If you’re a long-term investor, top money pro Don Yacktman says a handful of stocks are in the sweet spot, right here and right now.
Yacktman is one of the most widely followed money managers on Wall Street. He currently has $17 billion under management and his two funds have been among the best performing funds over the past 10 years.
Yacktman tells us if you can hold for the long-term, there's absolutely no reason to sell. In fact, he's a buyer and sees plenty of bargains.
But what's he buying?
“Typically the kinds of stocks that we buy are large very profitable business. Those have been the best opportunities. We’re in a market where you’re not being paid to take on a lot of additional risk. As a result, these kinds of companies are in the sweet spot," he says during a live interview on CNBC's Fast Money Halftime Report.
And 3 of Yacktman's favorite stocks are Procter & Gamble, Johnson & Johnson and News Corp.
It’s true that all 3 of these companies have had issues lately, but that doesn’t affect how Yacktman thinks about them. “Only in a very minor way,” he explains.
He goes on to say with many other companies, the outcome is impossible to predict, “but I can tell you you’re going to use Tide and Pampers,” referring to P&G brands.
Yacktman thinks the same is true for JNJ and News Corp, that their brands are very strong and their businesses solid. And he believes any problems they face in the near-term, such as currency headwinds, pale in comparison to the long-term opportunities.
In other words, these are the kinds of stocks that when shares pull back, he buys more.
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long BAC; Brian Kelly is long PNC; Brian Kelly is long AAPL; Brian Kelly is long JPM; Brian Kelly is long UUP; Stephanie Link is long JPM; Stephanie Link is long CVX; Steve Grasso is long CUBA; Steve Grasso is long GERN; Steve Grasso is long HPQ; Steve Grasso is long HSPO; Steve Grasso is long MU; Steve Grasso is long NYX; Steve Grasso is long PRST; Steve Grasso is long VVUS; Steve Grasso is long XRX; Steve Grasso is long ZNGA; Steve Grasso is long APC; Steve Grasso is long BAX; Steve Grasso is long DVN; Steve Grasso is long ESEV; Steve Grasso is long TBT; Steve Grasso is long UNM; Steve Cortes is long PPH; Steve Cortes is long SVU; Steve Cortes is long TREASURIES; Steve Cortes is short XLY vs. S&P LONG; Steve Cortes is short QQQ; Steve Cortes is short COH; Steve Cortes is short GOLD; Steve Cortes is short EUR
For Todd Gordon
Nothing to Dislcose
For Don Yacktman
Don Yacktman is long RIM
Don Yacktman is long PG
Don Yacktman is long MSFT
For Jeff Kilburg
Nothing to Disclose
For Mike Binetti
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of the following companies' common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recent month`s end): JCP
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in NKE
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: KOH
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: RL
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: KOH
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: RL
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: KOH
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: RL
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