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ASAP Alum Bill Nygren Talks Value in CNNMoney

Wednesday, July 6, 2011

As part of a Q&A in CNNMoney, Applied Security Analysis program (ASAP) alum Bill Nygren outlines cheap stocks with great growth potential. Nygren, co-manager of Oakmark, is known as a pro in the industry with a knack for finding undervalued stocks with plenty of investment growth opportunities.

Asked how Apple, a popular stock, ends up in his fund, Nygren says: "We made our first purchase of Apple in a very weak market - early 2009 - at about $80 a share. That was before we knew about iPads! Today the stock is just under $350 but should have $100 a share on the balance sheet by the end of next year. So it is still selling at a lower P/E ratio than the average company if you subtract the cash from the share price. To not like Apple's stock today, you have to believe it has worse-than-average prospects for growth."

To read more of Nygren's Q&A with CNNMoney, click here.