Fairholme Fund 2007 Semi-Annual Report

Fairholme 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).