Precisely. I stopped watching this video once I heard that. How can he claims to be a good fiduciary to his fund shareholders when he charges the hefty fee while being so concentrated? People can simply buy that stock themselves.
You pay him to select that one company. If you can select one company every few years that consistently outperforms - than you’re right - don’t pay a fund manager
Smart man. Good returns. Its sad when the govt does not respect ownership. Such a good story. Be wary of highly regulated companies is the lesson learned.
From the looks of the fairholme portfolio freddie mae now only consist of 0.65% of assets so even if he gets par value on the preferred it'll only generate 6.5% return on his portfolio.
If you look at how FAIRX has done over the past 23 years or so, especially if you account for the expense ratio, you would have done better just sticking your money in 30 yr treasuries or 10 yr treasuries and rolling them over ever year or so.
right, he was too stubborn for few years, that cost him big time.. Bill Ackman was almost on the same route, but pivoted and it wasn't disaster like Bruce, but good to see him back doing interviews.
I was able to get out of this years ago with minimal losses. I am sure many not so lucky. He has been a disaster for many many many years now. He should have known better than to think the FED govt was going to hand him a pot of gold....and Sears was another epic disaster.
