Don't Listen to Doomsayers on Wells Fargo, Disney Says Value Manager
Wells Fargo (WFC) - Get Report shares were already suffering from the scourge of low rates prior to the recently revealed account creation scandal. William Smead, portfolio manager of the Smead Value Fund (SMVLX) - Get Report , says the bank will bounce back from this one-two punch. 'Even great companies stumble once in a while and they are quickly making amends to move past this as quickly as possible,' said Smead. Berkshire Hathaway (BRK.B) - Get Report is a major holder of Wells Fargo shares and it is another one of Smead's top picks. Shares of Warren Buffett's investment vehicle are up 11% thus far in 2016, outperforming the 4% rise in the S&P 500. Smead believes that Berkshire will expand its lead over the index as the economy improves and interest rates finally tick up. Disney (DIS) - Get Report , down 12% year-to-date, is another one of Smead's favorite stocks despite recent worries about the so-called Mouse House's ESPN division losing subscribers. In Smead's view, the ESPN problems are overblown, and increased consumer spending will increase profits at the company. Finally, Smead is a fan of Gannett (GCI) - Get Report , despite the media giant's shares sinking over 28% this year due to its troubles completing the Tronc acquisition.
