|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Yacktman: Taking Advantage of a Casino Mentality
Posted by: Dheeraj Grover (IP Logged)
Date: June 27, 2012 09:56AM
Manager Donald Yacktman says the decline in trading costs along with the natural volatility of stocks are creating opportunities for value managers focused on the long term.
Here is what he said:
On the kind of companies he is interested in investing in: It depends on the margin of safety. Can be consumer staple or can be cyclical but depends on perceived risk-adjusted rate of return.
On Technology stocks: Recent investments in technology are good quality companies. It is all about price. If a stock is available very cheap it may help override some of the concerns regarding the company. If the business model is good everything else will be taken care of.
On Management: Evaluating management is a very important part of capital allocation because it will affect the future returns. Liked Microsoft's (MSFT) decision to get into the tablet market, it is a natural fit for them.
On recent volatality and long-term investing approach: Volatility makes long-term investing even more attractive. The decline in trading costs, combined with the natural volatility of equities, has lent itself to more of a casino mentality. The more volatile, interestingly enough, a situation is, the more attractive it is for value managers, who are long-term investors, because it creates more opportunities.
Here is the video:
Guru Discussed: Donald Yacktman: Current Portfolio, Stock Picks
Stocks Discussed: MSFT, CSCO, NWSA, PEP,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.