Wallace Weitz

Wallace Weitz

Last Update: 2014-08-14

Number of Stocks: 62
Number of New Stocks: 2

Total Value: $3,311 Mil
Q/Q Turnover: 9%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Wallace Weitz' s Profile & Performance

Profile

Portfolio manager of Weitz Value Fund, Weitz Hickory Fund and Weitz Partners Value Fund, which he started in 1983.

Web Page:http://www.weitzfunds.com/

Investing Philosophy

Weitz's approach to value investing has evolved over the years. It combines Graham's price sensitivity and insistence on a "margin of safety" with a conviction that qualitative factors that allow a company to have some control over its destiny can be more important than statistical measurements, such as historical book value or reported earnings.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Weitz Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201330.8731.55-0.7
201217.9215.42.5
20112.192.080.1
3-Year Cumulative57.7 (16.4%/year)55 (15.7%/year)2.7 (0.7%/year)
201027.4915.0612.4
200931.326.464.8
5-Year Cumulative164 (21.4%/year)125.5 (17.7%/year)38.5 (3.7%/year)
2008-38.06-37-1.1
2007-8.545.61-14.2
200622.5315.796.7
2005-2.424.91-7.3
200414.99123.0
10-Year Cumulative105.6 (7.5%/year)104.1 (7.4%/year)1.5 (0.1%/year)
200325.3828.7-3.3
2002-16.99-22.15.1
2001-0.86-11.911.0
200021.07-9.130.2
199922.02211.0
15-Year Cumulative213.4 (7.9%/year)98.3 (4.7%/year)115.1 (3.2%/year)
199829.1328.60.5
199740.6433.47.2
199619.0423-4.0
199538.6637.61.1
1994-8.971.3-10.3
20-Year Cumulative755.2 (11.3%/year)483.2 (9.2%/year)272 (2.1%/year)
199323.0310.112.9
199215.147.67.5
19912830.5-2.5
1990-6.35-3.1-3.2
198920.2531.7-11.5
25-Year Cumulative1646.3 (12.1%/year)1050.7 (10.3%/year)595.6 (1.8%/year)
198814.9316.6-1.7
19874.255.1-0.8
198611.1618.6-7.4
198540.7231.69.1
198414.436.18.3
30-Year Cumulative3645.2 (12.8%/year)2235.1 (11.1%/year)1410.1 (1.7%/year)

Top Ranked Articles

Wally Weitz on credit problems and corporate buyout financing, Washington Mutual
Wally Weitz, known as the other Oracle of Omaha,explained the current credit mania on Wall Street. This is a recommended reading for all readers. He said that "There are signs that serious credit Read more...
Wally Weitz's Portfolio – Buffett Ratio Guru Portfolio Analysis
The following is an analysis of the most current portfolio of Mr. Wally Weitz. The analysis will use a system that I designed that is based on the ratio that Warren Buffet released to the public in 1986, which he coined “Owner Earnings.” For those new to this type of analysis, I would recommend reading an introduction to my system by clicking here. My goal is ultimately to analyze the portfolios of each guru highlighted here on GuruFocus, and then to subsequently re-analyze them every quarter when possible as changes are made. My purpose in writing these articles is to show the power of Buffett’s ratio in analyzing stocks, ETFs, mutual funds and individual portfolios. If one can fill their portfolios with companies that score high using my system and avoid those which fail, one should be able to increase the probability of becoming a successful investor in my opinion. Read more...
Wally Weitz on Berkshire Hathaway, American International Group, American Express, Redwood Trust, Fannie Mae and Freddie Mac
Like many other value investors, Wally Weitz is having rough times lately. Known as the other Oracle of Omaha, Weitz sees opportunities in the current beaten down market. This is a review of his commentaries on some of his holdings. Read more...
Wallace Weitz: A Quick Glance
As an avid reader and equally devoted investor, I try to read as many investment or financial books as I am able. When nothing new on the book shelves at the local book store has caught my attention, I will often re-read the volumes that enjoy a prominent place in my office. Yes, that includes re-reading the treasures, such as "The Intelligent Investor" and "Security Analysis." I will vouch that they are actually better each time you read them. Read more...
Emotional Arbitrage- Wally Weitz Continues to Outperform
Despite more than 25 years of averaging more than 12% annually, Wally Weitz will always be known as that other guy from Omaha. He doesn’t have any problems be called that though, and credits Warren Buffett for much of his success. He’s owned Berkshire Hathaway continuously since buying the A shares in 1976 for $3,000/share. Read more...
» More Wallace Weitz Articles

Commentaries and Stories

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Weitz Investment Management Comments on DIRECTV
DIRECTV (DTV) is on the receiving end of a takeover offer—it is the target of an acquisition by AT&T. DIRECTV had grown its business steadily over the years and had increased its value per share significantly by making very large share repurchases. AT&T is offering roughly twice the price we paid for our first shares about three years ago. We have mixed feelings about giving up our holdings but it has been a good investment for us. More...

