Oakmark’s Bill Nygren Talks Value

“Value is relative to something else,” says Bill Nygren when asked where to find it in today’s market. Manager of the Oakmark Select Fund since 1996, Nygren offers his perspective in a recent interview with Investment News. “In a period when you have short-term investments such as Treasuries with zero risk that pay zero, an average-risk equity that’s paying more than 2% a year in dividends and growing earnings 5% to 6% a year…. that’s a pretty attractive holding.” As far as where to find it, Nygren identifies the banking sector as “unusually attractive.” Banks, he says, are selling for […]

Bill Nygren on Value Investing, the Attractiveness of Financials, and Learnings from Different Perspectives

Noted mutual fund manager Bill Nygren of the Oakmark Select fund thinks that long term equity investors can “expect a mid- to upper-single digit minimum return in the market” looking ahead, but notes that tilting one’s portfolio to large cap financials (Citigroup, Bank of American and JP Morgan are all in Nygren’s top 10 holdings) could help produce better returns than the market. Banks, Nygren believes, will benefit once interest rates increase. As rates rise, deposit rates should increase and interest charged by banks for loaning out money also should go up, both helping the earnings power of financials. Nygren also […]

Nygren: Relax, and Rebalance

Much of the speculation about the reason for the market’s recent plunge has been that investors are downright scared about China’s slowing growth. But top mutual fund manager Bill Nygren says the sort of correction we’ve seen recently is simply a part of life when you are investing in stocks. And from a long-term investing perspective, he does not think China’s slowdown will have as big an impact as many believe. “I think sometimes we just forget that the market doesn’t really need a reason to have a 10% correction, which we basically had over the past four trading days,” […]