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

  • Accenture: Strong Growth in Digital, Market Share Gains to Drive Growth

    Accenture (ACN) recently reported strong FQ3 results with its EPS beating estimates by 7 cents and revenues beating estimates by $220 million. The company also raised its adjusted EPS guidance to $4.73-$4.78 (from a prior $4.66-$4.76 ) and constant currency revenue guidance to 9%-10% (from 8%-10%). The company spent $518M on buybacks last quarter. With $4B of net cash position, I expect these buy backs to continue going forward.


    Accenture 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 employs more than 305,000 people and has offices and operations in more than 200 cities in 56 countries. Its revenues before reimbursements (“net revenues”) were $30.0 billion for fiscal 2014.

      


  • The Market Is At About The Level It Is Supposed To Be – Bill Nygren

    The stock market has run up for six consecutive years.


    "Not really," says value investor Bill Nygren (Trades, Portfolio).

      


  • Stocks Bill Nygren Is Buying From 'Undervalued' Financial Sector

    Value investor Bill Nygren (Trades, Portfolio) praised the financials sector in his first quarter investor letter, calling it “among the highest potential return sectors of the Fund.”


    The sector was also a primary drag on the Oakmark Fund’s performance in the first quarter, which declined 1%, lagging the S&P 500’s 1% gain. But as a long-term investor, Nygren wrote:

      


  • 20 Questions With Bill Nygren - Part II

    10. How did you begin your career as an investor and what steps did you take to become as successful as you are today? Also, what made you want to become an investor?


    In school I was always better at subjects that required quantitative skills, like math or physics. In high school, lots of teachers encouraged me to become an engineer. I was also always interested in the statistics behind all types of gambling, but could never figure out how to beat the system (though I still aspire to be banned from playing blackjack because of card counting). Investing in stocks was the first and best opportunity I saw where you committed capital for an uncertain return, but the odds were actually in your favor.

      


  • 20 Questions With Bill Nygren - Part I

    This month’s 20 Questions interviewee is the Oakmark Funds’ Bill Nygren (Trades, Portfolio). We gave our subscribers the opportunity to ask questions about his investment strategy and philosophy, the criteria he looks for in a company to add it to the portfolio, and advice for new investors.


    Overview of Nygren’s portfolio

      


  • Oakmark Intl Small Cap Fund Adds Two New Positions During 1QFY15

    Oakmark Intl Small Cap (Trades, Portfolio) Fund recently added two new positions to its portfolio of 59 stocks, valued around $2.95 billion with a 10% quarter over quarter turnover.


    The most heavily weighted sector in Oakmark Intl's portfolio is the industrials sector, which comprises 36.8% of its portfolio. The second is technology, which makes up 18.6% and the third is financial services, which is 12.5%.

      


  • Bill Nygren Buys 3 New Stocks in Q1

    Bill Nygren (Trades, Portfolio) said in his first-quarter letter to investors of his Oakmark Fund that he found equities the most attractive class, and he purchased three of them in the first quarter: Caterpillar Inc. (CAT), Precision Castparts Corp (PCP) and Baker Hughes Inc. (BHI).


    Nygren’s long-term focused fund underperformed the S&P 500 for the first quarter, declinig 1% compared to the index’s 1% gain. But, he said, “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.”

      


  • 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.

      


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