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Wally Weitz Buys IRM, SWN, SAI, SKX, RSG, AAPL, ESI; Sells APOL, CSTR, TDS.S, WTW

gurufocus

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This is the quarterly portfolio update for Wally Weitz, the fund manager that lives in the same town as Warren Buffett. As of 12/31/2010, Weitz Wallace R & Co owns 71 stocks with a total value of $2 billion.

To Wally Weitz, stock prices have moved up from “dirt cheap” to “moderately cheap” levels. Where is he finding value today? He wrote in his latest shareholder letter:

“In our June 2010 quarterly letter, we observed that many of the most interesting stocks hitting our radar screen were large capitalization, high quality companies. We wrote about nine of them—Accenture, Aon, Dell, Diageo, Microsoft, Omnicom, Praxair, Texas Instruments, and UPS. These stocks as a group have appreciated over 20% since June 30, but we still own all of them in one or more of our Funds. Their earnings and business values are growing, and we would expect them to provide good returns over time.”

“Each of our other stocks has a story of its own. Omnicare is cheap at eight times cash earnings but it had a management problem. New management is now in place and the prospect of renewed growth in earnings should bring a higher valuation. Redwood Trust provides a dividend yield of nearly 7% and its earnings should begin to grow again as the jumbo mortgage market reopens. Live Nation (a concert promoter) and Ticketmaster merged in the midst of a terrible year for live performances. Liberty Media is a significant minority owner and tendered (unsuccessfully) for additional shares of Live Nation in 2010. A stronger concert market in 2011 and additional buying by Liberty could lead to a higher valuation.”

This is the portfolio chart of Wallace Weitz. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Wallace Weitz's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Wallace+Weitz

This is the sector weightings of his portfolio:

Consumer Services 25.8%
Technology 17.6%
Industrials 15.7%
Financials 11.4%
Health Care 11.1%
Oil & Gas 7.6%
Consumer Goods 3.4%
Basic Materials 1.1%


These are the top 5 holdings of Wallace Weitz

  1. OMNICARE INC. (OCR) - 4,742,273 shares, 5.9% of the total portfolio. Shares added by 7.61%
  2. Liberty Media Corp. Series A (LINTA) - 7,166,369 shares, 5.54% of the total portfolio. Shares reduced by 17.86%
  3. AON Corp. (AON) - 2,306,998 shares, 5.2% of the total portfolio. Shares added by 20.24%
  4. Microsoft Corp. (MSFT) - 3,609,378 shares, 4.94% of the total portfolio. Shares reduced by 0.16%
  5. REDWOOD TRUST INC. (RWT) - 6,463,274 shares, 4.73% of the total portfolio. Shares reduced by 6.31%


Added: Aon Corp. (AON)

Wallace Weitz added to his holdings in Aon Corp. by 20.24%. His purchase prices were between $38.99 and $46.05, with an estimated average price of $41.71. The impact to his portfolio due to this purchase was 0.88%. His holdings were 2,306,998 shares as of 12/31/2010.

Aon Corporation is a holding company whose operating subsidiaries carry onbusiness in three distinct segments: insurance brokerage and other services; consulting; and insurance underwriting. Aon Corp. has a market cap of $15.28 billion; its shares were traded at around $49.22 with a P/E ratio of 14.4 and P/S ratio of 2. The dividend yield of Aon Corp. stocks is 1.3%. Aon Corp. had an annual average earning growth of 2.7% over the past 10 years.

Added: Omnicare Inc. (OCR)

Wallace Weitz added to his holdings in Omnicare Inc. by 7.61%. His purchase prices were between $22.22 and $25.75, with an estimated average price of $23.92. The impact to his portfolio due to this purchase was 0.42%. His holdings were 4,742,273 shares as of 12/31/2010.

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 $3.03 billion; its shares were traded at around $26.83 with a P/E ratio of 11.4 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.

Added: Ascent Media Corp. Series A (ASCMA)

Wallace Weitz added to his holdings in Ascent Media Corp. Series A by 37.17%. His purchase prices were between $26.73 and $39.12, with an estimated average price of $30.78. The impact to his portfolio due to this purchase was 0.35%. His holdings were 679,000 shares as of 12/31/2010.

