Investors should have a long-range plan and buy stocks rather than bonds, Oakmark Fund portfolio manager Bill Nygren told CNBC Thursday.

“The best idea for 2012 is for investors to increase their equity exposure and decrease their bond exposure. We think stocks are cheap. We thought that a year ago.”

Nygren said that a lot of stocks have “very, very attractive valuations,” with more cash on company balance sheets and better returns than bonds.

He also said investors should look beyond next week or next month but look at “five years from now.

H/T Canadian Value