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Donald Yacktman Buys Pfizer Inc, The Cocacola Company, Pepsico Inc., Sells FMC Technologies Inc., Cintas Corp., USG Corp.

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This is the Q2 portfolio update of Yacktman Fund. Don Yacktman did not initiated any new positions, but he added heavily into his existing positions and eliminated a few others.

Some investors do well in up years; some others do well in down years, but it is very hard to beat the market in both ways. Donald Yacktman seems to be doing just that.

In 2008, when the market lost 37% and a lot of other value investors did even worse, Yacktman Fund did better than the market by 11%. At the bottom of the market declines, he shifted heavily into beaten down distressed companies, and gained 59.31% in 2009. According to his shareholder letter just released, he fund did better than the market by about 2% in the first half of 2010.

This gives Yacktman Fund a total return of 35% over the past 5 years, and 206.8% over the past 10 years. In the same periods, the S&P400 lost 3.9% and 14.79%, respectively.

Not surprisingly, Yacktman Funds has seen his asset under management ballooned to more than $3 billion over past 12 months, after below $1 billion for more than a decade.

Currently Mr. Yacktman is heavily invested in high quality holdings. He commented: “We strive to be as objective as possible in evaluating all opportunities, and if the best businesses in the world are available at compelling valuations we are willing to own big positions in them. We sleep well at night knowing that dominant, well capitalized companies purchased at attractive valuations should produce solid results over time, even in a world with an extreme amount of uncertainty.”

But they are flexible, as they did buy heavily into distressed situations at the market low of 2009. “We are willing to own lower quality business, but we have to project a meaningfully higher expected rate of return on the investment. Currently, we think most of the best values are in the highest quality companies.”

These are the comments of Yacktman Fund on some of their largest holdings:

Donald Yacktman buys Pfizer Inc, The Cocacola Company, Pepsico Inc., Microsoft Corp., The Clorox Company, Johnson & Johnson, News Corp., The Procter & Gamble Company, C.r. Bard Inc., Becton Dickinson And Company, U.s. Bancorp, Walmart Stores Inc., Ebay Inc., Sysco Corp., Conocophillips, Total System Services Inc., Viacom Inc., Bank Of Ny Mellon Cp, Comcast Corp. Special, Covidien Ltd., sells Fmc Technologies Inc., Cintas Corp., Usg Corp. during the 3-months ended 06/30/2010, according to the most recent filings of his investment company, Yacktman Asset Management Co.. Donald Yacktman owns 69 stocks with a total value of $3.6 billion. These are the details of the buys and sells.

Added Positions: BCR, BDX, BK, CLX, CMCSK, COP, COV, EBAY, JNJ, KO, MSFT, NWSA, PEP, PFE, PG, SYY, TSS, USB, VIA.B, WMT, Reduced Positions: CL, DELL, JSM, L, LOW, Sold Out: CTAS, FTI, USG, For the details of Donald Yacktman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Donald+Yacktman

This is the sector weightings of his portfolio:

Consumer Goods 32.8% Consumer Services 28.7% Health Care 18% Financials 6.7% Technology 6.1% Oil & Gas 5.3% Industrials 1.5%


These are the top 5 holdings of Donald Yacktman

PepsiCo Inc. (PEP) - 6,267,671 shares, 10.5% of the total portfolio. Shares added by 28.16%News Corp. (NWSA) - 28,826,752 shares, 9.47% of the total portfolio. Shares added by 25.29%The CocaCola Company (KO) - 6,694,413 shares, 9.22% of the total portfolio. Shares added by 34.07%The Clorox Company (CLX) - 3,763,338 shares, 6.43% of the total portfolio. Shares added by 44.76%Pfizer Inc (PFE) - 16,136,514 shares, 6.32% of the total portfolio. Shares added by 62.79%

Added: Pfizer Inc (PFE)

Donald Yacktman added to his holdings in Pfizer Inc by 62.79%. His purchase prices were between $14.28 and $17.29, with an estimated average price of $15.97. The impact to his portfolio due to this purchase was 2.44%. His holdings were 16,136,514 shares as of 06/30/2010.

Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc has a market cap of $124.86 billion; its shares were traded at around $15.48 with a P/E ratio of 7.4 and P/S ratio of 2.5. The dividend yield of Pfizer Inc stocks is 4.7%. Pfizer Inc had an annual average earning growth of 1.8% over the past 10 years.

