We recently released a list Billionaire Bruce Berkowitz. In this article, we will look at the positions where the energy transfer finite element (NYSE:ET) has the highest upside potential with other billionaire Bruce Berkowitz's stock picks.
One of Wall Street's most outstanding hedge fund managers, too Fairholme Capital Managementbillionaire Bruce Berkowitz's trail and unique investment approach make his portfolio choice worth a look. Berkowitz is known for his bold bets on unpopular assets, his high-positioned investment style, and his rare ability to find a dollar bill for pennies until the market catches up.
His ability to focus on facts and ignore market chats has helped him achieve outstanding results and earned strong acclaim in the industry. His honors, named Morningstar Fund Manager and Institutional Investors magazine's Monetary Manager of the Year in 2009, highlighted his reputation as a value investor worthy of attention.
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Burkowitz has always believed in owning a few stocks. However, these stocks are those he firmly believes in. After all, high-sin investment is the name of the game.
“You only need some ideas in your life to do it well.”
He is also a staunch believer in reality. Annoying assets often have hidden value, and he argues the trick is to look at the facts, not to react to trauma like everyone else.
"Ignore the crowd. Calculate what matters."
Bruce Berkowitz talked about how he started Fairholme with a simple task: managing family money. Fairholme was not a marketing organization from the beginning. Instead, the fund's unique approach is attributable to value creation rather than asset collection. Berkowitz focuses only on in-depth research and concentrated positions, often using only a few ideas to run the portfolio.
Over the years, Berkowitz learned how his financial metrics that were convicted early on were relying on, and that was not the only factor to consider. On the contrary, quality of management is equally important as culture of ownership. This shift in perspective makes him more selective because he firmly believes that the right leadership can build or break the organization, especially during difficult times. That said, Berkowitz highlighted in the interview how he now avoids doing business with executives he doesn’t trust, regardless of financial situation.
Furthermore, Berkowitz's investment is almost entirely US-centric. The only reason for this strategy is his commitment to deep understanding and control. According to him, Voice Investment requires a good grasp of the company's regulatory environment, tax structure, supply chain and other related factors. Building this level of expertise allowed him to limit his universe to the United States, where he comfortably focused on three to six positions, where he tried to fully understand the industry, competitors, suppliers, and more. According to him, the United States is a good market that can operate, especially for a value investor to dream of capital appreciation and preservation of value.
“His ability to pick stocks sets him apart from his peers, Fairholm’s portfolio is filled with attractive priced companies that generate high free cash flow. Berkovitz’s strategy has led to a great long-term record, and his large cash stake helps limit volatility.”
For this list, we selected Fairholme Capital Management's 13F portfolio from the end of the fourth quarter of 2024. We list them in order of rising order of analyst average upward potential. As of May 9, these stocks are also very popular. Hedge fund data ended in the fourth quarter of 2024.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Shares of Fairholme Capital Management: $16,708,311
Number of hedge fund holders: 37
Average upward potential: 34.5%
Energy Transfer LP provides energy-related services in the United States. The company is in a good position near the Permian Basin and expands operations through key acquisitions and mergers such as Lotus Midstream, Crestwood Equity Partners, and the purchase of WTG Midstream, the Midstream company has the largest private Permian gas collection and processing business and owns assets located in Midland Basin Core. These transactions greatly improved their status in the Permian region.
On May 7, Wells Fargo analyst Michael Blum maintained an "overweight" rating on the stock, but its target price dropped from $22.00 to $21.00. The rating represents continued optimism about energy transmission LP and the company expects to perform above average compared to other stocks in the industry. The company recently reported its first quarter 2025 earnings, revealing a different performance from market expectations.
It surpassed earnings per share (EPS) forecast at $0.37, compared with $0.36. However, revenues did not exceed expectations, with an estimated $22.42 billion, generating $21.02 billion. The company maintained a dividend yield of 7.54% and increased its dividend for three consecutive years.
Overall, Eastern Time Ranked first The highest upside potential is available in the stock picks of our billionaire Bruce Berkowitz. Although we acknowledge the potential of ET as an investment, our belief is to believe that certain AI stocks offer higher returns and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than ET, but have less than 5 times the gains, please check out our report Cheapest AI stocks.
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Disclosure: None. This article was originally published in Inside monkey.