GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

David Herro on Where to Invest Now

August 30, 2010 | About:
guruek

guruek

80 followers
David Herro, portfolio manager of the Oakmark International Fund, tells CNBC where he's putting his money to work now.

The famous money manager has pulled off a 10.5% annual average since 1992 when he started his fund. His success strategy is very simple: buying good business at price at least 40% discount from estimated value.

What about if one is confident about the value estimate and yet the stock keeps declining, “keep buying more”, he said.

Right now David Herro has a bulk of his money invested in Europe. One example he gave is Banco Santander (STD) which draws 70% of its profit from Brazil, Mexico, UK, and even US. It is based in Spain and has some sovereign debt of Spanish government, therefore it is penalized. But Herro thinks it is undervalued and has bought a large position.

As of now, Herro thinks it is perfect time to look at stocks. He thinks US economic concerns does not overshadow global growth. However, he does not think emerging stock market represents good value as all the good news tend to be baked in the price already. Taking a contrarian viewpoint, Herro thinks Japan is sweet spot to invest in currently.


























Rating: 5.0/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide