Steven Goldberg, Kiplinger, on Don Yacktman's Investing Strategy

We're back this is the financial exchange today when the markets down a little bit Dow off about 74 points. Our guest is Stephen Goldberg Stevens a contributor to kiplinger's magazine and he joins us today on the financial exchange Stephen welcome to the show -- Fine thanks for having me. -- -- do hey ST -- a lot of us in the investment world know who Dona -- Maybe could you explain it the significance of who he is and and why we're talking about some of the stock picks. Which has just been around forever. He's the managing money. Is so he's seventy years so. I mean I think she's been in the business since the late sixties early seventies. And I've known him since the early ninety's. And he just keeps doing the same thing doing it well. Pretty good reputation nine. Yeah yeah although. Yeah is a good reputation. What kind of stocks as he bind with -- with what is he like out there in the marketplace -- -- a lot of investors. As you can see by the volume numbers of people are just sitting on the sidelines in -- -- he actually likes the same kind of stocks that I I've I personally favored to I don't necessarily like all the stocks -- like but. These really big boring blue chips. And gamble. Procter & Gamble Microsoft Cisco. I mean you know ten years ago twelve years ago Microsoft Cisco are selling and 15200 times earnings. And since then the stock prices have haven't gone anywhere. But they're now selling a ten times earnings. What do you think Microsoft after the earnings announcement was that how was it. A lot of flight deck and put it to be really well ways that we can -- -- -- because of its management we bought in spite of I mean. I impact they have made so many bad decisions. But at the same time he's still got office windows and Xbox. That keep churning out profits that they keep making mistakes. Talk about Skype and their their purchase of Skype. My I mean -- stupidity. I mean describe it is essentially wanted to zero billion dollar a year industry as you know they keep everybody loves the servicemen with -- four. Woody -- think of this -- of Sysco foods. I think it makes a lot of sense -- -- what it is fiscal strategy is timely and create stable. Boring business. And I wanted to out of paper done I don't know when you've got a deep deep recession likely. People aren't going out to eat as much as there will as they normally do that over time they're gonna come back and Cisco as liable. Is the largest food service distributor that they sell you everything they -- mistakes lists over the pictures they so plates. So restaurants -- the Vietnam. How would they be impacted by the drought out west do you think we you worried about him at all fray because I I looked at depict an exit divisive self -- under. How far out they've contracted their greens in their -- since their meats unit is everything seems they were in a pretty high food inflation this ball. It looks like it looks like it looks like it's going to be really bad for emerging market yeah terms. But I have to I don't think it'll affect them too much I think to be able to pass and on what they're able to do is they've got about 70% market share. They're by far the biggest player and really Bragman an industry. So they're able to keep their costs down. But everybody's. Going to be passing through those cost to the consumer. But about Pepsi PEP -- do you mean Don likes it do you like it. Epilepsy but could stop I mean frankly so -- for me but he likes that a lot and I. You know -- I'm no I'm not -- courtesy is picking stocks and it's got a nice story Thursday healed up. -- trades at about fifteen times earnings forecasts. And numb the criticism Israel would break a leg is the big is the big money maker of Pepsi. Is. Sort of a perennial number two the code yeah. But Frito-Lay is just an enormously profitable business. You shift key OpenId then he also lists CR Bard great VCR that's a medical device company. Yeah. -- expands catheters diagnostic equipment. And and let Jackman says assistant says they just do a better job of doing -- they executed better they keep improving their products they have. And that's a high margin business right now that that's a. Real high margin business side just got to think put him I'm in -- -- offer the best -- -- -- to implant. And down. This saying you know some tiny little thing about one quarter financial on it costs a thousand bucks you know. Rock he had me that's a good market that's a good business to -- end. I love health care and he does too and that's where he's got. I didn't see any big farm is on the list is -- bind big pharma. You know I didn't sit there. And then wondered if he's taken that position does. -- a lot of people waited to see if obamacare was gonna get overruled or not. No I don't think it matters where I mean I'm I'm a baby -- we're gonna demand more healthcare as we get older I think farm is going to be you. Going to be fine. You can -- for one way -- the other. Ali people are gonna people -- -- want to use the news numerical peers. They even if you don't want in the gonna have to have me on saline difference. And finally pay for those drugs are sure. And we gotta run Steven thanks very much for your time pressure appreciate it. Stephen Goldberg joining us today from kiplinger's magazine if you wanna take a look at the article it's called six X. From a master and it's in this month's kiplinger's magazine you find it online go to the tip of your dot com website. Terrific website for educational financial information.