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Winters Sees a Winner in Malaysian Gaming Pick

Jason Stipp

Jason Stipp: Moving then toward your portfolio. You mentioned to me you had some interesting opportunity in Malaysia. Tell me a little bit about that.

David Winters: Well, there is a company called Genting that is domiciled in Malaysia, is building a casino in Singapore, and has the monopoly casino in Malaysia. It has a good balance sheet and should capitalize what is going on in the Far East over the long run. Most people have never heard of it. We like, at Wintergreen, to sometimes find these more obscure, undervalued situations. There are lots of assets and trades at a discount. The family owns 30%.

Stipp: Particularly that industry, obviously, has taken a lot of hits recently. What do you think are the qualities of this company that are going to help see it through this difficult time?

Winters: They don't really have as much... They did buy some distressed MGM bonds, but they are basically really focused on Asia, and we think that is where the puck is going to be.

Stipp: OK. Interesting. Another company, Berkshire Hathaway, took a lot of hits last year. Credit rating agencies were taking a close look at Berkshire. Warren Buffett himself had said last year that the returns of Berkshire may not be a whole lot more than the market. It is in your portfolio. What is your take on the long-term benefits of holding Berkshire at this time?

Winters: Berkshire is this enormous holding company. It trades at a discount we think partially because it is just so complicated. It has a good balance sheet. As the U.S. recovers, the company should do well. And as people come back to the securities markets and decide they actually want to own equities, Berkshire should participate in all that. I think the years of Berkshire producing outsized returns are probably gone. But, if Berkshire can product nine to 12%, not a bad place to have some money.

Stipp: Great. Well, thanks for joining us today, David. We really appreciate talking to you.

Winters: Great to see you.

Stipp: I am Jason Stipp with Morningstar. Thanks for watching.