Portfolio Managers Bill Nygren and Michael Nicolas appeared on “The Investor’s Podcast” to talk about how to determine the intrinsic value of a business, including a company in the financials sector.
Listen to the podcast here.
NOTE: As of March 31, 2021, Harris Associates, investment advisor to the Oakmark funds, had more than $115B in assets under management and the Oakmark Funds had approximately $60B in assets under management.
The holdings mentioned comprise the following percentages of the Fund’s total net assets as of 03/31/2021:
|Security Title||Oakmark Fund||Oakmark Select Fund|
|Alphabet Cl A||3.6%||10.1%|
|Bank of America||3.6%||5.4%|
|Facebook Cl A||3.1%||4.8%|
|JP Morgan Chase||0%||0%|
|Mastercard Cl A||0.7%||0%|
Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.
The S&P 500 Total Return Index is a float-adjusted, capitalization-weighted index of 500 U.S. large-capitalization stocks representing all major industries. It is a widely recognized index of broad, U.S. equity market performance. Returns reflect the reinvestment of dividends. This index is unmanaged and investors cannot invest directly in this index.
EPS refers to Earnings Per Share and is calculated by dividing total earnings by the number of shares outstanding.
The Price to Book Ratio is a stock’s capitalization divided by its book value.
GAAP refers to generally accepted accounting principles.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
The Oakmark Fund’s portfolio tends to be invested in a relatively small number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the Fund’s volatility.
Because the Oakmark Select Fund is non-diversified, the performance of each holding will have a greater impact on the Fund’s total return, and may make the Fund’s returns more volatile than a more diversified fund.
Oakmark Select Fund: The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of the date written and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.
Certain comments herein are based on current expectations and are considered “forward-looking statements”. These forward looking statements reflect assumptions and analyses made by the portfolio managers and Harris Associates L.P. based on their experience and perception of historical trends, current conditions, expected future developments, and other factors they believe are relevant. Actual future results are subject to a number of investment and other risks and may prove to be different from expectations. Readers are cautioned not to place undue reliance on the forward-looking statements.