Bill Nygren, manager of the Oakmark Fund, isn’t spooked by the subprime loan crisis, Bloomberg reports. In fact, he believes investors who are bailing out of bank shares are making a mistake.
“Investors are overreacting to the upturn in mortgage delinquencies,” Nygren said. “As an investor who’s committing money for five years or longer, I’m getting higher-quality companies than usual for less of a premium. Financial stocks look very attractive,” he added, noting their above-average yields and below-average P/E multiples.