Omnicon Group (NYSE:OMC) - Omnicom is the second-largest advertising agency holding company in the world, providing marketing, advertising and communication services to clients across the globe. The Fund first purchased shares in Omnicom roughly six years ago, attracted by the industry’s oligopolistic structure; the importance (some would say necessity) of the services its agencies provide to corporate advertisers; the capital efficient nature of its business; and an undemanding price, as investors fretted over advertising budgets that were slow to rebound on the heels of the Great Recession. Omnicom compounded nicely during our period of ownership, generating an annualized total return of approximately 21%. We closed our position in April, with the stock reaching our estimate of business value.
From Weitz Value Fund's Value second quarter 2016 commentary.
