Whitman, Zucaro Sweat Out Drop by Mortgage Insurers

Marty Whitman and Al Zucaro, stock pickers with a knack for buying low, may be dripping in sweat after they snapped up U.S. mortgage insurers that shed more than 40 percent of their value in the past three months.

MGIC Investment Corp., PMI Group Inc. and Radian Group Inc., the industry's three largest firms, had their worst year in 2007, declining as much as 78 percent. Whitman bought into the slump to become the largest stakeholder in Philadelphia- based Radian. Zucaro became the No. 1 investor in PMI of Walnut Creek, California, and the second-biggest for Milwaukee-based MGIC.

``We're just going to have to sweat it out for the next 18 or 24 months,'' said Zucaro, who runs Old Republic International Corp., parent of the industry's sixth-largest company.

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The Greatest Investment Quotes of All Time

"Based on my own personal experience -- both as an investor in recent years and an expert witness in years past -- rarely do more than three or four variables really count. Everything else is noise."

-- Marty Whitman

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Marty Whitman: $30B Worth of Advice

Marty Whitman, founder of Third Avenue Mgmt., shares his investment strategy with CNBC's Sue Herera.

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Martin Whitman: How Small Investors Avoid Investment Risks

At the age of 82, legendary investor Martin Whitman is still going strong; his mind is still as sharp as ever. Since founded Third Avenue Value Fund (TAVF) at the age of 65, his fund has returned more than 16% a year over the past 17 years.

What attributes does Martin Whitman look in an investment? “Safe and Cheap!” To understand how he invests, we strongly recommend you to read his quarter shareholder letters. Reading his letter may not be as relaxed as reading Warren Buffett letters, but you will learn just as much, if not more.

These are a summary of what he looks in an investment.

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Sears shareholder exiting; Third Avenue fund sells 250,000 shares

Since engineering the combination of Sears and Kmart last year, billionaire Edward Lampert has tried to convince investors that he intends to run the new company as a retailer.

Wall Street, for the most part, has turned a deaf ear, betting that Lampert will turn Sears Holdings Corp.'s massive real estate holdings into cash.

Perhaps he will, eventually. But one prominent real estate investor isn't waiting around to find out.

Michael H. Winer, portfolio manager of Third Avenue Real Estate Value Fund, cut his fund's Sears stake roughly by half in the quarter ended April 30 and expects to liquidate the rest of the holdings in January, according to Third Avenue's second-quarter letter to shareholders mailed in June. He sold 250,000 shares worth roughly $35 million.

The reason: a combination of an "attractive price"--about $140 a share; a fourteenfold increase from what the fund paid for them--and "our view that the company should be valued as a going concern, as opposed to the theoretical liquidation value," Winer wrote.

To read the complete article.

Thank you GuruFocus for this link.

Happy thinking,

Dah Hui Lau (David)

Marty Whitman Speech at AAII-NYC; Jan. 11, 2006

Transcript of Notes from Marty Whitman’s Meeting Jan. 11, 2006 with NYC Chapter of AAII by Mike Onghai, CFA and Judy Onghai, PhD.

http://www.vinvesting.com/vi/columns/onghai/

Good article,
Dah Hui Lau (David)
dahhuilaudavid@gmail.com