Bill Nygren

Bill Nygren

Last Update: 05-27-2015

Number of Stocks: 58
Number of New Stocks: 3

Total Value: $16,808 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bill Nygren Watch

  • Should You Buy This Stock Post Recent Upgrade?

    Caterpillar's (CAT) stock has recovered from its March lows after posting good first-quarter results and raising its guidance. Analysts at Baird recently upgraded the stock to outperform citing cyclical bottom in commodities markets. According to Baird analyst Mig Dobre, the decline in commodity prices over the last several years is similar to the 1980s bust, and anything worse is unlikely, given the significant stimulus from central banks around the world. He also said that Caterpillar’s stock typically bottoms before the actual bottom in the mining business and "waiting for confirmation from improvement in bookings could mean being late to the party."


    Mig Dobre is not alone in terms of his cyclical bottom thesis. Fund manager Bill Nygren (Trades, Portfolio) shared similar view in his recent investor letter. He wrote,

      


  • Growing And Undervalued: Aflac Inc.

    From my watch list, let’s have a short view ofAflac Inc (AFL). It looks undervalued based on the Peter Lynch value, discounted cash flow and is trading below the Peter Lynch earnings line


    Aflac Inc (AFL)

      


  • Analyzing Bill Nygren's Top Holdings: Monsanto

    Bill Nygren (Trades, Portfolio) is portfolio manager of The Oakmark Fund, The Oakmark Select Fund and the Oakmark Global Select Fund. He has an M.S. in finance from the University of Wisconsin-Madison and a B.S. in accounting from the University of Minnesota.


    Bill Nygren and his partners are value investors, and they invest in companies that they believe trade at a substantial discount to what they consider to be the true business value. They believe that, over time, the price of a stock will rise to reflect the value of the underlying company. In evaluating potential investments, they focus on the following characteristics: A company's stock price and whether it is a significant discount to their estimate of underlying business value, free cash flows and intelligent investment of excess cash and a high level of manager ownership. They look at each purchase as if they are buying a piece of a business and not just a stock certificate.

      


  • A look at Bill Nygren's Investment in Accenture

    Bill Nygren (Trades, Portfolio) is portfolio manager of The Oakmark Fund, The Oakmark Select Fund and the Oakmark Global Select Fund. He has an M.S. in finance from the University of Wisconsin-Madison and a B.S. in accounting from the University of Minnesota.


    Bill Nygren and his partners are value investors, and they invest in companies that they believe trade at a substantial discount to what they consider to be the true business value. They believe that, over time, the price of a stock will rise to reflect the value of the underlying company. In evaluating potential investments, they focus on the following characteristics: A company's stock price and whether it is a significant discount to their estimate of underlying business value, free cash flows and intelligent investment of excess cash, and a high level of manager ownership. They look at each purchase as if they are buying a piece of a business and not just a stock certificate.

      


  • Value Investor Bill Nygren Reveals His Two New Stock Picks

    Bill Nygren (Trades, Portfolio) has been buying some new stocks. In the interview below he tips his hand on a couple of them.


    The first is Precision Castparts (PCP) which is a company Nygren has long admired but never found attractively valued. The recent pullback in shares from over $300 to closer to $200 has given Nygren the entry point he likes.

      


  • Bill Nygren Comments on Precision Castparts Corp

    Precision Castparts Corp. (PCP - $212)

    Precision Castparts Corp. (PCP) is a manufacturer of complex metal components and products, including castings, forgings, fasteners and aerostructures for aerospace, power generation and general industrial applications. Precision Castparts enjoys what we believe is an outstanding corporate culture and is led by a long-tenured CEO who is known for aggressively pursuing operating efficiencies. For many years, the company’s stock traded at a significant premium to other aerospace and industrial peers, but recent weakness has brought the share price to attractive levels relative to these industry groups and the S&P 500. We believe the current valuation of less than 15x earnings is overly punitive, considering PCP’s organic growth prospects and the company’s ability to add value through acquisitions. PCP is providing more components on key new airplanes, which should allow the company to outgrow its end markets. In addition, management projects $4 billion-$6 billion of acquisition opportunities over the next couple of years with return characteristics similar to its existing business. Finally, the company’s unique technical and process capabilities, coupled with its efficiently run operations, should allow it to continue to generate above-average margins. We are pleased to have the opportunity to add shares of what we consider a best-in-class company at a price that implies it is only average.