ASCENT MEDIA GROUP provides creative and network services to the media and entertainment industries in the United States, the United Kingdom and Singapore. Ascent Media Corp. Series A has a market cap of $502.4 million; its shares were traded at around $38.44 with and P/S ratio of 1.1.

Added: Texas Instruments Inc. (TXN)

Wallace Weitz added to his holdings in Texas Instruments Inc. by 4.45%. His purchase prices were between $27.21 and $33.75, with an estimated average price of $30.87. The impact to his portfolio due to this purchase was 0.2%. His holdings were 2,912,800 shares as of 12/31/2010.

Texas Instruments, Inc. is a global semiconductor company and one of the world's designers and suppliers of digital signal processors and analog integrated circuits, the engines driving the digitization of electronics. Texas Instruments Inc. has a market cap of $39.85 billion; its shares were traded at around $35.1 with a P/E ratio of 13.6 and P/S ratio of 2.9. The dividend yield of Texas Instruments Inc. stocks is 1.5%. Texas Instruments Inc. had an annual average earning growth of 4.2% over the past 5 years.

Added: Strayer Education Inc. (STRA)

Wallace Weitz added to his holdings in Strayer Education Inc. by 33.11%. His purchase prices were between $126 and $170.5, with an estimated average price of $145.72. The impact to his portfolio due to this purchase was 0.07%. His holdings were 36,074 shares as of 12/31/2010.

STRAYER EDUCATION, INC. The College is a regional proprietary institution of higher education offering undergraduate and graduate degree programs to more than 7,000 students at eight campuses in Washington, D. Strayer Education Inc. has a market cap of $1.67 billion; its shares were traded at around $123.32 with a P/E ratio of 13.3 and P/S ratio of 3.2. The dividend yield of Strayer Education Inc. stocks is 3.3%. Strayer Education Inc. had an annual average earning growth of 16% over the past 10 years. GuruFocus rated Strayer Education Inc. the business predictability rank of 3.5-star.

New Purchase: Iron Mountain (IRM)

Wallace Weitz initiated holdings in Iron Mountain. His purchase prices were between $20.33 and $25.32, with an estimated average price of $22.83. The impact to his portfolio due to this purchase was 0.68%. His holdings were 557,100 shares as of 12/31/2010.

Iron Mountain Incorporated is one of the world's largest records and information management services company. Iron Mountain has a market cap of $5.12 billion; its shares were traded at around $26.53 with a P/E ratio of 22.6 and P/S ratio of 1.7. The dividend yield of Iron Mountain stocks is 3%. Iron Mountain had an annual average earning growth of 13.5% over the past 10 years. GuruFocus rated Iron Mountain the business predictability rank of 4-star.

New Purchase: Southwestern Energy Company (SWN)

Wallace Weitz initiated holdings in Southwestern Energy Company. His purchase prices were between $32.73 and $38.42, with an estimated average price of $35.72. The impact to his portfolio due to this purchase was 0.48%. His holdings were 260,300 shares as of 12/31/2010.

Southwestern Energy Company is an energy company primarily focused on natural gas. Southwestern Energy Company has a market cap of $12.78 billion; its shares were traded at around $37.38 with a P/E ratio of 21 and P/S ratio of 6. Southwestern Energy Company had an annual average earning growth of 20% over the past 10 years.

New Purchase: Skechers U.s.a. Inc. (SKX)

Wallace Weitz initiated holdings in Skechers U.s.a. Inc.. His purchase prices were between $19.24 and $25.5, with an estimated average price of $22.03. The impact to his portfolio due to this purchase was 0.08%. His holdings were 80,713 shares as of 12/31/2010.

Skechers U.S.A., Inc. designs and markets branded contemporary casual, active, rugged and lifestyle footwear for men, women and children. Skechers U.s.a. Inc. has a market cap of $1 billion; its shares were traded at around $22.86 with a P/E ratio of 6.3 and P/S ratio of 0.7. Skechers U.s.a. Inc. had an annual average earning growth of 1.6% over the past 5 years.

