Friday, January 14, 2011

Bruce Berkowitz interview

http://bcove.me/agph2w5v

Fairholme now has $20B in assets under managment as of early Dec. 2010.

Can't time the market - buy stressed securities
Compare what we are paying for the cash they expect to get inthe future

Come up with a thesis.  Hire experts to destroy their thesis.  Don't want to talk to yes people.  Want people to tell them why their thesis is wrong.  Want their ideas to be disproven.

Holding cash - worst situation is if you are backed into a corner - e.g. too early to an investment and don't have ability to buy more. The great investors never run out of cash.  Always want to have a lot of cash - cash can be very valuable when nobody else has it.

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