Nygren: Volatility Isn’t Risk

For years, volatility and risk have been synonymous in stock market discussions. But in recent commentary, top performing fund manager Bill Nygren says otherwise. In a piece posted on Oakmark’s web site, Nygren notes that Oakmarks’ funds have been more volatile this year, and cites a couple reasons. One, he says, is that in a quest for yield in this low-yield bond climate, many investors “have begun to pay nearly unprecedented prices for stocks that… Read More

Nygren High on Bank Stocks

While bank stocks have been hit with a lot of tough news recently, top fund manager Bill Nygren of Oakmark has been loading up on them. Nygren says that some bank share prices are “assuming that the worst recession since the Great Depression will happen every five years or so,” Fortune reports. As an example of a bank stock that could take off, Nygren says J.P. Morgan’s annual profits could jump 50% by 2014 thanks… Read More

Stocks Offering Nice Dividends — And Value

With bonds yielding so little, many investors have been looking for yield in the form of high-dividend stocks — which has made some of those picks rise to unattractive valuations. But in his latest article for Forbes.com, Validea CEO John Reese looks at some stocks that are offering nice dividends, and still trading at cheap valuations. Reese refers to data that top fund manager Bill Nygren cited in a recent letter to shareholders. “Nygren points… Read More

Looking for Safety? Don’t Turn to Bonds, Nygren Says

Top fund manager Bill Nygren says investors who are dumping stocks in favor of bonds in an effort to lower the risk in their portfolio are using erroneous logic. In his second-quarter letter to Oakmark shareholders, Nygren talks about how investors allow “prejudices” to  lead them to make bad investment decisions. One that is in effect now, he thinks, involves the fact that investors are prejudiced to think that bonds are safer than stocks. “In… Read More

Nygren: More Gains to Come

Top-performing fund manager Bill Nygren of Oakmark says he sees a number of reasons why stock returns this decade will “far surpass” those of the previous decade. “We think there are more profits to come,” Nygren writes in a letter to shareholders, noting that all three of Oakmark’s domestic funds are now at all-time highs. He offers several reasons that stocks are poised for continued gains: The P/E ratios of most stocks are still below… Read More

Nygren: “Once-In-A-Generation Opportunity” for Investors

Bill Nygren, whose Oakmark fund is in the top 12% or better of its class over the past three, five, and ten years, according to Morningstar, says investors need to ignore high volatility if they want to succeed over the long haul. “I’d say they should pretty much ignore it,” Nygren writes in his fourth-quarter market commentary. “The financial media have business reasons to make investors believe they need to follow every zig and zag… Read More

Nygren: Don’t Chase Bond Performance; Buy Stocks

Top fund manager Bill Nygren says that the best thing investors can do in 2012 is buy more stocks. “The best idea for 2012 is for investors to increase their equity exposure and decrease bond exposure,” Nygren tells CNBC. “We think stocks are cheap.” He says he thinks it’s a mistake for investors to chase hot bond performance, with many stocks trading at “very, very attractive valuations”. Nygren also says it’s important to think long-term,… Read More

Nygren on a “Once-in-a-Generation” Opportunity

Top value fund manager Bill Nygren says that investors should stop paying attention to every zig and zag the stock market makes, and instead take advantage of a “once-in-a-generation opportunity” in equities. “We believe investors currently have a once-in-a-generation opportunity to use asset allocation to add to their investment returns,” Nygren tells Morningstar. “Stocks appear to be significantly undervalued relative to bonds.” But, he adds, many investors continue to shun stocks and buy bonds, mistakenly… Read More

Nygren, Herro Get Contrarian

While the rest of the investment world seems to be shunning Japanese stocks and large-cap stocks, two top fund managers — Oakmark’s David Herro and Bill Nygren — say that’s where they are finding value. “We’re fully confident that our Japanese stocks will become a positive at some point for the fund — who knows when,” Herro told the Associated Press in reference to a fund he and Nygren co-manage. “Japan is the cheapest among… Read More

Nygren Looks for Growth and Value

Value and growth investing are often looked at as polar opposites. But while discussing some of his holdings with Money Magazine, top fund manager Bill Nygren shows how both value and growth can have a place in an investor’s portfolio. Nygren “sees plenty of opportunities now,” notes Money’s Laura Lallos. Many of them are in typical big “value” stocks. Some of these may not have great growth prospects, but they have been buying back shares… Read More