    From Bill Nygren (Trades, Portfolio)’s Oakmark Fund - 1Q 2015 Letter.  


  • Bill Nygren Comments on Caterpillar Inc

    Caterpillar Inc. (CAT - $81)

    Caterpillar is the world’s largest provider of construction equipment, diesel engines and industrial gas turbines. Caterpillar’s products earn high marks, as do the quality and scope of its dealer network, but the company has considerable exposure to the highly cyclical and currently depressed oil and gas and mining segments. With substantial pressure from weak energy spending and the negative impact of the strong U.S. dollar, Caterpillar’s 2015 earnings will likely be down considerably from 2014 and toward the bottom end of their cyclical range. We prefer to value cyclical businesses on their earnings potential throughout the cycle, and we think that Caterpillar’s mid-cycle earnings will be considerably higher than current levels. With the Caterpillar share price falling to multi-year lows, the business is now attractively valued at just 10x our forecast of mid-cycle earnings. When we combine this attractive valuation with a 3.4% dividend yield and a strong balance sheet, we find Caterpillar to be a compelling investment.

      


  • Bill Nygren Comments on Home Depot

    We also eliminated most of our position in Home Depot (HD), which has performed well for several years and also reached our estimate of intrinsic value. We would like to commend Home Depot’s former CEO Frank Blake and the entire Home Depot management team for their strong focus on maximizing returns and growing per-share value. Consistent with the message delivered in Bill Nygren (Trades, Portfolio)’s fourth quarter commentary, which discussed the Fund’s desire to minimize tax consequences of our sales, we have maintained a small position in Home Depot shares that we have owned for less than one year.

    From Bill Nygren (Trades, Portfolio)’s Oakmark Fund - 1Q 2015 Letter.  


  • Bill Nygren Buys Two New Stocks, Sells Walmart

    Bill Nygren (Trades, Portfolio) released his first quarter commentary on Wednesday in which he discussed his two new positions acquired during the quarter, Caterpillar Inc. (CAT) and Precisions Castparts Corp. (PCP), and reported that he sold his position in Walmart (WMT).


    Nygren has not yet reported the details of his first quarter trading activity.

      


  • Bill Nygren’s Oakmark Fund - 1Q 2015 Letter

    The Oakmark Fund declined 1% in the first quarter of 2015, and it lagged behind the 1% gain for the S&P 500. Falling oil prices and the strengthening U.S. dollar captured investor attention and brought heightened volatility to company earnings and stock prices during the first quarter. With interest rates near multi-year lows, however, we feel that equities remain the most attractive asset class. We remain confident in the Oakmark Fund’s long-term prospects, and our confidence is supported by the fact that a substantial portion of the recent underperformance has been driven by weakness in the financials sector, which is among the highest potential return sectors of the Fund.


    The sectors that contributed the most to performance were consumer discretionary and healthcare, driven largely by Amazon (AMZN) and UnitedHealth Group (UNH), respectively. Amazon (AMZN) was up 20% after reporting stronger than expected revenue growth in the fourth quarter, and the company continues to invest heavily to support high-return future growth. UnitedHealth Group (UNH) was up 17% due to strong fourth quarter results and continued momentum as concerns about healthcare reform wane. Our weakest sectors were financials and energy, and Bank of America (BAC) and Chesapeake Energy (CHK) were the worst performing securities. Despite the near-term weakness, we feel the financials and energy sectors remain undervalued, and the Oakmark Fund added to several positions in these sectors during the quarter.

