Investment Approach
We are value investors who think like business owners
Our approach is to own securities we believe offer an attractive rate of return for the level of risk in the investment. We are able to invest across the spectrum, from the highest quality businesses to those with challenges as long as the price we pay adequately compensates for the risks.
The Yacktman Approach
We believe in performing deep and intensive fundamental research. Our investment team members are not siloed specialists – we are generalists. This orientation fosters a culture that values independence of thought and flexibility, allowing us to consider companies that may not fit neatly into a specific industry sector.
Low Purchase Price
Yacktman looks for opportunities with an attractive rate of return given uncertainties the business might face.
We are extremely disciplined about valuation and believe it is often the most important characteristic in a successful investment. Low price can help to manage risk and create the opportunity for solid returns.
Good Businesses
A good business may contain one or more of the following:
- High market share
- High cash return on tangible assets
- Relatively low capital requirements, allowing a business to generate cash while growing
- Short customer repurchase cycles and long product cycles
- Unique competitive differentiation
Shareholder-Orientation
We value company leaders who manage companies like business owners do.
- Capital investments focused on the long-run rather than for quarterly reporting
- A laser-sharp focus on shareholder value
- Capital allocation discipline