Value Investing Principles & Approach | Bill Nygren | Talks at Google

William C. Nygren, CFA: Partner, Portfolio Manager and Chief Investment Officer - U.S. Equities

Bill Nygren has been a manager of the Oakmark Select Fund (OAKLX) since 1996, Oakmark Fund (OAKMX) since 2000 and the Oakmark Global Select Fund (OAKWX) since 2006. He is also the Chief Investment Officer for U.S. Equities at Harris Associates, which he joined in 1983; he served as the firm’s Director of Research from 1990 to 1998. Mr. Nygren has received many accolades during his investment career, including being named Morningstar's Domestic Stock Manager of the Year for 2001.

He holds an M.S. in Finance from the University of Wisconsin's Applied Security Analysis Program (1981) and a B.S. in Accounting from the University of Minnesota (1980).

Moderated by Saurabh Madaan.

[chiawildy]

A very apt quote from Seth Klarman that relates to what Bill said. "The most painful thing is to watch others make money, while you are not."

[pureumkim]

So much respect for Nygren- Great investor and very humble person- I need to go back to reading his news and insights- I have been just too busy seeing not so useful things- Time to go listen and do what the great investors do!

[mytinynotesk]

A great conversation. The concept of Value investing is evolving. Learned a lot from this video. Thanks for sharing. Please make more!

[samonaro]

Awesome talk. Thanks "Talks at google" once again. Real quality!

[untwerf]

At 44:00 he cites John Templeton, Benjamin graham and Warren Buffett as being big influences on him. At 45:00 he also names hedge fund managers; Paul Jones, Michael Steinhardt and George soros.

[DexterHaven]

Bill is the genuine article. I might invest tin Oakmark now. I forgot about them.

[vonb]

Good talk, today in covid19, banks suffer.. Tech goes up... I find when Tech goes up, Bank goes down.. And vice-versa... like if Banks are now "safe stock" but in a 0interest world.. Banks wil suffer..Growth stock will boom until their debt are too much to handle. Value investing was thriving (booming) when you had 22% interest rate on your mortage/loan... this world is gone for a few years. PE is useless now, but there is still key indicators... for me it's brand/monopoly of market/cash increase/revenu increase

I really can see your point when you say that Netflix if it was selling their product at a higher price they could get a nice P/E of 13, but once they wanted to gain market they were selling at a lower price and so P/E was higher. The thing is, off course in my opinion the price in markets if they were efficient, should move accordingly to earnings, meaning the price of Netflix a priori should be lower anyway, if that strategy of lower prices worked in the future and then it was reflected on earnings, than ok, prices would raise anyway but on a more rational basis...

[vishalmishra]

You don't need meditation if you talk and think like that. You need to be in that kind of mindset if you want to be a value investor.

[junkimcfa]

Thanks for sharing about Value Investing!

[JohnBurr]

I'm a big fan of Investors at google series. so thank you but i can't believe that you haven't invited Stephen Penman yet.

[loueckert]

Very informative - and enjoyable - discussion. Thanks!

[scottab]

"They used to joke about two high school kids in a garage coming up with an invention that would eliminate one of the industry leaders." Sarcasm the history of Bill Gates and Steve jobs laughing at the CEO's who passed on Apple and Microsoft.

[lucasatilano]

Technology isn’t in my sphere of competence might be outdated to him but BRK is beating OAKBX by a mile. Maybe they should stick to the basics. The fact that lots of people can see the info doesn’t take away the fact that some stocks can be undervalued

[Harsh_Dubey_]

His firm's name remind me of Stratton Oakmont

[jonathanjoe]

Anybody have some value stock ideas? I bought Netflix in 2013 at the same time I decided to sign up for a Netflix subscription at what was then only $7.99 or $8.99 per month. I had the same thoughts as the interviewee, thinking that Netflix was a risky stock given the very small moat at the time. Fast forward 4 years later, Netflix has helped me buy my new apartment :) now I am thinking of new stock ideas for 2018

[blueman]

Not sure why this was titled value investing. This guy isn't a value investor at all. More importantly, their fund has a a 1% expense ratio and there funds have underperformed the market.

[alexoolau]

I am sorry. His funds seems underperforming the market indexes. Like Howard Mark said, only 5% investing professionals can beat indexes. If you can not beat indexes, you add no value with your work. People can passively invest in index funds without loss.

[DeepakJindal]

Google talk team, please do not invite any hedge fund manager and call him value investor, he is a fund manager, not a value investor, he didn't said a word about ben graham and he said Facebook is a value buy on " 19 July 2018" when FB was at 202$ per share, today its at 142$ per share. he is just catching investors by calling himself value investor, anyone who reads balancesheet knows FB is a crap. how did he found fb valuable?