Tilson & Heins Play Defense

In their latest “Discovering Value” column for Kiplinger’s, Whitney Tilson and John Heins say they are “playing defense” as the U.S. and world continue to deal with the fallout from the “bursting of the greatest bubble in history”.

“As Americans, we’re hoping for a sharp, V-shaped economic recovery. But as investors, we’re not betting on it,” Tilson and Heins write, pointing to housing as their greatest concern. It will take “forceful action” by both the government and banks to avoid another downturn in the housing market, they say.

Tilson and Heins say they are doing two main things to play defense and protect their investments right now: Adding to their short positions, especially homebuilders, and stocking up on “dominant blue-chip companies” like Microsoft, Berkshire Hathaway, and Anheuser-Busch InBev — the latter of which they discuss at length in the article.

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