Samsung (XKRX:005935, Financial), our largest holding, was the strongest contributor to results in the fourth quarter. The stock rallied due to increasing signs of a bottom in the memory semiconductor markets. Samsung remains inexpensive, with about one-third of its value in excess cash and securities and the shares trading at less than 10x our expectation of 2020 earnings, which is less than 6.5x net of excess cash and investments. We think earnings will rebound solidly in the near term and the long-term outlook is attractive as there will be greater demand for memory from 5G, artificial intelligence, the internet of things, autonomous driving, and other data applications.
From the AMG Yacktman Fund (Trades, Portfolio)'s fourth-quarter 2019 shareholder letter.
