LongLeaf 2008 Letter

[JAllen]

http://www.longleafpartners.com/pdfs/AnnualReportLetter02.06.09.pdf

 

Sanjeev,  I like the new board very much.  Thanks for your hard work in maintaining and monitoring it.

 

 

[Parsad]

Good letter!  Cheers!

[NumquamPerdo]

I love these kinds of stats:

 

The VIX, an index measuring expected volatility and therefore fear, hit an alltime

high in November.

• Significant margin calls and capital calls from various types of private funds

have caused widespread selling of equities.

• Advisor sentiment measuring bulls versus bears has fallen to the lowest level

in over two decades.

• The amount of cash being held on the sidelines by individuals has grown to a

sum significantly greater than the total market cap of U.S. stocks.

• Investors have bought Treasurys with no return, an indicator of the fear of

other investments.

• Institutional managers have held high cash balances in spite of acknowledging

equities’ undervaluation.

• Insider buying at companies has been rampant.

 

And I especially love this line:

 

• Warren Buffett and Prem Watsa, two of the best fundamental investors, have

made significant moves into equities.

 

Nice to see them mentioned together by another great!

[Uccmal]

The amount of cash being held on the sidelines by individuals has grown to a

sum significantly greater than the total market cap of U.S. stocks.

 

I wonder how they determine this statistic?  Can this be determined from borkerage account reports are are they assumming the mass movement into treasuries as a proxy.  Thoughts?

 

noobie...

[frog03]

Nice to see them mentioned together by another great!

***************

 

You must be kidding. Longleaf performance is mediocre.