Samsung (XKRX:005935, Financial) was the top contributor to results for the quarter and is our largest position. The company has a strong market position in high growth markets, including foundry, sensors, and 5G equipment, and a good position in emerging industries like artificial intelligence, autonomous driving, and internet of things, yet it sells at an extremely low multiple of earnings and cash flow, and has a significant amount of net excess net cash and securities on the balance sheet. Samsung's core semiconductor business is set up for high growth over the next few years and we think the stock could be in an early phase of positive re-rating, which is a period where a stock goes from a low multiple to a substantially higher one that better reflects the company's business prospects.
From the Yacktman Fund (Trades, Portfolio)'s fourth-quarter 2020 shareholder letter.
