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 also talks about why volatility is “the friend of a value investor”, and why his longer time horizon has allowed him to succeed where so many have failed.
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