Bill Nygren

Bill Nygren

Last Update: 02-25-2015

Number of Stocks: 56
Number of New Stocks: 2

Total Value: $16,809 Mil
Q/Q Turnover: 8%

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

Bill Nygren Watch

  • 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 Q&A Interview 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.

      


  • 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

      


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