Bruce Berkowitz’s Fund Portfolio Strategies originally published at long-term-investments.blogspot.com. Bruce Berkowitz is also a well known guru investor. He is a hedge fund manager who cares about $7.69 billion in his asset management vehicle Fairholme Capital Management.
Within the recent quarter, Bruce made nine asset transactions of which six pay dividends. Four of the stock moves are attributable to the long side and five are on the short side.
In total, Bruce owns now only 13 share positions of which two were completely new (Lincoln National and Hartford Financial). In addition, he sold-out three stocks within the recent quarter.
Financial stocks dominate his asset strategy. Around 68 percent of his total assets have a relationship to the financial sector.
The biggest position is his portfolio is reasonable to the insurer, AIG who represents around 50 percent of his full portfolio.
Nothing changed much in sum. Bruce made no big changes within the recent quarter. The highest trade impact on the long side had the 4.53 percent position increase of Sears Holdings.
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Mega capitalized stocks and their dividends originally published at "long-term-investments.blogspot.com". I often talk about large capitalized stocks and that they might offer a lower risk than small or micro caps.
It’s my general experience because I saw their business models and know that large capitalized companies are a compilation of several small and mid caps. Look at Procter & Gamble. They have a huge brand portfolio under the P&G corporate brand and a big part of them generate sales over a billion U.S. Dollar and employs thousands of people.
I believe that a compilation of 10 or 20 mid caps could be a better investment for investors because they can benefit from the corporate diversification. For sure, the price they pay is a lower performance compared to pureblooded stocks with a single business model. Stable dividends and systematic growth is my major focus and most of them are generated by higher capitalized stocks. That's the result of my research.
Today I like to give you an overview of the yields from mega caps. Those are companies with a market capitalization above the USD 200 billion mark. Only 20 listed companies have such a big market capitalization and 18 of them pay good dividends; 16 have a buy or better recommendation.Read More »
