Yacktman Asset Management (Trades, Portfolio) shifted its portfolio in the second quarter, sloughing seven stocks and decreasing the majority of positions while adding little on the buy side.
Yacktman Asset Management (Trades, Portfolio), the staunch value investing firm founded by Donald Yacktman and run by Stephen Yacktman, established one position in the second quarter, The Hershey Co. (HSY, Financial). It also tripled its shareholding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (BRK.B, Financial) and Amerco Inc. (UHAL, Financial), among smaller additions.
In sales, Yacktman chiseled some of its larger holdings, including Twenty-First Century Fox Inc. (FOX, Financial), Microsoft (MSFT, Financial), Sysco (SYY, Financial) and Cisco Systems (CSCO, Financial). The exited positions were: HP Inc. (HPQ, Financial), Viacom Inc. (VIAB, Financial), Micro Focus International PLC (MFGP, Financial), 3M Co. (MMM, Financial), Bank of America Corp. (BAC), Hewlett Packard Enterprise (HPE) and Express Scripts Holding (ESRX).
In a first-quarter letter, Yacktman wrote that it was selling positions “that became less attractive, often due to price appreciation.”
Yacktman’s portfolio had a value of $8.05 billion at the end of the second quarter, listing 39 stocks. The largest represented sector is consumer defensive, at 38.9%, followed by technology at 19.8%.
The firm has eclipsed the benchmark, returning 9.67% since inception versus 7.96% for the S&P 500.
New buy
The Hershey Co. (HSY, Financial)
Yacktman purchased 9,500 shares of The Hershey Co., giving it 0.01% of the portfolio. The stock’s second-quarter share price averaged $93.
The Hershey Co. has a market cap of $20.76 billion; its shares were traded around $99.16 with a P/E ratio of 20.42 and P/S ratio of 2.74. The trailing 12-month dividend yield of The Hershey Co. stocks is 2.64%. The forward dividend yield of The Hershey Co. stocks is 2.96%. The Hershey Co. had an annual average earnings growth of 7.60% over the past 10 years. GuruFocus rated The Hershey Co. the business predictability rank of 3-star.
Increases
Berkshire Hathaway (BRK.B, Financial)
Yacktman purchased 72,498 shares of Berkshire Hathaway, increasing the position 312.94% to 0.22% of the portfolio. Berkshire’s share price averaged $195 for the quarter.
Berkshire Hathaway Inc. has a market cap of $496.37 billion; its shares were traded around $199.91 with a P/E ratio of 12.57 and P/S ratio of 2.19. Berkshire Hathaway Inc. had an annual average earnings growth of 10.70% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 4-star.
Yacktman purchased 120,253 shares of Amerco Inc., increasing the position 305.45% to 0.53% of the portfolio. Amerco’s share price averaged $348 for the quarter.
Amerco Inc. has a market cap of $7.49 billion; its shares were traded around $381.76 with a P/E ratio of 9.43 and P/S ratio of 2.07. Amerco Inc. had an annual average earnings growth of 14.40% over the past 10 years. GuruFocus rated Amerco Inc. the business predictability rank of 5-star.
See Yacktman Asset Management (Trades, Portfolio)’s portfolio here.
