Bill Nygren

Bill Nygren

Last Update: 2014-05-28

Number of Stocks: 59
Number of New Stocks: 5

Total Value: $12,525 Mil
Q/Q Turnover: 9%

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

Bill Nygren' s Profile & Performance

Profile

Bill Nygren is Portfolio Manager of The Oakmark Fund, The Oakmark Select Fund, and the Oakmark Global Select Fund. Bill 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/

Investing Philosophy

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.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Oakmark Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201337.2931.555.7
201220.9715.45.6
20111.822.08-0.3
3-Year Cumulative69.1 (19.1%/year)55 (15.7%/year)14.1 (3.4%/year)
201012.1815.06-2.9
200944.7726.4618.3
5-Year Cumulative174.6 (22.4%/year)125.5 (17.7%/year)49.1 (4.7%/year)
2008-32.61-374.4
2007-3.645.61-9.3
200618.2615.792.5
2005-1.314.91-6.2
200411.7312-0.3
10-Year Cumulative132.6 (8.8%/year)104.1 (7.4%/year)28.5 (1.4%/year)
200325.328.7-3.4
2002-14.41-22.17.7
200118.29-11.930.2
200011.78-9.120.9
1999-10.4721-31.5
15-Year Cumulative195.2 (7.5%/year)98.3 (4.7%/year)96.9 (2.8%/year)
19983.7328.6-24.9
199732.5933.4-0.8
199616.2123-6.8
199534.4237.6-3.2
19943.311.32.0
20-Year Cumulative555.3 (9.9%/year)483.2 (9.2%/year)72.1 (0.7%/year)
199330.510.120.4
199248.97.641.3

Top Ranked Articles

Bill Nygren's Investing Answers to GuruFocus Q&A
GuruFocus took reader questions for highly respected and well-known value investor Bill Nygren of the Oakmark Funds (OAKIX)(OAKMX) a few weeks ago. Read more...
Gurus On Board: Ask Bill Nygren -- The Answers
Bill Nygren is the portfolio manager of the $5.8 billion Oakmark Fund (10–year average 7.26% ) and more concentrated $5.9 billion Oakmark Select Fund (10-year average 15.16%). Recently our readers got an opportunity to ask him questions, and today we got his answers back. Read more...
JNJ CFO on Synthes Financing
On Tuesday, Dominic Caruso, CFO and VP at Johnson & Johnson (JNJ), presented at the Morgan Stanley Global Healthcare Conference. Most people know the back story on JNJ and where they stand today, so I won’t waste too much time on that topic. The one item that has been a key focal point in investor discussions as of late is the Synthes acquisition. A bit of the background from the press release in April when the deal was announced: Read more...
Kohl's- 20% off for a limited time only!
A while ago I ran a quick screen for cheap stocks with demonstrated earnings growth and a strong financial position. Often, screening for stocks leads me to small or unheard of companies, which sometimes do indeed present valuable opportunities. However, after this particular screen, one company was on my list which I needed no introduction to- Kohl’s. After a cursory analysis, I decided to research the company more thoroughly… Read more...
Bill Nygren on Best Buy (BBY), Capital One Financial (COF), Federal Express (FDX), Home Depot (HD)
Bill Nygren is the portfolio manager of the $5.8 billion Oakmark Fund (10–year average 7.26%) and more concentrated $5.9 billion Oakmark Select Fund (10-year average 15.16%). Read more...
» More Bill Nygren Articles

Commentaries and Stories

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Bill Nygren Comments on Intel
Our best-performing sectors for the second quarter were energy and information technology, and from these sectors, Apache and Intel (INTC) were the Fund’s two strongest individual contributors. More...

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Bill Nygren Comments on Apache
Our best-performing sectors for the second quarter were energy and information technology, and from these sectors, Apache (APA) and Intel were the Fund’s two strongest individual contributors. More...

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Bill Nygren Comments on News Corp
News Corp (NWSA) is a global media conglomerate with renowned and highly valuable content, cable, information services and publishing assets. We believe that News Corp, which was spun-off from 21st Century Fox last summer, is being misperceived and inappropriately valued as a print newspaper publisher. To the contrary, our research suggests that the significant majority of News Corp’s fair value is supported by its ownership positions in high quality cable sports networks, pay TV and digital content properties that enjoy dominant market share and compelling growth profiles. Continued subscriber and advertising growth coupled with the transition from print to digital media across various operating subsidiaries should drive consistent margin expansion over the next several years. Selling at a significant discount to our estimate of intrinsic value and at only a modest premium to tangible book value, we think News Corp offers a compelling risk/reward profile. More...

