. As of February, Japanese market is at the cheapest from price to book, price to sales and price to cash flow in the last 25 years.
· Macro winds blow up and down, causing markets to move up and down in the short term, but in the long term, it’s the companies themselves and it’s for that reason that we focus most specifically on company individual statistics.
· While there’s certainly a negative effect [on businesses from the European crisis], our view is that over the long run, a lot of these businesses will prove themselves to be much more valuable than the market is assigning them today.
· We’ve been a little bit, thinking about our larger-cap portfolios, we’ve been a little big underweight in emerging markets in recent years, but as prices have come down we’re starting to see more opportunities and it wouldn’t be a surprise if we see emerging markets rising as a percentage of our portfolios in the year ahead.
· Since the end of the tsunami and earthquake, Japanese positions have actually proven themselves to be more resilient and more resistant in this very volatile environment and we think that’s because Japanese valuations have been some of the cheapest and the lowest in the world for the last two years.
· They are finding value in Japan, pharmaceutical companies, integrated oil and gas companies around the world, large-cap emerging markets stocks, industrials, and the very large-cap higher-quality company space.