The Yacktman Fund has landed in the top 1% of its peer group. Donald Yacktman, Yacktman Asset Management president, offers insight on the fund’s strategy and his general outlook on the market. “We are long-term oriented; we don’t try to predict the short-term events that occur,” he says.
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How Warren Buffett Uses Discount Rates To Value Stocks
Warren Buffett has never detailed the process he uses to value the businesses he acquires for Berkshire Hathaway. However, over the years, he has provided some limited insight into his methods. Q3 2020 hedge fund letters, conferences and more Based on these comments, it is widely assumed that Buffett uses a discount cash flow model Read More
rom stocks to watch to a mutual fund to watch. five-star fund excelling over the last five years significantly beating s&p 500over the past decade. the president and co-chief investment officer joins us now. great to have you with us. good to speak with you. what’s your general outlook for the market? we’re hitting a period where it’s low volatility. markets are performing decently and funds are generally defensive in nature. they are.we are very long-term orientated. we just don’t try to predict theshort-term events that are going to occur. we look at it as though you can’t control the wind but you can set the sails. you made an interesting portfolio rotations last year. you reduce the holdings and it you reduce the holdings and it looks like you cycled into pepsi. do you see the same sort of upside potential with pepsi as coca-cola had last year because it had a stellar performance. we look very long-term and on a risk adjusted forward rate of return basis we see pepsi as more attractive.simply on valuation? yes. what does it need to do to improve business that some people say spin-off snack business. what does it need to do to improve performance? i think basically it is business 101 and continuing to try to improve their return onassets. they have a great group of businesses that they have.i’m fascinated that news corp is a top holding for you given the controversy that surrounds the murdochs at the moment. talk us through what line you’re taking there. it’s valuation. we felt last year we got a bonus where there was a lot of controversy. we were looking long-term and we were very concerned about them trying to takeover the rest and paying too high a price.when the news of the world event occurred, it lowered the priceand canceled buying the rest of that and started to buy backstock. we were delighted with that. doesn’t that raise questionsabout the way in which murdoch runs the empire because whatyou’re effectively saying is we were saved by the fact that it was blocked due to a scandal. it may not maximize shareholdervalue. unfortunately a lot of times