Wallace Weitz Buys Gartner, Boosts 2 Top Holdings

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summary

  • The investor entered a new position and increased the stake in CoStar and Meta Platforms.
  • He also reduced the holdings of Charles Schwab and Aono.
    aon
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Wallace Weitz ,trades, portfolio), Weitz’s head of investment management disclosed its first-quarter portfolio earlier this month.

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When choosing a stock, Guru’s Omaha, Nebraska-based firm combines Benjamin Graham’s principles of price sensitivity and insistence on the margin of safety with the belief that the qualitative factors that allow a company to control its future are book value. E.g. can be more important than statistical metrics. Earnings.

In his first-quarter letter to the Partners III Opportunity Fund, Weitz noted that the year began with a “cloudy investment outlook that only got more turbulent.” He wrote:

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“The Omicron wave of Covid-19 cases peaked in early January, but the global supply chain is far from healthy. By the end of 2021, the supply crunch combined with sustained, massive monetary and fiscal stimulus had already ignited the fires of inflation. Anticipating a sharp turnaround in the Federal Reserve, investors began to revalue assets for a higher interest rate environment. The outbreak of war in Ukraine brought senseless death and destruction, causing further disruption to global markets. Energy prices rose further as Russian oil and natural gas importers sought alternative supplies. Market conditions remain dynamic, and although markets have corrected a portion of their intra-quarter drawdown, we expect further volatility. ,

With these considerations in mind, Weitz was active on both the buy and sell sides of the trading ledger during the three months ended March 31. According to a 13F filing with the SEC, he entered a new position during the quarter, which was Gartner.
This
Inc. ,This, financial), and added or trimmed several existing investments. Other notable trades include increased bets on CoStar Group
CSGP
Inc. ,CSGP, financial) and Meta Platforms Inc. ,American Plan, financial) as well as cuts at Charles Schwab Corp. (black, financial) and AON PLC (aon, financial) holdings.

Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings because the reports only include its position in US stocks and US depository receipts, but they can still provide valuable information. In addition, the report only reflects trades and holdings as of the most recent portfolio filing date, which may or may not have occurred by the reporting firm as of today or even when this article was published.

gartner

Weitz invested in 127,979 shares of Gartner (This, financial), allocating 1.7% of the equity portfolio for the position. The stock traded at an average price of $289.47 per share during the quarter.

The Stamford, Connecticut-based company that provides subscription-based research services to IT and business professionals has a market cap of $19.60 billion; Its shares were trading around $241.70 on Tuesday with a price-earnings ratio of 25.7, a price-book ratio of 167.14 and a price-sales ratio of 4.21.

GF value line
VALU
This suggests that the stock is currently undervalued based on historical ratios, past performance and projections of future earnings.

GuruFocus rated Gartner’s financial strength 5 out of 10. In addition to substantial interest coverage, an Altman Z-score of 3.45 indicates that the company is in good standing, even though assets are growing rapidly, increasing revenues. Return on invested capital is also slightly higher than the weighted average cost of capital, meaning that value is being created as the company grows.

The company’s profitability continues to perform very well with a 10 out of 10 rating, driven by an expanded operating margin as well as strong returns on equity, assets and capital that top most competitors. Gartner also has a high Pietroski F-score of 7 out of 9, meaning operations are healthy, and consistent earnings and revenue growth have contributed to an estimated rank of four out of five stars. According to research by GuruFocus, companies in this rank give an average annualized return of 9.8% over a 10-year period.

Of the gurus who have invested in Gartner, rum baron ,trades, portfolio) holds the largest stake with 6.55% of its outstanding shares. al Gore ,trades, portfolio) generation of investment management, Bill Nygren ,trades, portfolio, Jim Simonso ,trades, portfolio)’ Renaissance Technology, Joel Greenblatt ,trades, portfolio, Caxton Associates ,trades, portfolio, Tom Gainer ,trades, portfolio) And Lee Ainslie ,trades, portfolio) also has positions in stock.

costar group

Guru Promotes Costar Group (CSGP, financial) 27.78% stake picking up 313,700 shares. The transaction had an impact of 0.93% on the equity portfolio. Shares traded at an average price of $66.50 during the quarter.

