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's portfolio showcases a diversified investment strategy across various sectors, headlined by his top stock selections. Leading the pack is Canadian Natural Resources Ltd., representing 10.3% of his investments, signifying confidence in the energy sector and its long-term growth prospects. The tech industry forms a significant portion of the portfolio with Microsoft Corporation at 6.0%, highlighting an affinity for stable, high-performing tech giants with consistent growth. Alphabet Inc - Ordinary Shares - Class C follows closely at 5.3%, indicating Yacktman's investment in forward-thinking technology and digital advertising prowess. U-Haul Holding Company - Ordinary Shares - Series N accounts for 4.0% of the portfolio, diversifying into transportation and storage solutions, showing faith in the American consumer and relocation trends. Lastly, Charles Schwab Corp., taking up 3.9%, underlines an endorsement of the financial services sector, banking on the brokerage’s ability to capitalize on market movements and investor activities. These carefully selected stocks demonstrate Donald Yacktman's pragmatic approach to investing, balancing innovation with established market presence.
