Bruce Berkowitz- An Intro
Taking an approach to money managing reminiscent of Warren Buffet, Bruce Berkowitz has spurned the traditional advice of his business school education, focusing on a few top performing companies rather than diversifying his portfolios.
His strategy stems from the philosophy that being knowledgeable and intelligent about the companies you choose to invest in is more sensible than picking multiple stocks to throw money at in the hopes this will cover any lack of knowledge about the investment.
These days, the Fairholme fund outperforms much of the competition, yielding positive returns even in this struggling economy. The fund Bruce Berkowitz founded in 1999 looks for opportunities in the morass of failing businesses where the beginnings of future star performers can be made. The Fairholme fund has proven that this strategy is effective, delivering comfortable returns every year that consistently beat the S&P 500.
When the Fairholme fund managers seek out a new investment opportunity, high on the list of priorities are business with heavy cash flow, and a promising line of services or products that won’t soon become obsolete.
Among the current lineup of twenty two stocks, the latest additions to the Fairholme fund include a stake in the health care industry with investments in United Health Group, Pfizer, and Forest Laboratories.
According to bruce berkowitz, health care is ripe to become a top performing industry. Indicators of this are the projected needs of Baby Boomers as they continue to age, which also makes drug companies like Pfizer an excellent choice for providing the needed medications of future generations. Drug companies that are well entrenched in the health care industry at present stand to gain significantly in the coming years.
If the success of Warren Buffet is any signal as to how the strategy of the Fairholme fund will perform in the coming years, we can expect Bruce Berkowitz to become one of the most talked about fund managers in the near future.
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