"Tracking Yacktman Asset Management Portfolio – Q1 2019 Update"
"Yacktman's 13F equity portfolio value increased from $7.84B to $8.09B this quarter.Yacktman Asset Management added Booking Holdings and Alphabet while reducing Oracle and Cisco Systems during the quarter.Their largest five stakes are at ~48% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Yacktman’s 13F stock portfolio on a quarterly basis. It is based on Yacktman Asset Management’s regulatory  filed on 05/02/2019. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2018.This quarter, Yacktman Asset Management’s (YACKX) (YAFFX) (YASSX) 13F portfolio value increased ~3% from $7.84B to $8.09B. The number of holdings increased from 43 to 44. The largest holding is Procter & Gamble at ~14% of the 13F portfolio. Largest five individual stock positions are Procter & Gamble, PepsiCo Inc., Johnson & Johnson, Coca-Cola Company, and Oracle and together they account for 47.55% of the 13F portfolio. The firm currently holds around one-third cash - a far cry compared to zero cash immediately following the financial crisis. The portfolio is concentrated with recent 13F reports showing around 45 individual positions. 27 of their stakes are significantly large (over ~0.5% of the 13F portfolio each) and they are the focus of this article.New Stakes:Booking Holdings (BKNG) and Alphabet Inc. (GOOG): BKNG is a fairly large 4.58% of the portfolio position purchased this quarter at prices between $1650 and $1935. The stock currently trades at $1777. The 2.63% stake in GOOG was established at prices between $1015 and $1230 and it now goes for $1132.Walt Disney (DIS) and Fox Corp (FOX) (FOXA): These two positions came about as a result of the merger transaction between Walt Disney and Twenty First Century Fox. Yacktman had a huge position in Twenty First Century Fox. The deal closed in March and the terms were ~$38 per share in cash or Disney stock subject to collar and one-third of one-share of new Fox for each share of Twenty First Century Fox. Yacktman’s stakes in Walt Disney and Fox Corp are at 6.26% and 3.91% of the portfolio respectively.Stake Disposals:Twenty First Century Fox: This was Yacktman’s largest 13F position at ~17% of the portfolio as of last quarter. In December 2017, Walt Disney Company (DIS) agreed to acquire the film & entertainment assets of Twenty First Century Fox and that transaction closed in March. What remained became Fox Corp – the assets of Fox Corp include broadcasting networks and stations, news channel, business network, and Sports – FS1 & FS2, Fox Deportes, and Big Ten Network. Yacktman’s Twenty First Century Fox stake goes back to 2008 when they had a very small position in News Corporation. The 2009 to 2012 timeframe saw a huge stake built up as their share count increased 32-times (2.5M shares to over 80M shares). After the Twenty First Century Fox spinoff and renaming, the News Corp stake was eliminated in Q4 2013. Yacktman’s cost-basis on Twenty-First Century Fox was very low.Stake Decreases:Procter & Gamble (PG): PG is a very long-term position that has been in the portfolio since Yacktman’s first 13F filing in 1999. The position size remained insignificantly small until 2007 when about 520K shares were purchased at prices between $61 and $74. The position was cut in half in 2008 but the following four-years saw a 100-fold stake increase at prices between $47 and $70. The four quarters thru Q3 2016 saw a 50% reduction at prices between $72 and $90. Last two quarters have seen another ~30% selling at prices between $79 and $104. The stock currently trades at ~$106 and it is their largest position at ~14% of the portfolio.PepsiCo Inc. (PEP): The ~11% (top three) PEP stake was built over multiple years with the bulk of the buying happening in the 2011-13 timeframe: over 22M shares were purchased during that time at prices between $60 and $86. The stock currently trades at ~$127. The six quarters thru Q3 2016 had seen a roughly two-thirds reduction at prices between $91 and $111. Since then, the activity has been minor.Coca-Cola Company (KO): KO is a very long-term position that has been in the portfolio for over twenty years. During