Wallace Weitz: Perception of well-being
As for companies with the capacity to take advantage of capital markets weakness, we start with Berkshire Hathaway. Berkshire holds over $42,000 per share in cash and bonds that is available for investment and Warren Buffett is equally at home buying individual securities and whole businesses. Washington Post, Redwood Trust, Liberty Capital, IAC/InterActive, and others have excess cash and borrowing power and have stated publicly that they are interested in acquiring securities and/or businesses if opportunities arise. Many of our other companies also have significant stock buyback programs in place and could be expected to be very aggressive purchasers of their own stock in a period of general market weakness.
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