Added: The CocaCola Company (KO)

Donald Yacktman added to his holdings in The Cocacola Company by 34.07%. His purchase prices were between $50.08 and $55.32, with an estimated average price of $52.84. The impact to his portfolio due to this purchase was 2.34%. His holdings were 6,694,413 shares as of 06/30/2010.

The Coca-Cola Company is the world's largest beverage company and is the producer and marketer of soft drinks. The Cocacola Company has a market cap of $130.14 billion; its shares were traded at around $56.41 with a P/E ratio of 16.9 and P/S ratio of 4.2. The dividend yield of The Cocacola Company stocks is 3.1%. The Cocacola Company had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated The Cocacola Company the business predictability rank of 3.5-star.

Added: Pepsico Inc. (PEP)

Donald Yacktman added to his holdings in Pepsico Inc. by 28.16%. His purchase prices were between $60.77 and $66.94, with an estimated average price of $64.5. The impact to his portfolio due to this purchase was 2.31%. His holdings were 6,267,671 shares as of 06/30/2010.

PepsiCo, Inc. consists of: Frito-Lay Company, Pepsi-Cola Company, and Tropicana Products. Pepsico Inc. has a market cap of $105.26 billion; its shares were traded at around $65.27 with a P/E ratio of 17 and P/S ratio of 2.4. The dividend yield of Pepsico Inc. stocks is 2.9%. Pepsico Inc. had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated Pepsico Inc. the business predictability rank of 4-star.

Added: Microsoft Corp. (MSFT)

Donald Yacktman added to his holdings in Microsoft Corp. by 64.25%. His purchase prices were between $23.31 and $31.39, with an estimated average price of $28.01. The impact to his portfolio due to this purchase was 2.16%. His holdings were 8,722,765 shares as of 06/30/2010.

Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $230.75 billion; its shares were traded at around $26.33 with a P/E ratio of 12.5 and P/S ratio of 3.7. The dividend yield of Microsoft Corp. stocks is 2%. Microsoft Corp. had an annual average earning growth of 10.7% over the past 10 years.

Added: The Clorox Company (CLX)

Donald Yacktman added to his holdings in The Clorox Company by 44.76%. His purchase prices were between $61.5 and $65.32, with an estimated average price of $63.84. The impact to his portfolio due to this purchase was 1.99%. His holdings were 3,763,338 shares as of 06/30/2010.

Clorox Company's business operations, represented by the aggregate of its U. The Clorox Company has a market cap of $9.11 billion; its shares were traded at around $64.7 with a P/E ratio of 15 and P/S ratio of 1.7. The dividend yield of The Clorox Company stocks is 3.4%. The Clorox Company had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated The Clorox Company the business predictability rank of 3-star.

Added: Johnson & Johnson (JNJ)

Donald Yacktman added to his holdings in Johnson & Johnson by 70.18%. His purchase prices were between $58 and $66.03, with an estimated average price of $62.2. The impact to his portfolio due to this purchase was 1.92%. His holdings were 2,872,779 shares as of 06/30/2010.

Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $161.95 billion; its shares were traded at around $58.72 with a P/E ratio of 12.4 and P/S ratio of 2.6. The dividend yield of Johnson & Johnson stocks is 3.7%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.

Added: News Corp. (NWSA)

Donald Yacktman added to his holdings in News Corp. by 25.29%. His purchase prices were between $12.21 and $16.24, with an estimated average price of $14.16. The impact to his portfolio due to this purchase was 1.91%. His holdings were 28,826,752 shares as of 06/30/2010.

NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. News Corp. has a market cap of $24.89 billion; its shares were traded at around $13.66 with a P/E ratio of 13.9 and P/S ratio of 0.8. The dividend yield of News Corp. stocks is 1.1%.

Added: The Procter & Gamble Company (PG)

Donald Yacktman added to his holdings in The Procter & Gamble Company by 50.03%. His purchase prices were between $59.79 and $63.94, with an estimated average price of $62.05. The impact to his portfolio due to this purchase was 1.51%. His holdings were 2,754,286 shares as of 06/30/2010.

The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $178.73 billion; its shares were traded at around $62.06 with a P/E ratio of 16.5 and P/S ratio of 2.3. The dividend yield of The Procter & Gamble Company stocks is 3.1%. The Procter & Gamble Company had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 5-star.

