A.U.M.
Bill Nygren - A Modern Approach to Value Investing
Mar 11, 2025
Bill Nygren, a prominent portfolio manager at Harris | Oakmark, shares his insights into value investing. He discusses the rigorous investment process that includes pivotal Tuesday meetings and the importance of intellectual tension. Nygren highlights notable investments like Delta Air Lines and General Motors, emphasizing management alignment with shareholder interests. He reflects on lessons learned from major mistakes, including undervaluing Apple, and offers valuable advice for aspiring investors, stressing the need for passion and curiosity in the field.
01:01:45
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Quick takeaways
- The investment process at Harris | Oakmark emphasizes rigorous collaboration and debate, notably during their critical Tuesday meetings to enhance decision-making.
- Evaluating management effectiveness through alignment with shareholder interests is vital, particularly in larger corporations without owner-operators.
Deep dives
The Role of Psychology in Investing
Investing is fundamentally driven by investor psychology, as highlighted by the importance of both the balance sheet and the management behind a company. A prepared mind is key to recognizing profitable investment opportunities, which are often rare. The statement that volatility can be advantageous reflects the idea that patience, rather than immediate results, is crucial for success in investments. Maintaining a good reputation is emphasized as more critical than short-term monetary losses, showcasing a broader perspective on investment ethics and outcomes.
