Top fund manager Bill Nygren says he’s continuing to find the best value in the market in the financial sector.
While the much-maligned sector isn’t the sexiest right now, Nygren says that doesn’t matter to him. What does matter is value. “We own the financials because they are the cheapest stocks with the highest quality management,” he told CNBC. “We don’t wake up in the morning thinking we want to put money to work in boring industries. But when you see valuations that are less than book value, less than 10 times earnings, to us that looks really, really attractive compared to a market at about 16 times earnings.”
Nygren also likes the tech sector, but not the hot, trendy upstarts. Instead he’s high on the likes of Oracle, Microsoft, and Intel. As for financials, he’s particularly keen on Bank of America.
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