Looking for the Next Great Value Stock? Don't Start With the Price. Legendary Investor Bill Nygren Explains.
Bill Nygren is a partner and the chief investment officer-U.S. at Harris Associates/Oakmark Funds. He is also the co-portfolio manager of two Oakmark Funds. Bill was my first guest on The JRo Show, and I've published four prior interviews with him on Fool.com, which you can find here, here, here, and here. Bill was also part of an all-star stock-picker roundtable that I hosted, which you can watch here.
Recently, Bill and I have been talking off-line over email and we decided to turn those private chats into another interview. So here you go...
John Rotonti: Bill, if all else is pretty much equal (strong enough balance sheet, good-enough business quality, strong management team, etc) would you prefer a stock with a 10% earnings yield with expected growth of only 5% versus a stock with a 1% earnings yield but with expected growth of 14%? Why or why not? What about a stock with a 7% earnings yield and expected growth of 5% versus the stock with the 1% earnings yield and expected growth of 14%?
Source Fool.com
