Right now, many — if not most — investors are focused on macroeconomic factors. And, says top fund manager Bill Nygren, that has created a number of “micro opportunities” for long-term investors.
“I still believe that as most investors focus on the macro it creates more micro opportunities,” Nygren tells Morningstar. “That’s a plus for bottom-up, fundamental investors. … [And] with the majority focused on momentum instead of value, more stocks are selling at either abnormally large discounts or premiums to long-term value.”
Nygren says that in normal markets, he buys stocks at about 60% of what he thinks they are worth and sells them around 90%. “With stocks today selling so far below normal P/Es,” he says, “it’s more like buying at 50% and selling at 75%.”
Nygren says the market is “very attractive” today, and talks about some of his major holdings, including Apple.