Weitz now holds a total of 1.44 million shares, making up 4.3% of the equity portfolio and his fourth-largest holding. GuruFocus estimates that they have lost 19.48% on investments since its inception in the first quarter of 2020.

The company is headquartered in Washington DC, providing information, analysis and marketing services to the commercial property industry, which has a market capitalization of $32.08 billion; Its shares were trading around $812.35 on Tuesday with a price-earnings ratio of 138.39, a price-book ratio of 5.89 and a price-sales ratio of 18.36.

According to the GF Value Line, the stock is undervalued.

Costar’s financial strength was rated 8 out of 10 by GuruFocus based on substantial interest coverage and a strong Altman Z-score of 10.2. Although asset creation is occurring at a faster rate than revenue, indicating that it may be less efficient, there is good value creation as the ROIC oversees the WACC.

The company’s profitability scored a 9 out of 10 rating, driven by an expanding operating margin that outperformed more than half of its industry peers. CoStar also has a moderate Piotrovsky F-score of 5, indicating that conditions are typical for a stable company. Steady earnings and revenue growth contributed to a 4.5-star predictability rank. GuruFocus data shows that companies in this rank give an average annual return of 10.6 per cent.

With 4.76% of the outstanding shares, Baron is Costar’s largest master shareholder. Other top guru investors are Bailey Gifford ,trades, portfolio, frank sands ,trades, portfolio, chuck acre ,trades, portfolio)’s firm, Simmons’s firm, Jerome Dodgson ,trades, portfolio, Steven Cohen ,trades, portfolio, Ray Dalio ,trades, portfolio) And Tom Gainer ,trades, portfolio,

meta platform

Meta Platform (American Plan, financial) holding increased by 29.44%, with the investor buying 609,257 shares. The transaction impacted the equity portfolio by 0.90%. The stock traded at an average per-share price of $250.52 during the quarter.

Weitz now holds 397,250 shares, representing 3.95% of the equity portfolio and is the seventh-largest position. According to GuruFocus, they have lost an estimated 2.8% on investments since its inception in the first quarter of 2018.

The Menlo Park, California-based social media company, formerly known as Facebook, has a market cap of $478.02 billion; Its shares were trading around $176.55 on Tuesday with a price-earnings ratio of 14.82, a price-book ratio of 4.34 and a price-sales ratio of 4.63.

Based on the GF value line, the stock currently appears to be undervalued.

GuruFocus has rated Meta Platforms’ financial strength 8 out of 10 due to its comfortable level of interest coverage and a strong Altman Z-score of 10.26, indicating that it is in a good position. ROIC also eclipses WACC, suggesting that the company is creating value.

The company’s profitability was even better with a rating of 10 out of 10. Despite reporting a decline in its margins, Meta is backed by strong returns that are well above most competitors. It also has a moderate Pietroski F-score of 5. Consistent earnings and revenue growth contributed to the 4.5-star predicted rank.

Ken Fisher ,trades, portfolio) is the largest Guru shareholder of Meta with a 0.41% stake. dodge and cox, Bailey Gifford ,trades, portfolio, first eagle investment ,trades, portfolio, Chase Coleman ,trades, portfolio, steve mandel ,trades, portfolio, Chris Davis ,trades, portfolio), Simmons’ firm, ruan kaniff ,trades, portfolio), Philippe Lafont and Diamond Hill Capital ,trades, portfolio), among many others, also has a significant stake in the company.

Charles Schwab

With an impact of -1.74% on the equity portfolio, Weitz replaced Charles Schwab (black, financial) position of 41.09%, selling 510,363 shares. The stock traded at an average price of $88.05 per share during the quarter.

The investor now holds a total of 731,650 shares, which is 2.76% of the equity portfolio. Weitz has gained about 47.30% on the investment so far.

Headquartered in Westlake, Texas, the company, which provides banking, online brokerage and wealth management advisory services, has a market cap of $119.81 billion; Its shares were trading around $63.10 on Tuesday with a price-earnings ratio of 22.9, a price-book ratio of 3.21 and a price-sales ratio of 6.49.

The GF value line shows that the stock is currently significantly valued.

Charles Schwab’s financial strength was rated 3 out of 10 by GuruFocus. Although the company has issued new long-term debt over the years, it is manageable due to a comfortable level of…

Credit: www.forbes.com /

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