Berkshire Hathaway Inc. (BRK.A)’s Annual Meeting: 3 Takeaways From 3 Great Investors

Don Yacktman, Yacktman Capital
I love this guy. Yacktman is salt of the earth and unassuming in a profession that rewards flash, pizazz, and the illusions of effort and complexity. Unlike many presenters at such events, Yacktman doesn’t try to bowl you over with arcane options strategies or 280-page PowerPoint decks. He keeps it simple, focusing on quality businesses at good prices. He also avoids going overboard with spreadsheets, focusing on key drivers instead. Said Yacktman, “I’d rather be generally right than wrong to the fourth decimal.” It’s been a winning recipe for him — he’s managing about $24 billion, and his funds have trounced the market over time.

Yacktman also takes a bit of an unusual tact for a value guy that speaks to me, focusing less on margin of safety and more on long-term rates of return. He’s especially fascinated by businesses that can reinvest at high rates for a long time and, when they can’t have the discipline to push that money back to shareholders. He also zeroes in on market leaders who can sustain their edge over time. “I have an iPhone in my pocket,” said Yacktman “but I don’t know what I’ll have in there 10 years from now. I do think, though, that The Procter & Gamble Company (NYSE:PG) will still do well selling detergent.”

Is any of this flashy or especially original? No, honestly, but that’s missing the point. Investing in quality businesses when they go on sale and letting time do the heavy lifting for you is a winning long-term strategy, yet few have the nerve or patience to execute. We get too cute and overcomplicate. Don’t. Follow Yacktman’s lead and keep it simple. As he’s shown over the years, bold simplicity pays.

The article Wisdom From the Value Investor Conference originally appeared on Fool.com.

Joe Magyer owns shares of Berkshire Hathaway and Procter & Gamble. The Motley Fool recommends Apple, Berkshire Hathaway, and Procter & Gamble. The Motley Fool owns shares of Apple, Berkshire Hathaway, and Oaktree Capital.

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