Wallace Weitz (Trades, Portfolio) of Weitz Investment Management Inc is committed to his simple philosophy when looking for stocks to invest in, This philosophy is: "own a group of strong businesses purchased at deeply discounted prices."
Here is a look at Weitz's most recent top buys:
Motorola Solutions Inc (MSI, Financial)
Weitz purchased 1,016,270 shares at an average price of $63.75/share during the fourth quarter 2014.
Motorola Solutions was incorporated in 1928 as a provider of mission-critical communication infrastructure, devices, software and services to help both the government and customers improve operations of their mobility workforce.
According to the Peter Lynch earnings line, which is at $47.50, the stock may be overvalued, as it is currently trading at $69.51/share.
The current P/E ratio is 12.40 and close to the 5-year low of 12.30.
Revenue per share is at $34.59 and investors should be aware of the fact that the company's revenue has been declining over the past five years, as shown in the chart below.
As of today, the company's current revenue is $8.916 billion. Over the past five years, the company's Growth Rate was -7.90%.
Twenty-First Century Fox Inc (FOXA, Financial)
Weitz purchased 1,600,960 of FOXA during Q4 of 2014 at an average price of $35.40/share.
Fox was incorporated in 1979 in Australia as a diversified media and entertainment company, with segments including: Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television.
According to the Lynch earnings line, this stock may be overvalued, as the line indicates the stock's value should be $29.90 and it is currently selling at $34.41.
The current P/E ratio is 8.06, which is close to the five-year low of 7.77.
Fox's Current Ratio is sitting comfortably at 2.80, indicating good short-term financial strength and above the Entertainment Industry's median of 1.6, as shown in the chart below.
MasterCard Inc (MA, Financial)
Weitz purchased 284,120 shares of MA during 2014Q4 at an average price of $81.52/share.
MasterCard was incorporated in 2001 as a global payment solutions company that provides clients with the option of using its debit or credit services, as well as other payment-related programs of over 23,000 financial institutions.
According to the Lynch earnings line, which is at $60.40, this stock may be overvalued, as it is currently trading at $87.52/share.
GuruFocus gave the company a Financial Strength score of 9 out of 10. The cash to debt ratio is currently 4.87, ranking MA higher than 88% of the companies within the Global Credit Services industry.
MA's curent ratio is sitting comfortably at 1.87, indicating the company has strong short-term financial strength.
Weitz also added stakes in the following positions: Pioneer Natural Resources Co (PXD, Financial), Discovery Communications Inc (DISCK, Financial), Range Resources Corp (RRC, Financial), Allison Transmission Holdings Inc (ALSN, Financial), Precision Castparts Corp (PCP, Financial), Liberty Media Corporation (LMCK, Financial), Google Inc (GOOG, Financial) and Liberty Ventures (LVNTA, Financial).
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