Sometimes you have to know when to hold 'em and when to fold 'em. Evidently, Bruce Berkowitz
of Fairholme Fund [see profile]
has not found his game when it comes to his bet on AIG.
During a conference call with shareholders yesterday, which was picked up by The Wall Street Journal
, Berkowitz confessed that he was wrong for holding on to the stake.
According to the pub, Berkowitz made his bets on the stock in Q1 2010, riding it from the $22-$34 range up toward $60. However, AIG shares are now trading around $30 a share and, according to FactSet data, Berkowitz purchased most of his shares when the stock was trading above $32.
"The government wants to sell 1.6 billion shares with their cost basis around $29 per share," Berkowitz was quoted by the WSJ as saying in the conference call with shareholders yesterday morning. "Well, I ask you, guess where the public offering will come, given the government is not in the business of making profits. My guess is around $27 to $29. You could ask, why do we hold? Well, I was wrong."
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