5 Best Value Stocks Legendary Investor Donald Yacktman Was Buying Before AI Crash Fahad Saleem Mon, November 9, 2026 at 9:11 AM EST 9 min read ^IXIC +2.01% ELV -0.48% INGR -1.16% DIS +1.00% BR +0.30% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
The AI stock crash on November 5 has once again reminded investors to stop chasing the hype and go back to the basics. The Nasdaq entered a correction. AI stocks fell on fears that Democrats will limit new data centers, after the midterm elections.
For months, wise investors kept warning that the AI bubble could burst, and many said it might happen after the midterm elections. We warned about it too, just two days before the November 5 crash, and pointed investors to Warren Buffett's picks in our list of the 10 best Warren Buffett stocks with upside potential. Check the Buffett list here.
It is time to look at another legendary value investor, Donald Yacktman. He founded Yacktman Asset Management in 1992, and Morningstar named him Portfolio Manager of the Year in 1991. His son Stephen Yacktman now leads the firm as chief investment officer. AMG Yacktman Fund (YACKX) returned 25.07% over the 12 months through October 31, 2026, and it has returned 10.84% a year since its launch in July 1992.
Yacktman looks for three things: a good business, good management and a good price. The price comes first, because he says no investor admits to buying overpriced stocks. He likes companies that need little capital and sell products people buy in any economy, since those companies earn high returns on the assets they own. He also studies what management does with the company's cash, because past behavior is the best guide to future behavior. He stopped trying to predict interest rates and the economy, and he focuses on great businesses at good prices.
Yacktman has company among veteran value investors and his importance has increased in the uncertainty that prevails on Wall Street today. Click to read the expanded list of the 10 Best Value Stocks Legendary Investor Donald Yacktman Was Buying Before AI Crash.
To compile our list of 10 value stocks Donald Yacktman's investment firm is buying, we examined Yacktman Asset Management's third-quarter 2026 13F portfolio, which disclosed approximately $8.38 billion in holdings across 75 securities as of September 30. We focused on the firm's 30 largest holdings and selected 10 established companies outside the AI-focused investment theme in which it increased its share count during the quarter. We prioritized businesses with positive earnings, relatively modest forward price-to-earnings (P/E) ratios, and positive projected earnings-per-share (EPS) growth for the next fiscal year. We used valuation estimates available around late October and early November 2026, rather than valuations at the time of the purchases. The stocks are ranked in ascending order of Yacktman Asset Management's reported stake value as of September 30, 2026, with the largest holding appearing at number one.
You can also these top 5 stocks in our video by clicking the image below:
Yacktman Asset Management's Stake Value: $133.06 Million
Forward P/E Ratio: 14.9x
Estimated Next-Year EPS Growth: 3.9%
Elevance Health, Inc. (NYSE: ELV) is one of the largest health insurance and healthcare services companies in the United States. It operates health plans under the Anthem brand and provides pharmacy benefit management, behavioral health, and other healthcare services through its Carelon businesses. Its scale and diversified operations provide a substantial position in the US healthcare market, although medical cost trends and changes in government insurance programs can significantly affect profitability.
Yacktman Asset Management held 342,222 shares of Elevance Health valued at approximately $133.06 million at the end of September. The investment firm increased its holdings by 0.66% in the third quarter.
Elevance Health (NYSE:ELV) rose after Democrats won both chambers of Congress in the Nov. 3 midterm elections. Bulls believe the win helps because Elevance sells health plans in Medicaid and the Obamacare marketplace. A Democratic Congress could delay the Medicaid cuts passed in 2025 and extend the subsidies that help people afford Obamacare plans. Both would help Elevance keep members.
The overall bull case goes beyond the election. Elevance is one of the largest health insurers in the US, and its profits are recovering after a weak start to 2026. In its recently reported quarterly results, medical costs took a smaller share of premiums than in the same quarter a year earlier.
Seth Klarman's Baupost Group holds Elevance Health, which ranks third on our list of his value stock picks for 2026, so check the full breakdown here.
Yacktman Asset Management's Stake Value: $142.71 Million
Forward P/E Ratio: 8.20x
Estimated Next-Year EPS Growth: 7.4%
Ingredion Incorporated (NYSE: INGR) supplies ingredients used in food, beverages, pharmaceuticals, and other consumer products. Its products include starches, sweeteners, and specialty ingredients used by manufacturers around the world. The company's established customer relationships and broad ingredients portfolio provide exposure to recurring demand from food and beverage producers, although profitability can fluctuate with raw material costs, product mix, and manufacturing expenses.
In its recently reported quarterly results, the company missed analyst estimates. In that quarter, revenue fell 1.6% from the same quarter a year earlier, and the company gave a full-year 2026 profit outlook below what analysts expected.