Added: C.r. Bard Inc. (BCR)

Donald Yacktman added to his holdings in C.r. Bard Inc. by 58.67%. His purchase prices were between $77.61 and $87.55, with an estimated average price of $82.64. The impact to his portfolio due to this purchase was 1.04%. His holdings were 1,324,413 shares as of 06/30/2010.

C.R. Bard, Inc. is one of the worldwide leaders in developing, manufacturing, and supplying healthcare products that focus on Vascular, Urology, and Oncology Disease States. C.r. Bard Inc. has a market cap of $7.63 billion; its shares were traded at around $80.23 with a P/E ratio of 15 and P/S ratio of 3. The dividend yield of C.r. Bard Inc. stocks is 0.9%. C.r. Bard Inc. had an annual average earning growth of 15.7% over the past 10 years. GuruFocus rated C.r. Bard Inc. the business predictability rank of 5-star.

Added: Becton Dickinson And Company (BDX)

Donald Yacktman added to his holdings in Becton Dickinson And Company by 89.25%. His purchase prices were between $67.45 and $79.66, with an estimated average price of $73.87. The impact to his portfolio due to this purchase was 0.85%. His holdings were 970,363 shares as of 06/30/2010.

Becton, Dickinson and Co. is engaged principally in the manufacture and sale of a broad line of supplies, devices and systems used by health care professionals, medical research institutions and the general public. Becton Dickinson And Company has a market cap of $16.43 billion; its shares were traded at around $70.4 with a P/E ratio of 13.9 and P/S ratio of 2.3. The dividend yield of Becton Dickinson And Company stocks is 2.1%. Becton Dickinson And Company had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Becton Dickinson And Company the business predictability rank of 4.5-star.

Added: U.s. Bancorp (USB)

Donald Yacktman added to his holdings in U.s. Bancorp by 49.17%. His purchase prices were between $22.46 and $28.26, with an estimated average price of $25.14. The impact to his portfolio due to this purchase was 0.81%. His holdings were 3,992,251 shares as of 06/30/2010.

U.S. Bancorp is a financial services holding company. U.s. Bancorp has a market cap of $46.98 billion; its shares were traded at around $24.51 with a P/E ratio of 17.6 and P/S ratio of 2.4. The dividend yield of U.s. Bancorp stocks is 0.8%. U.s. Bancorp had an annual average earning growth of 2.1% over the past 10 years.

Added: Walmart Stores Inc. (WMT)

Donald Yacktman added to his holdings in Walmart Stores Inc. by 84.31%. His purchase prices were between $48.8 and $55.53, with an estimated average price of $52.5. The impact to his portfolio due to this purchase was 0.75%. His holdings were 1,246,913 shares as of 06/30/2010.

Wal-Mart Stores, Inc. is the world's largest retailer. Walmart Stores Inc. has a market cap of $190.71 billion; its shares were traded at around $51.41 with a P/E ratio of 13.6 and P/S ratio of 0.5. The dividend yield of Walmart Stores Inc. stocks is 2.3%. Walmart Stores Inc. had an annual average earning growth of 11.1% over the past 10 years. GuruFocus rated Walmart Stores Inc. the business predictability rank of 5-star.

Added: Ebay Inc. (EBAY)

Donald Yacktman added to his holdings in Ebay Inc. by 59.03%. His purchase prices were between $19.69 and $27.37, with an estimated average price of $23.15. The impact to his portfolio due to this purchase was 0.7%. His holdings were 3,487,847 shares as of 06/30/2010.

eBay is one of the world's largest online trading communities. Ebay Inc. has a market cap of $28.05 billion; its shares were traded at around $21.46 with a P/E ratio of 15.3 and P/S ratio of 3.2. Ebay Inc. had an annual average earning growth of 43.4% over the past 10 years.

Added: Sysco Corp. (SYY)

Donald Yacktman added to his holdings in Sysco Corp. by 32.03%. His purchase prices were between $28.9 and $31.54, with an estimated average price of $30.24. The impact to his portfolio due to this purchase was 0.61%. His holdings were 3,207,604 shares as of 06/30/2010.

Sysco Corporation is the largest North American distributor of food and food related products to the foodservice or `food-prepared-away-from-home` industry. Sysco Corp. has a market cap of $18.56 billion; its shares were traded at around $31.37 with a P/E ratio of 16.9 and P/S ratio of 0.5. The dividend yield of Sysco Corp. stocks is 3.2%. Sysco Corp. had an annual average earning growth of 10.4% over the past 10 years. GuruFocus rated Sysco Corp. the business predictability rank of 3.5-star.

