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, Financial) 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.
Pick number two is Caterpillar (CAT, Financial). Legendary short seller Jim Chanos (Trades, Portfolio) has been short Caterpillar but Nygren thinks it is a good buy. Nygren doesn't dispute the fact that the mining business is facing headwinds, but looking five years out, Caterpillar looks cheap.
