Donald Yacktman's Third Quarter Portfolio Top Five

Author's Avatar
Nov 05, 2013
Article's Main Image
Over the duration of the third quarter Donald Yacktman of Yacktman Asset Management added two new stocks to his holdings, bringing his total portfolio holdings to 53 stocks. As of the close of the quarter his portfolio was valued at $22.42 billion.

The following five companies represent the Texas-guru’s top five portfolio holdings as of the close of the third quarter.



Twenty-First Century Fox (FOXA)

Donald Yacktman’s largest position is actually in a new company that he purchased over the duration of the third quarter. Yacktman purchased 70,753,947 shares in the third quarter price range of $28.85 to $33.51, with an estimated average quarterly price of $31.48 per share. Since then the price per share has increased approximately 8.4%.

Yacktman’s position in the company represents 10.6% of his total portfolio and 3.06% of the company’s shares outstanding.

Donald Yacktman’s historical holding history:

1383681897559.png

Twenty-First Century Fox is a diversified media and entertainment company. Its segments include Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television.

Twenty-First Century Fox’s historical revenue and net income:

1383682625607.png

The analysis on Twenty-First Century Fox reports that the company’s dividend yield is near a 5-year low, the company’s revenue has been in decline over the past five years and its price is sitting near its 10-year high.

Top guru shareholders of FOXA:

1. Donald Yacktman: 70,753,947 shares, representing 3.06% of the company’s shares outstanding and 10.6% of his total portfolio.

2. Dodge & Cox: 47,246,074 shares, representing 2.05% of the company’s shares outstanding and 1.8% of their total assets managed.

3. Yacktman Fund: 31,400,000 shares, representing 1.36% of the company’s shares outstanding and 10.6% of the fund’s total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

1383682721342.png

Twenty-First Century Fox has a market cap of $78.74 billion. Its shares are currently trading at around $34.10 with a P/E ratio of 11.20, a P/S ratio of 2.90 and a P/B ratio of 4.60.

PepsiCo (PEP)

Yacktman’s second largest position is in PepsiCo where he holds on to 27,937,091 shares of the company’s stock. His position in Pepsi represents 9.9% of his fund’s total portfolio and 1.81% of Pepsi’s shares outstanding.

During the third quarter, the Donald Yacktman upped his stake 21.71% by purchasing a total of 4,983,570 shares. The guru purchased these shares in the third quarter price range of $79.06 to $86.80, with an estimated average quarterly price of $82.18 per share. The price per share has since then increased about 3.1%.

Donald Yacktman’s historical holding history:

1383682995627.png

PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages and other products.

PepsiCo’s historical revenue and net income:

1383683030390.png

The analysis on Pepsi reports that the company’s revenue has slowed over the past year, the dividend yield is nearing a five-year low, its P/E ratio is at a one-year low and the company has issued $5.2 billion of debt over the past three years.

The top guru shareholders of PepsiCo:

1. Donald Yacktman: 27,937,091 shares, representing 1.81% of the company’s shares outstanding and 9.9% of his total portfolio.

2. Jeremy Grantham: 14,729,864 shares, representing 0.96% of the company’s shares outstanding and 3.1% of his total assets managed.

3. Yacktman Fund: 11,550,000 shares, representing 0.75% of the company’s shares outstanding and 9.2% of the fund’s assets managed.

The Peter Lynch Chart suggests that the company is currently overvalued:

1383683049237.png

PepsiCo has a market cap of $129.99 billion. Its shares are currently trading at around $84.76 with a P/E ratio of 19.80, a P/S ratio of 2.00 and a P/B ratio of 5.80. The company had an annual average earnings growth of 9.5% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 5-star.

Procter & Gamble (PG)

Yacktman’s third largest position is in Procter & Gamble where he holds on to 25,107,262 shares of the company’s stock. His position in the company represents 8.5% of his total portfolio and 0.92% of the company’s shares outstanding.

Over the past quarter Yacktman decreased his holdings in Procter & Gamble -1.13% by selling a total of 285,785 shares of the company’s stock. He sold these shares in the price range of $75.59 to $82.17, with an estimated average quarterly price of $79.58. Since his sell the price per share has gone up approximately 2.6%.

Donald Yacktman’s holding history as of the close of the third quarter:

1383683696101.png

Procter & Gamble provides branded consumer packaged goods. The company's business units are aggregated into five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care and Baby Care and Family Care.

