Bruce Berkowitz Has 26% Of The Fairholme Fund In AIG – Don’t You Think You Shoul

[biaggio]

http://www.gurufocus.com/news/160153/bruce-berkowitz-has-26-of-the-fairholme-fund-in-aig--dont-you-think-you-should-at-least-consider-it-for-your-portfolio

"Isn’t it amazing that in one year Berkowitz has gone from being crowned the manager of the decade by Morningstar in 2010, to someone you are afraid to entrust your money to?

I just don’t buy that Berkowitz has lost it. The mistake that Berkowitz has made in my opinion is that he has invested the fund's money the way he would invest his own money. He is taking a concentrated portfolio approach and trying to make as much money as he can, without risking permanent impairment of capital."

Also article has a short video of AIG chairman.

[BargainValueHunter]

http://www.gurufocus.com/news/160153/bruce-berkowitz-has-26-of-the-fairholme-fund-in-aig--dont-you-think-you-should-at-least-consider-it-for-your-portfolio

"Isn’t it amazing that in one year Berkowitz has gone from being crowned the manager of the decade by Morningstar in 2010, to someone you are afraid to entrust your money to?

I just don’t buy that Berkowitz has lost it. The mistake that Berkowitz has made in my opinion is that he has invested the fund's money the way he would invest his own money. He is taking a concentrated portfolio approach and trying to make as much money as he can, without risking permanent impairment of capital."

Also article has a short video of AIG chairman.

I admit I haven't done nearly the research that Berkowitz has done on AIG's financials but I still can't understand the current negative sentiment about the company.

If your talking about 2000-2008 that is a different story. Bob Benmosche and his team seem to be doing a great job of turning the company back into a plain vanilla insurance company like Moynihan is turning BAC back into a plain vanilla bank.

That should be cause for celebration but Bruce B. seems to be alone in his sentiment.

They seem to have the same issues facing other life insurers but that is only a part of their global business. The near constant disasters of 2010 and 2011 should push prices up soon and the Feds are being passive until AIG is ~$30 but the UST hasn't indicated that it would dump the shares on the market at once.

Perhaps all of the attention (deservedly) being paid to Apple and (undeservedly, in my opinion) to Facebook is keeping the attention away from comeback companies like AIG.

[PlanMaestro]

* Chartis + SunAmerica historic earnings per year: $10B+
* AIA 30% share: $13B
* ILFC: $7B+
* Deferred tax assets not in the books: $20B+
* Maiden Lane II and III: a nice possible extra, just watch what AIG bid for US Government share

* With a willing seller of its shares below book: the US government
* While reducing risk: deal with Buffett to get asbestos out of the books, large one-time build up of reserves at Chartis
* And buying back shares well below book: authorized by the US government (!)
* And the TARP warrants are cheap even using Black and Scholes


Probably should be in the watchlist.

[scorpioncapital]

Omission bias. If you make a mistake by your actions it is perceived as worse than if you make a mistake by not acting. Thus, being average, while just as bad, is considered less of a failure than swinging for the fences and being wrong.

[txlaw]

* Chartis + SunAmerica historic earnings per year: 10B+
* AIA 30% share: 13B
* ILFC: $7B+
* Deferred tax assets not in the books: $20B+
* Maiden Lane II and III: a nice possible extra, just watch what AIG bid for US Government share

* With a willing seller of its shares below book: the US government
* While reducing risk: (deal with Buffett to get asbestos out of the books, large one-time build up of reserves in Chartis
* And buying back shares well below book: authorized by the US government (!)
* And the TARP warrants are cheap even using Black and Scholes


Probably should be in the watchlist.

Plan, no need to spell it out so clearly!

We need this thing to stay dirt cheap while we build our positions.

[PlanMaestro]

Taking advantage of the opportunity, "FATAL RISK" is an excellent book on the rise and downfall of AIG. Great read.

[PlanMaestro]

Plan, no need to spell it out so clearly!

We need this thing to stay dirt cheap while we build our positions.

Ups, sorry! At least I did not mention the unwind of FP

www.aigcorporate.com/restructuring/AIGFP.pdf

[Hester]

Taking advantage of the opportunity, "FATAL RISK" is an excellent book on the rise and downfall of AIG. Great read.

Written by Roddy Boyd, a favorite among this board.

[BargainValueHunter]

Fairholme's AIG case study has been posted:

http://bit.ly/xUUmuh

[Uccmal]

This one is interesting.  its going to take alot of work to comprehend, but is probably worth it.