Good interview with Dodge & Cox’s John Gunn:

In 2000 the megacap stocks — those with market capitalizations of roughly $100 billion or more — were about 33% of the S&P 500 and we basically had zero in those stocks. From a valuation perspective, about 25% of the market sold at roughly 15 times sales and 85 times trailing earnings, and we had nothing in those stocks. Another 37% or 38% of the market sold at 3.5 times sales and 30 times earnings, and we had about 9% of assets in the lower-value part of those stocks. So, in the middle of the biggest, wildest speculation ever, almost all of our holdings were in the remaining third or so of the market — mostly in “old economy” stocks selling at about 80% of revenues, and one-third in financial stocks selling at about 13 times earnings.

Smart and disciplined.

- via vinvesting.com -