Wallace Weitz

Wallace Weitz

Last Update: 05-15-2017

Number of Stocks: 81
Number of New Stocks: 2

Total Value: $2,383 Mil
Q/Q Turnover: 1%

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 (%)
20166.2211.96-5.7
2015-9.251.38-10.6
20147.9113.69-5.8
3-Year Cumulative4 (1.3%/year)29 (8.9%/year)-25 (-7.6%/year)
201330.8732.39-1.5
201217.92161.9
5-Year Cumulative60.5 (9.9%/year)98.2 (14.7%/year)-37.7 (-4.8%/year)
20112.192.110.1
201027.4915.0612.4
200931.326.464.8
2008-38.06-37-1.1
2007-8.545.49-14.0
10-Year Cumulative55.6 (4.5%/year)95.7 (6.9%/year)-40.1 (-2.4%/year)
200622.5315.796.7
2005-2.424.91-7.3
200414.9910.884.1
200325.3828.68-3.3
2002-16.99-22.15.1
15-Year Cumulative122.6 (5.5%/year)164.2 (6.7%/year)-41.6 (-1.2%/year)
2001-0.86-11.8911.0
200021.07-9.130.2
199922.0221.041.0
199829.1328.580.5
199740.6433.367.3
20-Year Cumulative492.1 (9.3%/year)339.2 (7.7%/year)152.9 (1.6%/year)
199619.0422.96-3.9
199538.6637.581.1
1994-8.971.32-10.3
199323.0310.0813.0
199215.147.627.5
25-Year Cumulative1160.2 (10.7%/year)791.8 (9.1%/year)368.4 (1.6%/year)
19912830.47-2.5
1990-6.35-3.1-3.2
198920.2531.69-11.4
198814.9316.61-1.7
19874.255.1-0.8
30-Year Cumulative2076.4 (10.8%/year)1719.7 (10.2%/year)356.7 (0.6%/year)
198611.1618.6-7.4
198540.7231.69.1
198414.436.18.3

Top Ranked Articles

Weitz Funds Comments on Liberty Global Guru stock highlight
Liberty Global (NASDAQ:LBTYA) is the largest international cable company, with operations in 14 countries providing video, broadband Internet, fixed-line telephone and mobile services to its customers. Shares fell in the first calendar quarter after an influential Wall Street analyst downgraded his outlook for the stock, principally due to concerns over continued competitive struggles in Holland. Since that time, Liberty announced it would move its Dutch operations into a 50/50 joint venture with Vodafone, allowing Liberty Global to combine its strong cable and broadband businesses with Vodafone’s mobile offering to create a more competitive, “converged” offering. Share prices declined in the second calendar quarter due to Brexit. The pound fell roughly 10% versus the U.S. dollar on the news. Without any rebound this will depress Liberty Global’s future earnings, regardless of underlying fundamentals, as its largest operation is in the United Kingdom and represents roughly 38% of its cash flow generation. Management has already turnedits attention to reducing indirect costs, better integrating its various operations, leveraging Read more...
Weitz Funds Comments on Endo International Guru stock highlight
Endo International (NASDAQ:ENDP) is a specialty healthcare company engaged in developing, manufacturing, marketing and distributing branded pharmaceutical and generic products and medical devices. Endo experienced significantly worse than anticipated erosion at Qualitest, its legacy generic drug platform. Simply put, our analysis of the company’s competitive positioning in controlled substance generics was wrong. The competitive environment changed quickly and we were slow to recognize it. After conversations with management and a couple of the larger drug buying consortiums, we could not gain comfort in the durability of Endo’s now lower earnings base. The company’s balance sheet and potential legal obligations (liabilities relating to the company’s legacy vaginal mesh products) leave less room for error given growth challenges on the branded side of Endo’s business. Given the erosion in our investment thesis, questions about management’s ability to identify and navigate risk, and a growing list of unknowns surrounding the business, we elected to close our position and refocus our capital in more attractive opportunities.
From Read more...
Learning From the Biggest Mistakes of Institutional Investors 5 investors discuss their biggest investment failures
Every investor makes mistakes. If someone tells you they do not, they are either lying or too inexperienced. Read more...
Weitz Funds Comments on Express Scripts Guru stock highlight
Express Scripts (NASDAQ:ESRX) is the largest independent pharmacy benefits manager (PBM) in the United States, helping health benefit providers improve access to (and the affordability of) prescription drugs. As the U.S. election enters its final stages, pharmaceutical manufacturers have shouldered a significant portion of the public’s frustration with the growing lack of affordability in healthcare. In recent weeks, several drug companies have attempted to shift the conversation by pointing fingers at PBMs and other “middlemen” as contributing to (as opposed to minimizing) rising prescription drug costs. Express Scripts and its peers provide a necessary and valuable service to plan sponsors, constructing custom plan designs that balance customer desires for access, cost and flexibility. Providing the absolute lowest cost for each drug utilized is not often the sponsor’s only (or even primary) goal. Additionally, competitive intensity across the industry is high, with no less than two (and in most cases three) potential PBM models to choose from for managing drug costs. We believe Express Scripts keeps a reasonable amount Read more...
Weitz Funds Comments on Allergan Guru stock highlight
Allergan (NYSE:AGN) is a global specialty pharmaceutical company focusing on the development, manufacturing, marketing and distribution of generic, brand name, biosimilar and over-the-counter (OTC) pharmaceutical products. The dissolution of Allergan’s merger with Pfizer in April, delays in gaining Federal Trade Commission approval for the sale of its global generics business to TEVA and broader industry concern around prescription drug prices combined to push Allergan’s stock down by 26% during the first half of the calendar year. As we wrote in January, we like the stand-alone Allergan business without the generics business and believe the $ 40 billion sale to TEVA should soon close. There are a number of signs that growth in Allergan’s aesthetics franchise is accelerating, and the company’s key product launches – VIBERZI, VRAYLAR and KYBELLA – appear to be off to healthy starts. The combination of healthy organic growth, debt reduction and meaningful share repurchases should drive per share value creation over our investment horizon. We substantially increased the Fund’s Allergan position during the second quarter Read more...
» More Wallace Weitz Articles