      


  • Bill Nygren’s 1Q 2015 Market Commentary

    “Wall Street never changes, because human nature never changes.” -Jesse Livermore


    Indexing is on a winning streak
      



  • This Stock Offers Solid Growth Prospects With a Good Margin of Safety

    Accenture (ACN) is one of the world’s leading professional services companies, providing management consulting, technology and outsourcing services to clients across a broad range of industries. The company employ more than 305,000 people and have offices and operations in more than 200 cities in 56 countries. Its revenues before reimbursements (“net revenues”) were $30.0 billion for fiscal 2014.


    Accenture operate globally with one common brand and business model designed to enable it to provide clients around the world with the same high level of service. Drawing on a combination of industry and functional expertise, technology capabilities and alliances, and its global delivery resources, the company seek to provide differentiated services that help its clients measurably improve their business performance and create sustainable value for their customers and stakeholders. Accenture's global delivery model enables it to provide an end-to-end delivery capability by drawing on its global resources to deliver high-quality, cost-effective solutions to clients.

      


  • Oakmark Commentary - Why We Like Select European Financials

    Jason Long is a partner and an International Investment Analyst at Harris Associates. He joined the firm in 2011. Jason has held previous roles at Security Global Investors, Carmel Capital Partners and Brandes Investment Partners. He has a BA from San Diego State University and is a CFA charterholder.


    Regulatory pressures, a challenging macroeconomic environment, and remnants of the financial crisis have led many investors to conclude that European financial institutions should be avoided at all cost. While we agree that the sector will continue to encounter challenges, we believe it is important to distinguish between weaker institutions and those that have the business models and balance sheets necessary to succeed in this new operating environment. Our bottom-up analysis has resulted in positions in several financial institutions that we believe possess excellent business franchises, good management teams, strong balance sheets, and very attractive valuations.

      


  • You Should Consider this Casino Stock

    In this article, let's take a look at Las Vegas Sands Corp. (LVS), a $43.72 billion market cap company that operates casinos in Las Vegas; Macau, China; Bethlehem, Pennsylvania, and Singapore.


    Key market

      


  • Analyzing Bill Nygren's Top Buys: Whirlpool Corporation

    Bill Nygren (Trades, Portfolio) is portfolio manager of The Oakmark Fund, The Oakmark Select Fund and the Oakmark Global Select Fund. He has an M.S. in finance from the University of Wisconsin-Madison and a B.S. in accounting from the University of Minnesota.


    Bill Nygren (Trades, Portfolio) and his partners are value investors, and they invest in companies that they believe trade at a substantial discount to what they consider to be the true business value. They believe that, over time, the price of a stock will rise to reflect the value of the underlying company. In evaluating potential investments, they focus on the following characteristics: A company's stock price and whether it is a significant discount to their estimate of underlying business value, free cash flows and intelligent investment of excess cash, and a high level of manager ownership. They look at each purchase as if they are buying a piece of a business and not just a stock certificate.

      


  • Exclusive: 20 Questions With Bill Nygren Coming Soon to GuruFocus

    We recently had the opportunity to interview Oakmark International Fund's David Herro, which was conducted by Sheila Dang. Although we appreciate all questions submitted, we were only able to ask a select few due to contraints on time.


    If you would like to ask more questions about the firm and see that your questions were not asked, you may be able to gain some insight from Herro's colleague, Bill Nygren (Trades, Portfolio), who has agreed to an interview, which will occur in May. We will ask him 20 questions, which will be chosen from your submissions, until April 20, so please submit your them before then. Also, premium members will have first priority when we choose which questions to submit.

      


  • Google's Undervaluation: Forget About Moon Shots, Focus On EBITDA

    I hate to invest in large caps. It's my belief a dollar buys a lot more in the nano cap store. I'll keep shopping there as long as I can. Google (GOOG) (GOOGL) is one of only three large caps in my portfolio which is diversified across ~50 holdings. For me to venture into large cap territory, I must really like the investment. I do love Google at the $547 level. So much so that Google is my largest position.


