Bill Nygren: How Value Investing Has Changed In Our Knowledge-Based Economy

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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

Bill Nygren: How To Avoid Value Traps

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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

Bill Nygren: Growth In Passive Investing Creates Opportunities For Value Investors

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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

Bill Nygren: Which Bank Stocks Are Safer Investments

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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

Bill Nygren: Idea Generation For Value Investors

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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

Bill Nygren: This Is A Stock-Pickers Market

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In his latest Q3 2022 Market Commentary, Bill Nygren explained why this is a stock-pickers market. Here’s an excerpt from the commentary: “A stock pickers’ market” This is another meaningless phrase that permeates the financial media. It is mostly used when the market is high, and the speaker is trying … Read More