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Bill Nygren Comments on Monsanto Company
Monsanto (MON) is a leading global provider of seeds, biotechnology traits, herbicides and data analytics for farmers. We believe Monsanto is a very high quality company with above-average growth prospects and an exceptionally strong competitive position in a large and consolidated industry. In our view, Monsanto’s lead is likely to widen as successful traits are combined and as the company maintains its distribution advantages. Additionally, Monsanto’s precision agriculture platform, led by its recent purchase of The Climate Corporation, could provide significant upside and further differentiate Monsanto from its competitors, since growers are only in the early stages of using this technology to improve yields. For the past year and a half, management considered a more aggressive capital structure, and they recently announced a plan to add leverage to the balance sheet while using the proceeds for a large share repurchase program. Low corn prices, challenges in valuing their biotech pipeline and the difficulty of quantifying upside from precision agriculture have caused Monsanto to sell for materially less than our estimate More...

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Bill Nygren Comments on Amazon
That brings me to our newest position, which will no doubt make some question our credentials as value investors: Amazon (AMZN). More...

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Bill Nygren's Oakmark Fund - Second Quarter 2014 Letter
June 30, 2014 More...

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Bill Ngren Commentary: Oakmark Select Fund - Second Quarter 2014; Buys Amazon, Citigroup, Fidelity National, Google Bill Nygren - Bill Ngren Commentary: Oakmark Select Fund - Second Quarter 2014; Buys Amazon, Citigroup, Fidelity National, Google
The Oakmark Select Fund increased 6% for the quarter, compared to 5% for the S&P 500 Index. Three quarters into our 2014 fiscal year, the Oakmark Select Fund has returned 25%, compared to 18% for the S&P 500 Index. Our best performers in the quarter were Apache and Intel, up more than 20% each, while a couple of our financial stocks, Bank of America and JP Morgan Chase, led the laggards with losses of 11% and 4%, respectively. More...

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Bill Nygren's Second Quarter 2014 Shareholder Letter
The Oakmark Fund increased 5% during the second quarter, which was in line with the S&P 500’s gain of 5%. Through the first three quarters of our fiscal year, the Oakmark Fund was up 20%, compared to a gain of 18% for the S&P 500. This was another unusually strong quarter for the market and for the Oakmark Fund, and during the quarter the Fund hit another all-time high price. As Bill Nygren (Trades, Portfolio) mentioned in hissecond quarter letter , despite very strong performance since the stock market bottomed in 2009, the forward P/E multiple for the S&P 500 is still within a typical range. While stocks aren’t as attractive as they were a couple of years ago, we continue to think that equities dominate other asset classes. Our great team of research analysts continues to find attractively valued companies to add to the portfolio. Over the past two quarters, we More...

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Bill Nygren's Low-P/E Stocks Bill Nygren - Bill Nygren's Low-P/E Stocks
Discount to intrinsic value is a central component of Bill Nygren (Trades, Portfolio)’s investing strategy at Oakmark Funds, where he has a track record of beating indices. In a recent interview with Barrons, he stated the key to his success: More...

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The Financial Stocks Gurus Are Buying Now Louis Moore Bacon,Bill Nygren - The Financial Stocks Gurus Are Buying Now
This week, well-known value managers Oakmark Funds issued a report outlining the rationale for their outsized investments in U.S. banks, in spite of the negative press the institutions have received for over six years since the financial crisis. “The short answer,” they wrote, “is we find their risk profiles are much improved, along with management (where needed), and the valuations are quite attractive.” More...

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Why Oakmark Finds Value in Some Banks
If you’ve been reading the financial press over the last six years or so, you’ve likely noticed a steady drumbeat of negative articles on banks and, in particular, large U.S. banks. As a result, we often get questions about our relatively large positions in institutions such as JPMorgan (JPM), Citigroup (C), and Bank of America (BAC). The short answer is we find their risk profiles are much improved, along with management (where needed), and the valuations are quite attractive. More...

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Oakmark’s Bill Nygren's Top Holdings Led by Bank of America and Oracle Bill Nygren - Oakmark’s Bill Nygren's Top Holdings Led By Bank Of America And Oracle
Also reported today, Oakmark’s Bill Nygren shared his first quarter portfolio which highlighted a rather eventful quarter for the guru. Nygren purchased five new stocks over the past quarter bringing his total number of stocks to 59. Nygren’s Oakmark Fund portfolio is currently valued at over $12.5 billion. More...

