Oakmark's Nygren on valuations, diversifying and the shrinking large-cap pool

Legendary value manager Bill Nygren, chief investment officer at Harris Oakmark and co-manager of the Oakmark Fund, says "it's a pretty good time for investors, especially those who want to diversify away from the S&P 500 megacap technology risk," but he notes that investors who stick with the biggest stocks will find performance increasingly volatile and homogenous because the growth of the Magnificent Seven stocks has changed the way "large cap" gets defined, cutting the number of stocks that qualify in half over just a few years. "If you're a large-cap growth manager, you're either buying less growth, more mid-cap or you are accepting the fact that your portfolio isn't going to have much active share." Also on the show, Richard Stone, chief executive officer for The Association of Investment Companies discusses the similarities and differences in the closed-end fund industry between the U.S. and England, noting that activist investors have struggled to gain traction and acceptance in British boardroom battles. Plus Chuck discusses a recent conversation with his wife about financial priorities, and how they had very different outlooks on what they would spend money on in living a life where longevity is not guaranteed.