bruce berkowitz is joining me now.ice to see you. >> let's talk fannie and freddie. here you are decided to buy the preferred shares of the two gses even though under some plans in congress, it could be worthless. why? >> i have a somewhat different viewpoint if preferred is a contract to pay a dividend. that's what we're entitled to. and the companies together make about $40 billion a year. earnings power. they can more than afford to give a big win to the government, taxpayers, and to make everybody whole in the ownership structure. i like the preferred because the market does proceed both fannie and freddie to be near death and that makes no sense to me. and you can buy the preferred at such discounts you get unbelievable promised yields. so i expect those prefers to pay the dividends again. dividends from profits. >> and then go back to par, essentially, if they -- if that were to occur. >> most of them should go to par. >> and make an enormous amount of money as well as other hedge funds that own the preferred sha

we had bruce berkowitz of fair home capital on cnbc this morning. the top holding is aig. >> yes. >> i want to get you to react to what he had to say about your company. i think you're going to like what he had to say. listen to this. >> and when you look at today's stock price with aig, it's still selling significantly below a liquidation value. so at some point, the stock market price of aig will meet the book value of aig, which i take as a proxy for the liquidation value. >> so how do you continue this move that you've obviously been leading, bob, since you took over? you've got consistent dividends. you announced the $1 billion share repurchase plan, a ton of cash on hand. how does this continue? >> you have to constantly reinvent your business. and we're in the process of doing that at aig. and technology, not only plays a big role in cell phones and ipads, it does in our business, as well. >> how so? >> data management. mining, big data, data mining. the more you can do to analyze in terms of what's going on with risk, risk selection, pricing

tomorrow, we have a special guest on "squawk on the street," bruce berkowitz, the fund manager of thend we will be talking about the anniversary of the conservativeship of fannie and freddie, and big interest in st. joe's, and we will talk to him about it tomorrow. >>> and yet, we are told that jarden is agreeing to buy yankee candle, the country's largest scented candle company for roughly $120 million. welcome to the program, sir. the cereal acquirer. it is the cash deal and biggest ever and why this one and why now? >> well, if you think about it, well, jardenesque brand candles are about as jarden as you can get like the playing cards and matches. the reality is that we had the opportunity, and it was in the something that we could move quickly on simply by the fact that the company had gone through a sales process. it had not been completed and we came in after the fact, and it was a great fit for us. we looked at the business before about seven years ago, but the reality is that we had the opportunity today and we are happy with the opportunity. >> and the timing is fascinat g f