Yacktman’s first 13F filing in Q1 1999, the position consisted of just a few thousand shares. The stake was built up to almost 2.4M shares by Q4 2006. The position size dropped below 1.5M shares in Q4 2008 but since then the stake was consistently increased - the position size doubled in both 2009 & 2010 and increased by ~150% each in 2012 & 2013. The huge stake build-up happened at prices between $21 & $30 and $33.50 & $43 in the 2009-10 & 2012-13 periods respectively. The stock currently trades at $48.05 and the position stands at 7.62% of the portfolio. The six quarters thru Q3 2016 had seen a ~57% reduction at prices between $38 and $47. Last four quarters have seen only minor activity.Oracle Corporation (ORCL): The large (top five) 6.28% ORCL position was first purchased in Q2 2013. Over 20M shares were acquired at prices between $30 and $35. H1 2015 saw a ~23% reduction at prices between $40 and $45. The five quarters thru Q3 2016 saw another one-third reduction at prices between $34 and $42. The two years thru Q3 2018 had also seen another one-third selling at prices between $38 and $53. That was followed with yet another one-third reduction this quarter at prices between $45 and $55. The stock currently trades at $53.43.Microsoft Corporation (MSFT): MSFT has been in the portfolio since 2003 and it became a significantly large position in 2006 when around 2.2M shares were purchased at prices between $22 and $29.50. The bulk of the current 4.79% of the portfolio stake was established in 2011 when ~20M shares were added at prices between $24 and $28.50. Last five years saw the position reduced by ~88% at prices between $36 and $115. The stock currently trades at ~$123. There was another ~15% trimming this quarter. Yacktman is harvesting long-term gains from this position.Sysco Corporation (SYY): SYY is a 3.43% of the 13F portfolio position. It was established in 2010 with the bulk purchased in 2011 and 2012 in the high-20s price-range. H2 2015 saw a ~40% reduction at prices between $36 and $42. The three years thru Q4 2018 had seen another ~80% selling at prices between $40 and $68. The stock currently trades at $73.37. There was a marginal trimming this quarter.Cisco Systems (CSCO): CSCO is a 3.11% of the 13F portfolio position first purchased in 2010. The bulk of the current position was purchased in 2011 and 2012 at prices between $15 and $22. The stake has been sold down since. 2015 saw a ~45% reduction at prices between $25.52 and $29.61 while the following year saw a ~20% reduction at prices between $23 and $32. There was a further ~80% selling over the last six quarters at prices between $33.50 and $54. The stock currently trades at $51.30. Yacktman is harvesting gains from this position.Anthem Inc. (ANTM) previously Wellpoint Inc.: ANTM is a 2.65% of the 13F portfolio position purchased in 2012 at prices between $55 and $74. The stake has seen some selling over the years. Q1 2015 saw a ~15% reduction at prices between $123 and $158 and that was followed with a huge ~60% reduction in the following quarter at prices between $151 and $171. Q4 2017 saw a ~18% selling at prices between $184 and $235. The stock currently trades at ~$261. Last three quarters have seen minor trimming.ConocoPhillips (COP): COP is a long-term 1.85% position first purchased in 2007. It saw ~3% stake increase this quarter.Infosys Ltd. (INFY): The 1.22% INFY position was established in Q2 2017 at prices between $7.10 and $7.90 and increased by ~60% the following quarter at prices between $7.10 and $8. The stock is currently at $10.11. The last six quarters have seen a combined ~25% selling at prices between $7 and $11.Note: Infosys had a 2-for-1 stock-split last September. The prices quoted above are adjusted.Comcast Corporation (CMCSA): CMCSA is a 0.92% of the 13F portfolio position first purchased in 2008. The bulk of the original stake was purchased in 2009 at a cost-basis around $7.50. 