August 07, 2019

Bill Nygren: 'A Stock That Doesn't Look Cheap on the Surface Might Be One of the Cheapest'

57 minutes

Our guest on this week's installment of The Long View is noted portfolio manager Bill Nygren. Nygren joined Chicago-based Harris Associates as an analyst in 1983 and later served as the firm's director of research. He has managed Oakmark Select OAKLX since 1996 and Oakmark Fund OAKMX since 2000 and has comanaged Oakmark Global Select OAKWX since 2006. In addition to these duties, Nygren serves as Harris' chief investment officer for U.S. equities. For his investing achievements, Morningstar recognized Nygren as its Domestic-Stock Manager of the Year in 2001, and his funds remain highly rated by Morningstar's manager research analysts. A frequent and insightful commentator on investing and markets, Nygren's shareholder letters are a must-read on the Street and beyond. In this far-ranging conversation, he discusses how his team's competitive edge has evolved, how traditional value metrics won't cut it in today's evolving economy, and the lasting lessons of the financial crisis.

Background Information

Bill Nygren bio

Bill Nygren's Commentary and Shareholder Letters

Oakmark's Philosophy and Process

Morningstar Analyst Report for Oakmark Fund

Morningstar Analyst Report for Oakmark Select

Morningstar Analyst Report for Oakmark Global Select

"Morningstar Fund Managers of the Year 2001," by Russ Kinnel (Jan. 4, 2002, Morningstar.com)

Related Links

How Stock-Picking Has Changed and What Defines Value

"Value Investors Are Vexed," by Ben Johnson (April 10, 2019, Morningstar.com)

"Value Stocks Haven't Traded This Low Since the Dot-Com Bubble," by Justina Lee (July 23, 2019, Bloomberg)

Generally Accepted Accounting Principles (GAAP)

Shiller P/E Ratio

Portfolio/Risk Management

"Do Concentrated Funds Outperform?" Alex Bryan and Christine Benz (May 8, 2019, Morningstar.com)

"The World Cup and Investing," by Win Murray (July 16, 2018, Oakmark.com)

Portfolio and Holdings

Oakmark Fund portfolio, June 30, 2019

Oakmark Select portfolio, June 30, 2019

Oakmark Global Select portfolio, June 30, 2019

"Bank of America Plans to Boost Dividend 20%, Increase Pace of Stock Buybacks" (July 17, 2019, Marketwatch)

"Famed Value Investor Bill Nygren on His New Stock Picks" (April 25, 2019, CNBC)

"Value Investor Bill Nygren Gets Bullish on Tech" (Feb. 25, 2019, CNBC)

"Value Investor Bill Nygren Likes Netflix, Saying It Won't Lose Subscribers on Price Hike" (Jan. 15, 2019, CNBC)

"Nygren: A Lot of Value Still Out There" (May 28, 2009, Morningstar)

About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver.

About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas.

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