Best Domestic Stock
fund Open To New Investors

It's hard to go wrong with this concentrated fund (it held 24 stocks at last report). The value-investing discipline of managers Bruce Berkowitz, Larry Pitkowsky and Keith Trauner keeps Fairholme (symbol FAIRX) out of trouble in bear markets and lets investors participate in the upside of bull markets.

Net result: The fund has returned an annualized 18% since its launch in December 1999, trouncing Standard & Poor's 500-stock index by an average of 16 percentage points a year (all long-term performance data are to October 1).