Don Yacktman
Yacktman Fund
Don Yacktman bets on steady companies when he thinks the market is overheating; when prices are low, he goes shopping for beaten-down stocks. That approach helped his $2 billion Yacktman Fund finish in the top 2% of its category in 2008, losing just 26% during the financial crisis, and in the top 1% in 2009, rising 59.3%.
Yacktman's top choice now is PepsiCo, the food and beverage giant. He's attracted by the stock's valuation (18 times trailing earnings) and 3% dividend yield. "It's low capital intensive and has a predictable cash flow," he says.
Yacktman sees growth in PepsiCo's overseas markets, which make up 50% of its sales. But he urges patience: "The relative performance of Pepsi vs. the market won't show up quarter by quarter, but it will show up over a five- or 10-year period."
--M.K.
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