I remember that time clearly. Articles came out in leading financial publications asking "is value investing dead"? One of the managers at Oakmark Funds got canned. In the next few years, value investing beat every other style of investing. By a LOT. Including the Oakmark funds. In 1999, I bought a REIT, symbol HR. It was selling for $18 per share, and paying a dividend of about $1.69 or so. I knew the company well, and it was NOT in danger of going out of business. But, at that time, no revenue/no profit internet stocks were all the rage. Many/most of them were gone by 2003, and HR was still paying dividends. And they still are (I sold some time later). Over the long term, Gayner/MKL will do fine. He will even have an investment blow up every now and again.
I'll just keep holding my MKL. If it swoons enough, I'll add a bit more.
MKL reported today. NAV up 1% since Dec 31, 2014, combined ratio under 88% for quarter, 89% for the past 9 months, looks like everything is going in the right direction. Not a blowout, but another solid quarter. Still holding and plan on holding for long, long time, as long as mngt continues to do what they have been doing for years.
Perhaps. But, I don't really care if MKL is over valued in the short term. It's a compounding machine and (barring mngt changing how they do things), I intend to hold forever. I DO care when it gets undervalued, so I can add some. I kept hoping it would drop to under $750 recently, but it never did. Take a look at BRK long, long term chart. It got over and under valued many times. But, holding in through thick and thin was the right thing to do. I view MKL exactly the same way.