You're listening to TI-P.

Boy, it's exciting when we get access to high-powered investors like Bill Nigeron.

For people not familiar with Bill, he's the manager of Oakmark funds where he manages $17 billion.

Not only that, but his performance since the 1990s has outperformed the S&P 500.

On today's show, we talked to Bill about individual companies and also where he values the overall market.

It's a great episode for learning how to think about valuation and steps for identifying substantial winners.

So without further delay, here's our discussion with Bill Nigeron.

You are listening to THE Investors Podcast where we study the financial markets and read the

books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

Welcome to today's show. My name is Stig Brodus and I'm here today with my co-host Preston Pish.

And we are super excited to welcome Bill Nigeron from Oakmark funds. Bill, welcome on our show.

Thank you for having me. I'm excited to be here.

Well, it's great having you here, Bill. So let me kick off with the first question.

So you've been in the investing business for decades. You have an Oakmont select fund that has been

around since 1996 and during that time, the S&P 500 is performed at about 8.25% and your fund

has performed at 11.16% annually. Talk to us about how you construct a portfolio of 100% stocks

that has outperformed the market. There are three things that we're looking for that I would say

all run counter to what efficient market theorists would say anything you do to increase return also

has to increase your risk. We think these three things simultaneously increase return and reduce

risk. One is only buying when something's at a significant discount to long-term business value.

Two is only buying companies where the combination of dividend growth and expected per share value

growth matches or exceeds what we expect from the S&P. That keeps us out of a lot of the value

...