Bruce Berkowitz Investment Checklist

Bruce Berkowitz Investment Checklist


Bruce Berkowitz. We provide the Bruce Berkowitz Investment Checklist.

This is the Bruce Berkowitz Investment Checklist. Bruce Berkowitz famous for his large bets post financial-crisis on AIG and Bank of America during the financial crisis along with sterling track record of investing at Fairholme Capital Management. He’s famous for his value investment approach and buying distressed names which aren’t as distressed as they seem. He likes bets that have a cancer that can easily be removed in unloved names. He provided this investment checklist at a Columbia Investment Management Association conference:

  1. Can you kill the investment? Is there adult supervision at the company?
  2. Is the company essential? Does it depend upon the kindness of strangers?
  3. What can the company make? Reasonable profitability for owners?
  4. How are owners paid? Distributions?
  5. Management – honest in past and present?
  6. Does accounting reflect reality?
  7. Does the balance sheet match up with the income statement?
  8. Catalysts – Buybacks? Misunderstood? Is enterprise having a big problem that is fixable? Everyone’s been burned by the stock so afraid to buy it.
  9. Are there irrational fears of current headwinds?
  10. Does the business have pricing power or unit growth?
  11. Can you hold the investment for a long time & does it improve portfolio performance?

Bruce Berkowitz quotes on investing:

[Tweet “”You always have to have cash, especially when no one else has it.””]

[Tweet “Ignore the crowd”]

[Tweet “Always assume you will have bad luck”]

[Tweet “Always count the cash”]

[Tweet “What you give versus what you get over time”]

[Tweet “You only see reality under extreme stress”]

[Tweet “If you have to use more than 6th grade math, you’re in trouble.”]