Bill Nygren, Chief Investment Officer at Harris Associates, discusses his career, the research process at Harris, stock pitching process, qualities of a good portfolio manager, his personal life, and lessons from his career.

Bill Nygren, a seasoned value investor at Harris Associates for over 40 years, shares his unique approach to investing. He discusses his strategies for valuing tech giants like Alphabet, Netflix, and Amazon while emphasizing the significance of adapting to market changes. Nygren also reveals the innovative practices at Harris Associates for managing investment mistakes, including analyst transitions that encourage fresh perspectives. His insights into qualitative assessments and the role of collaboration in investment success provide a compelling look at the evolving landscape of investing.

With the constant evolution of the asset management industry, investors need to stay a step ahead to justify earning an active management fee. With over 40 years of experience in the industry, this is a lesson that today’s guest, Bill Nygren of Harris Associates, instills in the younger analysts he mentors.   Bill is a true legend of value investing and an investor you can turn to whenever the market is uncertain. He radiates fundamental ideas and has an expansive perspective on the comings and goings of the market and the economy at large.    Bill is the Chief Investment Officer for US equities at Harris Associates, which he joined in 1983, and a vice president of the Oakmark Funds. He has been a manager of the Oakmark Select Fund since 1996, Oakmark Fund since 2000, and the Oakmark Global Select Fund since 2006. Bill served as the firm’s director of research from 1990 to 1998. He has received many accolades during his investment career, including being named Morningstar’s Domestic Stock Manager of the Year for 2001, and he holds an M.S. in Finance from the University of Wisconsin’s Applied Security Analysis Program (1981) and a B.S. in accounting from the University of Minnesota (1980).   In this episode, Bill, Michael, and I discuss why Bill was drawn to value investing, why generalist analysts transition more easily to portfolio manager than specialists, his approach to idea generation and portfolio construction, pivoting in times of crisis and great distress, recession insights from over 40 years of experience, and so much more! Key Topics:   Welcome Bill to the show (1:09) Bill’s lifelong fascination with the line between gambling and investing (2:17) Why Bill was drawn to value investing (4:51) The importance of working at a firm that shares your investment philosophy (6:26) Why generalist analysts transition more easily to portfolio manager than industry specialists (9:36) Dealing with industry intricacies as a generalist analyst (14:05) Harris Associates’ approach to idea generation (15:55) What it’s like to be an analyst at Harris Associates (18:31) Why Harris uses multiple techniques to define value (24:25) Looking at management’s attitude towards capital redeployment (26:33) Harris’ maintenance process and error recognition methods (30:08) Bill’s thoughts on the news of Microsoft’s massive investment into OpenAI(32:53) Pivoting in times of crisis and great distress (36:38) Capital One as a case study of a stock that represents a good investment opportunity today (41:25) Recession insights from over 40 years of industry experience (44:02) Thinking about the effect of the current interest rate environment (48:35) Criteria for portfolio construction and position sizing (49:52) The evolving opportunity set (53:21) Identifying anomalies in GAAP accounting (55:44) The things that keep Bill up at night and excited about the future (59:31) Bill’s book recommendations (1:02:04) And much more! Mentioned in this Episode:   Harris Associates Oakmark Funds Michael Dell’s Book | Play Nice But Win: A CEO's Journey from Founder to Leader John Mack’s Book | Up Close and All In: Life Lessons from a Wall Street Warrior Joe Maddon & Tom Verducci’s Book | The Book of Joe: Trying Not to Suck at Baseball and Life   Thanks for Listening!   Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu.   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

Bill Nygren and Alex Fitch, experienced investors at Oakmark, delve into the fascinating world of First Citizens Bank. They discuss the bank's unorthodox acquisition of Silicon Valley Bank and its distinctive approach compared to larger Wall Street firms. The duo highlights First Citizens' conservative risk management and customer-first philosophy. They also analyze bank valuations, explore the challenges of FDIC auctions, and examine how interest rate fluctuations impact the banking sector. Their insights showcase the resilience and unique strategies that set First Citizens apart.

"The Investor’s Podcast Network" welcomes Bill Nygren and Robert Bierig. They discuss Harris Associates' value-based investing strategy, their unique consensus-building process, an exciting underpriced business they've added, undervalued industries, and the importance of regular stock reevaluation. Listen in for timeless strategies and new insights!

Bill Nygren, Chief Investment Officer at Harris Associates, discusses his team's research process, stock pitching, portfolio management, and advice for new analysts. He also shares insights on his personal life, interacting with management teams, and the importance of reading ValueLine weekly. The podcast delves into the journey of Nygren in the investment industry, analysts' daily activities, tax awareness in portfolio management, and succession planning in investment firms.

Bill Nygren, a value investing guru at Oakmark Funds, and Alex Fitch, his fellow portfolio manager, delve into intriguing market insights. They explain Oakmark's strategy for navigating today’s economy and discuss why Warner Brothers Discovery is currently undervalued post-merger. The duo also highlights Lithia Motors' clever success in the used car market while contrasting it with struggling competitor Carvana. Additionally, they explore the mixed reactions to Meta's Metaverse investments, questioning its financial wisdom amid strong cash flows from Instagram.

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.

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.

Bill Nygren, Chief Investment Officer at Harris Associates, shares his insights on investing after major market events and the 2008 financial crisis. He discusses share repurchase as a capital allocation tool, the impact of the global financial crisis on value investors, and the analysis of Charles Schwab's investment strategy. The chapter concludes with a discussion on market mispricing and the importance of efficient cost management for long-term success.