Value Investor Bill Nygren’s Ideas

By on January 21, 2020

Bill Nygren January 2020Oakmark’s veteran value manager Bill Nygren was on CNBC today providing his latest ideas. Nygren began by justifying his reason for trimming his stake in Apple (AAPL). After the stock has run-up over the past year, AAPL has gone from a discount to the market to a significant premium, according to Nygren.

Nygren said Ally Financial (ALLY) is attractive now at a PE of 7 and less than book value while buying back a lot of its stock each year.

Nygren also made a case for Alphabet (GOOGL) and Netflix (NFLX) qualifying as value stocks.

When asked about energy stocks, Nygren explained why he sold Halliburton (HAL) and Chesapeake (CHK). Nygren said the sales were to realize tax losses, and he purchased EOG Resources (EOG), Diamondback Energy (FANG), Apache (APA), and Concho Resources (CXO) where management is doing a good job on capital allocation. Nygren said it’s hard to find a space more unloved than energy.

When asked about the level of the stock market, Nygren replied that PE’s can be a little elevated when bonds are trading at low interest rates.

Back in March 2013, Nygren commented on the value evident in Capital One Financial and technology names which were out of favor at the time [link].

Famed value investor Bill Nygren on his favorite stock picks from CNBC.

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