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Wallace Weitz: My Outlook: Higher Market Volatility -- More Investment Opportunities

January 24, 2006 | About:

Wally Weitz did not have a good year in 2005. His funds suffered small losses. He said that "The stock price may appear to be disconnected from intrinsic value for extended periods, but over the long term, the gravitational force of business value pulls the stock price along with it (up or down)... Given this orientation, our investment team can focus on calculating and monitoring changes in companies business values and when a cheap stock gets cheaper, we generally buy more."

He is still positive with Fannie Mae, Comcast, Countrywide Financial, Redwood Trust and Tyco. These stocks have sent down after he bought. His outlook, "It does seem plausible, though, that there may be pockets of weakness that cause the markets to be more volatile than they were last year... This should not necessarily frighten us - a little volatility can be helpful to value investors".

http://www.weitzfunds.com/shareholderletters/currentletters/WeitzEquityFunds4Q2005.pdf

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