Opinions expressed by BIZ Experiences contributors are their own.
Don Yacktman has been a fan of value investing for years-and hisYacktman Focus fund (YAFFX) shows it. Through December 13, thefund--with only 25 stocks in its portfolio--was up more than 14percent, while other mid-cap value funds were underwater by about16 percent, according to Lipper Analytical Services.
"We buy profitable businesses that have returns on sales,low prices, and management teams that do a good job at capitalallocation," says Yacktman, who's managed the fund sinceits inception in 1997.
What you won't find in this portfolio are highly cyclicalbusinesses, like auto or airline stocks. "We also don'tinvest in capital goods kinds of companies so that keeps us out ofa lot of technology businesses that are shooting stars or Romancandles," he adds.
With a portfolio that has the bulk of its assets invested in ahandful of stocks like Henkel, Lancaster Colony, Liberty Media andTyco, there is more risk than in a fund where assets are spreadout. That said, the fund's beta (a measurement of risk) showsless risk than that of the market overall.
Ask Yacktman why the fund's been so successful and he'llsay he's found an investment strategy that works, and he sticksto it. Wise advice for all investors.
- Web site: www.yacktman.com
- Toll-free number: (800) 525-8258
Dian Vujovich is an author, syndicated columnist andpublisher of fund investing site www.fundfreebies.com.
