Last year’s bearish market has created a multitude of new buying opportunities for long-term value investors across multiple sectors, Oakmark Funds’ Bill Nygren said on Thursday. “We generally sell what’s done well and recycle that money into the names that have been laggards,” Nygren said on CNBC’s “Squawk on the Street.” Nygren announced that he sold a position in Diamondback Energy, which has outperformed its peers with a gain of nearly 27% in 2022. In the energy sector, Oakmark chose to hold positions in APA, Conocophilips and Dominion Energy, which earn more fortune, Nygren said. The portfolio manager then used the cash to purchase Canadian auto parts maker Magna International. It’s a single-digit price-to-earnings stock that has fallen to about $60 from its $100 peak, Nygren said. MGA 1Y Mountain Magna International “We believe they are underpaid today due to supply chain issues,” Nygren said. Meanwhile, Oakmark built a position in Adobe, whose market cap fell to about $45 billion following its $20 billion acquisition of Figma. Shares of the tech name are now about 37% off their recent high. “That’s brought it to a level where we expected next year’s expected earnings … it’s about the same free cash flow multiple as the S&P 500. We just think that’s reasonable for a company of this quality.” is cheap,” said Nygren. Oakmark also recently bought Oracle and Capital One.
https://www.cnbc.com/2023/01/12/bill-nygren-says-he-sold-energy-stocks-for-new-buys-including-adobe.html Bill Nygren says he sold energy stocks for new buys, including Adobe