Bill Nygren, who has managed the Oakmark Select Fund since 1996, expressed his belief that the sell-off in Salesforce presents a valuable investment opportunity. He noted that the company is currently trading at a 'double-digit free cash flow yield' while continuing to grow and adapt to the AI landscape.
Nygren highlighted Salesforce's aggressive share buyback program, with an authorization to repurchase approximately 20% of the company, as a significant factor in its valuation. This comes in the context of a challenging year for Salesforce, with its shares dropping about 43% in 2026, contrasting sharply with the S&P 500's 7% increase during the same period.
Nygren emphasized that Salesforce management is optimistic about becoming a beneficiary of AI advancements, particularly through its Agentforce platform, which automates sales and customer service tasks. Additionally, he mentioned Salesforce's recent acquisition of AI customer-service platform Fin for about $3.6 billion as part of its strategy to enhance its AI capabilities.
Beyond Salesforce, Nygren also pointed to General Motors as another attractive investment, praising the automaker's responsiveness to consumer demand amidst the industry's shift to electric vehicles. He noted that GM's stock trades at about six times earnings, which he believes undervalues the company's potential, especially if the multiple were to rise to eight times earnings