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Guru Donald Yacktman's Top Five Holdings

February 02, 2014 | About:
Monica Wolfe

Monica Wolfe

122 followers

Over the duration of the fourth quarter Donald Yacktman of Yacktman Asset Management added 11 new stocks to his holdings, bringing his total portfolio holdings to 61 stocks. As of the close of the quarter his portfolio was valued at $24.51 billion.

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

PepsiCo (PEP)

Yacktman’s largest position is in PepsiCo where he holds on to 31,899,219 shares of the company’s stock. His position in Pepsi represents 10.8% of his fund’s total portfolio and 2.07% of Pepsi’s shares outstanding.

During the fourth quarter, the Donald Yacktman upped his stake 14.18% by purchasing a total of 3,962,128 shares. The guru purchased these shares in the fourth quarter price range of $78.93 to $86.68, with an estimated average quarterly price of $83.04 per share. The price per share has since then dropped about -3.2%.

Donald Yacktman’s historical holding history:

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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:

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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 Peter Lynch Chart suggests that the company is currently overvalued:

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PepsiCo has a market cap of $123.24 billion. Its shares are currently trading at around $80.36 with a P/E ratio of 18.80, a P/S ratio of 1.90 and a P/B ratio of 5.50. The company had an annual average earnings growth of 8.6% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 4.5-star.

Twenty-First Century Fox (FOXA)

Donald Yacktman’s second largest position is actually in a newer company that he purchased back over the duration of the third quarter. Yacktman sold shares in the third quarter price range of $32.20 to $35.17, with an estimated average quarterly price of $31.48 per share. Since then the price per share has dropped approximately -5.7%.

Yacktman’s position in the company represents 9% of his total portfolio and 2.70% of the company’s shares outstanding.

Donald Yacktman’s historical holding history:

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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:

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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.

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

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Twenty-First Century Fox has a market cap of $72.61 billion. Its shares are currently trading at around $31.82 with a P/E ratio of 12.20, a P/S ratio of 2.79 and a P/B ratio of 4.60.

Procter & Gamble (PG)

Yacktman’s third largest position is in Procter & Gamble where he holds on to 25,808,953 shares of the company’s stock. His position in the company represents 8.6% of his total portfolio and 0.94% of the company’s shares outstanding.

Over the past quarter Yacktman upped his holdings in Procter & Gamble 2.79% by selling a total of 285,785 shares of the company’s stock. He sold these shares at an estimated average quarterly price of $81.47. Since his sell the price per share has dropped approximately -6%.

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

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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:

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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 Peter Lynch Chart suggests that the company is currently overvalued:

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Procter & Gamble has a market cap of $207.75 billion. Its shares are currently trading at around $76.62 with a P/E ratio of 20.50, a P/S ratio of 2.64 and a P/B ratio of 3.04. The dividend yield of Procter & Gamble stocks is currently at 3.14%. The company had an annual average earnings growth of 4.30% 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 43,243,371 shares of Coke, representing 7.3% of his total portfolio and 0.98% of the company’s shares outstanding.

During the third quarter Don Yacktman made a increase to his stake, increasing it by 8.61%. The guru purchased a total of 3,426,639 shares at an estimated average quarterly price of $39.44 per share. Since his increase the price per share has decreased a slight -4.1%.

Yacktman’s historical holding history:

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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:

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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 Peter Lynch Chart suggests that the company is currently overvalued:

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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 19.60, a P/S ratio of 3.62and a P/B ratio of 5.20. The company had an annual average earnings growth of 11% 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 24.23% by purchasing 12,182,155 shares of the company’s stock. He bought these shares in the quarterly price range of $20.24 to $24.00, with an estimated average quarterly price of $22.12. Since his sell the price per share is down about –0.9%.

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

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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:

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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.

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

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

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