The S&P isn't the broad-based index it used to be, says Oakmark Fund's Bill Nygren

Core Viewpoint - The discussion reflects on the historical context of market events and the current investment landscape, emphasizing the importance of focusing on individual stock opportunities rather than solely on broad market indices like the S&P 500. Group 1: Historical Context - The conversation recalls the significant impact of the September 11 attacks on the financial markets and personal experiences related to that day [2][4][5]. - The speaker notes that Oakmark Funds had a strong performance in 2001 due to not participating in the technology boom, which is reminiscent of current market conditions [6][7]. Group 2: Current Market Analysis - The S&P 500 is described as being heavily weighted towards technology, with nine of the ten largest companies being tech firms, representing 40% of the market [8]. - Despite the S&P's increase in valuation multiples over the past seven years, there remains a consistent number of stocks trading under 14 times earnings, indicating potential investment opportunities [8][9]. - Oakmark's investment strategy focuses on stocks that do not mirror the S&P 500, providing a counterbalance to the technology-heavy index [9][10]. Group 3: Investment Philosophy - The speaker emphasizes the need for individual investors to focus on capital growth through equities to meet financial goals, rather than solely comparing performance to the S&P 500 [10]. - The discussion suggests that long-term investment in stocks remains the most viable option for capital growth, aligning with a philosophy similar to that of Warren Buffett [11][12].