An exclusive get-together with two outstanding value investors (via WealthTrack)! Wally Weitz, whose flagship Weitz Partners Value Fund is celebrating its thirty year anniversary, and Tom Russo, with his market-beating Semper Vic Partners Fund, will discuss the different places each is finding value and why Warren Buffett is their investment hero.
Tom Russo And Wally Weitz video and much more below
RUSSO: EXTRA RETURN KICKER
Heineken Holding N.V. (HEIO)
(trades on Euronext/Amsterdam)
Price: €45.22 on 1/02/14
52-week range: €40.63 – €50.91
“…the holding company gives us a little bit of an extra return kicker, because it’s the vehicle through which the family, the Carvalho family controls the company, but it trades at a perennial discount to the operating company shares, so we buy it at a discount, but as it sits today it trades for about six and a half times enterprise value of the EBITDA which is one measure of cash flow multiple, and it trades for about 12 times net income, a little less than that. It’s delivered to us investors because of the vision and control of Charlene and Michel Carvalho, the Heineken heirs, a vastly expanded universe in which they can invest going forward. So they are 20% exposed to developing emerging markets 10 years ago. They’re 70% exposed to developing emerging markets today. That includes FEMSA in Mexico, Asia Pacific, India.”
– Tom Russo
WEITZ: MANAGEMENT REINVENTION
Liberty Media Corporation, Class A (LMCA)
“It’s now at the moment about 100 and some dollars a share worth of Sirius XM radio which they got for zero cost, and another $35 or so of Charter Communications which they are now using to try to go after Time Warner. You have John Malone. You also have another $10 or so of their public companies and another $10 of private companies, but you have a pool of really good assets in the hands of an active, smart, good manager, so it will look totally different five years from now. It’ll look totally different 10 years from now, but if somebody had to put something away, that would work.”
Weitz Funds is a tightly knit group, some of whom have worked with Wally Weitz for many years. Hear Weitz explain why he’s selling company shares to the employees and the significance of that partnership. Watch the video below
