MaoXian.com -- Archive > October 31, 2005

Wally Weitz is Getting Excited

Weitz Funds Third Quarter 2005 Report

"For over two years, we have been writing about owning 'good' companies at 'reasonable' prices and saying that we were 'comfortable but not excited' about our stocks. Well, now we are getting excited. For the most part, our companies have grown in value but their stock prices have not kept pace. This means that our stocks are cheaper than they have been in quite a while ... these are the times that set up the portfolios for superior long-term performance."

Weitz goes on to detail the business value of various holdings versus their current price:

Berkshire Hathaway (BRK.A): $110,000 (value) | $85,200 (price)
Liberty Media (L): $12 | $7.83
Comcast (CMCSA): $38-$40 | $27.57
Tyco (TYC): $36 | $26.75
Countrywide Financial (CFC): $50+ | $32.03
Fannie Mae (FNM): $65-$70 | $48.04

Weitz also owns AIG, Anheuser Busch, News Corp., UnitedHealthcare, Wal-Mart, and WellPoint. He doesn't reveal what he believes their "intrinsic business value" is, but he does say: "... the common denominator for all of our valuations is that we are estimating the price an informed, rational buyer might pay for the business if he were planning to hold it forever and wanted to earn a 12% rate of return."

Posted on October 31, 2005 at 12:30, GMT

Pharmaceutical HOLDRS Component Review

"The companies whose common stocks were included in the Pharmaceutical HOLDRS at the time the Pharmaceutical HOLDRS were originally issued generally were considered to be among the 20 largest and most liquid companies with U.S.-traded common stock involved in the pharmaceutical industry as measured by market capitalization and trading volume on December 15, 1999."

PPH Components and Weightings

Check out the monthly charts below of the largest six components of the PPH, paying attention to their prices in December 1999 compared with their prices now. Big Pharma is my favorite market sector at the moment. As soon as I see the public sentiment turn really bearish (the way it did most recently in May 2005), I'll put a lot more money to work in the most out-of-favor issues.

Posted on October 31, 2005 at 12:00, GMT


	Monday, October 31 Wally Weitz is Getting Excited Weitz Funds Third Quarter 2005 Report "For over two years, we have been writing about owning 'good' companies at 'reasonable' prices and saying that we were 'comfortable but not excited' about our stocks. Well, now we are getting excited. For the most part, our companies have grown in value but their stock prices have not kept pace. This means that our stocks are cheaper than they have been in quite a while ... these are the times that set up the portfolios for superior long-term performance." Weitz goes on to detail the business value of various holdings versus their current price: Berkshire Hathaway (BRK.A): $110,000 (value) \| $85,200 (price) Liberty Media (L): $12 \| $7.83 Comcast (CMCSA): $38-$40 \| $27.57 Tyco (TYC): $36 \| $26.75 Countrywide Financial (CFC): $50+ \| $32.03 Fannie Mae (FNM): $65-$70 \| $48.04 Weitz also owns AIG, Anheuser Busch, News Corp., UnitedHealthcare, Wal-Mart, and WellPoint. He doesn't reveal what he believes their "intrinsic business value" is, but he does say: "... the common denominator for all of our valuations is that we are estimating the price an informed, rational buyer might pay for the business if he were planning to hold it forever and wanted to earn a 12% rate of return." Posted on October 31, 2005 at 12:30, GMT Pharmaceutical HOLDRS Component Review "The companies whose common stocks were included in the Pharmaceutical HOLDRS at the time the Pharmaceutical HOLDRS were originally issued generally were considered to be among the 20 largest and most liquid companies with U.S.-traded common stock involved in the pharmaceutical industry as measured by market capitalization and trading volume on December 15, 1999." PPH Components and Weightings Check out the monthly charts below of the largest six components of the PPH, paying attention to their prices in December 1999 compared with their prices now. Big Pharma is my favorite market sector at the moment. As soon as I see the public sentiment turn really bearish (the way it did most recently in May 2005), I'll put a lot more money to work in the most out-of-favor issues. Posted on October 31, 2005 at 12:00, GMT Previous Entry >>> Market Sentiment Remarkably Complacent		Home Archive © 2000 - 2005 Chairman MaoXian