During his recent interview with CNBC, Bill Nygren explained that in the current environment, there are many stocks trading at a low multiple, making it a good time for value investors to buy stocks at a discount. Here’s an excerpt from the interview:
Nygren: Well certainly so far this year it’s not been a good time to be a value investor.
The Russell Growth is off to the races again like it was in the prior year, 2023.
But what that’s created Carl is an environment where a lot of the stocks in the S&P500 trade at more than twice the multiple of the market.
Market is about 20 times earning, and I think a quarter of the names in the S&P500 that trade at more than twice that multiple.
At the other end of the distribution, there are a quarter of the names that trade at half the market multiple.
So for a value investor like Oakmark this is a really exciting time. We can put together a pretty well diversified portfolio and pay barely more than ten times earnings.
You can watch the entire discussion here:
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