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Is no stranger to the Berkshire Hathaway annual shareholder meetings this is his second year attending that he first spot Berkshire stock for around seven you gotta be attending more than that.
Just -- your head around what they always have -- -- so actually he's he's.
Kind of a stranger to -- -- Bill Miller the CEO of Legg Mason and I want to introduce it right away as.
As a true disciple of the way Buffett -- about -- value investing which helped you beat the S&P 500 for fifteen years straight.
This -- but still have it especially considering everybody's talking about how.
He may be trusted.
This Dave so -- for as long as he did it and does that affect the way you've seen him at all.
I think Warren is built up enough credibility over the past you know fifty years -- so that.
The something like this certainly is getting some difficult publicity.
But I don't think -- that alters anybody's.
Sense of his reputation his ability.
His ethics I thought that I thought -- -- the right thing by releasing that statement yesterday that was a big those big move in the right direction.
But it's -- a little a little hard on him at this at this stage.
Well people accused the press of being too easy on him okay so that's why I bring it up and I think to myself.
Are we asking the right question and maybe the question is did -- make a huge mistake in not having a tougher compliance at his company.
When it comes to insiders of the company buying stocks that they baby knew he might be interested in later.
Well it if you rebuild this statement of the audit committee to the board.
That the policies at Berkshire where we're certainly.
Tough enough it was a question that was produced pretty clear that that kind of thing wasn't.
Wasn't allowed I think.
And one thing that they could have done differently -- in place in the investment firm.
Our pre clearance -- so if you want to buy stock for your own account.
Yet to have that cleared before you can buy -- -- an easy thing to do why wouldn't have done that well they probably didn't think it necessary industrial companies usually aren't doing that term investment companies.
But I think these countries to show up where there where there lapses in the.
Is he is an investment company don't expect that what he buys a chunk of stock.
He keeps it as as a lazy camp from releasing to the public because he knows it tirades.
Certain stocks well certainly investments -- Huge role and -- nobody nobody has to the world.
It's made more money than -- solely through investment.
So clearly that's his expertise.
The Berkshire's more than just an investment company but I job.
I think that that I think pre clearance with -- what's it would have been a good idea and is a good enough.
What are you buying right now on and how do you view the markets -- if you talk about the S&P 500 up about 15%.
Over the the past couple of months.
That that's a pretty significant -- are you a believer do you think we're getting close to a talk.
But nobody has any idea including me what we're close to -- top or not.
We we went into the year but what's this all the conditions are in place for -- good market it's providing a lot of liquidity.
Interest rates are low what does that short and the long ends -- but in any competition valuations are attractive but the market after the market's been up a 100%.
Since the low in march of march of 09.
It's trading at exactly the same forward PE multiple was in march of 09.
So it's not a more expensive now than it was that was that.
What are you adding to what positions do you like the most having we have your your top holdings among the names like Wells Fargo which Warren Buffett likes it.
And what your favorite names right.
Well there's there's two ways to look at the market most people look at it but what -- -- -- on Republican trend.
You so they wanna know what the outlook is and what the trend is for companies -- we're value investors -- you would look at it shall we compare price -- value.
In a market like this which is basically about -- trended market.
Stuff -- a good outlook and a good friend is doing really well it's not a great market were contrary -- in the sense of near term performance it's a great market but what your value investor because.
There are three areas -- market that we think offer significant opportunity financials.
Technology number two and especially old tech companies and number -- -- -- technology healthcare financials which -- financials not a lot of people are happy on this but as of smelly underwear group in the market financials most -- which makes you contrarian.
It's tough to beat discipline when it comes to being the value investor because.
Certain things run up my goal that everybody gets all glittery eyed and excited runs toward that value investors have to maintain.
Warren Buffett just hired a brand new -- to be the chief investment officer Todd Collins in fact he was in the lobby here in every came up and had tentatively set a load of every.
We -- there -- -- and I talked him and he said he was excited about the meeting that he would be going.
He looked he didn't say this but he looked a little relieved that he wasn't going to be the guy everybody was interest -- and it's more warranted and the discussion of David Sokol but.
He need to do to really make sure he sticks to the buffet style of investing and can anyone truly -- back.
What Warren Buffett has done.
Well I think I think.
Weren't -- weren't somebody that comes along once in a probably a thousand years and he's going to allocate capital -- -- -- Todd -- -- -- don't know by the way that he was a student of my colleague and our chief investment strategist Michael Roberson -- at Columbia.
So Michael said he was a good student and Michael was in the class of value.
Professor and so I think I think most value investors -- psychologically that is that's -- what you naturally think about things so maintaining the discipline.
Business -- it would be for somebody who doesn't have that psychology.
I have to ask you about the -- -- stock exchange your company is the second largest holder of New York Stock Exchange stock and the boy this this drama of whether the NASDAQ is gonna get its bid taken to the shareholders.
Who was a shareholder.
When do you expect to see that tender offer brought directly to the shareholders.
Are hard to say I mean we've.
We put could be as soon as a week Charlie Gasparino says could be could be.
You know -- -- said publicly that we thought would work ought to ought to at least meets with NASDAQ to talk about talk about this.
When we talk to.
But neither are the -- And why -- -- when this was going on.
Early on he indicated that one of the reasons that they didn't want to talk about which they didn't have committed financing.
That they thought -- antitrust concerns they thought they were just fishing for information there competitor.
And our view was that different -- he implied that if they can get those things lined up that they might be willing to talk and then sup -- when what happened was they got committed financing.
They put breakup fee in -- that's equal to the brink of the -- of course if they can't get and I -- -- -- clearance that's -- 20% premium wouldn't you know it's that they want it's about a 10% premium right now -- -- -- -- strip -- wouldn't you want.
That bit over the -- of course.
Or did -- -- -- what nobles and certainly the the fact that it's trading above that above that which of course.
Price and -- it indicates that the shareholders believe collectively that is what you horse in the raise their -- -- -- NASDAQ who's gonna bring him to directly after that dignity and well.
Which one would you prefer at this point to that had to happen right now what we'll tell her what had happened right -- clearly the -- -- The NASDAQ feel as what he would say is a better deal for shareholders -- absolutely because it's because attire uniform from the Philadelphia public service standpoint that we that we have a duty to have.
Be sure didn't work for our clients to maximize their value we're not gonna do that by selling -- that it's below with the stuff well remember Bill Miller.
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