RWH041: Ignore the Crowd w/ Super-investor Bruce Berkowitz

In this episode, William Green chats with famed investor Bruce Berkowitz, whose Fairholme Fund has beaten the S&P 500 by 529 percentage points over 23 years. Bruce, who was named Morningstar’s Domestic Stock-Fund Manager of the Decade in 2009, talks here about the ups & downs of his volatile career, how he changed his investment strategy after three costly losses, why he likes cash as a kind of “financial valium,” & why 80% of his fund is riding on one stock. IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 04:44 - What Bruce Berkowitz learned about odds by working as a bookmaker. 06:26 - What his stint as a broker taught him about how not to invest. 34:18 - Why he makes huge bets on a tiny number of stocks. 41:53 - How he’s riding a multi-decade wave of migration to Florida. 48:57 - How he justifies betting 80% of his fund on one stock. 54:59 - How he’s playing long-term trends in the energy sector. 56:56 - Why he’s changed the way he invests. 59:08 - Why he’s acutely wary of bank stocks. 59:20 - What he learned from losing big on Sears, Fannie Mae, & Freddie Mac. 1:17:53 - Why he views cash as a valuable form of “financial valium.” 1:28:51 - How he assesses the investment threat of global warming. 1:33:50 - Why he operates as a lone wolf, not part of a team. 1:39:53 - What he’s tried to teach his three children. 1:45:31 - How he handles setbacks. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Bruce Berkowitz’s investment firm, Fairholme Funds . Vaclav Smil’s book How the World Really Works . Vaclav Smil’s book Energy & Civilization . William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book . Follow William Green on X (AKA Twitter ). Check out all the books mentioned and discussed in our podcast episodes here . NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | | Instagram | Facebook | TikTok . Browse through all our episodes (complete with transcripts) here . Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool . Enjoy exclusive perks from our favorite Apps and Services . Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts . SPONSORS Support our free podcast by supporting our sponsors : River Toyota Linkedin Marketing Solutions Fidelity Efani Shopify NDTCO Fundrise Wise NetSuite TurboTax Vacasa NerdWallet Babbel HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts ! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm