Treating Share-Based Compensation as Real Expense

Episode Overview

In this wide-ranging conversation, legendary investor Bill Nygren discusses how value investing has evolved since the 1980s—and why the traditional valuation metrics many investors still rely on no longer adequately measure a company’s true worth. Nygren explains how intangibles like brand and customer acquisition costs have transformed the investing landscape, why accounting conservatism can obscure opportunity, and what he learned from Warren Buffett’s purchase of Coca-Cola decades ago.

This episode is a masterclass on adapting a classic investment philosophy for the modern age—combining rigorous analysis with intellectual flexibility.

Key Topics Covered

• The evolution of value investing: Why old accounting methods fail to capture the true worth of modern businesses built on brands and technology.
• The Coca-Cola revelation: How Buffett’s investment reshaped Nygren’s definition of value.
• Why financials are misunderstood: Why Nygren sees opportunity in financials despite investor skepticism.
• The hidden risk in the S&P 500: What investors are overlooking about today’s index concentration.
• Airbnb, Merck, and Comcast: How to analyze quality businesses that the market misunderstands.
• AI and investing: Why Nygren believes the biggest winners from AI won’t be chipmakers—but companies that use AI better.
• Position sizing and discipline: How Nygren thinks about portfolio concentration and risk management.

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Episode Highlights

• “Conservatism in accounting often comes at the expense of accuracy.”
• “Today’s value investor needs to think harder about intangibles.”
• “Recommending the S&P 500 as a core holding may no longer be prudent—it’s become a concentrated tech bet.”
• “Sometimes what you learn that can’t go in the spreadsheet ends up being the most valuable.”

Featured Companies

Coca-Cola, Comcast, Charter Communications, Airbnb, Merck, Bank of America, Citigroup, Capital One, First Citizens, and NVIDIA.

About Bill Nygren

Bill Nygren is one of the most respected voices in value investing. As Portfolio Manager of the Oakmark Fund and Oakmark Select Fund, he’s built a track record of disciplined, long-term outperformance by focusing on intrinsic value and patient capital allocation.

Unlocking Investment Opportunities Since 1975

At the Boyar Value Group, we've dedicated nearly five decades to the pursuit of value on behalf of our clients. Founded in 1975, our firm has earned a reputation as a trusted source for uncovering undervalued opportunities in the stock market.

To find out more about the Boyar Value Group, please visit www.boyarvaluegroup.com