    The hard part of my thesis is explaining why Google is so incredibly undervalued while hundreds of analysts worldwide follow the company and publish research on it. Literally everyone who has ever bought a share knows the company. The media is all over Google and its crazy ventures and reports on every little thing the company comes up with. Why then, does the market not get that there is virtually no downside and tremendous upside at its current ridiculously low price?

      


  • Oakmark Funds Commentary - NASDAQ 5000 - What a Difference 15 Years Makes

    Reading the financial press over the last few weeks, you may have noticed several articles highlighting the NASDAQ Composite’s return to the 5000 mark in early March—almost exactly 15 years after its prior peak in March of 2000. The common theme in the press seems to be wariness that another technology stock bubble could be forming. The attention is understandable, given our human tendency to reflect on big anniversaries and over-emphasize large round numbers; however, we believe concerns of another technology stock bubble are misguided.


    We believe the NASDAQ 5000 of 15 years ago is very different from the NASDAQ 5000 of today. While the price of the index is the same and contains many of the same high-quality technology businesses it did in 2000, the underlying value in the form of earnings is quite different. So different in fact that technology was the second largest sector weight in the Oakmark Fund, at 25% as of the last quarter, compared to a 0% weighting in March of 2000. So how have we come to such different conclusions 15 years later?

      


  • Bill Nygren Focuses On Apache Corp.

    Bill Nygren (Trades, Portfolio) is portfolio manager of The Oakmark Fund, The Oakmark Select Fund and the Oakmark Global Select Fund. Nygren has an M.S. in finance from the University of Wisconsin-Madison and a B.S. in accounting from the University of Minnesota.


    Web Page:http://www.oakmark.com/

      


  • Bill Nygren Buys, Comments on 2 Stocks in Q4

    Bill Nygren (Trades, Portfolio) manages the Oakmark Fund, which focuses on large-cap stocks in the U.S. It has returned 13.27% annualized since inception in 1991, compared to 9.65% for the S&P 500 benchmark index.


    According to its literature, the managers “will purchase stock in those businesses only when priced substantially below our estimate of intrinsic value. After purchase, we patiently wait for the gap between stock price and intrinsic value to close.”

      


  • Bill Nygren Buys 2 New Stocks in Q4

    Bill Nygren (Trades, Portfolio) is the manager of the Oakmark Fund, Select Fund, and Global Select Fund. In 2001, Morningstar named him the Domestic Stock Manager of the Year.


    In the Oakmark Fund’s fourth quarter letter, Nygren wrote that he and co-manager Kevin Grant believe the financial and information technology sectors are the most attractive, and therefore these sectors comprise more than half of the portfolio’s assets.

      


  • I Continue Recommend Adding Aflac to a Diversified Portfolio

    In this article, let's take a look at AFLAC Inc. (AFL), a $26.18 billion market cap company, which provides supplemental health and life insurance in Japan and the U.S.


    Strategy for Growth

      


  • Accenture Keeps its Market-Leading Position

    In this article, let's take a look at Accenture plc (ACN), a $58.31 billion market cap company, which is a global management consulting, technology services and outsourcing company.


    Differentiation

      


  • Bill Nygren's Stocks Trading Near 52-Week Lows

    In Bill Nygren (Trades, Portfolio)’s Oakmark Fund, he seeks undervalued stocks of companies that have a strong balance sheet, significant free cash flow and capable management teams that maximize shareholder value, and takes long-term view.


    The manager found information technology and financial stocks the most attractive during the fourth quarter, he said in his shareholder letter, but the most recent record of his trades is from the third quarter.

      


  • Bill Nygren Says Now Is The Time To Buy Energy Stocks - Here Are His Picks

    Bill Nygren (Trades, Portfolio) thinks that if you believe oil is going to stay at current levels long term, there aren't any energy stocks you should own.


    He doesn't buy into long term low prices. The reasons why include what the contango in the futures curve is indicating, and the fact that no producers can make any money at current prices.

