Did value investor Bill Nygren really just buy Amazon.com, Inc. (NASDAQ:AMZN) stock?

Bill Nygren Oakmark

Bill Nygren, portfolio manager of the $12 billion value-oriented Oakmark Fund, said Monday that Amazon’s rapidly growing business, aggressive reinvestment and high-margin third-party sales make its shares—priced at 161 times forward price-to-earnings—a good bet.

“I think when you look at a company like Amazon, you have to distinguish between it and a steel mill,” he said. “A steel mill decides that it wants to pursue growth, and it’s building tons of plants and equipment. And that spending only comes through the income statement over 20- or 30-year life of the equipment that’s being built.”

Bill Nygren Elaborates On Why He Thinks Amazon Is Cheap