AIG: Really That Simple?
Bruce Berkowitz's biggest position in his flagship Fairholme Fund is AIG (NYS: AIG) . Between shares of its common stock and warrants, AIG makes up almost 40% of his fund. His basic thesis, as stated in his latest shareholder letter: "There are few occasions when systemically important franchises sell for half of book value and are profitable. This is one of those times." He's basically saying it's too big to fail and it's cheap. Is it really that simple? Fool analyst Anand Chokkavelu weighs in.
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The article AIG: Really That Simple? originally appeared on Fool.com.Anand Chokkavelu owns AIG warrants. Andrew Tonner and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend AIG. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.