      


  • Bill Nygren Comments on Cenovus Energy Inc

    Another way we seek to capture losses is to replace losing stocks with similar, but equally attractive, stocks. An example in the Oakmark Fund from this past quarter was selling our remaining Cenovus (CVE) shares and redeploying the proceeds into Chesapeake (CHK). We believe Cenovus is a fine, well-managed company, but due to rapidly declining oil prices, it had fallen beneath our purchase price. Another company we believed was also fine and well-managed, Chesapeake, had fallen to a price where it appeared to us to be more attractive than Cenovus. So even though Cenovus was far beneath our sell target, we captured the loss, increased our exposure to an energy sector we thought was cheap and switched to a stock we believed was somewhat more attractive.

    From Bill Nygren (Trades, Portfolio)'s 4Q 2014 Market Commentary.  


  • Bill Nygren Comments on General Electric

    General Electric (GE - $25.27)

    General Electric is a company with businesses we have always admired, but we have questioned management’s focus on returns when making capital allocation decisions. However, the appointment of a new CFO in mid-2013 ushered in significant changes. Since then, GE has, in our view, acquired assets cheaply (Alstom) and sold assets at good prices (Synchrony and its appliances division). In 2015 the company plans to totally revamp its variable compensation plan for thousands of employees, emphasizing factors that drive return on invested capital, which should boost future results. We believe there is substantial opportunity to improve gross margins, and the stock trades for just under a market multiple on 2016 earnings. Some investors may have a stale opinion of GE after the past 15 years of persistent underperformance, but we believe it’s a good investment at the current price.

      


  • Bill Nygren Comments on Chesapeake Energy

    Chesapeake Energy (CHK - $19.57)

    Chesapeake Energy is one of the largest oil and natural gas producers in the United States. The company has a storied history. Since its founding in 1989, it grew rapidly by acquiring acreage positions across North America’s largest resource plays. In our view, this growth left the company flush with high-quality assets, but financially overextended and operationally inefficient. During the past two years, the board of directors and the executive management team were replaced with new, shareholder-oriented leaders. This team began overhauling Chesapeake quickly by reducing leverage, simplifying the company’s financial structure and refocusing capital allocation on the highest return uses. In the past 18 months, Chesapeake has managed to spin off its non-core oilfield services business, sell billions of dollars of assets to reduce leverage, cut its capital spending budget by two-thirds and reduce general and administrative expenses by half. We believe these actions show that management’s focus has shifted away from acreage growth and toward maximizing shareholder returns. Chesapeake’s shares are trading at less than the company’s book value and at just 11x earnings per share. We see this as a bargain price for such high quality oil and gas assets run by what we believe is a strong, shareholder-friendly management team.

      


  • Bill Nygren’s 4Q 2014 Market Commentary

    December 31, 2014


    “It’s one of the most frustrating aspects of mutual fund investing: paying capital gains taxes when you haven’t sold a single share.”

      


  • Bill Nygren’s Oakmark Fund - 4Q 2014 Letter

    December 31, 2014


    The Oakmark Fund increased 4% during the fourth quarter of 2014, bringing the gain for the calendar year to 12%. These results lagged slightly behind the S&P 500, which was up 5% for the quarter and up 14% for the calendar year. Although the Fund slightly trailed the strong performance of the S&P 500 for the quarter and the year, we are pleased with its double-digit gain for the year and strong cumulative results over the past three years.

      


  • Oakmark Funds - A Long Term Perspective

    We believe that, over time, the price of a stock will reflect the true underlying value of the company.


    True underlying value, also referred to as intrinsic value, can be determined in a variety of ways. At Oakmark, we use a number of these methods to determine a company’s value. One important way we estimate value is to evaluate a company’s proficiency at generating free cash flow over time. In our view, a company that generates free cash flow and re-deploys it in a way that maximizes shareholder returns is more valuable than a company who spends their cash flow in low-returning, value-destructive ways.

      


  • Taking a Look at A Few of the Undervalued Stocks in the Market

    The website Financial-Planning.com recently released a list of the top 10 most undervalued stocks in the market. I took the list and compared them against our Peter Lynch chart to determine just how undervalued they were, if at all.


