Bruce Berkowitz
Fairholme Fund
Bruce Berkowitz opened his Fairholme fund in 1999. Ten years later it had grown to more than $10 billion and gained 13.2% annually, beating 99% of rival funds. Berkowitz was crowned Morningstar's "U.S. stock manager of the decade."
His philosophy is simple: Go anywhere for value -- in stocks, bonds, or cash. Right now he's betting on financial shares, the best of which he thinks will stage a major rally. Berkowitz recommends Goldman Sachs's stock, which fell 24% this year after the SEC filed its fraud case against the bank. Shares now trade at a trailing P/E ratio of just 6 -- less than half their decade-long average -- and Berkowitz doubts the case will crimp earnings in coming years.
"It's a great firm with great people and earnings," he says. "They're under a temporary cloud."
--Scott Cendrowski
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