'These 3 things simultaneously increase return and reduce risk': A stock manager who's trounced the market since 1996 shares the secret sauce behind his portfolio

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 51%

United States News News

United States United States Latest News,United States United States Headlines

Contrary to efficient market hypothesis, Bill Nygren of Oakmark Funds, thinks investors can increase returns and reduce risk simultaneously.

simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

Nygren stresses the importance of value, dividend, and per-value share growth. He also favors incentivized management teams that have skin in the game.In order to increase returns, one needs to increase risk. It's a truism that's older than dirt, and has mostly been accepted as an inextricable link in investing.

This makes sense in theory, but accurately valuing a company is no small task — especially in today's environment. Although this principal is inherently difficult to discern, investors can choose from a variety of value-measuring determinants, and put them up against where the company is valued today. If you find it's trading a significant discount, a purchase may make sense.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks seen mixed after global sell-off on recession fearsEuropean stocks are set for a mixed open Thursday as fragile calm returns to markets following a global sell-off as bond markets stoked fears of an impending recession.
Source: CNBC - 🏆 12. / 72 Read more »

5 things to know before the stock market opens FridayDow futures jump; bond yields rise; Ray Dalio talks recession chances; Trump urges Xi to meet Hong Kong protesters; GE shares bounce after brutal day
Source: CNBC - 🏆 12. / 72 Read more »

Europe stocks seen higher as calm returns to markets following Treasury yield inversionEuropean markets are set to open higher on Friday as investors monitor Treasury yields for clues on a possible recession. Waiting for a MagicTweet this Friday ...
Source: CNBC - 🏆 12. / 72 Read more »