Value Investor Don Yacktman on Why He Buys RIM Stock

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.