We Are In Market Correction Territory

Dear Fellow Investor,

It would seem the correction is starting and will probably run in fits and starts for a while...maybe off and on all year. There are some structural issues, like two particular ETFs (technically, these were “inverse VIX”) that melted down and were liquidated earlier in the week that could cause some stocks and bonds to overshoot on the downside. This will give us some opportunities, but we’ll be careful about taking advantage and will never “bet the farm.”

The good news is that while prices may be too high on most paper assets, and speculators are in dangerous positions, the real economy is ok (in our opinion) and real companies’ stocks will be fine weathering these current events. We stated in our most recent letter to investors that we feel very good about the stocks we own, and this remains true today.

As always, we encourage investors to stick to their investment plan and thank you for trusting us to manage your investments.

Sincerely,
          
Wally Weitz                     Brad Hinton