Value investing purist Donald Yacktman maintained his unwavering concentrated portfolio in Q1 2026. Within a tight structure of $5.3B in total AUM and just 20 holdings, CNQ alone accounts for 10.7% of the portfolio — reaffirming his high conviction on the energy sector. At the same time, the initiation of PYPL and the addition to MSFT signal a new direction in Yacktman's disciplined value stock selection.
Top 5 Holdings — Q1 2026
- CNQ: $806M (10.7%)
- MSFT: $368M (4.9%)
- SCHW: $367M (4.9%)
- GOOG: $323M (4.3%)
- PEP: $315M (4.2%)
Key Trading Activity This Quarter
The portfolio's most defining characteristic remains its defensive tilt toward energy and consumer staples. CNQ ($806M) leads the pack, with traditional value names such as PEP, JNJ, and PG filling out the top tier. MSFT ($368M) and GOOG ($323M) maintain big-tech exposure at 4.9% and 4.3% respectively — though even these picks appear driven by cash flow stability rather than growth momentum. A 5% addition to U-Haul Holding Company ($270M) stands out as a bet on demand for hard assets in an inflationary environment.
- PYPL — New $104M position initiated: contrarian fintech bet targeting valuation trough
- U-Haul Holding Company — 5% weight increase: reflects strong outlook for hard asset demand
- WBD — Full exit; SPY — 88% reduction: clearing media uncertainty and minimizing ETF exposure
The quarter's most notable new buy is PYPL ($104M) — a textbook Yacktman contrarian move, entering a large-cap fintech name after a meaningful valuation reset. The additions of FDS ($49M) and AVTR ($37M) are equally consistent with his longstanding focus on profitability and durable competitive moats. On the sell side, the full liquidation of WBD and an 88% reduction in SPY reflect a deliberate exit from media sector uncertainty and a sharpening of single-stock concentration by eliminating broad ETF exposure.
Concentration and Selectivity: What's Next for the Yacktman Strategy
Despite its extreme concentration in just 20 holdings, Yacktman's portfolio maintains sector balance across energy, consumer staples, big tech, and fintech. The additions of PYPL and FDS represent a cautious expansion into profitable growth-at-a-reasonable-price names, and if interest rates stabilize, further increases in undervalued fintech and data sector exposure appear likely. As long as CNQ remains the dominant position, oil price volatility will continue to be the portfolio's primary risk variable.
