Yacktman Focused Fund is outperforming the S&P this April. Donald Yacktman, Yacktman Asset Management president, provides a look at his winning strategy and stock picks.
throughout the day we’re talking to cnbc’s all-star investors. the very best stock pickers would return to show their success. our next guest is a five-star fund manager at $17 billion. his funds are up around 23% over three years. outperforming the s&p, obviously. joining us now is don yakman. great to have you here. what do you make of this market right now? do you like it or are you nervous? oh, i think it’s a market that is — where i would stay with the very high quality kinds of things. the market is not as cheap as it was three years ago by a long shot. and you want to stick with quality why? because i think that’s where the best quality adjusted risks are. and if people look up your funds, they’ll find what? procter & gamble, news corp. and pepsi are the three largest holdlings? and the scandat at news , no issues there about whether or not rupert is going to have distractions? not with chase kerry aboard. so off no worries about that. no. bk. i think in your holdings, we’ve seen microsoft, as well. i understand the valuation of microsoft, but is there a catalyst? is windows 8 a real cast list for this company? i — we looked long-term and i would say i think this company is very cheap and it will continue to grow. what wouldn’t you buy right now? i think i would say away from lower quality kind of issues and i think a lot of companies that have a lot of cyclety to them are selling at very high — very high profit margins. and i’m not sure they’re sustainable. as you come out of a recession, usually that — you know, you get the bets of that. but the longer it goes on, i think the more difficult it is. have you looked at apple? is it cheap? i think apple is a phenomenal company. they have done great things. i think the question is is the sustainability. and we just feel more comfortable with the ones we hold. hey, don, it’s joe. thanks for coming on. you have a political environment this year of elections around the world and you’ve got potential banks who have a tremendous amount of uncertainty in terms of what their monetary policy is. what is it you can tell investors how to navigate around to conditions on a macro level that is so uncertain? we have found the better way to focus is on the microlevel and continue to look for the best risk adjusted forward returns, just like a bond buyer would do and, you know, look at doing all your homework. understand it’s what you buy and what you pay for. and by the way, i don’t know if you’re aware b but we just partnered with affiliated managers. and what will do what for you? we think it’s a classic case of a whirlwind deal, affiliated with a money manager firm. so — and i signed a long-term agreement. i’m going to be around a while. as i told them, i’m only all right. don, thanks so much for joining us. we really appreciate it. you bet. happy to be on. our all-star investor day