Value Investing: Lessons Learned

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.
#valueinvesting #freddiemac #fanniemae #investingstrategy
00:00 Hello
00:56 Introduction
03:22 Interview with Bruce Berkowitz
17:35 One Investment
24:56 Action Point
WEALTHTRACK #2019 originally broadcast on November 03, 2023
More info: wealthtrack.com/fairholme-fun...

[@Dinngg0]

Did you say invested 80% in just one stock? Why invest in the fund then, and pay the fees; just own that stock?

[@r64g]

Precisely. I stopped watching this video once I heard that. How can he claims to be a good fiduciary to his fund shareholders when he charges the hefty fee while being so concentrated? People can simply buy that stock themselves.

[@oneshot2g]

Seems like they didnt learn from their earlier lessons of being overly concentrated.

[@danp3808]

You pay him to select that one company.
If you can select one company every few years that consistently outperforms - than you’re right - don’t pay a fund manager

[@wangstick]

Bruce is basically in retirement, has been for years. Hence he is OK with a not really caring about the portfolio.

[@scottiebumich]

Thanks for this. I'm a huge EPD holder. It makes up 7% of my portfolio

[@jefflking2]

Enjoyed seeing Bruce B.

[@user-zy1zv4yc2h]

CONSUELO you and your show opened my mind very much while I was detained. I appreciate all You and Your team are ❤

[@wendybradford9050]

Smart man. Good returns. Its sad when the govt does not respect ownership. Such a good story. Be wary of highly regulated companies is the lesson learned.

[@lionels839]

I love this guy. Nice to hear from him.

[@scipioafricanus4875]

Thanks!

[@dallemj9444]

Best video Bruce Is a legend ... his days are coming 💫

[@juannunez7045]

Good interview with Bruce had not seen him do an interview in a while I will never forget that Fannie Mae I lost money on the trade

[@deannahouston8801]

What a delightful down-to-earth man. He was refreshing.

[@yappydabbad9323]

From the looks of the fairholme portfolio freddie mae now only consist of 0.65% of assets so even if he gets par value on the preferred it'll only generate 6.5% return on his portfolio.

[@power6556]

Thanks Consuelo

[@JCDAARSONIST]

Awesome

[@AuditorInvestor]

Wow great - was wondering where he was.

[@okamiBrest]

What about his investment in Sears Holdings for a decade where he lost 99% value ?

[@scipioafricanus4875]

Enlightening thanks

[@cmiksee1932]

So difficult for contrarians to know when to sell. That and portfolio concentration are toxic.

[@beverlyhills7883]

So why isn't Fannie & Ginnie a Buy now, even if they are on the pink sheets?

[@BLR1GBattlemaster]

If you look at how FAIRX has done over the past 23 years or so, especially if you account for the expense ratio, you would have done better just sticking your money in 30 yr treasuries or 10 yr treasuries and rolling them over ever year or so.

[@HelloWorld-hb7yt]

right, he was too stubborn for few years, that cost him big time.. Bill Ackman was almost on the same route, but pivoted and it wasn't disaster like Bruce, but good to see him back doing interviews.

[@chuckdiezel7652]

Sears Holdings?

[@impala6464]

That's what I said!

[@rokyericksonroks]

BB was overruled by Mr. Lampert, who thought it could be resurrected as a retailer. Bruce saw it as a RE play.

[@maddoxbromley6426]

But isnt EPD a highly regulated company? Seems like a pipeline company would be at risk

[@impala6464]

I'll keep building my GNL dividend position and it will never be 80% of my portfolio.

[@MrBlueOkie]

Understand your investment and explain it to a 10 year on how it makes money.

[@brianhollenbeck8633]

😁

[@WhiteCloud746]

Fairholm Fund over 10 years is 98th percentile, i.e. 98% of its competitors have outperformed it. This guy has been a DISASTER for his investors. I'm stunned to see him hosted on Consuelo's show and stunned to see the plaudits and praise in the comments on this video. FAIRX has been so bad Morningstar stopped rating it. His story about Fannie and Freddie is wishful thinking and spin.

[@gregt5530]

I was able to get out of this years ago with minimal losses. I am sure many not so lucky. He has been a disaster for many many many years now. He should have known better than to think the FED govt was going to hand him a pot of gold....and Sears was another epic disaster.

[@rokyericksonroks]

“Twice the performance of the S&P 500 since 2000” ~ (18:32)

[@gregt5530]

@@rokyericksonroks lol and WAY under for well over a decade

[@Long_Tail_of_Finance]

Seems like Bruce might be open to embracing BTC given he's still pissed at the government.

[@HelloWorld-hb7yt]

good to see you Bruce..... SEARSSSS. Holdings... you lost me $30k lol