Wallace Weitz (Trades, Portfolio), the esteemed portfolio manager of Weitz Value Fund, Weitz Hickory Fund, and Weitz Partners Value Fund, has recently filed his 13F report for the second quarter of 2023. Weitz, who started his funds in 1983, is known for his value-oriented investment philosophy, focusing on companies with strong fundamentals and attractive valuations. This report provides a glimpse into his latest investment moves and portfolio composition.
Portfolio Overview
As of June 30, 2023, Weitz's portfolio contained 49 stocks with a total value of $1.86 billion. The top holdings were Berkshire Hathaway Inc. (BRK.B) at 6.81%, Alphabet Inc. (GOOG) at 6.69%, and CoStar Group Inc. (CSGP) at 5.10%.
Top Three Trades of the Quarter
The following were Weitz's top three trades of the quarter, which significantly impacted his portfolio.
Meta Platforms Inc (META, Financial)
Weitz reduced his investment in Meta Platforms Inc (META) by 171,300 shares, impacting the equity portfolio by 2.11%. During the quarter, the stock traded for an average price of $246.21. As of August 15, 2023, META's price was $302.2899 with a market cap of $777.84 billion. The stock has returned 67.28% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, META has a price-earnings ratio of 35.23, a price-book ratio of 5.78, a PEG ratio of 2.29, a EV-to-Ebitda ratio of 19.98, and a price-sales ratio of 6.60.
Thermo Fisher Scientific Inc (TMO, Financial)
During the quarter, Weitz bought 35,740 shares of Thermo Fisher Scientific Inc (TMO), bringing his total holding to 103,700 shares. This trade had a 1% impact on the equity portfolio. The stock traded for an average price of $540.21 during the quarter. As of August 15, 2023, TMO's price was $534.92 with a market cap of $206.45 billion. The stock has returned -11.38% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10. In terms of valuation, TMO has a price-earnings ratio of 36.56, a price-book ratio of 4.72, a PEG ratio of 1.72, a EV-to-Ebitda ratio of 22.52, and a price-sales ratio of 4.83.
Oracle Corp (ORCL, Financial)
Weitz reduced his investment in Oracle Corp (ORCL) by 150,000 shares, impacting the equity portfolio by 0.81%. During the quarter, the stock traded for an average price of $103.23. As of August 15, 2023, ORCL's price was $117.3784 with a market cap of $318.60 billion. The stock has returned 51.43% over the past year. GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 9 out of 10. In terms of valuation, ORCL has a price-earnings ratio of 38.36, a price-book ratio of 293.45, a PEG ratio of 4.51, a EV-to-Ebitda ratio of 21.00, and a price-sales ratio of 6.50.
In conclusion, Wallace Weitz (Trades, Portfolio)'s Q2 2023 portfolio update reveals his strategic investment moves, providing valuable insights for value investors. His top trades and holdings reflect his focus on companies with strong financial strength, high profitability, and reasonable valuations.