Bulls still like the stock because its customers include store brands, such as a supermarket's own cereal or soda. When shoppers have less money and switch from name brands to cheaper store brands, those store brands still need Ingredion's ingredients, so its sales hold up. Store brands make up 15% to 20% of its US business, and 40% to 45% in Europe.
According to its September 30 portfolio, Yacktman Asset Management owned 1,489,551 shares of Ingredion worth approximately $142.71 million. The firm increased its stake by 1.23% during the quarter. Ingredion is one of the best undervalued defensive stocks for 2026, and Benchmark started coverage earlier this year with a Buy rating, so check the rating details here.
Yacktman Asset Management's Stake Value: $145.64 Million
Forward P/E Ratio: 15.22x
Estimated Next-Year EPS Growth: 8.11%
The Walt Disney Company (NYSE: DIS) is a global entertainment company with operations spanning theme parks, streaming services, film production, television, and consumer products. Its portfolio of entertainment franchises includes Disney, Pixar, Marvel, and Star Wars. These brands support multiple revenue streams, including theatrical releases, streaming, merchandise, and theme park attractions, although the decline of traditional television and substantial content investments remain challenges.
Bulls believe Disney (NYSE:DIS) is in a stronger position than its stock price shows, because the company is getting leaner while its main growth engine keeps expanding. The new CEO is cutting costs across the company and those savings should lift profit margins in the coming quarters.
The growth engine is Disney's parks and cruise business. The company has introduced two new cruise ships and plans to add five more by 2031. Guests book these trips years in advance and spend heavily on them, so the business grows steadily as capacity grows.
At the end of the third quarter, Yacktman Asset Management held 1,388,410 shares of Disney valued at approximately $145.64 million. The firm increased its position by 0.90% during the quarter. Trump's portfolio added Disney in three recent buys, and the stock ranks first on our list of the top 10 stocks in Trump's latest portfolio, so click to see if it is time to buy.
Yacktman Asset Management's Stake Value: $150.15 Million
Forward P/E Ratio: 16.91x
Estimated Next-Year EPS Growth: 9.9%
Broadridge Financial Solutions, Inc. (NYSE: BR) provides investor communications, proxy processing, trading technology, and other infrastructure services to financial institutions. Its clients include banks, brokerages, asset managers, and public companies. The company's technology and communications platforms are deeply integrated into financial industry operations, supporting recurring revenue and relatively high customer switching costs.
Broadridge Financial Solutions, Inc. (NYSE:BR) provides investor communications and trade processing systems to banks, brokers and asset managers. In its recently reported quarter, recurring revenue rose 11% in constant currency from the same quarter a year earlier, and the company reaffirmed its fiscal 2027 adjusted EPS growth target of 8% to 12%. Adjusted EPS grew 3% in that quarter from a year earlier, because the year-earlier quarter had record event-driven revenue.
Bulls see a long runway because Broadridge is moving into tokenization. It will provide the governance layer for the New York Stock Exchange's planned tokenized equity marketplace, and it signed a governance deal with Kraken. If trading moves onto new platforms, issuers will still need governance and transfer agency services.
Yacktman Asset Management held 932,042 shares of Broadridge valued at approximately $150.15 million as of September 30, 2026. The investment firm increased its position by 6.09% during the quarter, one of the larger percentage additions among the ten companies on this list.
SouthernSun Asset Management said in its second-quarter 2026 investor letter that Broadridge fell on concerns about AI disruption and tokenized equities, so open the full letter here.
Yacktman Asset Management's Stake Value: $265.74 Million
Forward P/E Ratio: 15.91x
Estimated Next-Year EPS Growth: 2.56%
PepsiCo, Inc. (NASDAQ: PEP) is one of the world's largest food and beverage companies, with brands including Pepsi, Gatorade, Lay's, Doritos, Quaker, and Cheetos. PepsiCo's forward P/E ratio of approximately 15.91x and estimated next-year EPS growth of 2.56% suggest a mature business trading at a relatively moderate earnings valuation, rather than a high-growth investment. Its globally established brands and recurring consumer demand are among the characteristics that may appeal to investors seeking established businesses outside the AI sector.
PepsiCo has raised its dividend for at least 50 years in a row, and its free cash flow per share has moved back above the dividend payment.
The company is also adding healthier brands such as Poppi, Siete and Quaker, which helps it keep up with changing eating habits. Bulls expect earnings to recover as the cost cuts show up in profits and the new brands grow.
PepsiCo was the largest holding among the ten stocks selected for this article. Yacktman Asset Management owned 2,097,084 shares of the company worth approximately $265.74 million as of September 30, representing 3.17% of its reported portfolio. The investment firm increased its PepsiCo position by 1.17% during the third quarter of 2026.
PepsiCo's dividend looks strong, but one of our recent pieces argues the stock still needs a turnaround, so see the full argument here.
Click to continue reading and see the full list of the 10 Best Value Stocks Legendary Investor Donald Yacktman Was Buying Before AI Crash
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This article is originally published at Insider Monkey.