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Oakmark Funds' Bill Nygren Buys 4 New Stocks Bill Nygren - Oakmark Funds' Bill Nygren Buys 4 New Stocks
Bill Nygren (Trades, Portfolio)’s Oakmark fund beat the S&P 500 for the first quarter with a 5% gain compared to the index’s 2% rise. In his first quarter letter, he attributed the strong quarter primarily to Forest Laboratories being acquired by Actavis Plc (ACT), and large exposure to auto-related cyclical and financials. More...

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A Few Lessons from Bill Nygren Bill Nygren - A Few Lessons From Bill Nygren
Renowned value investor Bill Nygren (Trades, Portfolio) from Oakmark Fund gave a great presentation at the CFA dinner held two days before the Berkshire Hathaway annual shareholder meeting. The title of his presentation is "Perspectives on Value Investing." Below are my notes from the presentation. More...

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Visa Is a Buy According to Dividends Discount Model Bill Nygren,Ken Heebner - Visa Is A Buy According To Dividends Discount Model
Visa Inc. (V) is the world's largest retail electronic payments network and leading payments brand, providing services to consumers, businesses and governments globally. Its P/E ratio indicates that the stock is relatively overvalued (26.7 vs 12.4 of industry mean). So now let's take a look at the intrinsic value of this company and try to explain to investors the reasons why it is a good buy or not. More...

LONG, ELECTRONIC, PAYMENTS, RETAIL, FINANCE


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Oakmark's Bill Nygren Discusses Financials, Favorite Stocks Bill Nygren - Oakmark's Bill Nygren Discusses Financials, Favorite Stocks
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Bill Nygren Comments on Franklin Resources
We established a position in Franklin Resources (BEN), one of the world’s largest global mutual fund companies, with leading products in both equities and fixed income. For starters, we believe asset management is an attractive business and Franklin has a history of strong fund performance across various asset classes and geographies. The company is selling for less than 14x our estimate of this year’s EPS and just over 11x adjusting for net cash and securities. In our view, this is a cheap price for a well-run company in such an attractive industry. Management has historically returned capital to shareholders through stock buybacks and dividends, and with insiders owning 35% of outstanding shares, we expect Franklin to continue to be good stewards of shareholders’ capital. More...

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Bill Nygren Comments on TI
We also eliminated the remainder of our investment in TI (TI) as the final tranche of shares went long term. TI offers another example of a management team that we believe puts its shareholders first in a situation where many do not. Since its acquisition of National Semiconductor in 2011, TI has been generously returning excess capital to shareholders while maintaining a prudent, but not lazy, balance sheet. This likely contributed to their shares approaching our estimate of fair value. Many large technology companies today simply grow their already immense cash positions and offer little insight into their plans for distributing that excess capital. We believe TI set a terrific example for other companies in the technology sector. Finally, we also sold Newfield Exploration after we came to believe that its effort to transition the company to liquids was a low-return proposition that would limit its ability to grow per-share value. More...

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Bill Nygren Comments on Forest Laboratories
After returning 40% last quarter, Forest (FRX) returned another 52% in the first quarter as the company agreed to be acquired by Actavis for both cash and stock. We believe the acquisition price was full and fair. While our investment thesis – that Forest’s new drug launches would be successful and leverage the company’s expenses – did not have the chance to transpire, we are more than pleased that the stock price reached our estimated value in short order. It’s not uncommon for the management of companies in transition to resist being acquired before their strategies to create value are fully realized. We applaud the leaders at Forest for their willingness to pull forward this value, even if it denied them the personal satisfaction of seeing their efforts realized in the coming years. We believe this could serve as a lesson for the leadership of other public companies. If someone wants to pay a fair price on a risk-adjusted basis for ‘what could be’ in your business, you owe it to your shareholders to realize this value so that they can recycle their capital into other attractively valued investments. More...

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Bill Nygren's Oakmark Select Fund - First Quarter 2014 Letter
For the quarter, the Oakmark Select Fund gained 5%, compared to 2% for the S&P 500 Index. We are pleased to report the Fund ended the quarter at a new all-time high NAV, meaning that as of 03/31/14, all current Select shareholders have unrealized gains in their holdings. These strong absolute and relative results were due in large part to Forest Laboratories (Forest) agreeing to be acquired by Actavis Plc in the quarter. Our relatively large exposure to auto-related cyclicals and financials continued to benefit our results. The largest detractors were MasterCard, Kennametal and FedEx. As discussed below, we eliminated our positions in Forest, Texas Instruments (TI) and Newfield Exploration, and we established new positions in Franklin Resources and CBRE Group (CBRE). More...

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