In the interview, Weitz mentioned that market has gone sideways for 10 years, digesting the bull market of the last century. He said last cycle when market went sideways, it kept going for 15 years. Based on the mess in the real estate market, Weitz would not be surprised if this sideways market goes on for another 3-4 years.
When coming to choosing stocks to invest in, Weitz looks at the value of a business to a private owner. Besides, he likes managers who have been creating shareholders’ value consistently.
Here are his top holdings and holding histories. Notice Weitz commented on some of the names:
No. 1: Liberty Media Corp. Interactive (LINTA), Weightings: 5.93% - 8,724,812 Shares
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Liberty Media Corp. Interactive Common S has a market cap of $8.99 billion; its shares were traded at around $15.8125 with a P/E ratio of 14.2 and P/S ratio of 1.1.
No. 2: Omnicare Inc. (OCR), Weightings: 5.22% - 4,406,973 Shares
Omnicare, Inc., a Fortune five hundred company based in Covington, Kentucky, is a provider of pharmaceutical care for the elderly. Omnicare Inc. has a market cap of $2.83 billion; its shares were traded at around $24.37 with a P/E ratio of 10.6 and P/S ratio of 0.5. The dividend yield of Omnicare Inc. stocks is 0.5%. Omnicare Inc. had an annual average earning growth of 7.8% over the past 10 years.
No. 3: Redwood Trust Inc. (RWT), Weightings: 4.95% - 6,898,240 Shares
REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. Redwood Trust Inc. has a market cap of $1.15 billion; its shares were traded at around $14.7 with a P/E ratio of 8.7 and P/S ratio of 4. The dividend yield of Redwood Trust Inc. stocks is 6.8%.
No. 4: Berkshire Hathaway Inc. (BRK.B), Weightings: 4.55% - 1,110,715 Shares
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $198.29 billion; its shares were traded at around $80.24 with a P/E ratio of 16.9 and P/S ratio of 1.8. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.
No. 5: Liberty Global Inc. Series C (LBTYK), Weightings: 4.45% - 2,935,300 Shares
Liberty Global Inc. Series C has a market cap of $44.24 billion; its shares were traded at around $34.49 .
No. 6: Microsoft Corp. (MSFT), Weightings: 4.39% - 3,615,260 Shares
Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $236.3 billion; its shares were traded at around $27.62 with a P/E ratio of 11.9 and P/S ratio of 3.8. The dividend yield of Microsoft Corp. stocks is 2.3%. Microsoft Corp. had an annual average earning growth of 12.6% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 3-star.
Check out Weitz’s complete stock portfolio by clicking on Wallace Weitz.
About the author:
My name is Ben C. and I am 2nd year MBA candidate at the Anderson School of Business at the University of California- Los Angeles. I have a BS in Economics from the Wharton School of Business at the University of Pennsylvania. Before coming to Anderson I worked as a generalist equity research analyst for Right Wall Capital, a long-short equity hedge fund located in New York City. Prior to working at Right Wall I worked as an analyst at Blue Ram Capital, another long-short equity hedge fund located in Rye Brook, NY. This past summer, I worked for West Coast Asset Management as a research analyst. West Coast, which was co-founded by Kinko’s founder Paul Orfalea, is run by well-known value investors Lance Helfert and Atticus Lowe.