Wallace Weitz

Wallace Weitz

Last Update: 2014-02-13

Number of Stocks: 62
Number of New Stocks: 3

Total Value: $2,984 Mil
Q/Q Turnover: 9%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Wallace Weitz Watch

  • Wallace Weitz's First Quarter 2014 Letter to Shareholders

    Dear Fellow Shareholder:

    The U.S. stock market wobbled a little in January, dipping 6% over the course of two weeks, but went on to set new record highs in late March. The bull market which began in March of 2009 is now five years old. This makes for very happy reading in the one, three and five year performance tables for our stock funds.


  • Weitz Funds' Analyst Corner - A Perspective on the ADT Corporation

    By Drew Weitz

    The ADT Corporation (ADT) is the leading provider of monitored home security service in the United States and Canada. The company possesses the strongest brand in the security industry, evidenced by its 6.5 million residential and small business customers – more than five times the number of its next largest competitor. In addition to traditional alarm monitoring, ADT is expanding its offerings to include interactive services (e.g. remote arm/disarm) and home automation services (e.g. climate/lighting control, physical lock/unlock of doors) for an incremental fee. The company was spun-off from Tyco International (TYC) in September 2012.


  • Wallace Weitz Fourth Quarter 2013 Commentary

    Dear Fellow Shareholder: 2013 was a terrific year for our stock funds. Gains for the year ranged from +28% for Hickory to +39% for Research. We are in the fifth year of economic recovery from the “Great Recession” of 2007-2009 and nearly five years from the bottom of the bear market that ended in March of 2009, so the table below showing one, three and five year results looks very good. 


  • Omaha’s Other Oracle Wallace Weitz - Top Holdings in Review

    Being known as The Other Oracle of Omaha is a good thing. Wallace “Wally” Weitz of Wallace R. Weitz & Co., is based in Omaha, Neb. His updated portfolio includes 60 stocks, one of them new, a total value of $2.65 billion, with a quarter-over-quarter turnover of 5%. The Weitz portfolio is weighted with top sectors: consumer cyclical at 17.5%, financial services at 15.6%, technology at 13.3% and health care at 13%. The stocks bought by Weitz are averaging a 12-month return of 28.02%. In 2012, he returned 19.72%. His 25-year cumulative return is 11.6% annually.

    Weitz's approach to value investing combines Ben Graham's price sensitivity and insistence on a margin of safety. Guru Weitz shares the conviction that qualitative factors that allow a company to have some control over its destiny, such as historical book value or reported earnings, can be more important than statistical measurements.  

  • Weitz Funds - A Perspective on TransDigm Group

    Analyst Corner: A Perspective on TransDigm Group
    September 30, 2013  

  • Wally Weitz Third Quarter Letter to Shareholders

    Dear Fellow Shareholder:

    Our stock fund returns in the third quarter and first nine months of 2013 have been very strong.  

  • Waiting for Gold Rain, Wally Weitz Does "Unnaturally Well"

    “Investing is a marathon,” Guru Wallace Weitz told the Weitz Fund shareholders in his second quarter letter, adding: “We face an ongoing series of decisions as to which companies to own, what price to pay, and when to be disciplined about holding out for the right opportunity. The fact that several of our stocks have performed unnaturally well this year gives us a measure of “cover” for our defensive positioning. We feel very confident that our patient, conservative approach will continue to serve us well. Believe me, when stocks become truly cheap again, we will follow Warren Buffett’s advice:

    When it’s raining gold, go out with a bucket, not a thimble.”  

  • Wallace Weitz's 3 New Q2 Buys

    Wallace Weitz’s Weitz Investments oversees $4 billion for clients and has had an excellent year so far. Its value fund returned 17.9% in the first half, outpacing the S&P 500’s 13.8%. While extended QE pumped up the markets further in the second quarter, Weitz hesitated to call a short-term market direction in his second quarter letter. As a result, he avoids taking any extreme positions in his portfolios but held ample cash at quarter-end after it sold shares of companies whose share priced approached his estimates of fair value. “But we still own a group of companies that we believe have excellent long-term prospects,” Weitz said in his letter.

    When stocks do get cheap again, he added, “we will follow Warren Buffett’s advice: ‘When it’s raining gold, go out with a bucket, not a thimble.’”  

