Bruce Berkowitz is the founder and manager of the $11 billion Miami-based Fairholme Fund, which just celebrated its tenth anniversary. Along with Charles Fernandez, he runs the fund’s portfolio management team. Last week, Mr. Berkowitz was named
As long as we stay focused on that concept and know that was yesterday’s news and move forward, we will be okay. I’ve seen too many really good people who are killed by success; they get too big or become managers of people rather than managers of investments.
I’ve had a lot of fun and continue to enjoy myself. We expand our circle of competence - slowly. We hopefully get better and wiser and don’t make the same mistake twice. After about 30 years I’ve made my fair share of mistakes.
I’m using every device I know of to make sure we maintain a level playing field and put ourselves in the shoes of our shareholders. The only way to do that is to become as large a shareholder as possible.
What happens if a small nuclear device goes off in a city? Or what happens under extreme conditions of inflation? The idea is to think of the worst and hope for the best. That is why we hold, on average, significant cash. Cash becomes extremely valuable under extreme adversity.
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