Thursday, 26 November 2015

Donald Yacktman: "Viewing Stocks as Bonds"

Investment Philosophy
  1. Good businesses that dominate their industry
  2. Shareholder-oriented management
  3. Low purchase price

A good business may contain one or more of the following:

  • High market share in principal product and/or service lines
  • High cash return on tangible assets
  • Relatively low capital requirements allowing a business to generate cash while growing
  • Short customer repurchase cycles and long product cycles
  • Unique franchise characteristics

                                                   High Cyclicality          Low Cyclicality

Low Capital Intensity                  Media                        Consumer Staples

High Capital Intensity                 Capital Goods           Utilities

Secular growth, not cyclical growth preferred.

Published on 30 Jul 2015
Drawing on his four decades of experience, Don Yacktman identifies the three key characteristics of value stocks. In this talk, he shares his investment philosophy along with the lessons he has learned from the markets and from life.

About the speaker:
Don Yacktman is Partner and Portfolio Manager of Yacktman Asset Management. He began his career at Yacktman founding the company as its President, Portfolio Manager, and Chief Investment Officer. Since founding the company Don has been awarded the 1994 “Portfolio Manager of the Year” by Mutual Fund Letter. Don has also been nominated by Morningstar as Fund Manager of the Decade in 2009, and finalist for Morningstar’s Domestic-Stock Manager of the Year award in 2011, and “Portfolio Manager of the Year” in 1991. Don holds an MBA with distinction from Harvard University.

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