May 22: Whitney Tilson on "panic buying" rally

Whitney Tilson, managing partner of T2 Partners and well-known as a value investor and shareholder of Warren Buffett's Berkshire Hathaway, says it is difficult to be a value investor when the behaviour of other investors is so panicky. Recent panic selling has now been replaced with panic buying of the same stocks. The recent economic indicators which have been interpreted as signaling a potential bottoming of the US housing market are merely reflective of seasonal factors. Foreclosures, on which there has been a moratorium, will start increasing again. "That's going to continue to pressure home prices for, we guess, at least another year, and I think a lot of investors are looking at some short-term data and not quite seeing that we've got a ways to go on this," Mr Tilson says.