Wallace Weitz: Opportunities these days involve “growth stocks” that report disappointing earnings.

Wallace Weitz: Opportunities these days involve “growth stocks” that report disappointing earnings

Wallace Weitz is having trouble finding great bargains. The new stocks that he has added to the portfolios tend to be companies with good underlying business characteristics that have stumbled for some company- or industry-specific reason. It can be difficult to figure out how significant and how temporary the negative factor is—this is art, not science. Many of the opportunities which present themselves these days involve “growth stocks” that report disappointing quarterly earnings news. If he can believe that a problem is temporary or that a stock is now under-valued despite an on-going problem, we will buy. He likes FRE, FNM, Cardinal Health, etc.