We Study Billionaires - The Investor’s Podcast Network TIP430: From Facebook to Meta and Beyond w/ Bill Nygren
Mar 13, 2022
Bill Nygren, a partner and portfolio manager at OakMark, shares his expertise on investing with over $64 billion in assets under management. He provides a detailed update on Meta, discussing its valuation and strategic shifts. Nygren explains OakMark's structured stock selection process and highlights their significant positions, including Alphabet. The conversation also touches on Buffett's investment in Nubank compared to OakMark's stakes in Ally and Fiserv, and they forecast oil market dynamics, showcasing the evolving landscape of long-term value investment.
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Meta's Piece-by-Piece Valuation
- Bill Nygren views Meta's investment spending as a value play, with hidden profitability in Facebook and Instagram.
- He breaks down the company's value by analyzing cash, WhatsApp, and metaverse investments separately.
Fear and Opportunity in the Market
- Nygren believes fear in the market has created opportunities in specific sectors, including Meta.
- He suggests Meta's current price doesn't reflect its potential future earnings.
Meta's Name Change Strategy
- Facebook's name change to Meta reflects its expansion beyond the core app, similar to Alphabet.
- Nygren suggests the company's history justifies confidence in management despite criticism about metaverse spending.