It's quite easy today to find a diversified portfolio trading at low-teens multiples: Bill Nygren

Summary

Bill Nygren warns that AI speculation echoes the dot-com bubble and makes technology equipment unattractive. He highlights the S&P 500's extreme tech concentration as a diversification risk, while finding abundant value in beaten-down software names like Accenture and Salesforce and in cheap financials such as Corebridge, banks, and insurers.

• Nygren sees dot-com-like investor behavior in AI, with new jargon, risk complacency, and easy gains.
• He says the S&P 500 is no longer a broadly diversified hedge due to a ~40% tech weighting.
• Technology equipment is singled out as the one area where cheap low-teens stocks are hard to find.
• Beaten-down SaaS stocks Accenture and Salesforce trade at very low P/Es as AI disruption fears provide an attractive entry.
• Financials—banks and insurers—offer single-digit or low-teens P/Es and strong capital returns.
• He mentions Corebridge (CRBG) as an overlooked, cheap insurance name returning capital to shareholders.
• Nygren argues it is easy to construct a diversified low-teens-P/E portfolio once you step away from tech equipment.