Commentaries and Stories

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Wallace Weitz Sells Avon Products, Berkshire Hathaway, Fossil Guru's largest 1st-quarter sales Wallace Weitz,Chase Coleman,John Griffin,Alan Four - Wallace Weitz Sells Avon Products, Berkshire Hathaway, Fossil
Wallace Weitz (Trades, Portfolio) manages a portfolio composed of 81 stocks with a total value of $2.383 billion. During the first quarter the guru sold shares in the following stocks. More...

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Weitz Funds Comments on United Parcel Service Guru stock highlight
United Parcel Service (NYSE:UPS) is a package delivery company and a provider of supply chain management solutions. Over the past several years, the growth of e-commerce has created challenges for UPS during its peak holiday shipping season. While the market can not quite decide whether the onslaught of less profitable residential delivery volume is beneficial, UPS has announced plans to significantly accelerate capital spending in anticipation of even more residential delivery volume. Investors’ lack of faith in management’s intended path led to this most recent sell off. We believe the company’s efforts toward a more streamlined holiday shipping experience will bear fruit in time, and we expect the company’s stock price will eventually reflect this stepped-up commitment to its customers. More...

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Weitz Funds Comments on Compass Minerals Guru stock highlight
Compass Minerals (NYSE:CMP) produces and sells salt, specialty plant nutrition and chemical products around the world. Despite a strong fourth quarter, Compass stock was a weak performer due to concern around the lack of snow in their geographic footprint. Though the company guided to 12% volume growth in salt in 2017 as municipalities restocked, prices still remain under pressure, as a lot of volume was contracted in the summer months when inventories were high. The news was similarly mixed at their sulfate of potash (SOP) operation. While prices seem to be stabilizing and volume growth was exceptional, cost improvements have been slow to materialize. As a result, much of the inventory they are selling now was produced under their higher legacy cost structure. We believe the salt business will recover as soon as we have a “normal” winter and recent capital investments lower their costs even more. In addition, SOP prices are stabilizing and once Compass adjusts its cost structure to the current reality, the business will return to earning historic returns on capital. More...

