We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Donald Yacktman of Yacktman Funds. He gave a presentation entitled "Viewing Stocks as Bonds."
Donald Yacktman's Value Investing Congress Presentation
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His elements: Good business, shareholder
oriented management, low purchase price.
Says stocks with steady
dividends are like bonds.
Used Coca Cola (KO) as case study.
Stuck at $44 for 15 years.
His turnover is only 20%
per year, he says less than an index fund.
Isn't this laziness? What
about idea velocity? Why sit on KO for a decade while it did nothing?
Says Michael Dell was not
going to give up control of his company. "His reputation is tarnished by
this, to some degree"
Says Apple (AAPL) is not that
cheap because margins are too high and leaves them open to competition like
Samsung. Yet he holds Cisco (CSCO) and Microsoft (MSFT) which have higher margins. Says no big new
products at Apple now.
Be sure to check out the other presentations from the New York VIC here.