Added: Conocophillips (COP)

Donald Yacktman added to his holdings in Conocophillips by 11.33%. His purchase prices were between $49.57 and $59.7, with an estimated average price of $54.39. The impact to his portfolio due to this purchase was 0.52%. His holdings were 3,776,270 shares as of 06/30/2010.

ConocoPhillips is a major international integrated energy company with operations in some 49 countries. Conocophillips has a market cap of $85.62 billion; its shares were traded at around $57.53 with a P/E ratio of 10.9 and P/S ratio of 0.6. The dividend yield of Conocophillips stocks is 3.8%. Conocophillips had an annual average earning growth of 18.2% over the past 10 years.

Added: Viacom Inc. (VIA.B)

Donald Yacktman added to his holdings in Viacom Inc. by 5.01%. His purchase prices were between $32.07 and $36.6, with an estimated average price of $34.4. The impact to his portfolio due to this purchase was 0.26%. His holdings were 6,397,468 shares as of 06/30/2010.

Viacom is a global entertainment content company whose family of prominent and respected brands includes the multiplatform properties of MTV Networks, BET Networks, Paramount Pictures, Paramount Home Entertainment and DreamWorks. Viacom Inc. has a market cap of $18.06 billion; its shares were traded at around $34.12 with a P/E ratio of 12.3 and P/S ratio of 1.3.

Added: Total System Services Inc. (TSS)

Donald Yacktman added to his holdings in Total System Services Inc. by 30.26%. His purchase prices were between $13.64 and $16.77, with an estimated average price of $15.22. The impact to his portfolio due to this purchase was 0.26%. His holdings were 2,991,535 shares as of 06/30/2010.

Total System Services provides global commerce solutions. Total System Services Inc. has a market cap of $2.98 billion; its shares were traded at around $15.12 with a P/E ratio of 13.6 and P/S ratio of 1.8. The dividend yield of Total System Services Inc. stocks is 1.9%. Total System Services Inc. had an annual average earning growth of 12.1% over the past 10 years. GuruFocus rated Total System Services Inc. the business predictability rank of 3-star.

Added: Covidien Ltd. (COV)

Donald Yacktman added to his holdings in Covidien Ltd. by 54.2%. His purchase prices were between $39.5 and $52.28, with an estimated average price of $45.1. The impact to his portfolio due to this purchase was 0.12%. His holdings were 307,275 shares as of 06/30/2010.

Covidien PLC, formerly Covidien Ltd, is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Covidien Ltd. has a market cap of $18.45 billion; its shares were traded at around $36.8 with a P/E ratio of 11.1 and P/S ratio of 1.7. The dividend yield of Covidien Ltd. stocks is 2%.

Added: Bank Of NY Mellon Cp (BK)

Donald Yacktman added to his holdings in Bank Of Ny Mellon Cp by 54.57%. His purchase prices were between $25.11 and $32.54, with an estimated average price of $29.03. The impact to his portfolio due to this purchase was 0.12%. His holdings were 511,072 shares as of 06/30/2010.

Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank Of Ny Mellon Cp has a market cap of $31.33 billion; its shares were traded at around $25.83 with a P/E ratio of 10.9 and P/S ratio of 2.3. The dividend yield of Bank Of Ny Mellon Cp stocks is 1.4%.

Added: Comcast Corp. Special (CMCSK)

Donald Yacktman added to his holdings in Comcast Corp. Special by 3.09%. His purchase prices were between $16.0275 and $19.33, with an estimated average price of $17.43. The impact to his portfolio due to this purchase was 0.12%. His holdings were 8,736,258 shares as of 06/30/2010.

Comcast Corporation is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast Corp. Special has a market cap of $53.05 billion; its shares were traded at around $18.35 with a P/E ratio of 15.2 and P/S ratio of 1.5. The dividend yield of Comcast Corp. Special stocks is 2.1%. Comcast Corp. Special had an annual average earning growth of 14.9% over the past 10 years.

Reduced: Lowe's Companies Inc. (LOW)

Donald Yacktman reduced to his holdings in Lowe's Companies Inc. by 23.5%. His sale prices were between $20.6 and $28.22, with an estimated average price of $24.9. The impact to his portfolio due to this sale was -0.01%. Donald Yacktman still held 68,700 shares as of 06/30/2010.

