Don't Sell on Greece or Pullback—'Do Your Homework' Instead
With a perfect storm of chaos hitting the markets this week—protests in Athens, a possible Greek debt default and a near-1,000 point selloff in the Dow Jones Industrial Average—how can jittery investors find the confidence to enter the market?
Donald Yacktman, president of Yacktman Asset Management, told CNBC that he takes a 10-year approach to investing, and he always thinks forward—and positively.
"There's no substitute for knowledge," he said. "Do your homework, [and] be patient."
Yacktman said his firm has continued buying stocks since Thursday's volatile dip, just as it did following the collapse of Lehman Brothers in 2008. After that selloff, he said his firm acted "just like kids in a candy shop."
Though he would not specifically name which stocks he purchased, he said, "If you look at our biggest holdings and our low turnover rate, you can kind of get an idea." (See a list of his firm's top holdings below.)
Yacktman added that he chooses his holdings based first on value, and then on whether the company has a good business plan or strong management.
"We're always looking for things to buy," he said. "And when the prices come down [and] where the forward rates of return are adequate, we'll buy."
Yacktman's Top Holdings:
PepsiCo
News Corp
Coca-Cola
ConocoPhillips
Viacom
Clorox
Pfizer
Comcast
Microsoft
Procter & Gamble
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Counterpoint:
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What He Said Last Time:
- See Yacktman's Last Appearance on CNBC (Dec. 8, 2009)
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CNBC Data Pages:
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CNBC Slideshows:
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Disclosures:
Disclosure information was not available for Yacktman or his company.
