The guru, who manages several of the Chicago-based firm's funds, said he believes there are still plenty of bargains available despite the epic rebound the market has had following the Covid-19 pandemic-induced selloff.
The first industry Nygren discussed was banks. Oakmark's bank holdings include Wells Fargo & Co. (WFC, Financial), Bank of America Corp. (BAC, Financial), Citigroup Inc. (C, Financial), Capital One Financial Corp. (COF, Financial) and Ally Financial Inc. (ALLY, Financial).
"The main story for us on the banks is that we believe investors have been slow to recognize what P/E multiple this industry ought to sell for," he said. "A typical bank stock, historically, has been two-thirds to three-quarters of the market, with the market at 20 times next year's earnings- that would be like 13 to 15 times earnings for the average bank. And they are typically selling at about 10 times."
In regard to the energy sector, the guru said it is one of "the important areas that got hurt by the lockdowns" as travel "went to almost nothing and energy usage fell dramatically."
"We've been investors in energy for several years at Oakmark on the belief that we are going to see global growth," Nygren said. "With global growth comes increased energy consumption. And energy prices have to be at a level that incentives these companies to explore more and to develop more. Otherwise, there won't be enough energy to support global growth."
Nygren noted that even though energy stocks and oil prices have recovered a lot since November, many of them are trading at a significant discount to where they were two years ago. Regardless, he sees value in ConocoPhillips (COP, Financial) and Apache Corp. (APA, Financial).
As for tech stocks, the guru said there are at least two important areas: the companies that make equipment and those that provide services. While Oakmark doesn't see any opportunities in the equipment area currently, companies like Alphabet Inc. (GOOG, Financial)(GOOGL, Financial), Facebook Inc. (FB, Financial) and Netflix Inc. (NFLX, Financial) are not what the firm truly considers technology. Rather, they are "old media names" that provide services to consumers to sell advertising.
Another area the investor discussed was fintech.
Watch the full highlight clip below:
Disclosure: No positions.
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