Oakmark is the mutual fund family launched in 1991 by Harris Associates, the Chicago deep-value firm founded in 1976 (about $105bn AUM). Bill Nygren runs the flagship Oakmark Fund and David Herro the Oakmark International Fund, buying businesses at large discounts to intrinsic value and holding them like owners — publishing quarterly fund commentaries, market commentaries and insight articles.
This article explains how Oakmark fund is avoiding high-priced AI stocks like Nvidia, Apple, Microsoft, and Palantir, comparing the AI boom to the dot-com bubble. Instead, they focus on companies with pricing power and cash flow. Their top holdings are Airbnb (short-term rentals), Keurig Dr Pepper (beverages), and Salesforce (business software). Manager Nygren says every stock must pass a three-part test before being added to the portfolio.
One-sentence summary: The Oakmark Fund believes the current AI frenzy resembles the dot-com bubble and has therefore completely avoided high-valuation AI leaders, focusing instead on companies with pricing power and cash flow. [Cautious]
The report states that every stock in the Harris | Oakmark portfolio must pass a three-part test, which serves as the core screening criterion for fund manager Nygren. The author quotes Nygren as saying, "Nygren breaks down the three-part test every stock must pass before it enters a Harris | Oakmark portfolio," meaning: "Nygren details the three-part test that every stock must pass before entering the Harris | Oakmark portfolio." While the specifics of these three tests are not elaborated in the original text, the article emphasizes that this is the cornerstone of its investment discipline.
The author believes that the current AI boom bears clear similarities to the dot-com bubble, but the Oakmark fund avoids high-valuation AI concept stocks through rigorous screening. The article notes that Nygren discussed "the parallels between today’s AI boom and the dot-com bubble," implying the author's caution about the risks of current market overheating.
As of July 31, 2026, the Oakmark fund's holdings show that it completely avoids high-valuation AI leaders, instead focusing on companies with pricing power and cash flow. Key data are as follows:
| Ticker | Oakmark Fund Weight | Oakmark Select Fund Weight |
|---|---|---|
| NVIDIA | 0% | 0% |
| Apple | 0% | 0% |
| Microsoft | 0% | 0% |
| Palantir | 0% | 0% |
| Airbnb Cl A | 2.9% | 4.7% |
| Keurig Dr Pepper | 2.6% | 5.9% |
| Netflix | 2.1% | 0% |
| Union Pacific | 2.1% | 0% |
| American Intl Group | 2.1% | 0% |
| Salesforce | 2.6% | 0% |
| Adobe | 1.3% | 0% |
| Alphabet Cl A | 1.3% | 2.0% |
| Amazon.com | 1.4% | 0% |
| Booking | 0.6% | 0% |
| Roper Technologies | 1.4% | 0% |
| Corebridge Financial | 1.0% | 0% |
The author's stance on the above tickers: For AI concept stocks such as NVIDIA, Apple, Microsoft, and Palantir, the fund explicitly avoids them (0% weight); for non-AI companies like Airbnb, Keurig Dr Pepper, Netflix, and Union Pacific, the fund holds and is bullish (relatively high weights); for tech companies like Alphabet, Amazon, and Adobe, the fund holds but with lighter positions (1.3%-1.4%), indicating a cautious approach.
The implicit investment implication of the article is to avoid high-valuation AI concept stocks and focus on companies with pricing power and cash flow. Readers should note that this is a perspective from the position holder—as a value-oriented institution, the Oakmark fund's holdings data naturally carry a defensive tone for its own strategy. However, the fact that it holds 0% in popular stocks like NVIDIA indeed reflects a significant divergence from the mainstream AI narrative in the market.
| Ticker | Direction | Author's One-Sentence View | Key Data |
|---|---|---|---|
| NVIDIA | Avoid | Completely avoiding overvalued AI concept stocks | 0% position |
| Apple | Avoid | Completely avoiding overvalued AI concept stocks | 0% position |
| Microsoft | Avoid | Completely avoiding overvalued AI concept stocks | 0% position |
| Palantir | Avoid | Completely avoiding overvalued AI concept stocks | 0% position |
| Airbnb Cl A | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.9% (Oakmark) / 4.7% (Select) |
| Keurig Dr Pepper | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.6% (Oakmark) / 5.9% (Select) |
| Netflix | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.1% |
| Union Pacific | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.1% |
| American Intl Group | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.1% |
| Salesforce | Hold & Watch | Bullish on non-AI sectors, relatively high position | 2.6% |
| Adobe | Hold & Watch | Holding but with a light position, cautious stance | 1.3% |
| Alphabet Cl A | Hold & Watch | Holding but with a light position, cautious stance | 1.3% (Oakmark) / 2.0% (Select) |
| Amazon.com | Hold & Watch | Holding but with a light position, cautious stance | 1.4% |
| Booking | Hold & Watch | Holding but with a light position, cautious stance | 0.6% |
| Roper Technologies | Hold & Watch | Holding but with a light position, cautious stance | 1.4% |
| Corebridge Financial | Hold & Watch | Holding but with a light position, cautious stance | 1.0% |