3 Interesting Buys Bill Nygren Made Last Quarter

KDP -0.87% MOH -1.11% CRM +0.64%

Quick Read

• Molina Healthcare (MOH) trades at 8.9 times trailing P/E after losing half its value in the past year.

• Salesforce has dropped 30% year to date despite progress in agentic AI development.

• Keurig Dr Pepper offers a 3.3% dividend yield and trades at 12.7 times forward P/E after an 11% decline.

• Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.

Bill Nygren's legendary Oakmark fund made some remarkable moves in the third quarter, to say the least. And in this piece, we'll have a quick look at four of the names that investors might wish to stash on the radars, not just because they're in the portfolio of a famous billionaire money manager, but because there still may be value to be had in a market that many would consider to be a tad lacking in bargains.

Without further ado, let's get into the three names, which might make sense to pick up even if you're not able to get a cost basis that's close to what Nygren's fund paid.

Molina Healthcare

Molina Healthcare (NYSE:MOH) might be the most interesting buy that Nygren's fund made last quarter. Undoubtedly, the managed care space has been under serious pressure in recent years, as medical costs surged, applying pressure to medical loss ratios.

And while Molina is a lesser-known name in the space, I do find it to be one of the cheapest and most exciting ways to play a bounce back in the industry. Molina Healthcare might be a lesser-known player, with its mere $7.8 billion market cap after shedding around half of its value in the past year. Still, what excites me most about the name is that it was announced as one of the longs in Dr. Michael Burry's portfolio in the third quarter.

Though Burry has since closed Scion, I do think his recognition of the name is a sign that shares might be too cheap for their own good. After an awful year, the stock is going for 8.9 times trailing price-to-earnings (P/E). And while the slew of rough earnings and seemingly non-stop guidance downgrades are a test of investor patience, I think the name is worth hanging onto in small doses if you have the stomach and horizon to be a deep-value investor.

Salesforce

Salesforce (NYSE:CRM) is another smart pick-up after plunging around 30% year to date. The customer relationship management firm has made big strides in AI. And we've yet to see adoption of tech that'd inspire a move back to new highs, I do think that the firm's agentic AI tailwinds going into 2026 are difficult to ignore.

With investors uncertain about the AI path forward and a likely discount given the company's history of acquiring firms, such as Informatica (or Spindle AI more recently), in whole at times of heightened valuations, perhaps now's a time to pounce, while expectations are in a modest spot. While I expect M&A to remain a part of the firm's long-term growth strategy, I do think more of a focus on AI startups could be key to pushing the enterprise juggernaut further along in the AI race.

Keurig Dr Pepper

Keurig Dr Pepper (NYSE:KDP) is another very interesting Oakmark dip-buy that's tough to overlook. Shares are down just north of 11% year to date, and while there are notable pressures that have weighed on sales, I am encouraged by the activist involvement (Starboard built a stake several weeks ago), which could act as a catalyst in the new year.

Combined with the reasonable price of admission into weakness (12.7 times forward P/E), as well as its incredibly low 0.36 beta and generous 3.3% dividend yield, it's tough not to feel more constructive on the name, especially for those willing to look far and wide for more value in today's frothy and now mildly choppy market.

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