Donald Yacktman, who has an exceptional long-term mutual fund management track record, is continuing to find a myriad of values in the stock market right now, particularly among big blue chips.
“I haven’t seen a period at least since the early 1990s when so many above-average companies have traded at below-average prices,” Yacktman tells Kiplinger’s magazine, adding that he “drool[s]” at Pepsi, one of his biggest holdings. He also likes other blue chips, including Coca-Cola and Clorox, according to Kiplinger’s.
What Yacktman doesn’t like is market-timing. “What I’ve learned over the years is to not try to predict the market,” he says. “Instead, regardless of where the market is, look for the bargains, look for the outliers.” Kiplinger’s says Yacktman’s “trademark has always been investing in high-quality, large companies when they’re temporarily out of favor.”