Nygren Says Stocks Still Cheap

Bill Nygren, whose Oakmark I fund is up more than 60% in the past year and in the top 1% of its class over the last decade, thinks stocks are still cheap even after the big rally. “Although it feels like we are in a different world from a year ago, investor pessimism is as strong as it was then,” Nygren tells Barron’s. “Yet if you take away financials, the yields in the stock market are unusually high compared to the bond market.” While the market is up more than 70% off its March 2009 lows, Nygren says valuations at […]

Nygren: Don’t Avoid Stocks

In a new interview with Minyanville.com, Oakmark fund manager Bill Nygren — whose fund is up 50% in the past year and ahead of the S&P 500 over the past 3, 5, and 10 years — says investors need to get back to basics. And for most, that means returning to stocks. “The thoughtful investor today, rather than thinking about how they missed the rally or remaining afraid of another lost decade, needs to get back to basics,” Nygren said in a wide-ranging interview. “They need to think about what target equity allocation makes sense for them. For most investors, […]

Nygren: Values Are “All Over the Place”

Bill Nygren, whose three Oakmark funds have excelled in 2009 and have strong long-term track records, remains bullish as we head into 2010. Nygren tells CNBC that he’s “very positive” on stocks, and cites the high pessimism in the market as a big reason. He says there are values “all over the place”, and adds that his strong ’09 performance is attributable to staying disciplined through the market turmoil.

Nygren’s Three Reasons to Buy Stocks Now

In his recent mid-year market commentary, Oakmark Fund Portfolio Manager Bill Nygren says that he “continue[s] to believe that today’s long-term investors will increase their capital more by investing in stocks than by investing in other assets”, and that “the long-term return for stocks purchased today is likely to be higher than historical average returns”. Nygren gives three main reasons for his bullishness, with the first being valuations. “The S&P 500 trades at about 900 with operating earnings in 2009 expected to be in the $60s,” he says, adding that the big question is what “normal” earnings will look like […]

The Stars — and Fallen Stars — of 2008

Kiplinger’s Fred Frailey looks this week at how some of the world’s top money managers got hammered by the recent market crash, as well as at how other noted managers lived up to their reputations and avoided the plunge. According to Frailey, some of 2008’s big-name losers have been Legg Mason’s Bill Miller (down 59% as of Oct. 30); Longleaf Partners’ Mason Hawkins (down 47%); Oakmark Select’s Bill Nygren (down 36%); Selected American’s Chris Davis and Ken Feinberg (down 36%); Ron Muhlenkamp (down 37%), and Dodge & Cox Stock (down 41%). These former value stars found out “that too many […]