Bruce Berkowitz's Strategic Moves: Bank OZK Takes Center Stage with 1.09% Portfolio Impact

Exploring the Investment Philosophy of Bruce Berkowitz (Trades, Portfolio)

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Bruce Berkowitz (Trades, Portfolio) recently submitted the N-PORT filing for the second quarter of 2025, providing insights into his investment moves during this period. Bruce Berkowitz (Trades, Portfolio) is the founder and the Managing Member of the Fairholme Fund (Trades, Portfolio). Prior to forming Fairholme Capital Management, Mr. Berkowitz was a Managing Director of Smith Barney, Inc. from December of 1993 to October of 1997. Bruce Berkowitz (Trades, Portfolio) concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz' investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.Bruce Berkowitz's Strategic Moves: Bank OZK Takes Center Stage with 1.09% Portfolio Impact

Key Position Increases

Bruce Berkowitz (Trades, Portfolio) also increased stakes in a total of 2 stocks, among them:

The most notable increase was Bank OZK (NASDAQ:OZK), with an additional 285,150 shares, bringing the total to 916,752 shares. This adjustment represents a significant 45.15% increase in share count, a 1.09% impact on the current portfolio, and a total value of $43,142,360. The second largest increase was Occidental Petroleum Corp (NYSE:OXY), with an additional 14,800 shares, bringing the total to 69,100. This adjustment represents a significant 27.26% increase in share count, with a total value of $2,902,890.

Key Position Reductions

Bruce Berkowitz (Trades, Portfolio) also reduced positions in 2 stocks. The most significant changes include:

Reduced Berkshire Hathaway Inc (NYSE:BRK.B) by 120 shares, resulting in a -0.25% decrease in shares and a -0.01% impact on the portfolio. The stock traded at an average price of $508.26 during the quarter and has returned -4.80% over the past 3 months and 5.72% year-to-date. Reduced The St. Joe Co (NYSE:JOE) by 2,700 shares, resulting in a -0.01% reduction in shares and a -0.01% impact on the portfolio. The stock traded at an average price of $44.75 during the quarter and has returned 12.38% over the past 3 months and 13.55% year-to-date.

Story Continues

Portfolio Overview

At the second quarter of 2025, Bruce Berkowitz (Trades, Portfolio)'s portfolio included 12 stocks. The top holdings included 78.54% in The St. Joe Co (NYSE:JOE), 13.77% in Enterprise Products Partners LP (NYSE:EPD), 3.52% in Bank OZK (NASDAQ:OZK), 1.92% in Berkshire Hathaway Inc (NYSE:BRK.B), and 1.57% in WR Berkley Corp (NYSE:WRB).Bruce Berkowitz's Strategic Moves: Bank OZK Takes Center Stage with 1.09% Portfolio Impact

The holdings are mainly concentrated in 4 of all the 11 industries: Real Estate, Energy, Financial Services, and Technology.Bruce Berkowitz's Strategic Moves: Bank OZK Takes Center Stage with 1.09% Portfolio Impact

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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