    Out of the 10 stocks, I found 4 that were actually undervalued when using the Lynch model. These stocks were: Navios Maritime Holdings Inc (NM), Total SA (TOT), Intel Corp (INTC) and JPMorgan Chase & Co (JPM).

      


  • Black Friday ... Or Red Friday?

    Black Friday was invented by retailers to kick off the holiday season and encourage shoppers to get Christmas shopping done and out of the way the day after Thanksgiving. In 2005, Cyber Monday became popular, giving shoppers the option to stay away from the Black Friday mobs and shop from home on the computer.


    This year, the turnout for Black Friday was not as hectic and the stores at the mall were not bombarded with eager shoppers who had been camping outside since the night before, right after eating turkey and stuffing with the family on Thanksgiving. What happened to this retail holiday? And will there still be a Black Friday in years to come?

      


  • News Corporation's Efforts to Change the Traditional Model

    In this article, let's take a look at News Corporation (NWSA), a $9.1 billion market cap company, which is a diversified media company that has interests in newspapers, books and sports cable programming, and operates online properties, primarily in the United States, Australia and the United Kingdom.


    Business model

      


  • Weekly 3-Year Low Highlights: IBM, APA, LINE, DNR

    According to GuruFocus list of 3-year lows, International Business Machines Corp, Apache Corporation, Linn Energy LLC, and Denbury Resources Inc have all reached their 3-year lows.


    International Business Machines Corp (IBM) Reached $162.17

      


  • Las Vegas Sands: A Key Valuation Technique for this Dividend Stock

    In a previous article, we analyze the principal drivers of Las Vegas Sands Corp. (LVS), a $51.14 billion market cap company, which operates casinos in Las Vegas, NV; Macau, China; Bethlehem, PA and Singapore.


    Dividends

      


  • Top Reasons to Invest in Omnicom Group

    In this article, let's take a look at Omnicom Group Inc. (OMC), a $18.88 billion market cap company that owns the DDBWorldwide, BBDOWorldwide and TBWAWorldwide advertising agency networks and more than 100 marketing and specialty services firms.


    Diverse agency

      


  • Oakmark's Bill Nygren Buys 5 New Q3 Stocks

    Bill Nygren (Trades, Portfolio)’s Oakmark Fund was about even with the market through the first three quarters of the year, returning 20%, and hit a new all-time high in the third quarter. After the strong gains of the past several years, Oakmark expects more moderate near-term returns, they wrote in their third quarter letter. The highest contributors to returns were information technology and financial services stocks. “We think these are still among the most attractive sectors of the market,” Nygren said in his third-quarter letter. Together they compose 52% of Oakmark Fund’s portfolio.


    In the third quarter, Nygren purchased five new stocks: Las Vegas Sands Corp (LVS), Glencore PLC (LSE:GLEN), Accenture PLC (CAN), T. Rowe Price Group Inc. (TROW) and Whirlpool Corp (WHR).

      


  • Investing Is Not About Gambling

    In this article, let's take a look at Las Vegas Sands Corp. (LVS), a $51.14 billion market cap company, which operates casinos in Las Vegas; Macau, China; Bethlehem, Pennsylvania, and Singapore.


    Sands China

      


  • Why Guru Bill Nygren Invests in the International Market

    Bill Nygren (Trades, Portfolio) of Oak Mark Fund is no newbie to the international market. Nygren added five new stocks to his profile, raising his total number of stocks in his profile to 59 with a total value of $15.499 billion.


    As a value investor, Nygren invests in companies that are priced at a discount in relation to the estimate of their true business value. He also sees buying stocks as buying a portion of the business, so he makes careful selections on which businesses he is willing to partially own.

      


  • What About McDonald's Dividend Hike?

    In this article, let's take a look at the intrinsic value of McDonald's Corp. (MCD), the largest fast-food restaurant company in the world, with more than 35,000 restaurants in 119 countries.


