by Ben Morris
Yacktman manages about $13 billion using a blend of growth and value investment strategies. He looks to buy good companies trading below intrinsic value. And he focuses on companies with shareholder-friendly management.
According to GuruFocus (one of the sites I use to track investing greats), Yacktman’s funds have returned an average of 10.2% a year over the last 20 years. That’s a 594% return, which is 213% better than the benchmark S&P 500 Index.
What stands out about Yacktman is his performance during each of the last two market crashes: the tech bubble in the early 2000s and the financial crisis of 2008. From the end of 1998 through the end of 2002, Yacktman generated a 26% return. The S&P 500 fell 25% during those same four years.
In 2008-2009, Yacktman generated a two-year, 18% return for investors while the S&P 500 dropped 20%.
What’s Yacktman doing today?
He’s reducing all of his largest positions… and he’s going to cash.
When Yacktman didn’t see much value in stocks in mid-2007, he held about 25% of his funds’ assets in cash.
When he saw great values, like in late 2008, he held around 5% in cash.
As of December 31, 2015 Yacktman’s two funds were 15% and 16% allocated to cash.
Source: DailyWealth Trader
http://thecrux.com/one-of-the-worlds-be ... s-selling/