For Subscribers

Value Pack This fund thinks portfolio diversity is overrated.

By Dian Vujovich

Opinions expressed by Entrepreneur contributors are their own.

Don Yacktman has been a fan of value investing for years-and hisYacktman Focus fund (YAFFX) shows it. Through December 13, thefund--with only 25 stocks in its portfolio--was up more than 14percent, while other mid-cap value funds were underwater by about16 percent, according to Lipper Analytical Services.

"We buy profitable businesses that have returns on sales,low prices, and management teams that do a good job at capitalallocation," says Yacktman, who's managed the fund sinceits inception in 1997.

What you won't find in this portfolio are highly cyclicalbusinesses, like auto or airline stocks. "We also don'tinvest in capital goods kinds of companies so that keeps us out ofa lot of technology businesses that are shooting stars or Romancandles," he adds.

With a portfolio that has the bulk of its assets invested in ahandful of stocks like Henkel, Lancaster Colony, Liberty Media andTyco, there is more risk than in a fund where assets are spreadout. That said, the fund's beta (a measurement of risk) showsless risk than that of the market overall.

Ask Yacktman why the fund's been so successful and he'llsay he's found an investment strategy that works, and he sticksto it. Wise advice for all investors.


Dian Vujovich is an author, syndicated columnist andpublisher of fund investing site www.fundfreebies.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Amazon Tells Thousands of Employees to Relocate or Resign

Amazon says the move to bring teams together will make them more "effective."

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Devices

This $180 Chromebook Offers Flexibility and Performance for On-the-Go Entrepreneurs

This Chromebook is designed for entrepreneurs who need power and portability, and now it's 45% off.

Business Solutions

Tackle Decision Fatigue With This CEO-Worthy AI Tool

Let AI help you make some decisions with SkillWee, an app designed with entrepreneurs in mind.

Business News

'Largest Data Breach in History': Apple, Google, and Meta Passwords Reportedly Among 16 Billion Stolen in Massive Hack

"Massive datasets" have been emerging every few weeks, according to a new report.

Marketing

How to Handle Negative Feedback and Turn Bad Reviews Into Great News For Your Business

Bad reviews can undermine your brand and hurt your revenue. Learn how to turn things around and transform harmful feedback into a bottom-line boost for your business.