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Stock Picker's Winning Market Strategies

Thursday, 28 May 2009 | 5:12 PM ET

We buy companies at deep discounts and hold them for a long time, said Wallace Weitz, president of Wallace R. Weitz & Company. (See below for his recommendations.)

Let's Talk Stocks
Winning market strategies, with Wallace Weitz, Wallace R. Weitz & Company president.

His portfolio was helped by "stocks we had the last 2 to 3 years that were unnecessarily beaten up,” Weitz told CNBC at the Morningstar Investment Conference in Chicago.

“We added quite a bit to many of our favorites on our way down.”

Weitz said although he is more cautious on the markets right now, he is bullish overall in the long-term.

Recommendations:

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Energy—“My interest in oil, after not having owned it since the '70s, is that after the collapse last fall, prices [are now] well below the necessary costs to buy new properties,” he said.

“And when commodities cost less than what it takes to produce, something good is going to happen.”

Weitz said he especially likes the oil and gas exploration companies.

Berkshire Hathaway—“It has an insurance company, but it’s much more than your average financial company,” he said.

Redwood Trust—“They are experts at assessing credit risk and doing vulture investing in the mortgage securities world,”

Weitz said while he is a fan of the financial sector, his firm doesn’t own banks apart from Wells Fargo , which is currently on “hold” rating.

Disclosure:

No immediate information was available for Weitz or his firm.

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