In their latest presentation titled – Stock Investing Amid Market Drawdowns and Rising Rates, Wally Weitz and team discuss the importance of sticking with your strategy regardless of scary news headlines. Here’s an excerpt from the presentation:
Well, I hate to date myself so badly, but I can remember the first stock I bought in 1961 went down about 30% a few months later when Kennedy, President Kennedy confronted the steel industry and people thought it was the end of the world for the steel business and for the market in general.
But you know, as Emily Litella would say on Saturday Night Live, or used to, “It’s always something.” And, you know, these things come and go. There’s always something in the headlines to scare people, but I think you get the sense from what Brad was saying about our approach to buying companies that the value of the business is more or less measurable.
And there’s nothing precise about it. But it has a gravitational pull on stock prices. And if we are buying companies at a reasonable price and paying, you know, and the value of that business is growing, it may take years, but eventually the truth comes out and it really doesn’t matter whether something happens in the Ukraine tomorrow, the business values and our portfolios five and ten years out are going to reflect what the companies did, not the headlines.
So we feel good about seeing this correction happen and get some chances to buy some good companies.
You can watch the entire presentation here:
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple: