the years.

Berkowitz’s Fairholme Fund was once a top performer, returning better than 13% annualized returns in its first decade. But it has since lagged the market and become extremely volatile. Today, 82% of the fund is concentrated in one stock: The St. Joe Company, a Florida real estate developer and manager.

Berkowitz reveals the highs and lows of his career and shares his insights on value investing, contrarian thinking, and the future of the markets.

WEALTHTRACK Episode #2019 broadcast on November 02, 2023

Listen to the audio-only version here:

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BRUCE BERKOWITZ

  • Founder & Chief Investment Officer, Fairholme Capital Management
  • Portfolio Manager, Fairholme Fund
  • Portfolio Manager, Fairholme Focused Income Fund 

ACTION POINT

UNDERSTAND WHO YOU ARE INVESTING WITH

BOOKSHELF

Security Analysis: Principles and Technique

ONE INVESTMENT

CASH INCOME

BUY ENTERPRISE PRODUCTS PARTNERS LP

  • 7½% cash income distribution
  • 15% per annum total return over the past 25 years
  • Estimate 15% per annum over the next 25 years
  • Caveat: master limited partnerships have complex tax treatment 

 

STOCK, BOND, FUND MENTIONS

Enterprise Products Partners LP (EPD)

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The St. Joe Co. (JOE)

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Fannie Mae: Federal National Mortgage Association (preferred stock) 

Freddie Mac: Federal Home Loan Mortgage Corporation (preferred stock)

Berkshire Hathaway Inc Class B (BRK.B)

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W.R. Berkley Corp (WRB)

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FROM THE ARCHIVES

Bruce Berkowitz from the WEALTHTRACK Archives…

Bruce Berkowitz from the Archives

WEB EXTRA

HANDLING FINANCIAL SETBACKS

Award-winning value investor Bruce Berkowitz opens up about how he has handled major financial setbacks, including failed attempts to take mortgage giants Fannie Mae and Freddie Mac out of government conservatorship and turn struggling retailer Sears into a leading real estate developer.