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Bruce Berkowitz Points Investors to February 2000 Letter For Some Perspective

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Market prices of financial services businesses have reverted to 2009 distressed levels. History shows that while cheap securities can become cheaper, market prices eventually regress to intrinsic values. In February, 2000 we wrote:


“It is natural to want to own securities whose prices immediately go up. However, people chasing performance are like lemmings approaching the precipice. History is replete with examples showing that market timing is a poor basis for an investment strategy. Fairholme remains focused on business values and business economics. We want to own just a few companies, researched in depth, with the strong potential for high returns. Short-term price swings do not tell you if we are right or wrong about business investments. Business results do.



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