Bill Nygren

Bill Nygren

Last Update: 08-18-2015

Number of Stocks: 58
Number of New Stocks: 2

Total Value: $16,864 Mil
Q/Q Turnover: 4%

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

Bill Nygren Watch

  • Oakmark Funds: Staying the Course

    “During the lazy days of summer, one may contemplate investing from the perspective of a regatta. Although the less disciplined change their tack in hopes of coaxing along a success, we at Harris Associates continue to look to the horizon and stay the course, even when the winds shift or the gusts blow.” – David Herro (Trades, Portfolio), 2013

    The recent tumble in the markets has caused volatility in stock prices and uncertainty among many investors. But as we have noted before, our intrinsic value of a stock often does not move as fast—or even in the same direction—as market prices. In fact, we view market instability favorably: “In this current environment, as share prices have aggressively fallen, we believe it is a great opportunity for long-term investors to buy quality businesses at lower prices,” says David Herro (Trades, Portfolio), the firm’s Deputy Chairman and Chief Investment Officer of International Equities.  

  • 3 Stocks Bill Nygren Loves

    Value investors love lower prices. Here is what Bill Nygren (Trades, Portfolio) likes right now:

    Bank of America (NYSE:BAC) - Selling at 70% off book value and can return all excess capital to investors.


  • Oakmark Funds Challenges Passive Investing in 'A Patient and Active Approach'

    Recent data reveals that the majority of active funds do not outperform their respective indexes, which has spurred large inflows into passive investments. But a look beneath the data’s surface reveals a more complex landscape. Research conducted by Russ Wermers and Tong Yao concludes that stocks owned heavily by index funds exhibit more long-term pricing anomalies: active funds enhance, while index funds reduce, the informational efficiency of stock prices1. As active investors, we think this shift to passive investments creates excellent buying opportunities.

    We do not think all active funds are created equally. Analyzing active funds as a whole fails to recognize the huge variety of processes and skill levels in the space. Michael Mauboussin proposes the concept of untangling skill versus luck to identify the most successful long-term investors. Mauboussin believes that active share, tracking error, and an investors’ process—broken down into analytical, behavioral and organizational segments—are better indicators of future successes than past performance2.


  • Mastercard's Results Excluding Exchange Rate Effects

    Last year, I wrote an article about MasterCard, Inc. (NYSE:MA) after Bill Nygren (Trades, Portfolio), the portfolio manager of The Oakmark Fund, had taken a long position on it. At that time, we calculated that Mastercard had a trailing P/E ratio that indicated overvaluation, but our valuation method said the contrary. Since my recommendation, the company´s shares surged by 25% in a period lower than a year.

    Steve Mandel is the largest shareholder of the company but decreased by 36% his position to $1.12 billion with 12.97 million shares, according to the fund's latest filing in Q1. On the other hand, Andreas Halvorsen (Trades, Portfolio) upped his stake by 93% to 8.26 million shares.


  • Bill Nygren: Interview With CNBC

    Bill Nygren (Trades, Portfolio) of Oakmark Funds did a interview with CNBC where he discusses finding value amid volatility. During the interview, Mr. Nygren shared his top picks for the second half of the year. He discussed his love for financial service companies and said he was adding to his American Express (AXP) position. Mr. Nygren is also adding to his position in Fiat Sp.A (FIATY).

    Interview With CNBC:


  • Buying A Top U.S. Asset Manager Facing Temporary Headwinds

    Franklin Resources (NYSE:BEN) is an asset manager providing investment service to retail and institutional investors. Funds are marketed under the well known Franklin, Templeton, Mutual Series and other brands. Franklin has over $850 billion in AUM. The asset base is more risky than is typical for asset managers with a big chunk consisting of equity investments. AUM is divided about 50-50 between equities and fixed income actually. In addition, Franklin Resources owes almost a third of the AUM to foreign investors. Retail investors also make up an important group of clients. As retail investors are more fickle as compared to their institutional counterparts, that also raises the risk profile of the company. In short; not your run-off-the-mill rocksolid asset manager. On the other hand, this type of AUM usually comes with higher returns.

    On a macro-economic level, which I want to stress is not my specialty, I like the firm’s exposure to foreign countries. The U.S. has a somewhat healthy and mature market for asset management but around me, in Europe, there is a lot to be gained. Individuals control only a fraction of the capital they are entitled to. Slowly politics are moving towards an environment where individuals have greater control over allocation decisions. Franklin should ultimately benefit from that. However, it is my goal to not rely on long term macro tailwinds in any investment, including this one.


  • Bill Nygren Loves Financial Service Companies

    Bill Nygren (Trades, Portfolio) doesn't think the market is overvalued. He views it as slightly more expensive than the historical norm.

    He particularly loves financial services companies, which are still working off the bad loans of prior years and have much higher earnings power than the market realizes. In particular, Nygren likes American Express, which at 15 times earnings is priced as an average business when in reality, it is a world class brand.


  • I See Long-Term Value In Caterpillar

    As a value investor, I am continuously on a lookout for sectors and stocks that are depressed and hold long-term value. Sectors in limelight tend to have stretched valuations and it’s better to avoid stocks with premium valuations when markets are trading near record high levels. Yesterday, I discussed why Walmart (NYSE:WMT) is a value investment and a good dividend stock. My focus today is on another stock that holds tremendous long-term value and is undervalued at these levels.

    Caterpillar (NYSE:CAT), which primarily caters to the construction, mining and oil and gas industry globally, needs little introduction. However, the last 12-18 months have been challenging for the company due to a slowdown in China and decline in oil and gas prices. As a result, Caterpillar has declined by 24% in the last one year and currently trades at $84.5.


  • Oakmark's Bill Nygren Buys American Express, Fiat in Q2

    Bill Nygren (Trades, Portfolio) discussed many of his portfolio moves in his second quarter letter though he has not yet released the details in his second quarter portfolio.

    His Oakmark Fund initiated positions in Fiat Chrysler Automobiles (NYSE:FCAU) and American Express (NYSE:AXP), saying of the financial sector:


  • Bill Nygren Explains Why The Market Misunderstands Amazon's Valuation

    You generally wouldn't expect to see a company like Amazon (NASDAQ:AMZN) in the portfolio of a value investor.

    Amazon doesn't have much for profits or free cash flow, but it has a massive valuation.


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