The 3 biggest positions of top investor Bill Nygren

Last Updated: 10. Januar 2024By

Today, I would like to introduce you to the three largest stock positions in the portfolio of US top investor Bill Nygren.

Bill Nygren was born in 1959. During his high school years, Nygren wanted to become a professional baseball player, but he did not have the necessary talent. Nygren takes the failed dream with humor and can even draw an advantage from it. He believes that failed athletes often make good investors due to their unquenched hunger for success.

At least his results so far in this regard prove him right. According to data provider Gurufocus, Nygren has achieved a cumulative return of 946% for his investors in the past 25 years (1997-2021). That is an impressive 9.8% per year, surpassing the S&P 500 index over an impressive period of time (+543% in the entire comparison period).

Nygren, who became interested in stocks due to his mathematical and statistical interests and entered his first positions at the age of 15, primarily focuses on undervalued stocks. He tries to identify these through classic value-oriented indicators.

It is not advisable to blindly follow a single top investor without knowing the exact background of his investments. However, if you are looking for promising US stocks, the stock investments of Bill Nygren can provide valuable suggestions.

These are the three largest stock positions in his approximately $16 billion Oakmark fund:

Alphabet The largest position with a portfolio weight of 3.7% is the Alphabet stock. Nygren currently holds a share package worth around $600 million in the company. The well-known investor recently left his position unchanged.

Google parent Alphabet increased by 11% to $76.7 billion in the third quarter. In the cloud division, the company achieved a revenue increase of 22.5% to $8.41 billion. After the corona crisis, company spending on advertising, the central source of income for Alphabet, has increased significantly, but the uncertain global economy has dampened the recovery.

Meanwhile, the company’s profit increased by more than 40% to $19.7 billion. This was also due to a change in depreciation on servers and network technology, which amounted to around $760 million.

ConocoPhillips The second largest position is the stock of US oil company ConocoPhillips. The position has a value of $477 million, making it approximately 3% of Bill Nygren’s total managed assets.

ConocoPhillips is an energy provider focused on the upstream business. This involves the exploration and production of new crude oil. The company no longer carries out further processing itself. Therefore, the business includes three stages of the value chain: exploration, production, and transportation of crude oil and gas.

In the last quarter, the company generated a net profit of $2.79 billion on revenues of $14.25 billion.

KKR & Co. The third largest stock position with a portfolio weight of 2.98% is a private equity company with the KKR & Co. stock. Nygren currently holds a share package worth $473 million in the company. He first bought shares of the company in the fourth quarter of 2020.

KKR & Co. is an American financial and investment company specializing in private equity investments. Since its founding in 1976, KKR has grown into one of the largest and most important investment companies in the world and has been involved in many of the largest companies and transactions of recent decades. At the end of the third quarter, KKR reached a managed assets of $528 billion, a new record high. The long-term development is particularly impressive: in 2011, managed assets were only $60 billion.

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