Philosophy & Approach
Our Philosophy
Yacktman Asset Management is a boutique investment advisory firm that has a history of serving long-term-oriented investors. The Firm seeks to invest in high-quality businesses at low valuations, with the goal of generating outperformance over a full market cycle while managing the level of risk. The investment team aims to be objective, patient and diligent, and makes investment decisions based on the merits of individual securities rather than trying to forecast the market.
Our Approach
Yacktman employs a disciplined investment strategy, buying growth companies at what it believes to be low prices. Yacktman believes this approach combines the best features of "growth" and "value" investing. When the firm purchases stocks, it generally searches for companies it believes to possess one or more of three main attributes:
Good Business
- High market share in principal product and/or service lines
- A 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 franchise characteristics
Shareholder-Oriented Management
Yacktman believes a shareholder-oriented management does not overcompensate itself and wisely allocates the cash the company generates. Yacktman looks for companies that:
- Reinvest in the business and still have excess cash
- Make synergistic acquisitions
- Buy back stock
Low Purchase Price
- Yacktman looks for a stock that sells for less than what an investor would pay to buy the whole company
- The stock prices of individual companies can vary significantly over short periods of time, and such price movements are not always correlated with changes in company fundamental performance. Accordingly, Yacktman generally prefers to wait for buying opportunities. Such opportunities do not always occur in correlation with overall market performance trends
