Bill Nygren, manager of the Oakmark fund, is getting interviewed on CNBC. Dylan Ratigan asked him for his top stock pick and he said it was Washington Mutual (WM). He has been saying that for years and years. This is a classic example of someone talking his book. I have no idea if he is buying more at these prices because the question wasn't asked but his cost basis must be in the single digits. It is much more useful for all concerned to talk about what they are buying right now or at least disclose if they would be a buyer right now, in size, for the stock they are touting.
I am scheduled to appear on Forbes on Fox on Dec 11, I can promise that the two names I give will be ones that I would gladly buy that day and I will say so on the air. About a year or so ago I bought a Russian oil stock that has just about doubled since I bought it but I would not buy the name for new clients today. Mr. Nygren touting Wamu is the equivalent of my touting the Russian oil stock as my favorite stock even though I wouldn't buy it now. That type of comment motivates people to buy. I question the motive of Mr. Nygren saying Wamu is his favorite stock. I can not believe he does not know the question means what is going to have the best 2005. "Would you buy it now (in size)? " is a far more important piece of information than the other disclosures they are required to make.
Off the soap box and on to the Maui Classic just starting on ESPN. I am as diehard a college hoops fan as there is and watching this tourney is always exciting and the scenery going to and coming back from commercial is spectacular. The other great thing about today is we have had about 10 inches of snow in the last five hours here on the mountain.
Wikinvest Wire
1 comments:
Agree w/you about Nygren. His name is synonymous with WM. At one point, a couple of years ago, I had WM on my watchlist. Then mgmt had the bright idea to start running full page ads in the WSJ touting their stock as a fantastic investment. That was the kiss of death. Since those ads were initiated, I am sure the stock is down in absolute terms. I wonder what Nygren's take is on that ad campaign? Any company that is that consumed with managing their stock price is a company that I want nothing to do with. What else are they doing to pump the stock? Inflating earnings? Agressive accounting?
Quick take on the Maui Invitational. A couple of years ago I was on the same plane as Wake Forest as we both were heading to Maui. Go Spartans!
Parkite
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