CNBC Stock Blog

Stock Picker: Increase Exposure to Health Care Insurers

The U.S. Senate is in the midst of debating a landmark plan to overhaul the health care system.

Bruce Berkowitz, president of Fairholme Capital Management, says he's been increasing his exposure to the sector as a result. (See his stock picks, below.)

Check-up on Health Care Stocks

“There continues to be value in the market in certain sectors—we’re very focused on health care and some of the health insurers,” Berkowitz told CNBC.

“We’re starting to see their values getting to a more normal range and that will continue.”

Berkowitz said when President Obama eventually signs the bill, health care stocks will start to perform better.

“The people will see the reality that not much is going to change and the health insurers are 4 percent of the health pie,” he said.

(Berkowitz also named his top 10 holdings now. Watch the video for his full list.)

Additionally, Berkowitz said he likes Sears , a retailer that many investors are staying away from.

“We like what we see and we like the assets of the company,” he said.

Berkowitz Likes:



St. Joe

American Express


  • Watch Berkowitz's Latest Appearance on CNBC (May 28, 2009)

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Berkowitz and his firm own shares of HUM, PFI, WCG, WLP, JOE, AXP and ACF. Berkowitz's firm owns shares of SHLD.