% | $
Quotes you view appear here for quick access.

Berkshire Hathaway Inc. Message Board

  • russ_21401 russ_21401 Dec 9, 2003 11:20 AM Flag

    WM, Value Darling, gets wacked

    For the last 2-3 years, value money managers (like Bill Nygren, David Dreman) have lined up to praise (and buy) Washington Mutual. It wasn't just A prick, it was their No. 1 pick. It might even be The Consensus Value Pick of the last couple of years, if there was a way to compute what stocks the value touts were hawking most aggressively in the media. (It's not just mo-mo guys who "talk their own book." They all do it and hope we pile on with them.) Very low p/e, supposedly excellent and comprehensible busines, etc. I kept waiting to see if Buffett would buy a bunch of WM since its huge enough that he could take a $1-2-3B position. But he never buys WM. This a.m., it warns, fires 5,000 people and is way down __back to $40. Well, it was close to $35 three years ago. In other words, the CHEERY CONSENSUS about Washington Mutual __even though it was a consensus among value investors, all of them proud to be "contraraians"__ has been a mediocre to poor investment. And may sink lower before the selloff is over. OK, if you bought it FOUR years ago, you did great. But, just my impression, even our value heroes mostly jumped on board after it had gone from the teens to the $30's.

    I've read those testimonials to WM a dozen times, with Nygren leading the pack, and said, "I must be an idiot not to buy some of that." But I never did. I figured, "That's in Buffett's circle of competence. Leave it to Warren." Once again, I'm glad I just Let Warren Do It. (Now if I'd only let him handle my LVLT "investment" through BRK, too, I'd be one happy camper. But nooooooo...)

    SortNewest  |  Oldest  |  Most Replied Expand all replies
224,850.00+1,449.95(+0.65%)Aug 30 4:00 PMEDT