New Purchase: Saic Inc. (SAI)

Wallace Weitz initiated holdings in Saic Inc.. His purchase prices were between $15.13 and $16.21, with an estimated average price of $15.72. The impact to his portfolio due to this purchase was 0.08%. His holdings were 100,000 shares as of 12/31/2010.

SAIC INC is a scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. Saic Inc. has a market cap of $6.13 billion; its shares were traded at around $16.79 with a P/E ratio of 11.3 and P/S ratio of 0.6.

New Purchase: Republic Services Inc. (RSG)

Wallace Weitz initiated holdings in Republic Services Inc.. His purchase prices were between $27.88 and $31.87, with an estimated average price of $29.69. The impact to his portfolio due to this purchase was 0.04%. His holdings were 27,500 shares as of 12/31/2010.

Republic Services, Inc., is a provider of services in the domestic non-hazardous solid waste industry. Republic Services Inc. has a market cap of $11.96 billion; its shares were traded at around $30.53 with a P/E ratio of 19.2 and P/S ratio of 1.5. The dividend yield of Republic Services Inc. stocks is 2.6%. Republic Services Inc. had an annual average earning growth of 10.3% over the past 10 years. GuruFocus rated Republic Services Inc. the business predictability rank of 4.5-star.

New Purchase: ITT Educational Services (ESI)

Wallace Weitz initiated holdings in Itt Educational Services. His purchase prices were between $56.44 and $68.52, with an estimated average price of $62.04. The impact to his portfolio due to this purchase was 0.01%. His holdings were 3,758 shares as of 12/31/2010.

ITT Educational Services, Inc. provides accredited, technology-oriented undergraduate and graduate degree programs through its ITT Technical Institutes and Daniel Webster College to help students develop skills and knowledge for pursuing career opportunities in various fields. Itt Educational Services has a market cap of $2.13 billion; its shares were traded at around $65.62 with a P/E ratio of 5.9 and P/S ratio of 1.3. Itt Educational Services had an annual average earning growth of 33.9% over the past 10 years. GuruFocus rated Itt Educational Services the business predictability rank of 5-star.

New Purchase: Apple Inc. (AAPL)

Wallace Weitz initiated holdings in Apple Inc.. His purchase prices were between $278.64 and $325.47, with an estimated average price of $311.7. The impact to his portfolio due to this purchase was 0.01%. His holdings were 388 shares as of 12/31/2010.

Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Apple Inc. has a market cap of $318.68 billion; its shares were traded at around $358.16 with a P/E ratio of 19.5 and P/S ratio of 4.8. Apple Inc. had an annual average earning growth of 59.8% over the past 5 years.

New Purchase: Viacom Inc. (VIA.B)

Wallace Weitz initiated holdings in Viacom Inc.. His purchase prices were between $36.21 and $40.05, with an estimated average price of $38.34. The impact to his portfolio due to this purchase was 0.01%. His holdings were 3,200 shares as of 12/31/2010.

Viacom is a global entertainment content company whose family of prominent and respected brands includes the multiplatform properties of MTV Networks, BET Networks, Paramount Pictures, Paramount Home Entertainment and DreamWorks. Viacom Inc. has a market cap of $23.7 billion; its shares were traded at around $45 with a P/E ratio of 14.7 and P/S ratio of 2.5. The dividend yield of Viacom Inc. stocks is 1.4%. Viacom Inc. had an annual average earning growth of 6.5% over the past 5 years.

Reduced: Liberty Global Inc. Series C (LBTYK)

Wallace Weitz reduced to his holdings in Liberty Global Inc. Series C by 24.21%. His sale prices were between $30.43 and $38.1, with an estimated average price of $34.27. The impact to his portfolio due to this sale was -1.18%. Wallace Weitz still held 2,224,763 shares as of 12/31/2010.

Liberty Global Inc. Series C has a market cap of $51.42 billion; its shares were traded at around $40.09 .

