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legendary investors on what to do with your money now Add to ...
Matthew Mahon For Report on Business  Donald Yacktman  Value
investor Donald Yacktman, 72, has returned an annual average of
close to 10% over the past 15 years in his two flagship funds —
double the S&P 500 Index.   By John Daly  What is the biggest
risk that investors face right now?  The stock market is not
cheap.   Is that why you’ve been holding a lot of cash lately?
Yacktman Asset Management manages close to $30 billion. In 2007
and today, we’ve had a fair bit of cash. We were at about 20% at
the end of the third quarter of 2013. Usually, as the market
goes up, our cash tends to build. Because we’re investing from
the bottom up, not the top down, the cash is a residual. That’s
telling you how hard it is to find stocks to buy.   What about
the argument that investors hire a manager to pick stocks, not
to hold cash?  Our