Investment Approach

Value investing drives everything we do at Harris Associates. Our investment process is a collective effort to identify what we believe are the best opportunities in the market.

We believe purchasing businesses at a discount to intrinsic value minimizes risk while providing substantial profit potential. And by holding a smaller number (generally 20 to 70) of stocks in the portfolios, our managers' best ideas can have a meaningful impact on investment performance.

We focus primarily on free cash flow and company management, rather than low price-to-earnings, low price-to-book ratios or other more commonly used value measures. We also look for hidden assets, such as underappreciated franchise values or potential benefits from restructuring.

We apply strict proprietary quantitative screens to identify companies that meet our initial investment criteria. Rigorous bottom-up research is then conducted by one of our analysts, and if a company still looks promising, the research results are presented to our portfolio managers and other analysts. Finally, a committee of senior investment professionals votes on whether or not to add the company’s stock to the firm's approved list.

As part of a company's approval, analysts set a buy target at a significant discount to our estimate of intrinsic value. A sell target is also set, typically at 90 percent to 100 percent of intrinsic value. Analysts routinely revisit these targets and make updates if there are fundamental changes in the company's business.

Products

Separate Accounts

Custom-managed accounts for individuals, families, foundations, endowments, pension plans and mutual funds

Commingled Vehicles

Investments available only to accredited investors as defined by the Securities Act of 1933 or ERISA-qualified retirement plans and certain other government plans

Sub-advisory Services

Customized portfolio management with simplified administration for financial advisors

The Oakmark Funds

A value-oriented mutual fund family offering U.S., balanced, global and international funds

Contact Us to Learn More

For questions please contact us or call 312-646-3600

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). Harris Associates Securities L.P., Distributor.

Past performance is no guarantee of future results.

This site is intended for residents of the U.S. only. The information on the website does not constitute an offer for products or services, or a solicitation of an offer to any person outside of the United States who is prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.

 

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