Is Waste Management (WM) a Smart Long-Term Buy?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Large Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, Diamond Hill Large Cap Fund held up better than the Russell 1000 Index by a decent margin in Q1. After a strong rebound in 2021, global GDP growth is expected to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Large Cap Fund mentioned  Waste Management, Inc.(NYSE:WM) and explained its insights for the company. Founded in 1968, Waste Management, Inc.(NYSE:WM) is a Houston, Texas-based waste management company with a $62.7 billion market capitalization. Waste Management, Inc.(NYSE:WM) delivered a -9.48% return since the beginning of the year, while its 12-month returns are up by 3.61%. The stock closed at $151.07 per share on July 14, 2022.

Here is what Diamond Hill Large Cap Fund has to say about Waste Management, Inc.(NYSE:WM) in its Q1 2022 investor letter:

“We also initiated a position in Waste Management (NYSE:WM), one of the largest providers of waste collection services in the US. We believe it is a high-quality business with ownership of key landfill assets that provide pricing power over the long term. Its stock was trading at a discount to our estimate of intrinsic value due to short-term market concerns over an increase in growth investments—we expect these investments to be value-creating over the long term.”

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Our calculations show that Waste Management, Inc.(NYSE:WM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Waste Management, Inc.(NYSE:WM) was in 40 hedge fund portfolios at the end of the first quarter of 2022, compared to 35 funds in the previous quarter. Waste Management, Inc.(NYSE:WM) delivered a -5.08% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.