One of the best value investors that I follow is Donald Yacktman. I appreciate the way that he looks at risk-adjusted returns and takes a truly long-term perspective with only about 7% turnover, which is exceptionally low for a mutual fund. Right now he is finding the most value in large consumer staples companies such as Coca-Cola (KO), Pepsi (PEP) and Procter & Gamble (PG). I think he makes a valid point that when you look at nearly 3% dividend yields and maybe 5-7% earnings yields, both of which are likely to grow, and compare those to what bonds are offering, these stocks look quite attractive. All three businesses generate wonderful returns on tangible equity, which is extremely attractive of course. I don’t believe they are cheap enough to really offer a margin of safety at current prices, although I don’t think there is a lot of risk either. In ranking positions, I find many of the financials and large cap technology stocks to offer higher risk-adjusted returns in my opinion but only time will tell what will happen. The interview below was enjoyable though and I believe many market participants can benefit from listening to what he has to say.