Reduced: Liberty Media Corp. Liberty Starz Ser A (LSTZA)

Wallace Weitz reduced to his holdings in Liberty Media Corp. Liberty Starz Ser A by 39.61%. His sale prices were between $61.58 and $68.34, with an estimated average price of $65.1. The impact to his portfolio due to this sale was -0.74%. Wallace Weitz still held 347,850 shares as of 12/31/2010.

Liberty Starz Group is a significant operating subsidiary and also a principal reportable segment of Liberty Media Corporation which focuses primarily on video programming, communications businesses, and the direct-to-home satellite distribution business. Liberty Media Corp. Liberty Starz Ser A has a market cap of $3.32 billion; its shares were traded at around $69.65 with a P/E ratio of 19.9 and P/S ratio of 2.7.

Reduced: Cabela's Inc. (CAB)

Wallace Weitz reduced to his holdings in Cabela's Inc. by 49.01%. His sale prices were between $18.28 and $23.11, with an estimated average price of $21.19. The impact to his portfolio due to this sale was -0.68%. Wallace Weitz still held 669,054 shares as of 12/31/2010.

Cabelas Inc is the nation's largest direct marketer, and a specialty retailer, of hunting, fishing, camping and related outdoor merchandise. Cabela's Inc. has a market cap of $1.69 billion; its shares were traded at around $27.09 with a P/E ratio of 15.1 and P/S ratio of 0.6. Cabela's Inc. had an annual average earning growth of 0.1% over the past 5 years.

Reduced: Aci Worldwide Inc. (ACIW)

Wallace Weitz reduced to his holdings in Aci Worldwide Inc. by 37.66%. His sale prices were between $22.29 and $28.15, with an estimated average price of $25.59. The impact to his portfolio due to this sale was -0.51%. Wallace Weitz still held 643,400 shares as of 12/31/2010.

Transaction Systems Architects, Inc. develops, markets, installs and supports a broad line of software products and services primarily focused on facilitating electronic payments and electronic commerce. Aci Worldwide Inc. has a market cap of $861.1 million; its shares were traded at around $27.14 with a P/E ratio of 44.7 and P/S ratio of 2. Aci Worldwide Inc. had an annual average earning growth of 20.2% over the past 5 years.

Reduced: Energizer Holdings Inc. (ENR)

Wallace Weitz reduced to his holdings in Energizer Holdings Inc. by 67.27%. His sale prices were between $66.37 and $75.49, with an estimated average price of $71.75. The impact to his portfolio due to this sale was -0.43%. Wallace Weitz still held 60,000 shares as of 12/31/2010.

Energizer Holdings is the world's largest manufacturer of primary batteries and flashlights and a global leader in the dynamic business of providing portable power. Energizer Holdings Inc. has a market cap of $5.27 billion; its shares were traded at around $68.29 with a P/E ratio of 14.3 and P/S ratio of 1.2. Energizer Holdings Inc. had an annual average earning growth of 19.1% over the past 10 years. GuruFocus rated Energizer Holdings Inc. the business predictability rank of 3-star.

Reduced: Berkshire Hathaway (BRK.A)

Wallace Weitz reduced to his holdings in Berkshire Hathaway by 29.66%. His sale prices were between $118575 and $125612, with an estimated average price of $121699. The impact to his portfolio due to this sale was -0.21%. Wallace Weitz still held 83 shares as of 12/31/2010.

Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway has a market cap of $203.54 billion; its shares were traded at around $125830 with a P/E ratio of 17.3 and P/S ratio of 1.8. Berkshire Hathaway had an annual average earning growth of 3.7% over the past 10 years.

Reduced: Eog Resources Inc. (EOG)

Wallace Weitz reduced to his holdings in Eog Resources Inc. by 28.57%. His sale prices were between $88.29 and $101.33, with an estimated average price of $93.64. The impact to his portfolio due to this sale was -0.01%. Wallace Weitz still held 5,000 shares as of 12/31/2010.

