Samsung’s (XKRX:005935, Financial) shares were weaker in the third quarter and have lagged in 2021 after producing exceptional returns in 2020. The stock has been out of favor recently due to concerns about a down cycle in the memory semiconductor market in the near term. We believe the valuation of Samsung does not appropriately value its significant memory business, even though it is the #1 producer of memory chips, is highly profitable, and should produce strong growth over time as the world continues to need more processing and storage.
From the Yacktman Fund (Trades, Portfolio)'s third-quarter 2021 letter.