One of the most prominent coverage fund managers of Wall Street and founder of Fairholme Capital ManagementBrukowitz’s billionaire history and the unique investment approach make its portfolio options worth it. Berkowitz is known for its bets on non-demanding assets, its high convention investment style and its rare ability to observe dollars sold bills for cents and transits to keep them until the market is over.
His ability to focus on the facts and ignore the market talk has helped him to give strong results and gained heavy recognition in the industry. Appointed Morningstar-Stock Fund Manager of Morningsar in 2009 and the money manager of the Institutional Investor Magazine magazine in 2013, his honors emphasize his reputation as a value investor worth following.
Berkowitz has always believed in possessing a good handful of stocks. These stocks, however, are those that he believes in deeply. After all, the high convention investment is the name of the game.
“You only need some ideas throughout life to do it incredibly well.”
He is also a firm believer actually. The hated assets usually have a hidden value and the trick, according to him, is to look at the facts instead of reacting to the trauma as others do.
“Ignore the crowd. Count what matters.”
In an interview with Bill Brewster from The Business Brew, Bruce Berkowitz talked about how Fairholme began with a simple mission: to manage his family’s money. From the beginning, Fairholme was not a marketing organization. Rather, the unique background approach had a value creation instead of asset collection. Focusing only on deep research and concentrated positions, Berkowitz often managed portfolios with only some ideas.
Over the years, Berkowitz learned how financial metrics, which he trusted in the early years, were not the only factors to consider. Rather, the quality of management and ownership of ownership were equally important. This change in perspective has made it more selective, as it firmly believes that proper leadership can make or break an organization, especially in difficult times. That said, Berkowitz emphasized in the interview, as it avoids doing business with executives where he does not trust, regardless of the brightness that the financiers may seem.
In addition, Berkowitz’s investments are almost completely focused on us. The only reason for this strategy has been his commitment to profound understanding and control. According to him, Sound Investing requires a good understanding of the regulatory environment of the company, the tax structure, the supply chain and other related factors. Building this level of expertise was limited to its universe in the United States, where it focuses comfortably on a few of three to six positions, trying to fully understand the industry, competitors, suppliers and more. According to him, the US is a solid market for operation, especially for value that investors dream of the valuation and preservation of capital.
“His aptitude to choose actions is the difference of his peers, and the Fairholme portfolio is filled with attractive price firms that generate a high free free cash flow. The Berkowitz strategy has caused a long -term stellar record and their large cash bets have helped limit volatility.”
For this list, we chose actions of the portfolio 13f of Fairholme Capital Management in the late fourth quarter of 2024. We listed them in the ascending order of the potentials in reverse of the analysts, from May 9. These actions are also popular among other coverage funds. The data from the coverage fund is from the fourth quarter of 2024.
Why are we interested in the stocks that cover the funds? The reason is simple: our research has shown that we can overcome the market by imitating the best stock options for the best coverage funds. The strategy of our quarterly bulletin selects 14 stocks of small layers and large layers each quarter and has returned 373.4% since May 2014, surpassing its reference point at 218 percentage points (Check out more details here)).
LP (ET) Energy Transfer: Between the actions of Bruce Berkowitz billionaire with more potential on reverse
Fairholme Capital Management’s Stake: $ 16,708,311
Number of coverage fund holders: 37
Average potential at the coating: 34.5%
LP energy transfer offers energy -related services in the United States. The company is in a large position near the Permian basin and has expanded operations through acquisitions and key mergers such as the Lotus Midstream, Crestwood Equity Partners and the purchase of WTG Midstream, which operated the largest permian gas business with assets located in the nucleus of the Midland basin. These offers have significantly improved their position in the Permian region.
On May 7, Wells Fargo’s analyst Michael Blum maintained a “overweight” rating for shares, but reduced his price goal from $ 22.00 to $ 21.00. The qualification means continuous optimism for LP energy transfer and that the firm expects a better performance than the average compared to other stocks in the sector. The company recently reported its first quarter results by 2025, revealing mixed performance against market expectations.
Exceeded ACTION (EPS) forecasts, which reported $ 0.37 compared to $ 0.36. However, revenue was reduced to expectations, generating $ 21.02 billion against a forecast of $ 22.42 million. The company has an attractive dividend performance of 7.54% and has increased its dividend for three consecutive years.
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