Procter & Gamble’s historical revenue and net income:

1383683791172.png

The analysis on Procter & Gamble reports that the company’s revenue has slowed over the past year, its price is close to a 10-year high and they have issued $1.5 billion of debt over the past three years.

The top guru shareholders of Procter & Gamble:

1. Warren Buffett: 52,793,078 shares, representing 1.93% of the company’s shares outstanding and 4.6% of his total portfolio.

2. Donald Yacktman: 25,107,262 shares, representing 0.92% of the company’s shares outstanding and 8.5% of his total assets managed.

3. Jeremy Grantham: 18,854,995 shares, representing 0.69% of the company’s shares outstanding and 3.8% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently overvalued:

1383683842203.png

Procter & Gamble has a market cap of $221.97 billion. Its shares are currently trading at around $81.66 with a P/E ratio of 20.70, a P/S ratio of 2.80 and a P/B ratio of 3.30. The dividend yield of Procter & Gamble stocks is currently at 2.90%. The company had an annual average earnings growth of 4.10% over the past ten years.

Coca-Cola (KO)

Yacktman’s fourth largest position is in the guru-favorite Coca-Cola. Donald Yacktman holds on to 39,816,732 shares of Coke, representing 6.7% of his total portfolio and 0.90% of the company’s shares outstanding.

During the third quarter Don Yacktman made a notable increase to their stake, increasing it by 41.66%. The guru purchased a total of 11,709,905 shares at an estimated average quarterly price of $39.53 per share. Since his increase the price per share has increased a slight 0.1%.

Yacktman’s historical holding history:

1383684479569.png

Coca-Cola is a beverage company. It owns or license and market more than 500 nonalcoholic beverage brands, mainly sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Coca-Cola’s historical revenue and net income:

1383684577032.png

The analysis on Coca-Cola reports that the revenue has slowed over the past year, they have issued $14.4 billion of debt over the past three years and its P/S, P/B and P/E ratios are all trading at historical lows.

The top guru shareholders of Coca-Cola:

1. Warren Buffett: 400,000,000 shares, representing 9.02% of the company’s shares outstanding and 18% of his total portfolio.

2. Jeremy Grantham: 42,088,314 shares, representing 0.95% of the company’s shares outstanding and 4.4% of his total assets managed.

3. Donald Yacktman: 39,816,732 shares, representing 0.77% of the company’s shares outstanding and 6.7% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently overvalued:

1383684597919.png

Coca-Cola has a market cap of $174.69 billion. Its shares are currently trading at around $39.56 with a P/E ratio of 20.60, a P/S ratio of 3.80 and a P/B ratio of 5.40. The company had an annual average earnings growth of 9.3% over the past ten years.

Cisco Systems (CSCO)

Donald Yacktman’s fifth largest holding is in Cisco Systems where the guru currently holds on to 50,273,165 shares of the company’s stock. His position in Cisco represents 5.3% of his total portfolio and 0.94% of the company’s shares outstanding.

During the third quarter Yacktman reduced his holdings -4.95% by selling 2,617,526 shares of the company’s stock. He sold these shares in the quarterly price range of $23.31 to $26.38, with an estimated average quarterly price of $24.82. Since his sell the price per share is down about -6.6%.

Donald Yacktman’s holding history as of the third quarter:

1383685145733.png

Cisco Systems sells networking and communications products and provides related services. The company's two main products are switches and routers, but Cisco essentially touches everything in the networking industry. Cisco is the current leader in the data networking industry.

Cisco Systems’ historical revenue and net income:

1383685434962.png

The analysis on Cisco reports that the company has shown predictable revenue and earnings growth, its dividend yield is nearing a 3-year high and the company has issued $939 million of debt over the past three years, but overall its debt level is acceptable.

Top guru shareholders of Cisco:

1. Donald Yacktman: 50,273,165 shares, representing 0.94% of the company’s shares outstanding and 5.3% of his total portfolio.

2. Jeremy Grantham: 49,830,519 shares, representing 0.93% of the company’s shares outstanding and 3.2% of his total portfolio.

3. Jean-Marie Eveillard: 43,088,314 shares, representing 0.81% of the company’s shares outstanding and 3.3% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

1383685518365.png

Check out Donald Yacktman’s third quarter portfolio along with the portfolios of the Yacktman Focused Fund and the Yacktman Fund.

Try a 7-day premium membership trial here.