| Berkshire Hathaway Position Boosted by Fairholme Fund in 2nd Quarter | |
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The Fairholme Fund (Trades, Portfolio)'s founder and portfolio manager Bruce Berkowitz (Trades, Portfolio) has revealed the fund has drastically boosted its holding of Berkshire Hathaway Inc. (NYSE:BRK.B) in the second quarter.
After is foundation in 1999 by Berkowitz, the fund saw massive gains over the S&P 500 for the first 10 years of its existence. The fund operates on a quarterly basis and is separate from the other accounts and funds managed by Berkowitz. Berkowitz concentrates his investments in a small number of companies and looks for good management and solid cash flow. Portfolio overview The portfolio contains five stocks, with Berkshire Hathaway being the newest addition to the portfolio in the first quarter of this year. The portfolio is currently valued at $674 million and has seen turnover of 6%. The top holdings in the portfolio are The St. Joe Co. (NYSE:JOE), Federal Home Loan Mortgage Corp. (FMCKJ.PFD), Fannie Mae (FNMAS.PFD), Berkshire Hathaway Inc. and Imperial Metals Corp. (TSX:III). Berkowitz had the following to say about Berkshire Hathaway in the Fairholme Fund's 2020 semiannual shareholder letter: "Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is trading near book value, which Warren Buffett (Trades, Portfolio) believes greatly underestimates fair market values. Berkshire is the 800-pound gorilla in insurance. Market participants perceive Covid-19 claims may bankrupt insurers. There will be significant costs and hits to portfolio companies. But, most insurance policies exclude pandemics and premiums are rising faster than risks. Meanwhile, Berkshire continues to invest no-cost insurance "float" in guaranteed cost-plus utilities and other critical enterprises. This makes sense when the Federal Reserve pays 0.25% and European Central Bank charges 0.50% to hold bank cash."
Alongside other affiliates, Berkowitz maintains ownership of 23.8% of the Fairholme Fund and remains "optimistic about the future." Disclaimer: Author owns no stocks mentioned. Read more here: - PepsiCo Slashed in David Carlson's 2nd-Quarter Portfolio
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Imperial Metals Corp
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PRODUCER |
CODE : III.TO |
ISIN : CA4528921022 |
CUSIP : 452892102 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Imperial is a zinc and lead producing company based in Canada. Imperial produces zinc, lead, copper, diamonds, gold, molybdenum and silver in Canada, develops copper and gold in Canada, and holds various exploration projects in Canada. Its main assets in production are HUCKLEBERRY, MOUNT POLLEY, PORCHER ISLAND and STERLING in Canada, its main asset in development is RED CHRIS in Canada and its main exploration properties are BEAR, NAK, SHERATON-TIMMINS, ROBB LAKE, LJ, KNEB, GHOST PROPERTY, INDATA, WASI CREEK, GIANT COPPER, RUDDOCK CREEK, CATFACE, BALDWIN-MCVICAR, THE CENTURY and FANDORA in Canada. Imperial is listed in Canada and in United States of America. Its market capitalisation is CA$ 232.1 millions as of today (US$ 168.8 millions, € 158.6 millions). Its stock quote reached its lowest recent point on November 29, 2002 at CA$ 0.15, and its highest recent level on July 17, 2015 at CA$ 9.98. Imperial has 93 590 000 shares outstanding. |