After graduating from Harvard Business School, Donald Yacktman began his investment career in 1968 at Stein Roe and Farnham. After 14 years as a portfolio manager, he left to go to Vincent Chesley's firm. He was so successful that he got Morningstar’s award best portfolio manager 1991.
Yacktman founded the company Yacktman Asset Management in 1992 and his son Stephen joined a year later. Since then his son has increasingly taken on responsibility for managing it. In 1999 they became equal partners in the company. Their strategy is to look for stocks that are sustainable for a very long time, they call it "Risk Adjusted Forward Returns". They look at the growth rate, profitability, and reinvestment rates to determine probabilities for future returns.
Donald Yacktman, a seasoned investor known for his value investment strategy, maintains a portfolio with a diverse range of high-performing stocks. His top investment is in Canadian Natural Resources Ltd., a leading player in the oil and gas industry, reflecting confidence in energy sector resilience and growth prospects.
Microsoft Corporation holds a key position in Yacktman's portfolio, demonstrating his belief in enduring tech giants with strong cash flows and market dominance. This choice aligns with long-term growth trends in technology and software services.
Alphabet Inc - Ordinary Shares - Class C represents Yacktman’s stake in the parent company of Google, signaling an emphasis on innovative companies at the forefront of internet services, advertising, and technology development.
The inclusion of Charles Schwab Corp. indicates Yacktman’s bullish stance on financial services and brokerage firms poised to benefit from market volatility and increased investor activity with sound business models.
Lastly, U-Haul Holding Company - Ordinary Shares - Series N shows an interest in consumer service-based businesses that have sturdy operational frameworks and are integral to the housing and transportation sectors.
This concise overview highlights Donald Yacktman’s top five stock investments, painting a picture of a balanced portfolio that leans towards established companies with robust economic moats across technology, finance, energy, and consumer services. Potential investors analyzing these selections can glean insight into Yacktman’s investment philosophy which weighs both stability and growth within varied industries.
