The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network TIP430: From Facebook to Meta and Beyond w/ Bill Nygren
Mar 13, 2022
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.
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Inflation's Impact on Valuations
- When evaluating investments, focus on long-term inflation forecasts rather than short-term fluctuations.
- Current inflation has minimal impact on Oakmark's long-term valuations.
Oakmark's Stock Selection Process
- Oakmark uses a rigorous stock selection process involving an investment committee and devil's advocates.
- They meet weekly to discuss new ideas, review existing holdings, and update price targets.
Industry Diversification and Risk
- Oakmark considers macro risks when allocating capital, adjusting hurdles based on sector concentration.
- They view diversification through the lens of exposure to enterprise value, not just equity value.