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.

“If you believe the negative story on the mortgage market, you have to be negative on most forms of consumer lending, but we feel very strongly about the retail banking growth story,” Nygren added.

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