Stephen Yacktman

The first thing we do is normalize what we think the company's earnings power is. A lot goes into that, but it essentially means looking at what the business has traditionally been able to generate over time and adjusting for various factors that might make it more or less attractive going forward. We then estimate [...]

Stephen Yacktman

e prefer companies without heavy reinvestment needs. The average company has to pour more than half its earnings every year back into the business to maintain itself. If you don’t have to do that like most consumer products companies, for example you have more to invest in new businesses, to give back to shareholders, or [...]