The Other Oracle of Omaha

Veteran fund manager Wally Weitz seeks big cash-producing companies selling at discount prices.

Wally Weitz, the manager of Weitz Value Fund (symbol WVALX), has been attending Berkshire Hathaway annual meetings since the 1970s, when Warren Buffett hosted investors in the lunchroom of his company’s National Indemnity insurance unit and long before the confabs became known as the Woodstock of capitalism. Weitz, who has run his Omaha-based fund since its inception in 1986, and two recently added co-managers, David Perkins and Brad Hinton, adhere to Buffett’s philosophy, searching for large companies that generate copious amounts of cash and sell at cheap prices.

They seek companies with significant advantages over their rivals and shrewd executives who excel at allocating capital. Once they come up with candidates, they estimate how much excess cash -- cash beyond what is needed to maintain the business -- a company will generate over the next 15 to 20 years. They use all of this information to estimate a company’s current value.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Jennifer Schonberger
Staff Writer, Kiplinger's Personal Finance