According to current portfolio statistics, a Premium feature of GuruFocus, the top five holdings of Brian Yacktman’s YCG LLC as of the fourth quarter of 2022 are Mastercard Inc. (MA, Financial), Microsoft Corp. (MSFT, Financial), Amazon.com Inc. (AMZN, Financial), Moody’s Corp. (MCO, Financial) and Aon PLC (AON, Financial).
Prior to founding the Austin, Texas-based firm, Yacktman was an associate at Yacktman Asset Management (Trades, Portfolio), the advisor to the Yacktman Fund (Trades, Portfolio). YCG seeks long-term capital appreciation by seeking undervalued stocks with enduring pricing power, long-term volume growth opportunities and ownership-minded management teams.
GuruFocus is happy to announce that Yacktman will be a speaker at its value conference on May 4 and 5. Register now to secure your spot at a discounted price, prices increase on April 1!
As of December 2022, YCG’s $935 million 13F equity portfolio contains 41 stocks with a quarterly turnover ratio of 5%. The top four sectors in terms of weight are financial services, consumer cyclical, technology and consumer defensive, representing 38.22%, 17.55%, 14.76% and 10.96% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Mastercard
YCG owns 179,131 shares of Mastercard (MA, Financial), giving the position 6.86% equity portfolio weight.
Shares of Mastercard traded around $366.88, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.81 as of Monday.
The Purchase, New York-based credit card company has a GF Score of 98 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 6 out of 10 and a rank of 9 out of 10 for momentum and GF Value.
Mastercard’s profitability ranks 10 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 8 out of 9 and an operating margin that has increased by approximately 0.3% per year on average over the past five years and outperforms approximately 85% of global competitors.
Other gurus with holdings in Mastercard include Chuck Akre (Trades, Portfolio)’s Akre Capital Management and Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial).
Microsoft
YCG owns 250,102 shares of Microsoft (MSFT, Financial), giving the position 6.41% equity portfolio weight.
Shares traded around $257.93, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.82 as of Monday.
The Redmond, Washington-based software giant has a GF Score of 97 out of 100 based on a rank of 10 out of 10 for profitability and growth, a GF Value rank of 9 out of 10, a financial strength rank of 8 out of 10 and a momentum rank of 5 out of 10.
Microsoft’s profitability ranks 10 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank and an operating margin that has increased by approximately 7.5% per year on average over the past five years and outperforms more than 97% of global competitors.
Other gurus with holdings in Microsoft include fellow conference speaker David Rolfe (Trades, Portfolio)’s Wedgewood Partners and keynote speaker Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund.
Amazon
The firm owns 617,200 shares of Amazon.com (AMZN, Financial), giving the position 5.91% equity portfolio weight. Shares traded around $94.24 on Monday.
GuruFocus’ GF Value Line labeled the Seattle-based e-commerce giant a possible value trap based on its low price-to-GF Value ratio of 0.47 and poor momentum rank of 4 out of 10.
Despite low ranks for momentum and GF Value, Amazon’s GF Score of 86 out of 100 is driven by a growth rank of 10 out of 10, a profitability rank of 8 out of 10 and a financial strength rank of 6 out of 10.
Moody’s
YCG owns 187,770 shares of Moody’s (MCO, Financial), giving the position 5.88% equity portfolio weight.
Shares of Moody’s traded around $302.52, showing the stock is fairly valued based on its price-to-GF Value ratio of 0.99 as of Monday.
The New York-based credit rating company has a GF Score of 96 out of 100 based on a financial strength rank of 5 out of 10, a GF Value rank of 6 out of 10 and a rank of 10 out of 10 for profitability, growth and momentum.
Moody’s has a profitability rank of 10 out of 10 based on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that outperforms approximately 75% of global competitors.
Aon
The firm owns 150,713 shares of Aon (AON, Financial), giving the position 4.95% equity portfolio weight.
Shares of Aon traded around $305.33, showing the stock is fairly valued based on its price-to-GF Value ratio of 1.04 as of Monday.
The U.K.-based insurance company has a GF Score of 85 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 9 out of 10, a growth rank of 7 out of 10, a GF Value rank of 5 out of 10 and a financial strength rank of 4 out of 10.
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