Bill Nygren: Current Market Provides Lots Of Opportunities For Value Investors

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The Acquirer's Multiple
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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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Tobias Carlisle is the founder of The Acquirer’s Multiple®. He is also the founder of Acquirers Funds®. The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates.