We recently published a list of Billionaire Bruce Berkowitz’s 6 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where Occidental Petroleum Corporation (NYSE:OXY) stands against Billionaire Bruce Berkowitz’s other stock picks with highest upside potential.
One of the most prominent hedge fund managers on Wall Street and founder of Fairholme Capital Management, billionaire Bruce Berkowitz’s track record and unique investing approach make his portfolio choices well worth a closer look. Berkowitz is renowned for his bold bets on unloved assets, his high-conviction investment style, and his rare ability to spot dollar bills being sold for pennies- and the guts to hold them until the market catches up.
His ability to focus on facts and ignore the market chatter has helped him deliver strong results and earned him strong accolades in the industry. Named Morningstar’s Domestic-Stock Fund Manager in 2009 and Institutional Investor Magazine’s Money Manager of the Year in 2013, his honors underscore his reputation as a value investor worth following.
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Berkowitz has always believed in owning a handful of stocks. These stocks, however, are those in which he believes deeply. After all, high-conviction investing is the name of the game.
“You only need a few ideas in a lifetime to do unbelievably well.”
He is also a staunch believer in reality. Hated assets usually have hidden value, and the trick, he believes, is to look at the facts instead of reacting to trauma like others do.
“Ignore the crowd. Count what matters.”
In an interview with Bill Brewster from the Business Brew, Bruce Berkowitz talked about how he started Fairholme with a simple mission: managing his family’s money. From the very beginning, Fairholme wasn’t a marketing organization. Rather, the fund’s unique approach was vested in value creation rather than asset gathering. Focusing solely on deep research and concentrated positions, Berkowitz often ran portfolios with only a few ideas.
Over the years, Berkowitz learned how financial metrics, on which he relied with much conviction in the early years, weren’t the only factors to consider. Rather, management quality and ownership culture were equally important. This shift in perspective has made him more selective as he strongly believes that the right leadership can make or break an organization, particularly during tough times. That said, Berkowitz highlighted in the interview how he now avoids doing business with executives he doesn’t trust, regardless of how shiny the financials may seem.
