Monday, March 28, 2011

Barron's Interview: Donald Yacktman

Donald Yacktman co-manages two funds that have very solid long-term track records.

Yacktman Fund (YACKX)
Yacktman Focused Fund (YAFFX)

Some recent thought from him in this Barron's interview:

Barron's: Loaded for Long-Term Value

On Inexpensive High Quality Companies
"This business boils down to what you buy and what you pay for it. The market level is incidental to us."

He later added that he has to go back at least 18 years to find high-quality companies this cheap...

"But what is staggering to me is high-quality companies still selling at below-average prices on a [price/earnings multiple] basis, relative to the market.

On HP's Recent Disappointments
"That's why it is cheap, and that's why [it's of] some interest to us."

On Inflation
"A lot of people are concerned about inflation, that companies are going to have problems repricing their product...But I think the consumer-staples companies we own have pricing power."

Each fund that he co-manages has produced double-digit annualized returns over the past decade outperforming the S&P 500 by nearly 10% per year.

Read the interview in its entirety here.


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