1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

They're the comfort food of the stock market

June 20, 2006 | About:

Sure, the Dow has taken a lot of tumbles. But don't despair. You can now find good bargains in stocks -- and even better ones in bank CDs and money funds. In theory, you should add to your stock portfolio after the stock market has fallen. And that's what some bargain-hunting investors are doing now. Wallace Weitz, manager of Weitz Value fund, likes to wade into the stock market at times like this.

Some well-known large-company stocks, such as Wal-Mart, General Electric and Anheuser-Busch, are looking cheap now, Weitz says. And because they're big, dividend-paying companies with solid earnings, they aren't too scary to buy now. "They're the comfort food of the stock market," Weitz says.

Another Weitz favorite: Berkshire Hathaway, run by his fellow Omaha bargain-hunter Warren Buffett. The holding company has $43 billion in cash for new purchases. The drawback: A single share costs $90,401. Even the lower-cost B shares will set you back $3,008.

Read the complete article


Rating: 3.8/5 (8 votes)

Comments

Please leave your comment:


Select portfolio(s):

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK