While many mutual fund managers have hundreds of stocks in their portfolios as a way to diversify away stock specific risk, James K. Glassman says you can get nearly the same diversification benefit with many, many fewer holdings.
Small-cap stock valuations are worrying some investors, including top fund manager Donald Yacktman.
Mutual fund manager Donald Yacktman has put up an exceptional track record for more than a decade, and in a recent interview with Canada’s Globe and Mail, he talked about his investment approach and thoughts on the current market. Yacktman says that the market is not cheap, which is the biggest risk investors face today. He recently had about 20% of his portfolios in cash. “That’s telling you how hard it is to find stocks… Read More
For much of the past few years, top fund manager Donald Yacktman has said high quality stocks had been trading at exceptional discounts to lower quality plays. But in an interview with WealthTrack’s Consuelo Mack, Yacktman says the spreads between high and low quality equities has narrowed dramatically. Yacktman, who focuses on high quality stocks, thus has a higher than average cash position of about 20% (he usually has between zero and 30% of his… Read More
Donald Yacktman’s funds have some of the best long-term track records one can find. And in his funds’ 2012 year-end letter, his team talks about a key part of their strategy: position sizing. “We think position sizing is one of the most important aspects of good portfolio mangement,” the letter states (hat tip to GuruFocus.com for highlighting the letter). “We generally take bigger positions in higher quality, diverse companies that we think can acceptably compound capital… Read More
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.… Read More
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,… Read More
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… Read More
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.
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… Read More