Yacktman Talks Strategy

As 2013 approaches, top fund manager Donald Yacktman is focusing on high-quality stocks, as well as some much-maligned contrarian plays. Yacktman tells Forbes that he likes stocks with high returns on assets, which generally means that the businesses have low capital requirements, nice market share, and the ability to fare well in good times or bad. An example is consumer goods giant Procter & Gamble, which makes such well known brands as Tide and Pampers. The firm generates tons of cash and also offers a nice dividend, two key things Yacktman looks for. “We are in an environment where PepsiCo […]

Yacktman: Volatility Means Opportunity

Top mutual fund manager Donald Yacktman says that the short-term “casino” mentality among most investors has actually created more opportunities for long-term value investors. Yacktman tells Morningstar that a decline in trading costs in recent years, coupled with the natural volatility of stocks, has created volatility and the casino mentality. But, he says, “The more volatile, interestingly enough, a situation is, I think, the more attractive it is for value managers, who are long-term investors, because it creates more opportunities.” Yacktman also talks about his approach to selling stocks.  

Yacktman: Stocks Are Far From Dead

Top fund manager Donald Yacktman says high-quality blue chip stocks continue to trade at incredibly cheap levels. Yacktman tells WealthTrack’s Consuelo Mack that while many high-quality stocks like Procter and Gamble were cheaper on an absolute basis in late 2008/early 2009, they are now even cheaper relative to the broader market. “The cash flows are much higher, they’re much more valuable than they were then,” he says. Yacktman says the overall investment environment is more unpredictable today than it was years ago, but that he’s able to find plenty of individual companies that are producing predicable, strong cash flows. He […]

Yacktman Still Focused on Quality

Top fund manager Donald Yacktman says that he’s sticking with high-quality stocks. Yacktman tells CNBC that his biggest holdings include Pepsi, News Corp., and Proctor and Gamble. He also says he’d stay away from lower-quality stocks and cyclical firms. He thinks many cyclicals are selling at profit margins that may be unsustainable.  

Yacktman: Stocks Still Remarkably Attractive

Top fund manager Donald Yacktman says that he can’t remember another time in his 40-plus-year career when he has “seen so many high-quality, profitable businesses selling at prices relative to the market this cheaply.” Yacktman tells WealthTrack’s Consuelo Mack that many stocks are trading at valuations similar to where they were in the late 2008 or early 2009, but are in much better condition today. He’s finding big values in big, steady blue chips like PepsiCo, many of which he says have very predictable cash flows despite the global macroeconomic uncertainty. He says he’s not finding it more difficult to […]