Four-star fund manager Nygren picks two new stocks
Two "disappointing" stocks—Qualcomm and Nestlé —offer great opportunity, Oakmark Funds Portfolio Manager Bill Nygren said Monday.

"When you're a long-term value investor like we are at Oakmark, we end up buying things that had been disappointing for others," he said.

On CNBC's "Fast Money," Nygren said that Qualcomm held about a quarter of its $117.97 billion market capitalization in cash.

"They're aggressively repurchasing shares. They've taken in about 4 percent already this year and have announced another 4 percent," he said, adding that Qualcomm stock, excluding cash, sells for about 7 times expected earnings for next year, with most of its earnings coming from a royalty on global sales of smartphones.

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"And even though penetration of smartphones has gotten quite high in the U.S., on a worldwide basis, especially emerging markets, we think there's a lot of room ahead for growth in smartphone sales," he said.

Nygren also weighed in on Nestlé.

"We've generally thought that most of the U.S.-based food companies had been pretty fully valued, but one of the things we learned with our Heinz holding earlier this year was how much more people were willing to pay for emerging-market exposure," he said. "And with the concerns about near-term emerging-market growth, we had an opportunity to buy Nestlé without having to pay a premium for its exceptionally good emerging-market profile."