As most of you know I’m a huge fan of Bruce Berkowitz of Fairholme funds, and we have a lot of similar positions in our TTCM portfolios. Last year was a horrible year for many value investors, and the main takeaway is how quickly somebody can be torn down in the investment management industry. What cushioned us was our utilization of options to get into stocks at cheaper prices, that many money managers running mutual funds don’t have the opportunity to do. This year he is once again showing his true colors with excellent performance thus far. The thing to be really optimistic about in your own portfolios managed by TTCM, is that many of our investments are just in the beginning stages of what we believe to be a strong multi-year rally. Any upside beyond a rather benign global growth outlook would be gravy in our estimation, and we feel that due to the very low prices that we have been able to enter positions at, we are protected with a strong margin of safety. The article below from Gurufocus will update you on his story if you haven’t been following it.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.