During the second quarter, some of the largest detractors included Fox (FOX), P&G (PG), and Samsung (XKRX:005935), which are among our high conviction long-term investments. We think these investments all offer significant long-term value despite their recent unpopularity.
Samsung (XKRX:005935)’s shares declined in the second quarter due to weaker-than-expected mobile phone sales. The shares are inexpensive and offer good downside protection due to the fortress balance sheet. Net of the excess cash and investments the stock sells for 3-4 times earnings, which we think is remarkably cheap, especially given the strong market position of its semiconductor business.
From Yacktman Focused Fund (Trades, Portfolio)'s 2nd Quarter 2015 Commentary.
