Here are top value investor Bill Nygren's favorite stock picks and how he's trading Apple now


In a stock market where little is cheap, longtime value investor Bill Nygren revealed what he's buying.

Nygren is a portfolio manager at Oakmark Funds. His fund has outperformed the S&P 500 over the past 10 years. He was named on Morningstar's ultimate stock picker list.

Ally Financial

The manager said on CNBC's "Halftime Report" Tuesday that he holds a "large position" in auto financing company Ally Financial, citing its cheap valuation.

"It sells at seven times earnings, below book value. It's buying back a lot of the stocks each year. In the meantime, you are getting a 2.5% yield," Nygren said.

Ally Financial rallied nearly 35% in 2019, beating the broad market by about 5 percentage points. It underperformed the market in the new year, however, returning just 0.5%.

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