? (Anchor) 00:00.150
for more on where the markets go this morning though we're joined this morning by bill nygren portfolio manager at oakmark funds bill really a pleasure as always to talk to you but especially to round out the year good to see you again
Bill Nygren (Portfolio Manager) 00:12.550
thanks for having me
? (Anchor) 00:14.470
your general view of twenty six and what kind of grade would you give twenty five
Bill Nygren (Portfolio Manager) 00:19.710
well i think first twenty five was a great year tough year for active managers to keep up especially if you weren't heavily weighted in the growth stocks that really led the market and you know the other big issue for twenty twenty five was just how strong a factor momentum was
Bill Nygren (Portfolio Manager) 00:38.190
i think in the past two years momentum 's been almost as strong as it was back in ninety eight and ninety nine in the dot com LED market where all you had to do was look backwards and just buy the stocks that had been performing the best and they continued to outperform that's
Bill Nygren (Portfolio Manager) 00:55.590
really unusual for that to last more than a couple years so our belief and hope because it would benefit how we invest is that the names that have been left behind are kind of catching up in twenty six
? (Anchor) 01:12.110
looking at a barons piece this morning on on salesforce the headline is ready to emerge as an AI winner and they quote you where you say maybe eight to ten times sales for a software company is not too crazy
Bill Nygren (Portfolio Manager) 01:25.190
well that's certainly the price the ballpark price you get to in the acquisition market and salesforce is much more dominant than the companies they're getting acquired at eight to ten times and you know even morningstar now classifieds salesforce not as a growth stock so it's
Bill Nygren (Portfolio Manager) 01:44.310
been left behind enough that value investors like us have to take a look at it
? (Anchor) 01:51.090
our financials still valuable you hold a lot in your portfolio but you do say that you hold less than you did before given the run i assume
Bill Nygren (Portfolio Manager) 01:59.150
right at oakmark one of the things we almost always do is trim into strength we don't want a strong market to be increasing the weightings that we thought were appropriate so we went into the year with financials by far our most heavily invested industry the the theory was like
Bill Nygren (Portfolio Manager) 02:17.270
if we just take banks as an example they were selling at small premiums to book value we think they're better businesses than electric utilities and the electric utilities are selling it twice book as they've closed that gap they aren't quite as attractive as we thought they
Bill Nygren (Portfolio Manager) 02:33.270
were at the first of the year but when you look at low teens multiples and how much the risk levels have been reduced in those businesses i think that's still pretty attractive compared to mid twenties for the S and P multiple