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Weitz Funds Comments on Anheuser-Busch InBev Guru stock highlight
Anheuser-Busch InBev (NYSE:BUD) is the clear-cut leading global beer company after its recent acquisition of SABMiller plc. The stock briefly traded above $130 last fall due to high expectations for the combined company’s prospects and strong investor demand for stable, cash-generative consumer staples companies. Anheuser-Busch InBev’s stock declined later in the year due in part to temporary challenges in its Brazilian business. At $110, we think the company trades at a moderate discount to value for a world-class business, with a roadmap to significantly higher earnings in three years. More...

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Weitz Funds Comments on Texas Instruments Guru stock highlight
Texas Instruments (NASDAQ:TXN) is the market leader in the sale of analog and embedded semiconductors. Shares rose on optimism that the available market for the company’s products will continue to expand as industrial and automotive markets include more electronic content in their products. The company’s long-term strategy of moving incremental business to its low-cost 300 millimeter wafer manufacturing process also continues to expand the long-term margin horizon for the company. Furthermore, Texas Instruments has continued to benefit from investor recognition of the company’s execution, disciplined capital allocation (returning all excess cash to shareowners) and the potential that the market for analog semiconductors is becoming slightly less cyclical, as the industry has matured and consolidated. More...

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Weitz Funds Comments on Laboratory Corp. of America Guru stock highlight
Laboratory Corp. of America (LabCorp) (NYSE:LH) operates as a diversified global life sciences company through two segments: LabCorp Diagnostics and Covance Drug Development. Following a choppy 2016 third quarter, LabCorp’s fourth quarter operating results resumed a more normal course. Test volumes rebounded at LabCorp Diagnostics, as did new clinical trial bookings at Covance. The company closed the year on a high note, with sales increasing 11% and cash earnings per share up 12% versus the prior year. Underlying clinical lab trends remain stable and the pace of clinical research outsourcing continues to be healthy. Anticipated cuts in Medicare reimbursement for lab tests and a gradual shift by payers toward value-based payment models are creating new, long hoped-for opportunities for LabCorp’s low cost lab network. LabCorp announced the acquisition of two valuable hospital- based labs during the first quarter and continues to see a steady flow of attractive potential ‘tuck-in’ lab acquisition opportunities. The company’s combination of durable organic growth and significant reinvestment runway remains appealing to us as long-term investors More...

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Wally Weitz Comments on Visa Guru stock highlight
Visa (NYSE:V) is the world’s largest electronic payment network. The company recently closed on its acquisition of Visa Europe, allowing it to provide a fully integrated network to clients, which should result in increased market share and lower costs. We believe Visa will compound nicely as worldwide payment volumes grow, developing countries switch from cash to cards, and the company uses its technology and network to participate in all forms of electronic payments. More...

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Wally Weitz Comments on Donnelley Financial Solutions Guru stock highlight
Donnelley Financial Solutions (NYSE:DFIN) is a financial compliance company recently spun out of RR Donnelley. Primarily a printing company, RR Donnelley split itself into three public companies to ascribe better value to its individual parts, as the printing industry is facing secular decline. While 40% of Donnelley Financial’s revenue is still print related, the remainder is software and services, which not only have better margins than print but are also growing organically. We believe the market has misvalued Donnelley Financial due to lack of transparency around the cost structure and the compliance services segment’s sensitivity to capital markets transactions. Generally, when a company is spun-off, there is inevitable noise in its income statement as it seeks to recreate the services that its parent previously provided. The result is a host of duplicative costs, which can temporarily mask earnings power. More recently, Donnelley Financial’s quarterly results and guidance disappointed investors, as capital market activity was down 15% affecting an otherwise high margin segment. While the recent results are disappointing, we believe a recovery in the capital More...

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Wally Weitz Comments on National CineMedia Guru stock highlight
National CineMedia (NASDAQ:NCMI) produces the “FirstLook” pre-show, a collection of advertising and entertainment content shown in movie theaters prior to show time. The operating business (NCM LLC) is jointly owned by public shareholders (ticker: NCMI) and the founding three theater circuits: AMC, Regal Entertainment and Cinemark. During the first calendar quarter, AMC reached an agreement with the Department of Justice over its proposed acquisition of Carmike (a partial owner and client of theater advertising competitor Screenvision). The most significant of these conditions requires AMC to reduce its stake in NCM from 39% to fewer than 5% over a period of 24 months; the goal being to encourage continued competition in theater advertising services between the two competitors. The sale of these shares has put pressure on the stock price and represents a significant volume for the buyers to absorb. Nevertheless, we continue to believe NCM’s unique position and network creates an opportunity for advertisers to reach their audiences. During the quarter we took advantage of the price decline and added to our position. More...

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Wally Weitz Comments on ILG Inc. Guru stock highlight
ILG, Inc. (NASDAQ:ILG) is a provider of non-traditional lodging, encompassing a portfolio of leisure businesses, from exchange and vacation rental to vacation ownership. A year ago, the stock price was suffering under the combined weight of both a general market swoon and a share overhang from ILG’s imminent merger with Starwood’s timeshare business. That merger ultimately put over half (70+ million shares) of this small-cap company’s stock in the hands of large-cap hotel investors. One year later, the market has marched steadily higher, and the bulk of those shares have likely found homes in the portfolios of more appropriate investors. As such, the stock price has rebounded and reclaimed much of what it had lost in the year prior. We continue to like the prospects and valuation of the newly combined entity. More...

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Wally Weitz Comments on Formula One Guru stock highlight
Formula One (NASDAQ:FWONA), which began in 1950, is an iconic global motorsports business. The 2017 FIA Formula One World Championship spans 20 races in 20 countries across five continents. In January, Liberty Media closed on its 100% acquisition of the Formula One racing series. Upon closing, the Liberty Media tracking stock was renamed Liberty Formula One Group. Investors are enthusiastic about the highly regarded executive and newly appointed chairman, Chase Carey. Furthermore, the potential to grow Formula One under Liberty Media’s guidance–greater sponsorship prospects, the potential for new races and venues to grow awareness of the sport, and new opportunities to bring Formula One content to digital platforms excite investors. More...

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Weitz Funds' Comments on Zoe’s Kitchen Guru stock highlight
Zoe’s Kitchen (NYSE:ZOES) is a small, growing restaurant concept serving “better for you” Mediterranean cuisine. While 2016 was a weak year for many restaurants, Zoe’s fared better than most, though they were not immune. Worries around weakening U.S. consumer spending and the lack of near-term earnings continue to depress the stock price. We believe this is temporary and think the next several years of growth can produce outsized, though likely volatile, returns. We continue to add to our position on share price declines. More...

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Wally Weitz Comments on Wesco Aircraft Holdings Guru stock highlight
Wesco Aircraft Holdings (NYSE:WAIR) is the world’s leading distributor and provider of supply chain services to the global aerospace industry. During the past year, the company has continued its transition to a “One Wesco” culture, which includes an implementation of continuous improvement initiatives. In addition, the company has won several new contracts. These new contracts have required funding of upfront inventory and preparation expenses, temporarily depressing free cash flow. We believe Wesco is making significant progress in transforming its business, which we expect to soon be reflected in reported results. More...

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Wally Weitz Comments on LiLAC Group Guru stock highlight
LiLAC Group (NASDAQ:LILA) is a tracking stock distributed by Liberty Global with respect to its businesses in Latin America and the Caribbean. LiLAC’s stock has struggled throughout the last year as management revealed additional unanticipated headaches with the May 2016 acquisition of Cable & Wireless Communications. After meeting with management, we believe the company understands the nature of the problem and is set to grow from this reset base. We anticipate that in the coming quarters, LiLAC will demonstrate the benefits they saw in this acquisition, beginning with identifying operating synergies for investors. Management further demonstrated their confidence in their revised outlook by announcing a $300 million stock repurchase authorization. More...

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Weitz Funds' Analyst Corner: A Perspective on Dollar Tree Inc. David Perkins, research analyst and co-manager of the Value Fund Wallace Weitz - Weitz Funds' Analyst Corner: A Perspective On Dollar Tree Inc.
Dollar Tree (NASDAQ:DLTR) operates a network of approximately 14,400 discount variety stores across the United States and Canada under the Dollar Tree, Dollar Tree Canada and Family Dollar brands. During the summer of 2015, Dollar Tree completed a transformational acquisition of competitor Family Dollar Stores for $8.8 billion and now operates under two distinct banners. The legacy Dollar Tree segment operates 6,400 stores, offering everyday basics, seasonal, closeout and promotional merchandise at a fixed $1 price point ($1.25 CAD in Canada). The Family Dollar segment operates approximately 8,000 general merchandise discount retail stores focused on providing customers basic necessities such as diapers, food and paper products as well as seasonal merchandise at prices between $1 and $10. More...