    Dividend hike

      


  • McDonald's Top “Long” Reasons

    In this article, let's take a look at McDonald's Corp. (MCD), a $92.12 billion market cap company that is the largest fast-food restaurant company in the world, with more than 35,000 restaurants in 119 countries.


    Bright outlook

      


  • Kohl´s Amazing Growth

    In this article, let's take a look at Kohl's Corp (KSS), a $12.15 billion market cap company that is engaged in the operation of family oriented department stores and a website (www.Kohls.com) that sells apparel, footwear and accessories for women, men and children; soft home products and housewares.


    A growing national chain

      


  • Goldman Sachs Takes Steps to Comply with New Regulations

    In this article, let's take a look at The Goldman Sachs Group, Inc. (GS), a $81.03 billion market cap company, which is one of the world's leading investment banking and securities companies.


    Basel III

      


  • I Believe AUM Will Continue the Uptrend

    In this article, let's take a look at Franklin Resources Inc. (BEN), a $33.07 billion market cap company, which is one of the world's largest asset managers, serving retail, institutional and high-net-worth clients. Let's explore some reasons more closely to see if they are valid enough to invest in this stock.


    A giant

      


  • Will Clinics Boost Walmart's Profitability?

    You may have noticed something of a rise lately in the popularity of stores that specialize in things, but there is still a market to be found for the all-in-one shopping experience.


    That is something that Walmart (WMT) is banking on as it continues to roll out its Care Clinics, almost exclusively in rural areas so far. Walmart, which has expanded its offerings to include groceries in recent years, entered the health care business last spring and has opened about a dozen clinics so far; it intends to open 17 by the end of 2014 in its bid to provide health care services at reduced rates to its customers.

      


  • The Best Bargain Plays Right Now - Oakmark's Bill Nygren

    Oakmark's Bill Nygren (Trades, Portfolio) encourages investors to consider that the price you pay determines the risk you are taking.


    Right now he has some opportunities that he thinks are low risk because of valuation. Those include Accenture and Whirlpool.

      


  • Stocks Arnold Van Den Berg and Bill Nygren Have in Common

    When two successful value investors own a company’s stock, it’s worth investigating what the company could be doing right. Last year, GuruFocus looked at the stocks Warren Buffett and George Soros have in common. This time, we’ll compare Arnold Van Den Berg (Trades, Portfolio) and Bill Nygren (Trades, Portfolio).


    Van Den Berg founded the Austin-based Century Management in 1974, a value investing firm that oversees $2 billion in assets. What’s notable about Van Den Berg is that he has no formal college education, but more than 45 years of investment experience is a sign of his success.

      


  • Apache´s Portfolio Could Offset Potential Risks

    In this article, let's take a look at Apache Corporation (APA), a $32.97 billion market cap company, which is a large independent exploration and production company, which explores for, develops and produces natural gas, crude oil and natural gas liquids.


    Divestitures

      


  • Bill Nygren Comments on TRW Automotive Holdings Corp

    On the morning of September 15, TRW Automotive Holdings (TRW) announced it was going to be acquired by ZF Friedrichshafen for $105.60 per share. This was of more than a passing interest to us because at the time TRW was the largest holding in Oakmark Select. It was also the culmination of a process we applauded because TRW stock began 2012 at $33 per share, and was only up to $74 at the end of 2013. Over the years, takeovers have contributed significantly to Oakmark and Oakmark Select’s returns. In 2014 both Funds benefited when AT&T offered to buy DirecTV and when Actavis purchased Forest Laboratories. Additionally, Oakmark Fund owned Covidien, which increased from $72 to $92 after announcing its merger with Medtronic. Obviously, we welcome takeover activity in any of our holdings.


    But when TRW announced news of the acquisition at 8:16 a.m. Chicago time, it took less than an hour – 9:04 to be exact – for the first law firm to announce its threat to sue TRW for accepting too low a price. Within 10 days I had counted at least 27 similar press releases from various law firms purporting to represent shareholders, threatening legal action to block the takeover. How do you square the law firms all jumping in to protect the shareholders while as a large shareholder ourselves, we were cheering the news?

      


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