Bruce Berkowitz Portfolio Analysis (December 31, 2021)

Famous superinvestor, Bruce Berkowitz, revealed in a recent regulatory filing his newest positions.  In Bruce Berkowitz portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Berkowitz manages his investments via his fund, Fairholme Capital, which holds about $1.5 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Bruce Berkowitz’s Q4 portfolio include St Joe Co, Commercial Metals Co, Enterprise Prods Partners L, Intel Corp and Kinder Morgan Inc Del. In addition to others mentioned in detail below.

We used the Q4 portfolio of Bruce Berkowitz’s Fairholme Capital to select his top 5 value stocks. We ranked the securities according to Berkowitz’s stake value in each holding.

Summary

  • Bruce Berkowitz’s top 5 securities make up 95.5% of the entire portfolio.
  • Fairholme Capital owns position in 18 holdings, managing approximately $1.5 billion.
  • St Joe Co, Berkowitz’s largest holding, makes up 85.4% of the total portfolio.

St Joe Co (JOE)

Fairholme Capital’s stake value: $1.3 Billion

Percentage of Fairholme Capital’s 13F Portfolio: 85.4%

St. Joe Co. does business in Construction sector and has 570 employees. Current CEO is Jorge Gonzalez.

As of February 16, 2022 St Joe Co had a market cap of $2.853 Million. Trailing twelve months P/E ratio is currently 45.88 making it overly expensive stock than the rest of the S&P500 index. Looking at revenue, St Joe Co generated significant amount of revenue, $160 million in 2020, surging by 26.0% in comparison to 2019 when it was $127 million. Net income surged according to the latest fillings, jumping in 2020 by around 68.8% adding up to total of $45.203 million. On top of that, the net profit margin, which was at 28.3%, has dropped compared to previous operations.

The St. Joe Company, together with its consolidated subsidiaries, is a real estate development, asset management and operation company.

Commercial Metals Co (CMC)

Fairholme Capital’s stake value: $64.3 Million

Percentage of Fairholme Capital’s 13F Portfolio: 4.2%

Commercial Metals Co. does business in Iron and Steel Mills and Ferroalloy Manufacturing industry, which is Manufacturing sector and has 11297 employees. Current CEO is Barbara Smith.

As of February 16, 2022 Commercial Metals Co had a market cap of $4.48 Million. Analysts predicted 1 year target price of $40.22 that exceeds the current price of $36.7 for 9.6%. Trailing twelve months P/E ratio is currently 7.77 making it much cheaper stock than the rest of the S&P500 index. If we look at revenue, Commercial Metals Co generated high $6729 million revenue in 2021 which is a considerable increase of 22.9% compared to 2020 when it was $5476 million. Net income surged according to the latest fillings, jumping in 2021 by around 47.7% adding up to total of $412.865 million. Further, in 2021, the net profit margin, was at 6.1%, shows an improvement compared the company’s previous years of operation.

Commercial Metals Company manufacture, recycle and fabricate steel and metal products, related materials and services.

Enterprise Prods Partners L (EPD)

Fairholme Capital’s stake value: $46.5 Million

Percentage of Fairholme Capital’s 13F Portfolio: 3.0%

Enterprise Products Partners L P does business in Administrative and Support and Waste Management and Remediation Services sector. Current CEO is A. James Teague.

As of February 16, 2022 Enterprise Prods Partners L had a market cap of $52.437 Million. Analysts predicted 1 year target price of $28.81 that exceeds the current price of $24.1 for 19.5%. Trailing twelve months P/E ratio is currently 11.44 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Enterprise Prods Partners L generated significant amount of revenue, $40806 million in 2021, surging by 50.0% in comparison to 2020 when it was $27199 million. Net income was much higher than previous year, increasing by 22.8% in 2021 coming up to $4637.7 million. Moreover, the net profit margin, which is 11.4%, has slipped with the comparison with company’s previous years of operation.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.

Intel Corp (INTC)

Fairholme Capital’s stake value: $27.2 Million

Percentage of Fairholme Capital’s 13F Portfolio: 1.8%

Intel Corp. does business in Manufacturing sector and has 110600 employees. Current CEO is Robert Swan.

As of February 16, 2022 Intel Corp had a market cap of $196.067 Million. Analysts predicted 1 year target price of $55.4 that exceeds the current price of $48.06 for 15.3%. Trailing twelve months P/E ratio is currently 9.91 making it much cheaper stock than the rest of the S&P500 index. Regarding revenue, Intel Corp generated $79024 million revenue in 2021, mildly increasing of 1.5% in contrast to 2020 when it was $77867 million. Net income was slightly lower than previous year, lowering in 2021 by -4.9% and amounting to $19868.0 million. Moreover, the net profit margin, which is 25.1%, has slipped with the comparison with company’s previous years of operation.

Intel is an industry leader, that work by embedding intelligence in the cloud, network, edge and every kind of computing device, it unleash the potential of data to transform business and society for the better.

Kinder Morgan Inc Del (KMI)

Fairholme Capital’s stake value: $16.7 Million

Percentage of Fairholme Capital’s 13F Portfolio: 1.1%

Kinder Morgan Inc does business in Transportation and Warehousing sector and has 10524 employees. Current CEO is Steven Kean.

As of February 16, 2022 Kinder Morgan Inc Del had a market cap of $39.125 Million. Analysts predicted 1 year target price of $19.12 that exceeds the current price of $17.08 for 11.9%. Trailing twelve months P/E ratio is currently 22.09 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Kinder Morgan Inc Del generated significant amount of revenue, $16610 million in 2021, surging by 42.0% in comparison to 2020 when it was $11700 million. Net income surged according to the latest fillings, jumping in 2021 by around 1399.2% adding up to total of $1784.0 million. Besides, profit margin, which levels at 10.7%, shows an improvement, comparing to the previous years.

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 16, 2022.

Stock% of portfolioMarket Cap (USD)P/ENet earnings (USDm)Net earnings y/yProfit margin
St Joe Co (JOE)85.4%2.853B45.94568.8%28.3%
Commercial Metals Co (CMC)4.2%4.48B7.841247.7%6.1%
Enterprise Prods Partners L (EPD)3.0%52.437B11.4463722.8%11.4%
Intel Corp (INTC)1.8%196.067B9.919868-4.9%25.1%
Kinder Morgan Inc Del (KMI)1.1%39.125B22.117841399.2%10.7%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.