Wally Weitz letter to shareholders about market conditions and fund performance

Wally Weitz

  1. We are continually re-assessing each company’s prospects and financial strength, and we have made some portfolio changes that we believe reduce our exposure to future credit problems while maintaining considerable upside potential. We believe we are being realistic and willing to adjust to an evolving environment;
  2. While few financial company stocks have escaped unscathed (Berkshire Hathaway, our largest holding, being a notable exception), we believe that the market has over-reacted to the potential credit exposure of many good companies;
  3. Many stocks’ prices already appear to discount a recession that may or may not occur. We believe our companies are priced at discounts to their intrinsic values whether or not their earnings and cash flows are depressed for a few quarters by a weak economy.

Direct Link - A letter from Wally to shareholders about market conditions and fund performance.

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