This page lists the portfolio holdings of Donald Yacktman.
Stock Holdings
Donald Yacktman - Yacktman Focused
Period: Q2 2010
Portfolio date: 30 Jun 2010
No. of stocks: 27
Portfolio value: $963,971,000
| Symbol | Stock | % of portfolio | Shares | Recent activity | |
| PEP | hist | PepsiCo Inc. | 12.58 | 1,990,000 | Add 34.46% |
| NWSA | hist | News Corp. | 10.55 | 8,500,000 | Add 36.00% |
| KO | hist | Coca Cola Co. | 10.19 | 1,960,000 | Add 40.00% |
| CLX | hist | Clorox Co. | 8.12 | 1,260,000 | Add 75.00% |
| PFE | hist | Pfizer Inc. | 7.77 | 5,250,000 | Add 98.11% |
| VIA.B | hist | Viacom Inc. | 5.53 | 1,700,000 | |
| MSFT | hist | Microsoft Corp. | 5.49 | 2,300,000 | Add 64.29% |
| COP | hist | ConocoPhillips | 5.35 | 1,050,000 | Add 5.00% |
| CMCSA | hist | Comcast Corp. | 3.92 | 2,300,000 | |
| JNJ | hist | Johnson & Johnson | 3.37 | 550,000 | Add 19.57% |
| BCR | hist | Bard (C.R.) Inc. | 3.06 | 380,000 | Add 58.33% |
| PG | hist | Procter & Gamble | 2.92 | 470,000 | Add 4.44% |
| USB | hist | U.S. Bancorp | 2.83 | 1,220,000 | Add 48.78% |
| SYY | hist | Sysco Corp. | 2.70 | 910,000 | Add 37.88% |
| HRB | hist | Block H&R | 1.87 | 1,150,000 | |
| TYIDF | hist | Toyota Industries Corp. | 1.83 | 700,000 | |
| WMT | hist | Wal-Mart Stores | 1.80 | 360,000 | Add 80.00% |
| EBAY | hist | eBay Inc. | 1.73 | 850,000 | Add 126.67% |
| ACF | hist | AmeriCredit Corp. | 1.66 | 880,000 | |
| BDX | hist | Becton Dickinson | 1.61 | 230,000 | Add 64.29% |
| UNH | hist | United Health Group Inc. | 1.56 | 530,000 | |
| LANC | hist | Lancaster Colony | 1.11 | 200,000 | |
| LINTA | hist | Liberty Media Interactive | 0.91 | 840,000 | |
| TSS | hist | Total System Services | 0.85 | 600,000 | |
| HPQ | hist | Hewlett-Packard | 0.43 | 95,000 | |
| TBBK | hist | The Bancorp Inc. | 0.18 | 224,426 | |
| REXI | hist | Resource America Inc. | 0.09 | 215,000 | |
Sector % analysis
| Consumer Staples | |
| Consumer Discretionary | |
| Health Care | |
| Information Technology | |
| Energy | |
| Financials | |
| Consumer Goods | |
| Services |
Articles & Commentaries
05 Aug 2010 Yacktman - Q2 2010 Commentary
We like businesses that sell products in well-established, slowly changing markets like beverage, household products, personal care, and food. These “consumer staple” products typically sell at low price points and are consumed and repurchased frequently.
Category leaders like Coca-Cola in soft drinks or Tide in laundry detergents may continue their dominance for generations, making it easier to predict the future prospects of these businesses.
The media companies we own are largely subscription businesses, which we also like. Comcast gets paid predictable monthly fees from its customers for providing cable television, internet, and telephone services. News Corp and Viacom receive recurring monthly fees for the cable content they provide to pay television providers. Even in a challenged economy, pay television is one of the last items to be cut by households.
Identifying great companies is not especially difficult. Appraising the future prospects of a business and paying an appropriate price are far more critical to managing risk and generating attractive returns than just picking leaders.
Economic issues may cause short term pressure on the earnings of some of the companies in our funds, though we think we are being sufficiently compensated for that possibility by current valuation levels. We are optimistic and patient, and believe that owning securities at attractive prices and adhering to high quality standards will allow us to the endure bumps in the road that may lie ahead.
We like businesses that sell products in well-established, slowly changing markets like beverage, household products, personal care, and food. These “consumer staple” products typically sell at low price points and are consumed and repurchased frequently.
Category leaders like Coca-Cola in soft drinks or Tide in laundry detergents may continue their dominance for generations, making it easier to predict the future prospects of these businesses.
The media companies we own are largely subscription businesses, which we also like. Comcast gets paid predictable monthly fees from its customers for providing cable television, internet, and telephone services. News Corp and Viacom receive recurring monthly fees for the cable content they provide to pay television providers. Even in a challenged economy, pay television is one of the last items to be cut by households.
Identifying great companies is not especially difficult. Appraising the future prospects of a business and paying an appropriate price are far more critical to managing risk and generating attractive returns than just picking leaders.
Economic issues may cause short term pressure on the earnings of some of the companies in our funds, though we think we are being sufficiently compensated for that possibility by current valuation levels. We are optimistic and patient, and believe that owning securities at attractive prices and adhering to high quality standards will allow us to the endure bumps in the road that may lie ahead.
29 Jul 2010 Video: Don Yacktman on Bloomberg
Donald Yacktman, manager of the Yacktman Focused Fund, discusses the performance of Viacom Inc., ConocoPhillips and Microsoft Corp. shares and the outlook for the companies...
Donald Yacktman, manager of the Yacktman Focused Fund, discusses the performance of Viacom Inc., ConocoPhillips and Microsoft Corp. shares and the outlook for the companies...
28 May 2010 Video: Donald Yacktman on Bloomberg
Donald Yacktman, chief investment officer at Yacktman Asset Management Co., talks with Bloomberg's Betty Liu about the performance of the U.S. stock market, investment strategy and the outlook for Walt Disney Co...
Donald Yacktman, chief investment officer at Yacktman Asset Management Co., talks with Bloomberg's Betty Liu about the performance of the U.S. stock market, investment strategy and the outlook for Walt Disney Co...
22 May 2010 Barron's: Talking With Donald Yacktman, Portfolio Manager, Yacktman Fund
He says he can't recall another time when such dominant players with reliable earnings growth were selling for less than their average prices.
He says he can't recall another time when such dominant players with reliable earnings growth were selling for less than their average prices.
07 May 2010 Video: Donald Yacktman on CNBC
Where to invest now, with Donald Yacktman, Yacktman Asset Management president...
Where to invest now, with Donald Yacktman, Yacktman Asset Management president...
03 May 2010 Video: Yacktman Says High-Quality Stocks Offer Best Value
Donald Yacktman, chief investment officer at Yacktman Asset Management Co., talks with Bloomberg's Margaret Brennan about his investment strategy...
Donald Yacktman, chief investment officer at Yacktman Asset Management Co., talks with Bloomberg's Margaret Brennan about his investment strategy...
09 Apr 2010 Yacktman Funds - Q1 2010 Commentary
Identifying great companies is not especially difficult. Appraising the future prospects of a business and paying an appropriate price are far more critical to generating attractive returns and managing risk than just picking leaders.
In each fund, six of the top ten positions (News Corp, Coca-Cola, Microsoft, Viacom, Pfizer, and Comcast) today trade at price levels below their close at the end of 1999, even though each of the six businesses has grown its sales and earnings per share (in most cases substantially) in the last decade-plus. We did not own any of these six poorly performing stocks in either fund back in 1999, but have been happy to purchase and own them in the last few years at much more attractive prices. We like to buy quality merchandise when it is in the discount bin.
Shares of Coca Cola declined slightly during the first quarter, and are attractively priced, especially given low level of risk we see for the business. Over time, emerging markets represent a significant opportunity for growth. In 2009 the volume gains in China, India, Mexico and Brazil were equivalent to the total volume of Coca-Cola’s sixth largest market, Germany.
We are often asked how we expect to get market-beating returns owning consumer staple securities like Coca Cola. Here is how we look at it. Coca Cola should earn approximately $3.40 this year. After making investments for growth, we expect the company to generate about $3 per share that it can use however it chooses. Based on the current share price, this equates to a free cash yield of approximately 5.5%. Over long periods of time we would expect the company to grow volume at 3-4% per year and raise prices by a couple of percentage points annually to nearly keep up with inflation.
In total, this gets us to a double-digit annual expected rate of return assuming the shares sell at a similar multiple of earnings/cash flow compared to today. Given the high degree of confidence we have about the business, this is a solid investment opportunity in the current environment.
Some think if an investment idea is well-known and seems obvious it can’t be really good. In 1938, Fortune Magazine concluded “Several times every year, a weighty and serious investor looks long and with profound respect at Coca-Cola's record, but comes regretfully to the conclusion that he is looking too late.” Since that time, Coca-Cola has grown significantly both domestically and around the world. It was not too late in 1938, and we believe it is far from that today.
Identifying great companies is not especially difficult. Appraising the future prospects of a business and paying an appropriate price are far more critical to generating attractive returns and managing risk than just picking leaders.
In each fund, six of the top ten positions (News Corp, Coca-Cola, Microsoft, Viacom, Pfizer, and Comcast) today trade at price levels below their close at the end of 1999, even though each of the six businesses has grown its sales and earnings per share (in most cases substantially) in the last decade-plus. We did not own any of these six poorly performing stocks in either fund back in 1999, but have been happy to purchase and own them in the last few years at much more attractive prices. We like to buy quality merchandise when it is in the discount bin.