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Weitz Investment Management Comments on Berkshire Hathaway
Berkshire Hathaway (BRK.A)(BRK.B) is also an active acquirer, both at the parent company level and through its various subsidiaries. Warren Buffett (Trades, Portfolio) is holding cash reserves of $40-50 billion and has expressed strong interest in making more very large acquisitions. Berkshire recently agreed to swap its long-time holdings of the Washington Post Company (now called Graham Holdings) for a TV station and Berkshire shares held by that company. When completed, this tax-efficient transaction will reduce the number of Berkshire shares outstanding and add another cash generating asset to the fold. Berkshire is constantly growing and evolving as a group of operating businesses but also, in extreme stock market dislocations like 2008, Warren has the courage and capacity to make bold investment moves. Berkshire has been a holding in our stock funds More...

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Wally Weitz Q2 Shareholder Letter Wallace Weitz - Wally Weitz Q2 Shareholder Letter
In many ways, the second quarter of 2014 was a continuation of the past several quarters. After a weather-induced first quarter dip in GDP, the U.S. economy resumed its modest recovery from the “Great Recession” of 2007-09. The Federal Reserve “tapered” its quantitative easing (QE) program but still purchased $310 billion of bonds during the first half of the year. U.S. stocks continued to drift up—the conventional wisdom being that while valuations were not compelling, as long as the Fed was providing “liquidity” and near-zero interest rates, it was safe to continue buying. In fact, failure to keep buying exposed investors to the risk of being left out of the continuing bull market. More...

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Weitz Investment Management Comments on Wesco Aircraft Holdings
We initiated a small position in Wesco Aircraft Holdings (WAIR) during the quarter. Wesco is a distributor and supply chain manager to the commercial and military aerospace markets. The company should benefit from the multi-year commercial aerospace build-out that is underway. We expect this tailwind to provide visible growth through at least 2017. Wesco also has an opportunity to provide more services to large defense contractors as funding pressures force the industry to become more efficient. If the company can improve margins along the way, we think the resulting earnings growth could provide reasonable-to-good return potential for the stock. More...

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Weitz Investment Management Comments on Brown & Brown
We also added a new position in insurance broker Brown & Brown (BRO) when the stock fell below $29 in February. The company's business model generates high operating margins and strong free cash flow. We expect management to remain disciplined acquirers of culturally compatible companies. In the meantime, Brown & Brown would benefit from an increase in insurable exposure units in the middle-market economy. Said more simply, as "Main Street" recovers, Brown & Brown should do well. More...

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Weitz Investment Management Comments on eBay Inc.
Finally, eBay Inc. (EBAY) made its return to the Value Fund after a relatively brief period of ownership during 2008/2009. The company recently concluded a public battle with billionaire activist Carl Icahn (Trades, Portfolio) over whether to separate its namesake online commerce platform eBay.com from PayPal, its rapidly growing mobile payments platform. We saw merit in both sides of the argument, but believed the two businesses were worth considerably more than where they were trading regardless of outcome. Both Marketplaces and PayPal have strong competitive positions and are reinvesting heavily to protect and extend their advantages. We believe EBAY shares are worth roughly $70 today More...

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Weitz Investment Management Comments on Pioneer Natural Resources
Pioneer Natural Resources (PXD) is a producer of oil and gas with significant positions in Texas in the Permian Basin and Eagle Ford shale. A relatively sharp reversal in investor sentiment toward domestic oil during the first quarter afforded us the opportunity to begin building a position in Pioneer below $170 per share. We funded our PXD purchase via the sale of Southwestern Energy (SWN), effectively swapping into a more attractively priced producer with a clearer path to per share production and NAV growth. Pioneer's main area of investment – the horizontal redevelopment of the Northern Midland basin – generates some of the highest cash margins per barrel in North America. In many ways, Pioneer is the oil version of gas producer Range Resources (RRC), another Fund holding. It boasts a tremendous amount of visible, low-risk reserves with multiple shale layers available to exploit underneath the same acreage. Its financial flexibility and the Permian's more mature infrastructure base are additional advantages. We believe Pioneer's NAV is roughly $250/share. More...

