Fairholme Fund 2007 Semi-Annual Report

Bruce BerkowitzFairholme Fund released their 2007 Semi-Annual Report. I highlight some points below:

  • Top 10 Holdings
    • Berkshire Hathaway, Inc. 17.76%
    • Canadian Natural Resources Ltd. 16.53%
    • EchoStar Communications Corp. 8.04%
    • Penn West Energy Trust 5.49%
    • Mohawk Industries, Inc. 4.64%
    • Eastman Chemical Company 4.18%
    • Leucadia National Corp. 4.09%
    • Ensign Energy Services, Inc. 3.27%
    • USG Corp. 2.97%
    • Sears Holdings Corp. 2.53%
  • Portfolio Review
    • Berkshire Hathaway remains our largest single investment, and for good reason.
    • Canadian Natural Resources is our single largest energy investment – with outstanding management teams that have performed well in both high and low price environments.
    • Housing related industries continue to interest us as stress seems widespread but with little forced liquidation to date.
  • Commentary
    • If most are greedy, we prefer to be fearful.
    • When contemplating “hundred-year” floods, it’s worth remembering that predicting rain doesn’t count, but building arks does.
    • Although not immune, we understand that being prepared for unpredictable stock market storms is an integral part of the process of seeking above average long-term results.
    • While always prepared to snap at the right opportunity, we view the Fund’s meaningful cash and U.S. Treasury Bill holdings to be a strategic advantage, as are the strong balance sheets and stress tested managers of the Fund’s core companies.
Direct Link (PDF) - Fairholme Fund 2007 Semi-Annual Report

*You can also watch CNBC Interview with Burce Berkowitz on June. Bruce talks about value in oil & gas sector, good manager traits and his picks - Canadian Natural Resources (CNQ), Berkshire Hathaway (BRK.A).

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