Donald Yacktman Invests in Bank of America, Berkshire

GuruFocus.com
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- By Tiziano Frateschi

Donald Yacktman (Trades, Portfolio) is the president and co-chief investment officer of Yacktman Asset Management Co. He is also a co-manager for the Yacktman Fund (Trades, Portfolio). During the third quarter the guru's largest buys were the following:


His stake in Twenty-First Century Fox Inc. Class A (FOXA) was raised by 18.80% and with an impact of 1.59% on the portfolio. It is a diversified media and entertainment company. It operates in five business segments: Cable Network Programming, Television, Filmed Entertainment and Other Corporate and Eliminations. First quarter income from continuing operations attributable to stockholders was $827 million or 44 cents per share compared to $678 million or 34 cents per share reported in the same quarter of a year before, and revenue increased 7% year over year.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 20.22% and return on assets (ROA) of 5.99% are outperforming 70% of the companies in the Global Media - Diversified industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.24 that is below the industry median of 0.98.

The largest shareholder among the gurus is Dodge & Cox with 3.73% of outstanding shares followed by Yacktman with 2.57%, Yacktman Fund with 1.28%, Yacktman Focused Fund (Trades, Portfolio) with 0.8%, Seth Klarman (Trades, Portfolio) with 0.69%, Manning & Napier Advisors Inc. with 0.54% and Warren Buffett (Trades, Portfolio) with 0.48%.

The guru raised his stake in Bank of America Corp. (BAC), a bank holding and a financial holding company, by 0.61%. Through its subsidiaries, it provides banking and nonbanking financial services and products throughout the U.S. and in selected international markets. Third-quarter revenue increased 3%, net interest income grew 3%, and noninterest income increased 3%.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 5.16% and ROA of 0.70% are underperforming 73% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.60 that is above the industry median of 1.98.

Dodge & Cox is the largest shareholder among the gurus with 2.26% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.79%, HOTCHKIS & WILEY with 0.55%, Ken Fisher (Trades, Portfolio) with 0.35%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Bill Nygren (Trades, Portfolio) with 0.32% and Richard Pzena (Trades, Portfolio) with 0.28%.

The investor increased his stake in Berkshire Hathaway Inc. Class B (BRK.B) by 2.20%. It is a conglomerate holding company owning subsidiaries engaged in a number of business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 8.98% and ROA 4.04% are outperforming 50% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.83.

The largest shareholder among the gurus is Bill Gates (Trades, Portfolio) with 3.01% of outstanding shares followed by Fisher with 0.23%, Ruane Cunniff (Trades, Portfolio) with 0.18%, David Rolfe (Trades, Portfolio) with 0.13%, Tom Russo (Trades, Portfolio) with 0.11% and Lou Simpson (Trades, Portfolio) with 0.09%.

The guru raised his stake in Colgate-Palmolive Co. (CL), a consumer products company, by 0.27%. It provides services such as oral care, personal care, home care and pet nutrition. Third-quarter net sales decreased 3.5% from the same quarter of a year before, and net income and diluted earnings per share in third quarter 2015 were $726 million and 80 cents.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 10.91% and ROA of 73.38% are outperforming 84% of the companies in the Global Household & Personal Products industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.20 that is below the industry median of 0.51.

Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus with 0.77% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.52%, Jeremy Grantham (Trades, Portfolio) with 0.24%, Pioneer Investments (Trades, Portfolio) with 0.17%, Yacktman Fund with 0.14% and Caxton Associates (Trades, Portfolio) with 0.03%.

The investor slightly increased his stake in ConocoPhillips (COP) by 0.05%. The company is engaged in exploration, development and production of crude oil and natural gas.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -17.86% and ROA of -7.12% are outperforming 52% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.15 that is below the industry median of 0.61.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.58% of outstanding shares followed by First Eagle Investment with 0.67%, Steven Cohen (Trades, Portfolio) with 0.23%, Pzena with 0.22%, Tweedy Browne (Trades, Portfolio) with 0.2% and Yacktman Fund with 0.18%.

The guru purchased 18,474 shares in Reading International Inc. (RDI), a diversified company engaged in the development, ownership and operation of multiplex cinemas and retail and commercial real estate in the U.S., Australia and New Zealand. During the third quarter consolidated revenue grew 23% while net income decreased 875%. The company reported a 73% increase for EBITDA.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 8.99% and ROA of 3.24% are outperforming 58% of the companies in the Global Media - Diversified industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.07 that is below the industry median of 0.98.

Simons is the largest shareholder among the gurus with 4.38% of outstanding shares followed by Whitney Tilson (Trades, Portfolio) with 1.25% and Mario Gabelli (Trades, Portfolio) with 0.17%.

The guru raised his shares in Staples Inc. (SPLS) by 0.12%. Staples operates as an office products company that sells and delivers office products and services. The company provides products, services and expertise in the categories of office supplies, technology, furniture, copy & print and others. Total sales decreased 5% from the same quarter of a year before, and GAAP earnings per diluted share decreased 13%.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -9.05% and ROA of -4.41% are underperforming 84% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 5 out of 10 with cash to debt of 1.03 that is above industry median of 0.72.

The largest shareholder among the gurus is Pzena with 5.25% of outstanding shares followed by Simons with 1.09%, Diamond Hill Capital (Trades, Portfolio) with 0.69%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.32%, Yacktman Fund with 0.31%, HOTCHKIS & WILEY with 0.27% and Ray Dalio (Trades, Portfolio) with 0.16%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.


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