Bruce Berkowitz’s approach as a value investor is characterized by concentrated investments in only a few stocks, which can lead to both significant gains and losses.
Fairholme Capital Management has generated remarkable returns of 942% over two decades, significantly outperforming the S&P 500, which only managed 413% in the same period.
Berkowitz's biggest misstep was heavily investing in AIG, which, despite repaying its loans, saw its stock plummet by 46% in 2011, costing Fairholme a negative 32% return that year.
As a high-risk, high-reward investor, Berkowitz currently has 85% of his portfolio in St. Joe, showcasing his continued strategy of concentrated bets on select stocks.
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