We Study Billionaires - The Investor’s Podcast Network TIP254: Value Investing w/ Bill Nygren (Business Podcast)
Aug 4, 2019
Bill Nygren, a seasoned portfolio manager at Oakmark Funds, shares his insights on value investing. He discusses why Alphabet Inc. is currently undervalued and explores the investment potential in Mastercard and Netflix. Nygren emphasizes that P/E ratios are often misleading and highlights the importance of shareholder-friendly management. He also addresses what aspiring young investors should know, encouraging a long-term view in stock selection and financial decision-making.
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Value Investing Principles
- Buy companies significantly discounted to their long-term value.
- Invest in owner-minded managements with long-term value focus.
Correlation and Concentration
- Higher portfolio concentration requires progressively higher expected return hurdles.
- Diversify macro risks by investing in uncorrelated sectors.
Alphabet's Undervalued Search Business
- Alphabet's search business is undervalued when considering other assets like Waymo, YouTube, and cloud computing.
- Consider cloud computing's impact on competitive advantages in sectors beyond traditional tech.