But if people who are in the banks during this doom and gloom period made 5 to 10 times their money, history repeats itself.
Because of this consolidation, there were fewer players; so tremendous uncertainty which should diminish over the next 12 months, big bias. We seemed to have forgotten that. Even if they succeed in a non-excessive way, with a very reasonable profit, one would do quite well based upon the price.
But of course, as they buy back, the earnings go up. I just seem to always suffer from, what I could call premature accumulation. It gets digested, slowly digested.
They lost money again, and then boom! I think, what a great time to be here. Or think about it as vintages with wines, the way you look at years.
For the complete speech, click here. The goodwill, the fluff it used to be called, the extra that you pay for business. I Have Done This Before Not exactly the same way but if you understand, critical to the functioning of this country, critical to job growth, critical to the safety and security of our nation, they have to succeed.
These are the excerpts from his speech at AAII. And, they put on tremendously great loans. So you end up with a company with good dividends, good capital gains, and very little downside. It was a rough time, and they made seven times money.
I am all in right now in the U. For example, if you understand the nature of retail loans, consumer loans, floating rate, fixed, they have an average life. Every 5 to 10 years, the banks blow up.
So we have a business which is at an inflection point. Tangible book value is the real assets of a company after you get rid of it. Everyone thought they were going to go bust, because they had all of these empty commercial buildings in California and all over the place. You have to deal with this crazy accounting that companies have now.
Think about a python eating a pig.
This is how we do it. I would buy and I would buy too soon.Please visit our Tracking Bruce Berkowitz's Fairholme Fund Holdings article for an idea on how his holdings have progressed over the years and our previous update for the fund's moves during Q1 Berkowitz's US stock portfolio decreased % from $B to $B this quarter.
Labels: aig, bruce berkowitz, case study, fairholme, FAIRX, investor letters, presentations Bruce Berkowitz's Investment Thesis on AIG (Slideshow Presentation) Bruce Berkowitz of Fairholme Capital has put together a case study on his investment in American International Group (AIG).
American International Group: Berkowitz has disclosed that his average purchase price per share for AIG is $ It is the largest holding at ~27% of the portfolio excluding cash.
Government owns 77% of AIG as a result of the bailout, and it still owes the government around $B. Bruce Berkowitz (Trades, Portfolio): As we have written in all of our letters, we bought AIG at substantial discount to tangible book value ("TBV").
We had a simple thesis that AIG still had a franchise value, and that AIG (AIG) was worth at least TBV.
Bruce Berkowitz's Fairholme Capital has filed a 13D on shares of American International Group (NYSE:AIG). Due to activity on September 16th, Fairholme has disclosed a % ownership stake in AIG. Embedded below is Bruce Berkowitz's slideshow presentation on Bank of America: For other presentations from Fairholme, check out Berkowitz's AIG thesis & presentation.
And to learn about his approach as an investor, head to Berkowitz's checklist for investing.Download