ZM - Bill Nygren Market Commentary - 3Q20

• At Oakmark, we are long-term investors. We attempt to identify growing businesses that are managed to benefit their shareholders. We will purchase stock in those businesses only when priced substantially below our estimate of intrinsic value. After purchase, we patiently wait for the gap between stock price and intrinsic value to close.
• In the Oakmark Fund, we buy large businesses because we view them as less risky than small businesses. Rather than defining “large” based on market capitalization, we define it by business fundamentals: sales, net income or shareholders’ equity (book value).
• The large-cap universe, which refers to the 250 stocks with the highest market capitalizations, is getting smaller. There were 40 newcomers to the large-cap universe in just the past year and they are much smaller businesses than those that exited.

For further details see: