As Yogi Berra said, "It's tough to make predictions, especially about the future." In the meantime, we believe we need to avoid temptations to change our investment principles to accommodate a market that is not very accommodating to our needs. Until better opportunities present themselves, our Funds will remain closed to new investors with certain exceptions.
"Our deep value approach continues to bear precious little “new” fruit as bargain-priced issues around the globe remain scarce. We were once again net sellers in both funds during the quarter resulting in a modest increase in cash reserves."
"We were once again net sellers of stocks in terms of dollar volume during the quarter by an over 5 to 1 margin, taking a modest initial position in only one new name, Wal-mart Stores. Wal-mart, which has a terrific long term record of above average compound growth in revenues and earnings, is trading 26% off its high achieved in 2002 and at a very reasonable multiple of estimated earnings. Warren Buffett has been building a position in Wal-mart for Berkshire Hathaway, of late, at prices roughly equivalent to what we have paid for our shares."
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