Shares of Coca Cola declined slightly during the first quarter, and are attractively priced, especially given low level of risk we see for the business. Over time, emerging markets represent a significant opportunity for growth. In 2009 the volume gains in China, India, Mexico and Brazil were equivalent to the total volume of Coca-Cola’s sixth largest market, Germany.
We are often asked how we expect to get market-beating returns owning consumer staple securities like Coca Cola. Here is how we look at it. Coca Cola should earn approximately $3.40 this year. After making investments for growth, we expect the company to generate about $3 per share that it can use however it chooses. Based on the current share price, this equates to a free cash yield of approximately 5.5%. Over long periods of time we would expect the company to grow volume at 3-4% per year and raise prices by a couple of percentage points annually to nearly keep up with inflation.
In total, this gets us to a double-digit annual expected rate of return assuming the shares sell at a similar multiple of earnings/cash flow compared to today. Given the high degree of confidence we have about the business, this is a solid investment opportunity in the current environment.
Some think if an investment idea is well-known and seems obvious it can’t be really good. In 1938, Fortune Magazine concluded “Several times every year, a weighty and serious investor looks long and with profound respect at Coca-Cola's record, but comes regretfully to the conclusion that he is looking too late.” Since that time, Coca-Cola has grown significantly both domestically and around the world. It was not too late in 1938, and we believe it is far from that today.
25 Mar 2010 Video: Donald Yacktman talks with Bloomberg
Donald Yacktman, chief investment officer at Yacktman Asset Management Co. recommends high quality businesses - likes Pepsico, Coca-Cola, News Corp and Viacom...
Donald Yacktman, chief investment officer at Yacktman Asset Management Co. recommends high quality businesses - likes Pepsico, Coca-Cola, News Corp and Viacom...
30 Nov 2009 Video: Donald Yacktman on Bloomberg
Donald Yacktman of Yacktman Asset Management sees Value in Viacom, News Corp. and Comcast...
Donald Yacktman of Yacktman Asset Management sees Value in Viacom, News Corp. and Comcast...
25 Nov 2009 Yacktman Fund shines with value investing and patience
Why does the fund fly when others flail? Its managers are happy to wait -- sometimes for several years -- for bubbles to burst before scooping up what they perceive as true values. In the meantime they prefer stable, cash-generating equities, which can result in lukewarm returns when stocks are hot.
Recently that approach led the Yacktmans to boost their position in Pfizer, which has seen its share price fall on concerns about patent expirations and health-care reform but still offers a stable cash flow and a 3.6% dividend yield. "You can get your money back there in five years," says Stephen. "Right now, you're compensated very well for what you're paying."...
Why does the fund fly when others flail? Its managers are happy to wait -- sometimes for several years -- for bubbles to burst before scooping up what they perceive as true values. In the meantime they prefer stable, cash-generating equities, which can result in lukewarm returns when stocks are hot.
Recently that approach led the Yacktmans to boost their position in Pfizer, which has seen its share price fall on concerns about patent expirations and health-care reform but still offers a stable cash flow and a 3.6% dividend yield. "You can get your money back there in five years," says Stephen. "Right now, you're compensated very well for what you're paying."...
11 Sep 2009 Video: Don Yacktman on CNBC
Don Yacktman of Yacktman Asset Management touts owning high quality stocks that have by and large lagged the market...
Don Yacktman of Yacktman Asset Management touts owning high quality stocks that have by and large lagged the market...
25 Aug 2009 Video: Donald Yacktman on Bloomberg
Donald Yacktman of Yacktman funds sees value in high quality businesses such as Coca-cola, Pepsico, Procter & Gamble and Pfizer...
Donald Yacktman of Yacktman funds sees value in high quality businesses such as Coca-cola, Pepsico, Procter & Gamble and Pfizer...
24 Jul 2009 The Yacktman Fund: What They're Buying Now
...Focusing on price as they hunt for good businesses and management teams — just as the duo always has. The Yacktmans view stocks through the eyes of a bond manager: assessing the cash and earnings the investment will generate if they hold it indefinitely.
While the fund’s turnover is still low by most measures, it is creeping higher. The managers are willing to sell a stock if the market makes them the money they wanted in months, rather than years, and then use the cash to buy another stock. “While I’m willing to hold it forever, it doesn’t mean I need to hold it forever.
...Focusing on price as they hunt for good businesses and management teams — just as the duo always has. The Yacktmans view stocks through the eyes of a bond manager: assessing the cash and earnings the investment will generate if they hold it indefinitely.
While the fund’s turnover is still low by most measures, it is creeping higher. The managers are willing to sell a stock if the market makes them the money they wanted in months, rather than years, and then use the cash to buy another stock. “While I’m willing to hold it forever, it doesn’t mean I need to hold it forever.