Editor's note: This week's installment of The Long View with Christine Benz and Jeff Ptak features a conversation with Bill Nygren, portfolio manager at Oakmark Fund, Oakmark Select, and Oakmark Global Select. In this video excerpt from the interview, Nygren discusses his distinctive approach to value investing, whether concentrated value strategies can work, and where he thinks his team's "circle of competence" lies.
Christine Benz: You talked a little bit about, and we've discussed it already, this idea of traditional value managers are maybe in a crisis of their own making, and how at Oakmark and Harris Associates you use a different interpretation of value, where you're focused on intrinsic value. Can you talk about how your strategy is maybe a little bit of a high-wire act and that you're forecasting cash flows far out into the future? Does it inherently impose a little more risk?