Nygren on the Value in Financials

Top fund manager Bill Nygren says he’s continuing to find the best value in the market in the financial sector. While the much-maligned sector isn’t the sexiest right now, Nygren says that doesn’t matter to him. What does matter is value. “We own the financials because they are the cheapest stocks with the highest quality management,” he told CNBC. “We don’t wake up in the morning thinking we want to put money to work in boring industries. But when you see valuations that are less than book value, less than 10 times earnings, to us that looks really, really attractive […]

Nygren Talks Value, Opportunity, And The End Of QE

Worried about the end of quantitative easing? Top fund manager Bill Nygren isn’t. In an interview with MoneyLife’s Chuck Jaffe, Nygren says that his firm’s five-year-holding-period, value-focused, bottom-up approach means that the exact timing of the tapering of the Federal Reserve’s bond-buying program “ends up not really being an important factor,” adding, “We certainly think the markets can handle it.” Nygren says his firm tends to go into areas where there is controversy today, but where five years down the line normalcy should return. Today he sees opportunity in financials and some cheaper tech stocks. “Our expectation is that, over […]

Nygren Talks Value

Bill Nygren, whose Oakmark Select fund is in the top 2% of its peers over the past 5 and 15 years, recently talked with CNBC about his approach and some of his favorite current stocks. “When you’re a long-term value investor like we are at Oakmark, we end up buying things that had been disappointing for others,” he said, discussing why his fund owns beaten-down Qualcomm shares. He also talks about some of his fund’s big financial holdings, including Bank of America and CapitalOne.    

Two Gurus High on Bank Stocks

Five years after the collapse of Lehman Brothers sparked the financial crisis, many investors still don’t trust bank stocks. Top fund managers Bill Nygren and David Ellison think that is part of why it’s time to buy them. “The stocks are still low because investors don’t trust that the earnings will recover fully,” Ellison tells Renal and Urology News. (An odd source, we know, but they have a solid ‘Money’ section.) He notes that bank stocks are trading at about 110% of book value, on average, well below the 180% levels seen in typical bull markets. He thinks we are […]

Buyback Stocks or Dividend Plays? Nygren Weighs In

When companies put cash to work to increase shareholder value, it can be a very good thing. But top fund manager Bill Nygren says certain types of cash deployers are looking more attractive than others right now. “One of the things we think investors have gone a little excessive on is bidding up companies that pay high yields, good income generators,” he recently told CNBC in discussing high-dividend stocks. “And we think it’s interesting that companies that have been large share re-purchasers — effectively, it should be the same to an investor whether the money comes back as money or share repurchasers. […]