Every quarter, many money managers have to disclose what they've bought and sold. Their latest moves can shine a bright light on smart stock picks.
Today let's look at investing giant Donald Yacktman, who founded Yacktman Asset Management in 1992. He isn't as well known as investors such as Buffett, Soros, Berkowitz, and the like, but his track record is right up there with them. Yacktman is a value investor, aiming to achieve the highest possible risk-adjusted long-term return on his investments. According to the folks at GuruFocus.com, Yacktman gained about 175% cumulatively over the past decade, compared with just 35% for the S&P 500.
The Yacktman portfolio totaled about $14.6 billion in value as of March 31, 2012, with 63 holdings. The portfolio's top three holdings, representing almost a third of its asset value, are PepsiCo, News Corp., and Procter & Gamble.
So what does Yacktman's latest quarterly 13F filing tell us? Here are a few interesting details:
There were just two new holdings -- Tesco plc and Staples
Among holdings in which Yacktman increased its stake were Corning
Food distribution titan Sysco has been hurt by rising fuel costs, and by the lackluster economy. But the economy is showing signs of life lately, and that means people will be eating out more often, which will be good for Sysco's business. Rising food prices may also put pressure on profits, but shareholders can still rely on the company's solid dividend, recently about 3.8%.
Yacktman reduced its stake in several companies, such as Paychex
Finally, Yacktman entirely unloaded electronic payment processor Total System Services
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13F forms can be great places to find intriguing candidates for our portfolios.
If you're looking for ways to profit from the booming demand for tablets and smartphones and would like to consider candidates other than Corning, check out our special free report, "The Next Trillion-Dollar Revolution" -- which names names.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Procter & Gamble, Paychex, Apple, Corning, and PepsiCo, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of PepsiCo, Staples, Apple, and Corning. Motley Fool newsletter services have recommended buying shares of Procter & Gamble, Sysco, Paychex, Corning, PepsiCo, Apple, Staples, and Tesco; as well as creating a bull call spread position in Apple, writing a covered straddle position in Paychex, and creating a diagonal call position in PepsiCo. The Motley Fool has a disclosure policy.