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Weitz Value Fund Comments on Dollar Tree Guru stock highlight
Dollar Tree (NASDAQ:DLTR) operates a network of approximately 14,400 discount variety stores under the Dollar Tree, Dollar Tree Canada and Family Dollar brands. The legacy Dollar Tree concept is the last remaining true dollar store, where every item is a dollar. Its balanced offering of consumables (food and toilet paper) and more discretionary items (toys, stationery and party supplies) has generated consistently attractive financial results, with same store sales rising 22 of the past 23 years. Family Dollar, acquired for $8.8 billion in 2015, focuses more heavily on basic necessities such as diapers, food and paper products at prices between $1 and $10. Dollar Tree is early in the process of improving Family Dollar’s operating results, executing what we believe is a credible plan toward closing the gap in financial performance that exists with its nearest competitor Dollar General. Dollar stores’ unique combination of low prices and convenience continues to resonate with low- and middle-class consumers, providing attractive future store growth opportunities and durable excess cash flow. Portfolio Manager Dave Perkins profiles Dollar Tree in more detail in this quarter’s Analyst More...

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Weitz Value Fund Comments on United Parcel Service Guru stock highlight
United Parcel Service (NYSE:UPS) is a package delivery company and a provider of supply chain management solutions. Over the past several years, the growth of e-commerce has created challenges for UPS during its peak holiday shipping season. While the market can not quite decide whether the onslaught of less profitable residential delivery volume is beneficial, UPS has announced plans to significantly accelerate capital spending in anticipation of even more residential delivery volume. Investors’ lack of faith in management’s intended path led to this most recent sell off. We believe the company’s efforts toward a more streamlined holiday shipping experience will bear fruit in time, and we expect the company’s stock price will eventually reflect this stepped-up commitment to its customers. More...

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Weitz Value Fund Comments on TransDigm Group Guru stock highlight
TransDigm Group (NYSE:TDG) is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft. The prospect of rising interest rates and accusations of rigged/fake bids from a critical short report pressured TransDigm’s stock during January. The company’s levered balance sheet, while married with historically consistent cash flows, increases the company’s sensitivity to potential declines in profitability. In his first several weeks in office, President Trump targeted the cost of specific programs at several of TransDigm’s larger peers. While it remains to be seen what, if any, lasting impact this scrutiny will have on growth and cash flow, with TransDigm’s shares close to our estimate of intrinsic value, we elected to close our position in the stock with a nice gain. More...

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Weitz Value Fund Comments on Range Resources Guru stock highlight
Range Resources (NYSE:RRC) is an independent producer of natural gas and natural gas liquids (NGLs) based in Fort Worth, Texas, with operations in the Marcellus shale and emerging Terryville field. Range Resources stock weakened during the first quarter as mild winter weather once again put downward pressure on natural gas prices. The company’s higher-than-projected 2017 drilling budget and 20% 2018 production growth target likely also raised fears that Range’s balance sheet could once again deteriorate in the event of a prolonged downturn in gas prices. March supply/demand was kinder than January and February, however, leaving More...

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Weitz Value Fund Comments on Liberty Global Guru stock highlight
Liberty Global (NASDAQ:LBTYA) is the largest international cable company, with operations in 14 countries providing video, broadband Internet, fixed-line telephone and mobile services to its customers. Liberty Global’s shares were strong in the first calendar quarter and made up some of the ground that had been lost during the prior year. The company’s quarterly results were solid, but shares have likely been driven upward as speculation of deals in the media industry has heated up of late, including revived speculation of a potential Vodafone transaction. We view Liberty Global as a standalone provider of broadband and Pay-TV services as an attractive opportunity, and although a potential acquisition by Vodafone may create value for shareholders, our investment thesis is not dependent on such an event. More...

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