Hindsight is 20/20
Through the years Fairholme's ideas about specific securities or industries may have evolved, but year in and year out the song remains the same: Attempt to safeguard principal before all else. Buy well below intrinsic value with a wide margin of safety. Count the cash. Invest alongside shareholders. Focus only on best ideas. Embrace the shunned. Ignore the crowd.
These vintage interviews give insight into Fairholme's thinking at waypoints over the years. For other contemporaneous viewpoints you may read through Fairholme's archives of Management Letters and Reports.
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Bruce Berkowitz, Executive in Residence, University of Miami. November 8, 2012.
Bruce shares his value investing experiences with students and alumni as part of the Business School's Executive-in-Residence program. Bruce discusses everything from his investing philosophy, to specific investments in General Growth Properties and Sears, the financials, the Fairholme Foundation, and much more. Introduction by Fred Fraenkel, Fairholme's Chief Research Officer. 34 minutes.
Consuelo Mack's WealthTrack. September 16, 2011.
Consuelo grills Bruce on his early investments in then-battered and disparaged financials like AIG and Bank of America. A must watch for current and prospective investors to see firsthand Bruce's ability to recognize bargains and opportunity while the investing mainstream sees only inevitable ruin.
Consuelo Mack's WealthTrack. August 27, 2010.
Morningstar's Fund Manager of the Decade is raising eyebrows by investing more than half of his Fairholme Fund in beaten down financial stocks. He explains why he believes it will pay off, and talks about bad bank loans burning off, government intervention in the markets, and the market recovery.
Fox Business. January 22, 2010.
Bruce discusses the Funds' conservatism and holding double digit cash reserves. He mentions that Fairholme does not predict markets, but rather reacts to market pricing. Healthcare, Pfizer, and Forest Labs are mentioned, and Bruce talks about his agnosticism about markets and industries. Berkshire Hathaway and Warren Buffett's investment in railroads are covered, and Bruce gives an introduction to the recently launched Fairholme Focused Income Fund.
PBS Of Mutual Interest. November 3, 2009.
Bruce talks with PBS about ignoring the crowd, focusing on his best ideas only, and using double digit cash reserves as a "financial Valium." Berkshire Hathaway and healthcare stocks such as Humana and WellPoint are mentioned as positions held at the time.
Steve Forbes talks with Bruce Berkowitz. August 2009, in 3 parts.
Bruce discusses the founding of the The Fairholme Fund, focused investing, holding a big cash cushion, getting through tough times, buying high-yield bonds, and ignoring the crowd.
In Part 2, Bruce talks about reacting to the market rather than predicting it, and discusses the roles of patience and fortitude. Healthcare stocks are discussed in some depth, as well as the future of the healthcare system in America. St Joe and Berkshire Hathaway are also covered.
The conversation in Part 3 includes credit markets, and whether Bruce thinks investors should hire a money manager or go it alone.
Consuelo Mack's WealthTrack. "Great Investor" Series. February 21, 2010.
In this installment of Wealth Track's "Great Investor" series, Consuelo Mack talks with Bruce Berkowitz about Fairholme's investment in Sears, and investors' "perverse psychologies."
Morningstar and Bruce discuss basic Fairholme principles, and specifically St. Joe, AmeriCredit, and Sears in some depth; Sears remains a top Fairholme holding six years later.
Bruce discusses Fairholme's tenets and the Fund's focus on healthcare in 2008.