About Oakmark

Our philosophy

We are value investors. We invest in companies that we believe are priced at a substantial discount to our estimate of their true business value. We believe this approach to investing allows for significant investment returns while reducing risk.

We are patient investors who believe that, over time, the price of a stock will rise to reflect the value of the underlying company. Every stock purchase is viewed as if we were buying a piece of a business, not just a share certificate.

We look for management teams that seek to maximize a company's long-term business value by running efficient operations that emphasize free cash flow generation and wise capital allocation.

We build focused funds from a select list of eligible securities to allow our best ideas to have a meaningful impact on fund performance.

Our processOakmark Philosophy

We use an intensive, fundamental research process to identify companies that meet our value criteria.

While some value investors may search only for stocks with low price-to-earnings or price-to-book value ratios, we focus on:

  • Companies whose stock price represents a significant discount to our estimate of underlying business value
  • Companies with growing free cash flow and intelligent investment of that excess cash
  • Companies with management teams that think and act like owners

Our research team uses a variety of methods to generate investment ideas from a universe of thousands of equity securities. Attractive securities are subjected to a rigorous quantitative and qualitative review to identify the best values in the market. Those that pass the quality test earn a place on our U.S. or international "approved list," each typically made up of 120 to 180 securities. Fund managers construct their portfolios using only securities from an approved list.

An important part of our investment philosophy and process is choosing companies whose management has a significant ownership stake. We believe this correctly aligns the interests of management with shareholders and creates a stronger commitment to position the company for long-term success.

Visit Our Funds to learn more.

 

 

The discussion of the investment strategy of The Oakmark Funds represents the views of the portfolio managers and Harris Associates L.P. at the time of this material and are subject to change without notice.

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CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standards and Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service.  The CUSIP Database, © 2011 American Bankers Association.  “CUSIP” is a registered trademark of the American Bankers Association.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.

Before investing in any Oakmark Fund, you should carefully consider the Fund's investment objectives, risks, management fees and other expenses. This and other important information is contained in a Fund's prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before investing. For more information, please call 1-800-OAKMARK (625-6275).

OAKMARK, OAKMARK FUNDS, OAKMARK INTERNATIONAL, and OAKMARK and tree design are trademarks owned or registered by Harris Associates L.P. in the U.S. and/or other countries.

Copyright 2017, Harris Associates Securities L.P., Distributor, Member FINRA.
Date of first use: January 24, 2013.

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