Fairholme Fund

((This is a great value fund that is quite similiar to the philosoply that W. Buffet uses when managing the Berrshire Hathaway. With the economy slowing next year, this is a great fund to park your hard earned IRA $$ for decades))

Fairholme Fund---
Although this fund's managers have long held cash as a residual of their investment process--that is, they wouldn't invest all of their assets if they couldn't find anything to buy--lead manager Bruce Berkowitz announced a slight shift in that philosophy in 2006. Berkowitz noted that he and the Fairholme team would also keep cash in reserve so that they could seize on opportunities that arose--essentially, so they could be buyers when others were sellers. (That's similar to the philosophy that Warren Buffett uses when managing Berkshire Hathaway (brk.b.B).) If the Fairholme team thinks that its companies' managers are good deployers of capital--and that's one of their criteria--they also take a positive view when their companies have cash on hand. The fund's cash stake--often upward of 20% of assets--damped returns during 2003's big rally, but we think that the fund offers shareholders and prospective investors a very strong trade-off overall.