Category Archive

In his latest Q2 2024 market commentary Bill Nygren discusses how giant cap growth companies that performed well in 2023 continued their success in 2024, while large cap, slower growth companies that underperformed in 2023 continued to struggle. High-priced growth stocks need to maintain growth rates or high P/E ratios … Read More

During his recent interview with Morningstar Magazine, Bill Nygren discusses value investing, emphasizing paying prices significantly below a company’s business value. He critiques traditional metrics like price/book or P/E ratios, noting their diminishing relevance in today’s knowledge-based economy. GAAP accounting’s conservatism often misrepresents modern investments, such as customer acquisition and … Read More

In his latest Q1 2024 commentary, Bill Nygren explains why investors shouldn’t sell after the S&P500 records new highs. An investor selling at each new high would have missed substantial gains, as holding throughout would have multiplied an investment over 200 times. Here’s an excerpt from the commentary: Nygren: In … Read More

In this interview with John Rotonti, Bill Nygren defines a value trap as a company that looks cheap (low multiples) but won’t actually become more valuable over time, typically due to structural problems. To avoid these, Nygren’s firm requires analysts to project future growth and only buy stocks with strong … Read More

During his CSIMA Guest Speakers Series, Bill Nygren discussed the three key features he looks for in his potential investments. Nygren invests in companies with these three key features: Significant discount: He buys stocks at a price significantly below their estimated business value, typically around 60% of that value. The discount … Read More

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 … Read More

In his recent interview with The Motley Fool, Bill Nygren explains why buying a stock at a discount to its intrinsic business value is important because it reduces risk and amplifies reward. He believes that stocks will trade reasonably close to intrinsic business value most of the time, so buying … Read More

During this interview with Millennial Investing, Bill Nygren emphasises the importance of regularly reassessing the intrinsic value of their long-term stock holdings, which often exceed their initial estimates. Their analysts continually update their business value estimates based on new information and aim to do this formally, at least quarterly. If … Read More

In his latest Q3 2023 Market Commentary, Bill Nygren explains why low P/E stocks provide the best hunting ground in 2023 because there is no observable decline in business quality in the 50 lowest-ranked companies by P/E ratio on the S&P 500 today compared to the ones that made that … Read More

During his recent presentation at Natixis, Bill Nygren explained how the growth of passive investing and popularity of low-beta stocks have created attractive value opportunities for active, research-driven investors. Here’s an excerpt from the presentation: Nygren: In a market cycle like we’re in today, we’re dealing with more passive investors than … Read More

During his recent interview with Morningstar, Bill Nygren discusses why he’s excited about the outlook for value stocks using his metric that compares P/E ratios of the S&P 500 stocks. His metric shows that growth stocks are now very highly priced relative to cheap stocks than they have been over … Read More

In his latest market commentary titled – The High Price Of Low Volatility, Bill Nygren explains why value investing requires zigging when the consensus is zagging. Here’s an excerpt from the commentary: Nygren: Value investing requires zigging when the consensus is zagging. We believe that index fund investors have become … Read More

During his recent interview with CNBC, Bill Nygren explained why today is a great time to be a traditional value investor. Here’s an excerpt from the interview: Nygren: I think what’s important for investors to realize is as good a year as value had in 2022 that it’s given all … Read More

During his recent interview with Colossus, Bill Nygren explained why there is an ‘unusual’ value opportunity in Banks today. Here’s an excerpt from the interview: Nygren: I think if you look at the past generation or two, where banks trade versus the S&P 500, they’ve typically sold at about two-thirds … Read More

In his recent Q1 2023 Market Commentary, Bill Nygren discussed which Bank stocks are safer investments. Here’s an excerpt from the commentary: Nygren: The failed banks were mostly funded by uninsured deposits that tend to move more rapidly than insured deposits. Further, the banks that failed invested those short-duration deposits … Read More

During his recent interview with Value Investing With Legends, Bill Nygren discussed investing when the odds are in your favor. Here’s an excerpt from the interview: Nygren: Typical position for us is something just short of 2%, we won’t buy a stock once it goes above three and we start … Read More

During his recent interview with Value Investing With Legends, Bill Nygren discusses idea generation for value investors. Here’s an excerpt from the interview: Nygren: I think it would be an overstatement to say that it’s a systematic process. Our idea generation I think is very similar to a lot of … Read More

During his recent interview with TIP, Bill Nygren discussed how he’s finding lots of opportunities with the market down so much. Here’s an excerpt from the interview: Nygren: That bottom would be somewhere around October, and that’s basically what we went through. Now, of course, that’s no guarantee that we’re … Read More

During his recent interview with The Motley Fool, Bill Nygren discussed how to identify and value quality businesses. Here’s an excerpt from the interview: Nygren: I recently read an interview with Berkshire Hathaway’s Todd Combs where he said the worst business imaginable is one that grows and needs infinite capital. … Read More

During his recent presentation, Bill Nygren discussed why investors must take larger position sizes to have maximum impact on their portfolios. Here’s an excerpt from the presentation: Nygren: We think the biggest skill we bring to the table is stock selection. And we want to magnify the impact that our … Read More