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 investment strategy is highlighted by his top stock holdings which reflect a diversified approach to portfolio management focused on both stability and growth. His leading position is in Canadian Natural Resources Ltd., representing 10.1% of the portfolio, underscoring a significant commitment to the energy sector and commodities market. In technology, Microsoft Corporation accounts for 5.8%, indicating confidence in this industry giant's continued innovation and market dominance.
Alphabet Inc, with its Ordinary Shares - Class C, comprises 5.2% of Yacktman's investments, signaling trust in Alphabet's strong leadership in internet services and technologies. Financial services also feature prominently, illustrated by Charles Schwab Corp.'s 4.1% share, reflecting an endorsement of the brokerage firm’s business model and investor services. Lastly, U-Haul Holding Company, also at 4.1%, rounds out the top five and suggests an affinity for consumer services and rental businesses.
In these selections, potential investors can discern Donald Yacktman’s preference for established companies with strong market positions, offering insights into his balanced investment philosophy that pivots between yielding assets and capital appreciation potential.
