Bruce Berkowitz - Fairholme Capital Portfolio Q2'2025: Top Holdings & Recent Changes
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Bruce Berkowitz, founder of Fairholme Capital, continues to demonstrate a disciplined approach to value investing. His Q2 2025 portfolio showcases a highly concentrated strategy, with a focus on a few key positions that reflect his long-term investment philosophy.
Portfolio Overview: Ultra-Concentrated Excellence
Portfolio Highlights (Q2 2025): - Market Value: $1,227.0M - Top 10 Holdings: 100.0% of the portfolio - Portfolio Size: 12 positions (no change) - Average Holding Period: 15 quarters - Turnover: 0.0%
Fairholme Capital's portfolio is notable for its concentration and stability, reflecting Berkowitz's commitment to long-term value investing. The lack of turnover indicates a high level of conviction in the selected companies, which is a hallmark of Berkowitz's investment style. His portfolio is designed to weather market fluctuations by focusing on a few, well-researched positions.
Top Holdings Analysis: Strategic Positions
The portfolio is dominated by ST JOE CO, which accounts for 78.5% of the portfolio, though Berkowitz reduced this position by 0.01%. Enterprise Products Partners L.P. remains unchanged at 13.8%, reflecting a steady commitment to this energy sector player. BANK OZK saw a significant addition of 45.15%, increasing its portfolio weight to 3.5%. Berkshire Hathaway Inc. (BRK-B) was reduced by 0.25%, now holding 1.9% of the portfolio. Occidental Petroleum Corporation also received an addition of 27.26%, now at 0.2% of the portfolio.
What the Portfolio Reveals
Berkowitz's strategy emphasizes quality over growth, focusing on companies with strong financials and potential for long-term value creation. The concentration in real estate and energy sectors indicates a strategic bet on these industries' resilience and growth prospects. The addition to Occidental Petroleum Corporation and increase in BANK OZK suggest an interest in financial and energy sectors, possibly due to their perceived undervaluation or growth potential.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| ST JOE CO | $963.7M | 78.5% | Reduce 0.01% |
| Enterprise Products Partners L.P. | $169.0M | 13.8% | No change |
| BANK OZK | $43.1M | 3.5% | Add 45.15% |
| Berkshire Hathaway Inc. (BRK-B) | $23.6M | 1.9% | Reduce 0.25% |
| WR BERKLEY CORP | $19.2M | 1.6% | No change |
| Energy Transfer LP | $3,020.5K | 0.2% | No change |
| Occidental Petroleum Corporation | $2,902.9K | 0.2% | Add 27.26% |
| BERKSHIRE HATHAWAY INC DEL | $728.8K | 0.1% | No change |
| Diamondback Energy, Inc. | $549.6K | 0.0% | No change |
The concentration in ST JOE CO highlights Berkowitz's willingness to bet heavily on a single position when he believes in its long-term potential. This approach requires deep research and conviction, as evidenced by the minimal turnover in the portfolio.
Investment Lessons from Bruce Berkowitz
Bruce Berkowitz's portfolio offers several key investment lessons: - Concentration When You Understand the Businesses: Berkowitz's strategy shows that focusing on a few well-researched positions can be highly effective. - Holding Periods Matter: The average holding period of 15 quarters underscores the importance of patience in value investing. - Quality Businesses Justify Premium Prices: Berkowitz's focus on companies with strong financials demonstrates that quality can justify higher valuations. - Position Sizing Requires Constant Attention: The adjustments in positions like ST JOE CO and BANK OZK show that even with a concentrated portfolio, position sizing is dynamic.
Looking Ahead: What Comes Next?
Given the current portfolio positioning, Fairholme Capital is well-equipped to navigate market fluctuations. The lack of cash deployment suggests that Berkowitz is content with his current holdings, though opportunities in undervalued sectors like energy and real estate might attract future investments. The strategic additions and reductions indicate a continued focus on value investing principles.
FAQ about Bruce Berkowitz's Portfolio
Q: What is the significance of Bruce Berkowitz's concentrated portfolio strategy?
A: Berkowitz's strategy emphasizes deep research and conviction in a few key positions, allowing for significant returns when those positions perform well.
Q: How does Fairholme Capital approach sector diversification?
A: While the portfolio is concentrated, it spans sectors like real estate and energy, indicating a strategic focus on these areas for long-term growth.
Q: How can investors track Bruce Berkowitz's portfolio changes?
A: Investors can track Berkowitz's portfolio through 13F filings, which are available 45 days after the end of each quarter. Platforms like ValueSense provide real-time insights and analysis of these filings.
Q: What are the key investment principles demonstrated by Bruce Berkowitz's portfolio?
A: The portfolio highlights the importance of concentration, long holding periods, and focusing on quality businesses.
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