Lowe's Companies Inc. is a retailer of home improvement products in the world, with specific emphasis on retail do-it-yourself and commercial business customers. Lowe's Companies Inc. has a market cap of $30.48 billion; its shares were traded at around $21.33 with a P/E ratio of 17.1 and P/S ratio of 0.6. The dividend yield of Lowe's Companies Inc. stocks is 2.1%. Lowe's Companies Inc. had an annual average earning growth of 11.8% over the past 10 years.

Reduced: ColgatePalmolive Company (CL)

Donald Yacktman reduced to his holdings in Colgatepalmolive Company by 22.08%. His sale prices were between $76.93 and $85.81, with an estimated average price of $81.72. The impact to his portfolio due to this sale was -0.03%. Donald Yacktman still held 70,600 shares as of 06/30/2010.

Colgate-Palmolive is a global consumer products company, tightly focused on Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgatepalmolive Company has a market cap of $38.38 billion; its shares were traded at around $78.25 with a P/E ratio of 16.6 and P/S ratio of 2.5. The dividend yield of Colgatepalmolive Company stocks is 2.7%. Colgatepalmolive Company had an annual average earning growth of 8.6% over the past 10 years. GuruFocus rated Colgatepalmolive Company the business predictability rank of 4-star.

Reduced: Dell Inc. (DELL)

Donald Yacktman reduced to his holdings in Dell Inc. by 29.03%. His sale prices were between $12.27 and $17.5, with an estimated average price of $14.79. The impact to his portfolio due to this sale was -0.05%. Donald Yacktman still held 550,000 shares as of 06/30/2010.

Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $26.65 billion; its shares were traded at around $13.61 with a P/E ratio of 13 and P/S ratio of 0.5. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.

Reduced: Loews Corp. (L)

Donald Yacktman reduced to his holdings in Loews Corp. by 24.69%. His sale prices were between $31.12 and $38.81, with an estimated average price of $34.88. The impact to his portfolio due to this sale was -0.07%. Donald Yacktman still held 320,000 shares as of 06/30/2010.

Loews Corporation is a holding company. Its subsidiaries are engaged in thefollowing lines of business: property, casualty and life insurance; the production and sale of cigarettes; the operation of hotels; the operation of offshore oil and gas drilling rigs; and the distribution and sale of watches and clocks. Loews Corp. has a market cap of $15.73 billion; its shares were traded at around $37.58 with a P/E ratio of 10 and P/S ratio of 1.1. The dividend yield of Loews Corp. stocks is 0.7%. Loews Corp. had an annual average earning growth of 11% over the past 5 years.

Sold Out: USG Corp. (USG)

Donald Yacktman sold out his holdings in Usg Corp.. His sale prices were between $12.53 and $24.97, with an estimated average price of $18.55.

USG Corp., through its subsidiaries, is a manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. USG Corp. has a market cap of $1.24 billion; its shares were traded at around $12.47 with and P/S ratio of 0.4.

Sold Out: Cintas Corp. (CTAS)

Donald Yacktman sold out his holdings in Cintas Corp.. His sale prices were between $24.22 and $28.73, with an estimated average price of $26.53.

Cintas Corp. provides a specialized service to businesses of all types - from small service and manufacturing companies to major corporations. Cintas Corp. has a market cap of $4.15 billion; its shares were traded at around $27.15 with a P/E ratio of 18.2 and P/S ratio of 1.2. The dividend yield of Cintas Corp. stocks is 1.8%. Cintas Corp. had an annual average earning growth of 6.4% over the past 10 years. GuruFocus rated Cintas Corp. the business predictability rank of 3.5-star.

Sold Out: FMC Technologies Inc. (FTI)

Donald Yacktman sold out his holdings in Fmc Technologies Inc.. His sale prices were between $47.6 and $73.32, with an estimated average price of $60.39.

FMC Technologies, Inc. designs, manufactures and services technologically sophisticated systems and products for customers through their Energy Production Systems, Energy Processing Systems, FoodTech and Airport Systems segments. Fmc Technologies Inc. has a market cap of $7.86 billion; its shares were traded at around $64.68 with a P/E ratio of 21.1 and P/S ratio of 1.8. Fmc Technologies Inc. had an annual average earning growth of 30.6% over the past 10 years.


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