1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dheeraj Grover
Dheeraj Grover
Articles (493) 

Yacktman: Taking Advantage of a Casino Mentality

June 27, 2012 | About:

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 (NASDAQ: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:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 4.4/5 (17 votes)



Please leave your comment:

GuruFocus has detected 9 Warning Signs with Microsoft Corp $MSFT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by Dheeraj Grover

User Generated Screeners

jont017Low Ebitda/EV
pbarker46PB & PS
jjcarlin99Utilities - non-regulated
jjcarlin99MidStream Oil & Gas
pbarker46EV/EBITDA & P/Med PS
pbarker46High short
Taekgyun Kopbr
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)