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Fairholme fund


frog03

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The semi-annual report came out recently and it looks like they don't own a single share of Berkshire in the fund.  I know they had materially cut the position over the last year or so but did not expect to not see a single share...

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Guest dealraker

Very old news frog as Berkowitz has explained in great detail a couple of times (in print and in person) why he exited Berkshire Hathaway many months ago.

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  • 2 weeks later...

According to GuruFocus Fairholme bought Berkshire shares in Q2 2009. Berkowitz bought roughly equal dollar amounts of A and B shares. The total investment in Berkshire is equal to about 2% of Fairholme's portfolio. As mentioned above Fairholme had sold all its Berkshire shares. And now apparently returned - in a small way - to Berkshire in Q2 2009.

 

http://www.gurufocus.com/holdings.php?GuruName=Bruce+Berkowitz&sort=position

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Some comments from Berkowitz on Fairholme's return to Berkshire:

 

"But given the dislocations that we've just gone through, and given the sort of Rock of Gibraltar balance sheet of Berkshire Hathaway, and given the cash he had on hand, he has been able to put a tremendous amount of cash to work. So besides the fact that the Berkshire Hathaway stock price went down, and at the same time he's making some tremendous investments in various industries, whether it's General Electric, Swiss Re, Goldman Sachs. And, and given also some of the other fixed income deals he's done, and some of the insurance on the indices done, he's really, Berkshire Hathaway is positioned to have a nice little spurt, at least a regression back to its mean from where it's come from. But after all, Berkshire's hardly done anything for about 10 years now. So it's had a nice rest break."

 

Video: http://www.forbes.com/2009/08/21/berkowitz-fairholme-pfizer-intelligent-investing-video.html

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