Weitz Fund 2007 Semi-Annual Portfolio Manager Letter

Wally WeitzWeitz Fund released their 2007 Semi-Annual Report.

Over the years, our investors have gotten used to seeing our Funds zig while the market zagged. We write regularly, and with conviction, about our willingness to be "out of step" with the market. In the 3rd quarter of calendar 2007, we outdid ourselves.
  • Errors of omission. Energy, industrials and commodities bound for China attracted lots of investor capital. The stocks did not meet our investment criteria and they went up without us;
  • Errors of commission. Countrywide Financial was more vulnerable to a liquidity crisis than we had realized and it declined sharply;
  • "Good ideas that have not worked yet." Many of our businesses met or exceeded our expectations but their stocks lagged due to investor apathy or short-term concerns that we do not share;
  • Looking ahead, there are lots of things to worry about (there always are), but we feel very good about the prospects for the businesses we own and their stock prices.

Direct Link - Weitz Fund 2007 Semi-Annual Portfolio Manager Letter or Full Semi-Annual Report (PDF) .

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