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Another down year for Fairholme Fund?

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  • edited January 2015
    Perhaps Berkowitz has overstayed his welcome in the theme of, "I love things that got bailed out."
  • An example of a fund that started with a great track record, and then the manager got too clever for his own good ( and his shareholders suffered the consequences).
  • @MFO Members: The Linkster recommends you fold FAIRX, and reinvest in SHRAX.
    Regards,
    Ted
  • @Ted.

    A comparison of risk and return numbers:

    image

    image
  • Charles, are you keeping the faith? I am for now but I am feeling less confident than I have in years.
  • @Ted why SHRAX ?
  • @jlev: "why SHRAX ?" great long-term manager, Rich Freeman, with excellent results, in the 8th percentile over 15 years.
    Regards,
    Ted
  • I do believe AIG and BAC will probably do ok in the next 3 years (I actually own them) so I would hold this fund for awhile if I had a gain. If no gain why not take the loss and buy those two stocks. Still I can't imagine investing in such a non-diversified fund . Its not why I Invest in funds.
  • Different strokes for different folks Jerry. I have a preference for concentrated funds - hiring managers for their best ideas and not grabbing a bunch of space fillers in the name of diversification. Mr. Berkowitz has proven his abilities over time if you stuck with him. He's right more often than wrong.

    However, having said all that, I was an early adopter of his fund but recently sold off a huge chunk of it. In my mind he has started to get a little too wacky in his style, management and selections so I switched over to the high priest of concentration Mr. Buffett.

    Just one persons take.
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