Wally Weitz, of Weitz Partners, talks about investing in uncertain times in this interview with CNBC. The value investor likes to hold cash and it makes up 25-35% of his portfolio. Weitz talks about some of his favorite stocks, including Wells Fargo, and Liberty Media. Weitz says that some tech stocks are value traps, while others look attractive. He looks at each stock on a case by case basis.
The video interview and computer transcript are below:
when it comes to picking stocks, our next guest remainscautiously cautious and says the perfect couple boils down toprice and value. joining us now wally whites, the manager of the whites partners three opportunity fund, a five-star midcap blend with $570 million under management. welcome back. nice to see you. thank you. you’re cautiously cautious. why is it, does it have to do with valuations or the political environment we find ourselves in now? it has to do valuations. we look stock by stock and love our companies but their prices are just reasonable and we prefer cheap. you prefer a lot of cash,correct? we have cash of 25 to 35% in our various stock funds.again that’s a function of valuation. we would love to see investing public get scared about something and allow us to buy more of our stocks down 10 to 15% where they are today.you are looking at opportunity 15% below where we are now in the market. what kind of properties are you looking at and stocks are you looking at at this point? what makes a good stock for you, other than value? is it cash generation? is it niche plays? how do you pick the components of the portfolio?companies that generate more cash than they need to operatein the business. and management that we really trust to redeploy that cash well. that can be a bank stock like wells fargo, cab pharmaceutical stock like valiant. can be john malone’s liberty companies we own three of four of those. you own liberty media, liberty global and qvc. qcv is liberty interactive. right. what would you stay away from now, other than the valuation play, certain sectors of the market that you think really are not at all attractive? technology had a tough sledding to have lately? i hate to make a blanket statement.there’s a lot of problems out in the world and you know, rawmaterials depend a lot on china. we don’t buy a lot of commodity companies. technology we go — we go case-by-case and sec particular trends that worry people a lot and have maybe made some of those cheap. microsoft at 26 is a wonderful cash-generating battleship that is not going to be made obsolete by ipads. by ipads, indeed. wally, thank you. women leave it there appreciate it.