2014 saw a ~40% reduction at prices between $26.50 and $30.50. Next year saw a further two-thirds reduction at prices between $26.50 and $32. The three quarters thru Q2 2017 also saw a combined ~50% selling at prices between $30 and $42. The stock currently trades at $42.28. There was marginal trimming this quarter.Note: The prices quoted above are adjusted for the 2-for-1 stock-split in Q1 2017.Goldman Sachs (GS): GS is a 0.61% stake that saw a ~150% stake increase last quarter at prices between $156 and $232. This quarter saw an about-turn: ~30% selling at prices between $167 and $203. The stock is now at $195.Avon Products (AVP) and Cognizant Technology (CTSH): These two very small (less than ~1% of the portfolio each) stakes saw minor trimming this quarter.Stake Increases:Johnson & Johnson (JNJ): JNJ is a large (top three) 8.15% of the 13F portfolio position that has been in the portfolio since their first 13F filing in Q1 1999. The bulk of the current position was purchased in 2011 in the low 60s price-range. The stock has doubled and currently trades at around ~$137. 2015-18 had seen a combined ~45% reduction at prices between $91 and $147. There was a marginal stake increase this quarter.US Bancorp (USB): The 2.82% USB position has been in the portfolio for over 15 years. Majority of the current stake was purchased in 2011 in the low-20s price-range. The stock currently trades at $50.81. 2015 saw a ~50% reduction in the low-40s price range while Q4 2016 saw another ~25% selling at prices between $42.50 and $52.50. Since then the activity has been minor.Exxon Mobil (XOM): XOM is a 2.29% of the portfolio stake first purchased in 2007. The bulk of the position was acquired in 2013 in the low-90s price-range. The stock currently trades well below that range at $75.71. Q4 2015 saw a ~30% reduction at prices between $74 and $87 and that was followed with a ~15% reduction in Q2 2016 at prices between $82 and $94. Q4 2016 also saw another ~20% selling at prices between $83 and $88.50. The six quarters thru Q2 2018 had seen a combined ~12% reduction at prices between $72.50 and $91. Since then, the activity has been minor.The Bank of New York Mellon (BK): The 2.26% BK stake was first purchased in 2009 with the bulk of the current position built in 2010 and 2011 in the high-20s price range. The stock is now at $47.15. The position was reduced by ~30% in Q4 2016 at prices between $39 and $49. Since then, the activity has been minor.State Street Corporation (STT) and Amerco (UHAL): These two positions saw large increases last quarter. The 2.12% STT stake saw a ~150% increase at prices between $60 and $87 while the small ~0.82% UHAL position saw a ~25% increase at prices between $319 and $355. STT currently trades at $63.18 and UHAL at $388. Both positions saw ~8% stake increases this quarter.Wells Fargo (WFC): WFC is a 1.21% of the 13F portfolio position first purchased in Q1 2013. The bulk of the current position was purchased in Q2 2013 when ~4.8M shares were acquired at prices between $36.50 and $44.50. Q2 & Q3 2014 saw significant selling as the position was reduced to 2.8M shares at prices between $48 and $54. 2015 saw a ~25% further reduction at prices between $51 and $58. Since then, the activity has been minor. The stock currently trades at $46.33.Colgate-Palmolive (CL) and Corning Inc. (GLW): These very small (less than ~1% of the portfolio each) stakes saw minor increases in the last two quarters.Note 1: Yacktman is known to shy away from investing in banks but has held significant stakes in three banks since the financial crisis: The Bank of New York Mellon (2.26%), US Bancorp (2.82%), and Wells Fargo (1.21%). All three stakes were increased this quarter. Last quarter also saw a ~2% stake build-up in State Street (STT).Note 2: Very small (less than 0.5% of the portfolio each) positions account for 1.60% of the overall portfolio. They are Unilever NV (UN), ARCOSA Inc. (ACA), Altria Group (MO), America’s Car-Mart (CRMT), Berkshire Hathaway (BRK.A)(BRK.B), CH Robinson Worldwide (CHRW), Clorox Company (CLX), GrafTech Intl. (EAF), Hershey Co. (HSY), Micron Technology (MU), Otelco Inc. (OTEL), Philip Morris Intl. (PM), Reading International (RDI), SPDR S&P 500 ETF (SPY), and Stryker Corp (SYK).The spreadsheet below highlights changes to Yacktman’s 13F stock holdings in Q1 2019:Regulatory Filings thru 2/5/2019: 13G/A – 1/16 – CRMT – 6000 shares – 0.089% of business."