13F-HR 1 submission.txt 13F SUBMISSION 3RD QUARTER 2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 13F Form 13F COVER PAGE Report for the Calendar Year or Quarter Ended: September 30, 2006 Check here if Amendment [ ]; Amendment Number: This Amendment (Check only one.): [ ] is a restatement. [ ] adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Fairholme Capital Management, L.L.C. Address: 51 JFK Parkway Short Hills, NJ 07078 Form 13F File Number: 28-6994 The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Bruce R. Berkowitz Title: Managing Member Phone: 973-379-6557 Signature, Place, and Date of Signing: /s/Bruce R. Berkowitz Short Hills, NJ 10-14-06 --------------------- ------------- ---------- [Signature] [City, State] [Date] Report Type (Check only one.): [x] 13F HOLDINGS REPORT. (Check here if all holdings of this reporting manager are reported in this report.) [ ] 13F NOTICE. (Check here if no holdings reported are in this report, and all holdings are reported by other reporting manager(s).) [ ] 13F COMBINATION REPORT. (Check here if a portion of the holdings for this reporting manager are reported in this report and a portion are reported by other reporting manager(s).) List of Other Managers Reporting for this Manager: [If there are no entries in this list, omit this section.] Form 13F File Number Name 28-______________ _______________________________ [Repeat as necessary. Form 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: Form 13F Information Table Entry Total: 37 Form 13F Information Table Value Total: $3,369,932 ----------- (thousands) List of Other Included Managers: NONE Profice a numbered list of the names(s) and Form 13F file numbers(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. [If there are no entries in this list, state "NONE" and omit the column headings and list entries.] FORM 13F INFORMATION TABLE VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- -------- ANNALY CAPITAL MANAGEMENT INC COM 035710409 42223 3213350.0000SH SOLE 2452700.0000 760650.000 BERKSHIRE HATHAWAY INC DEL A COM 084670108 632855 6606.0000SH SOLE 4877.0000 1729.0000 BERKSHIRE HATHAWAY INC DEL B COM 084670207 154139 48563.0000SH SOLE 19507.0000 29056.0000 CALUMET SPEC PROD PTNR UT LTD COM 131476103 25954 812333.0000SH SOLE 708953.0000 103380.000 CANADIAN NAT RES LTD COM 136385101 560888 12305568.0000SH SOLE 9710000.0000 2595568.00 CITIGROUP COM 172967101 466 9388.0000SH SOLE 3388.0000 6000.0000 COCA COLA CO COM 191216100 768 17197.0000SH SOLE 77.0000 17120.0000 DAILY JOURNAL CORP COM COM 233912104 2318 59946.0000SH SOLE 48646.0000 11300.0000 DUKE ENERGY CORP COM COM 26441C105 59983 1986200.0000SH SOLE 1942800.0000 43400.0000 EASTMAN CHEM CO COM COM 277432100 97279 1800800.0000SH SOLE 1488800.0000 312000.000 ECHOSTAR COMMUNICATIONS CORP C COM 278762109 445377 13603442.0000SH SOLE 10542324.0000 3061118.00 GYRODYNE CO AMER INC COM COM 403820103 528 11026.0000SH SOLE 770.0000 10256.0000 HOMEFED CORP COM 43739D307 21415 319622.0000SH SOLE 241295.0000 78327.0000 HSBC HLDGS PLC SPON ADR NEW COM 404280406 1597 17448.0000SH SOLE 133.0000 17315.0000 IDT CORP COM 448947101 21613 1528500.0000SH SOLE 1500600.0000 27900.0000 IDT CORP CL B COM 448947309 91584 6351200.0000SH SOLE 6290800.0000 60400.0000 KAISER ALUMINUM CORP COM PAR $ COM 483007704 2403 54200.0000SH SOLE 54200.0000 LEUCADIA NATL CORP COM COM 527288104 169029 6458872.0000SH SOLE 4103280.0000 2355592.00 MARKEL CORP COM 570535104 633 1541.0000SH SOLE 1.0000 1540.0000 MARSH & MCLENNAN COS INC COM COM 571748102 36370 1292000.0000SH SOLE 1042400.0000 249600.000 MERCURY GENL CORP NEW COM 589400100 4051 81650.0000SH SOLE 350.0000 81300.0000 MERITOR SVGS BK PA COM COM 590007100 174 43645.0000SH SOLE 5000.0000 38645.0000 MICRON TECHNOLOGY INC COM 595112103 348 20000.0000SH SOLE 20000.0000 MOHAWK INDS INC COM COM 608190104 200926 2698800.0000SH SOLE 2200100.0000 498700.000 PENN WEST ENERGY TR UNIT COM 707885109 306757 8342820.0000SH SOLE 6323000.0000 2019820.00 PHELPS DODGE CORP COM COM 717265102 78771 930000.0000SH SOLE 930000.0000 SAFETY INS GROUP INC COM COM 78648T100 17085 351100.0000SH SOLE 79600.0000 271500.000 SEARS HLDGS CORPCOM COM 812350106 156046 987071.0000SH SOLE 757671.0000 229400.000 SYSTEMAX INC COM 871851101 553 34500.0000SH SOLE 34500.0000 TAL INTERNATIONAL GROUP INC COM 874083108 55634 2760997.0000SH SOLE 2760997.0000 USA MOBILITY INC COM 90341G103 61669 2700026.0000SH SOLE 2700026.0000 USG CORP NEW COM COM 903293405 94320 2005100.0000SH SOLE 1612200.0000 392900.000 WELLSFORD REAL PPTYS COM COM 950240200 79 10781.0000SH SOLE 275.0000 10506.0000 WESCO FINL CORP COM COM 950817106 648 1482.0000SH SOLE 2.0000 1480.0000 WHITE MTNS INS GROUP LTD COM G9618E107 14771 29722.0000SH SOLE 29722.0000 WINTHROP REALTY TRUST INC COM 976391102 10453 1620617.0000SH SOLE 1111326.0000 509291.000 ONEOK PARTNERS LP UNIT LTD PAR COM 68268N103 225 4000.0000SH SOLE 4000.0000