Value Investor Don Yacktman on Why He Buys RIM Stock

Posted by Techvibes NewsDesk

Don Yacktman is a veteran value investor. He founded Yacktman Asset Management in 1992 and now manages more than $17 billion across two funds.

He's also now the fifth largest holder of Research In Motion stock, and the Waterloo company accounts for 1% of his portfolio. That's because when almost everyone has been selling, he's been buying and buying and buying. He now owns 4% of RIM, almost as much as former co-CEOs Mike Lazaridis and Jim Balsillie.

Not unlike Prem Watsa, who has made multiple enormous gambles on RIM and is now the largest shareholder, Don is swimming against the current. Why? While he admitted to BNN that the Canadian company is "betting the ranch" on BlackBerry 10, Don says RIM has a large cash pile, a treasure trove of valuable patents, and an established history. BB10 doesn't need to kill it to keep the company profitable long-term; it only requires modest success to prevent Don's investment from going sour.

He also said that, should BB10 flop, the "logical next step" would be a sale of the company. Watch BNN's full interview with Don here.

RIM shares are up 4% in trading today after surging this week and last week.

Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning... more

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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property. Originally founded in 2002, Techvibes is dedicated to covering social, mobile, and startup news that impacts Canadians. Our editors and nationwide network of reporters combine breaking hyperlocal news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and... more

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