EOG Resources, Inc. is engaged, either directly or through a marketing subsidiary with regard to domestic operations or through various subsidiaries with regard to international operations, in the exploration for, and the development, production and marketing of, natural gas and crude oil primarily in major producing basins in the United States, as well as in Canada and Trinidad. Eog Resources Inc. has a market cap of $25.35 billion; its shares were traded at around $103.95 with a P/E ratio of 57.4 and P/S ratio of 5.4. The dividend yield of Eog Resources Inc. stocks is 0.6%. Eog Resources Inc. had an annual average earning growth of 17.4% over the past 10 years. GuruFocus rated Eog Resources Inc. the business predictability rank of 4.5-star.

Reduced: Devon Energy Corp. (DVN)

Wallace Weitz reduced to his holdings in Devon Energy Corp. by 58.82%. His sale prices were between $64.35 and $78.2, with an estimated average price of $70.51. The impact to his portfolio due to this sale was -0.01%. Wallace Weitz still held 3,500 shares as of 12/31/2010.

Devon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration, development and production, and in the acquisition of producing properties. Devon Energy Corp. has a market cap of $35.6 billion; its shares were traded at around $85.87 with a P/E ratio of 12.9 and P/S ratio of 4.5. The dividend yield of Devon Energy Corp. stocks is 0.8%.

Sold Out: Apollo Group Inc. (APOL)

Wallace Weitz sold out his holdings in Apollo Group Inc.. His sale prices were between $34 and $50.49, with an estimated average price of $38.66.

Apollo Group, Inc. has been providing higher education to working adults for over 25 years. Apollo Group Inc. has a market cap of $6.07 billion; its shares were traded at around $42.31 with a P/E ratio of 7.4 and P/S ratio of 1.2. Apollo Group Inc. had an annual average earning growth of 23.8% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4-star.

Sold Out: Coinstar Inc. (CSTR)

Wallace Weitz sold out his holdings in Coinstar Inc.. His sale prices were between $42.35 and $66.98, with an estimated average price of $56.46.

Coinstar, Inc. operate a national network of self-service coin-counting machines in the U. Coinstar Inc. has a market cap of $1.41 billion; its shares were traded at around $41.75 with a P/E ratio of 28.2 and P/S ratio of 1.3. Coinstar Inc. had an annual average earning growth of 24.4% over the past 10 years. GuruFocus rated Coinstar Inc. the business predictability rank of 4-star.

Sold Out: Telephone And Data Systems Inc. (TDS.S)

Wallace Weitz sold out his holdings in Telephone And Data Systems Inc.. His sale prices were between $28.06 and $32.04, with an estimated average price of $30.32.

Telephone & Data Systems is a diversified telecommunications corporation. Telephone And Data Systems Inc. has a market cap of $1.46 billion; its shares were traded at around $30.38 with and P/S ratio of 0.3. The dividend yield of Telephone And Data Systems Inc. stocks is 1.5%.

Sold Out: Weight Watchers International Inc. (WTW)

Wallace Weitz sold out his holdings in Weight Watchers International Inc.. His sale prices were between $31.28 and $37.57, with an estimated average price of $34.52.

Weight Watchers International, Inc. is the largest provider of weight control programs in the world. Weight Watchers International Inc. has a market cap of $2.94 billion; its shares were traded at around $42.47 with a P/E ratio of 15.9 and P/S ratio of 2. The dividend yield of Weight Watchers International Inc. stocks is 1.8%. Weight Watchers International Inc. had an annual average earning growth of 12.7% over the past 10 years.

Sold Out: Autozone Inc. (AZO)

Wallace Weitz sold out his holdings in Autozone Inc.. His sale prices were between $229.47 and $275.5, with an estimated average price of $250.1.

Autozone is the nation's specialty retailer of automotive parts and accessories, primarily focusing on do-it-yourself customers. Autozone Inc. has a market cap of $11.34 billion; its shares were traded at around $261.76 with a P/E ratio of 15.8 and P/S ratio of 1.5. Autozone Inc. had an annual average earning growth of 17.9% over the past 10 years. GuruFocus rated Autozone Inc. the business predictability rank of 4.5-star.

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