Yacktman’s 13F filing for Q4 of 2013 is out. The total portfolio value is $24.51B at the end of Q4. This value was $22.42B as at the end of Q3.
Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More
Top 10 holdings
His top 10 holdings as a percentage of total portfolio value are as follows:
PepsiCo, Inc. (NYSE:PEP) 10.79%
Twenty-First Century Fox Inc (NASDAQ:FOXA) 8.95%
The Procter & Gamble Company (NYSE:PG) 8.57%
The Coca-Cola Company (NYSE:KO) 7.29%
Cisco Systems, Inc. (NASDAQ:CSCO) 5.72%
Microsoft Corporation (NASDAQ:MSFT) 5.23%
SYSCO Corporation (NYSE:SYY) 4.73%
Oracle Corporation (NYSE:ORCL) 4.35%
C.R. Bard, Inc. (NYSE:BCR) 4.24%
Stryker Corporation (NYSE:SYK) 3.67%
Why Yacktman is bullish on consumer
“The best values are in these great big consumer companies, and we get to them from the bottom up, not the top down,” he said in a Barron’s interview a few months ago.
“PepsiCo, Inc. (NYSE:PEP), The Procter & Gamble Company (NYSE:PG), and The Coca-Cola Company (NYSE:KO) fit our pattern. They are very profitable, with slow unit growth, a nice dividend, and so on. But on a risk-adjusted forward-return basis, we view these stocks like undervalued AAA bonds. To take on a lot of additional risk in more-cyclical stocks doesn’t seem to be warranted. You don’t get enough extra return to make that leap,” he said in the interview.
Positions added to
Compared to Q3, Yacktman significantly added to his positions in the following stocks:
Cisco Systems, Inc.(NASDAQ:CSCO) +12,182,155 shares (+24.23%)
eBay Inc (NASDAQ:EBAY) +6,834,107 shares (+479.59%)
PepsiCo, Inc. (NYSE:PEP) +3,962,128 shares (+14.18%)
Oracle Corporation (NYSE:ORCL) +3,466,132 shares (+14.20%)
The Coca-Cola Company (NYSE:KO) +3,426,639 shares (+8.61%)
The Procter & Gamble Company (NYSE:PG) +701,691 shares (+2.79%)
Yacktman made a new investment in Aggreko plc (LON:AGK) of 3,981,000 shares valued at $112.9M. He also invested in 26,100 shares of Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) valued $25.1M, as well as other smaller new investments.
A comparison with the filing for the previous quarter reveals the legendary investor completely exited from Dell Inc. (NASDAQ:DELL) and Janus Capital Group Inc (NYSE:JNS).
Stocks in which Yacktman significantly reduced his exposure, compared to the number of shares held in the company in Q3, were:
News Corp (NASDAQ:NWSA) (NASDAQ:NWS) -79.6%
Twenty-First Century Fox Inc (NASDAQ:FOXA) -11.85%
C.R. Bard, Inc. (NYSE:BCR) -21.46%
Microsoft Corporation (NASDAQ:MSFT) -4.28%
SYSCO Corporation (NYSE:SYY) -2.94%
Yacktman’s investment philosophy
“Yacktman tries to identify three main aspects of any business which are that the company should have a solid business plan supported by a decent profit margin that is scarcely affected by market turns or preferences and costs should be low. Secondly, the management should be actively striving to increase the gap between costs and profits, thus impacting the margin favorably. Lastly, the shares of the company should be undervalued when compared to the market value. These deep discounts are the major factor that make or break a decision for Yacktman.” – Valuewalk Resource Page on Donald Yacktman.