Veteran value investor Bill Nygren is betting on Netflix — and he does not think its new price increase will impact subscriber growth.
The Oakmark portfolio manager told CNBC Tuesday he bought more Netflix shares during the December sell-off.
Nygren said on "Fast Money: Halftime Report" he's not concerned about the streaming video service's newly announced price hikes of between 13 percent and 18 percent for its 58 million U.S. subscribers.
While there may be some debate on whether Netflix is actually a value stock, Nygren said, by his measure, it is.
Nygren does not think that GAAP accounting does a reasonable job of measuring Netflix's value. GAAP, which stands for generally accepted accounting principals, is the common set that companies follow on financial statements.
By comparison, Netflix is selling at less than HBO on a per-subscriber basis, yet its subscribers are growing at 20 percent instead of flat-lining, he explained. Both Netflix and HBO have more than 100 million subscribers worldwide.
"Our thesis on Netflix from the beginning is that they were underpricing their product in exchange for achieving super-normal growth in subscribers, an economic trade-off we thought was well worthwhile," he added.