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Wally Weitz Q1 2014 Letter To Investors
April 1, 2014 More...

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Weitz Funds' Analyst Corner - A Perspective On Liberty Media Corporation
By Drew Weitz More...

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Wallace Weitz's First Quarter 2014 Letter to Shareholders
Dear Fellow Shareholder: More...

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Weitz Funds' Analyst Corner - A Perspective on the ADT Corporation
By Drew Weitz More...

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Wallace Weitz Fourth Quarter 2013 Commentary
Dear Fellow Shareholder: 2013 was a terrific year for our stock funds. Gains for the year ranged from +28% for Hickory to +39% for Research. We are in the fifth year of economic recovery from the “Great Recession” of 2007-2009 and nearly five years from the bottom of the bear market that ended in March of 2009, so the table below showing one, three and five year results looks very good.  More...

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Omaha’s Other Oracle Wallace Weitz - Top Holdings in Review
Being known as The Other Oracle of Omaha is a good thing. Wallace “Wally” Weitz of Wallace R. Weitz & Co., is based in Omaha, Neb. His updated portfolio includes 60 stocks, one of them new, a total value of $2.65 billion, with a quarter-over-quarter turnover of 5%. The Weitz portfolio is weighted with top sectors: consumer cyclical at 17.5%, financial services at 15.6%, technology at 13.3% and health care at 13%. The stocks bought by Weitz are averaging a 12-month return of 28.02%. In 2012, he returned 19.72%. His 25-year cumulative return is 11.6% annually. More...

DRUG MANUFACTURERS – SPECIALTY & GENERIC, INSURANCE BROKERS, INSURANCE – DIVERSIFIED, PAY TV


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Weitz Funds - A Perspective on TransDigm Group
Analyst Corner: A Perspective on TransDigm Group More...

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Wally Weitz Third Quarter Letter to Shareholders
Dear Fellow Shareholder: More...

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Waiting for Gold Rain, Wally Weitz Does "Unnaturally Well" Wallace Weitz - Waiting For Gold Rain, Wally Weitz Does
“Investing is a marathon,” Guru Wallace Weitz told the Weitz Fund shareholders in his second quarter letter, adding: “We face an ongoing series of decisions as to which companies to own, what price to pay, and when to be disciplined about holding out for the right opportunity. The fact that several of our stocks have performed unnaturally well this year gives us a measure of “cover” for our defensive positioning. We feel very confident that our patient, conservative approach will continue to serve us well. Believe me, when stocks become truly cheap again, we will follow Warren Buffett’s advice: More...

MEDICAL CARE, MEDIA – DIVERSIFIED, PHARMACEUTICAL RETAILERS, COMPUTER SYSTEMS


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Wallace Weitz's 3 New Q2 Buys
Wallace Weitz’s Weitz Investments oversees $4 billion for clients and has had an excellent year so far. Its value fund returned 17.9% in the first half, outpacing the S&P 500’s 13.8%. While extended QE pumped up the markets further in the second quarter, Weitz hesitated to call a short-term market direction in his second quarter letter. As a result, he avoids taking any extreme positions in his portfolios but held ample cash at quarter-end after it sold shares of companies whose share priced approached his estimates of fair value. “But we still own a group of companies that we believe have excellent long-term prospects,” Weitz said in his letter. More...

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Wallace Weitz Comments on Iconix
Iconix (ICON--$29)(ICON) Iconix is a licensing business. It buys the rights to license brands such as Candie’s, London Fog and Peanuts. The products are manufactured by others and sold through major retailers, usually on multi-year contracts. The result is very predictable licensing revenues generated with little capital investment and thus very high returns on invested capital. More...

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Wallace Weitz Comments on Liberty Interactive
Liberty Interactive (LINTA--$23)(LINTA) Liberty Interactive’s QVC continues to grow in the U.S., Europe and Japan. The company also owns 37% of HSN (Home Shopping Network). QVC and HSN employ both video and online retailing platforms that give them significant cost advantages over traditional (bricks and mortar) retailers. We trust management to both grow the business and buy back shares, thus increasing the value per share of our holdings. More...

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Wallace Weitz Comments on Redwood Trust
Redwood Trust (RWT--$17)(RWT) We have owned Redwood shares since its founding in 1993. Redwood is a “value investor” in the residential and commercial mortgage markets. We know management well and trust their judgment. The mortgage market was rocked by the recent bond market commotion, but Redwood ought to be able to continue to build its business. Redwood’s current dividend yield is 7.5% and we would expect the company to raise its dividend over time. More...

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