“I think our philosophy makes a lot of sense. We’re doing nothing more than what the wealthiest individuals in the world have done. We act like owners. We focus on very few companies. We try and know what you can know. We try and only buy a few companies which we believe have been built to last in all environments. We recognize that you only need a few good ideas in a lifetime to be fabulously wealthy…. We’re always trying to wonder what can go wrong. We’re very focused on the downside.”
– Bruce Berkowitz, 2000
The above quote was in response to a question: “Why should someone give you money based on such a short track record?” It’s a glimpse into the basic investment philosophy that Berkowitz has at Fairholme. The philosophy is simple and logical, and it’s enabled Berkowitz to increase the small $12 million Fairholme fund in 2000 to double digit billions today.