  • Wallace Weitz Comments on Iconix

    Iconix (ICON--$29)(ICON) Iconix is a licensing business. It buys the rights to license brands such as Candie’s, London Fog and Peanuts. The products are manufactured by others and sold through major retailers, usually on multi-year contracts. The result is very predictable licensing revenues generated with little capital investment and thus very high returns on invested capital.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Liberty Interactive

    Liberty Interactive (LINTA--$23)(LINTA) Liberty Interactive’s QVC continues to grow in the U.S., Europe and Japan. The company also owns 37% of HSN (Home Shopping Network). QVC and HSN employ both video and online retailing platforms that give them significant cost advantages over traditional (bricks and mortar) retailers. We trust management to both grow the business and buy back shares, thus increasing the value per share of our holdings.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Redwood Trust

    Redwood Trust (RWT--$17)(RWT) We have owned Redwood shares since its founding in 1993. Redwood is a “value investor” in the residential and commercial mortgage markets. We know management well and trust their judgment. The mortgage market was rocked by the recent bond market commotion, but Redwood ought to be able to continue to build its business. Redwood’s current dividend yield is 7.5% and we would expect the company to raise its dividend over time.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Texas Instruments

    Texas Instruments (TXN--$35)(TXN) TI is an analog semiconductor company which makes a huge variety of relatively inexpensive products for electronics and industrial customers. The company took advantage of its financial strength to make opportunistic capital equipment acquisitions during the last recession and over the years has been a prodigious repurchaser of its own shares.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Liberty Global

    Liberty Global (LBTYK--$68)(LBTYK) Liberty Global’s chairman, John Malone, also needs no introduction. LGI has been an aggressive acquirer of European cable assets, having just closed a merger with Virgin Media (UK cable), taken a position in Dutch cable company Ziggo, and expressing interest in making another German acquisition. LGI’s subscription business generates huge amounts of cash flow and management is not shy about using borrowed money to acquire cable systems and buy back its own stock.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Wells Fargo

    Wells Fargo (WFC--$41)(WFC) Wells Fargo was a beneficiary of the financial crisis (though it was hard to tell at the time as the stock price dipped under $10). It avoided serious balance sheet problems and was able to buy (rescue) Wachovia Bank on very favorable terms. It has a great loan underwriting culture, very cheap deposits and is in a very strong position to take advantage of economic recovery and higher interest rates.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Berkshire Hathaway

    Berkshire Hathaway (BRK/B--$112)(BRK.B) We and our clients have owned Berkshire continuously since 1976. It is “built to last” and we expect it to continue to compound shareholder wealth for years to come. People have been worrying about a post-Warren Berkshire for decades, but we believe that with management in place at all the subsidiaries, strong successors identified, and an expressed willingness to buy back substantial amounts of stock if it should trade down for any reason, we are comfortable continuing to hold the shares.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Aon

    Aon ($64)(AON) Aon is a growing insurance brokerage firm whose stock was depressed by its acquisition of HR consultant Hewitt. Aon would be a beneficiary of higher insurance rates and increasing global economic activity.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on DirecTV

    DIRECTV (DTV--$62)(DTV) DTV continues to grow profits in a stable U.S. market and to add subscribers rapidly in Latin America. The economics of the business are very good (subscriptions, growing free cash flow per share) and management’s capital allocation is excellent (careful with acquisitions, substantial share buybacks).

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wallace Weitz Comments on Valeant Pharmaceuticals

    Valeant (VRX--$86)(VRX) Valeant Pharmaceuticals continues to make acquisitions (most recently agreeing to purchase Bausch and Lomb), wring cost savings from the combined operations, and grow earnings per share. The outlook for Valeant’s well-diversified portfolio of 1,100 products is relatively predictable. The company has a robust pipeline of acquisition candidates and we expect Valeant to build on its dermatology and eye care franchises over the next few years.

    From Wallace Weitz’s second quarter 2013 letter to shareholders.  

  • Wally Weitz's Second Quarter 2013 Letter to Shareholders

    Dear Fellow Shareholder: Our stock funds enjoyed a good second quarter and an excellent first half of 2013. Both relative and absolute results were strong. The table below summarizes results for the stock funds and the S&P 500 over the past six months, one year and three years. Our Performance Summary shows results for all of our Funds over a number of time periods going back to 1983.

    Period Ended 6/30/13
    Qtr 1 Year 3 Year
    Value 17.9% 23.3% 19.1%
    Partners Value 16.125.6 18.9
    Hickory 12.620.9 19.2
    [b]Partners III -  

  • Wally Weitz Q1 2013 Letter to Investors

    April 1, 2013
    Dear Fellow Shareholder:  

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