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Top New International Buys of Oakmark's David Herro

Holly LaFon

Holly LaFon

255 followers
David Herro is a portfolio manager of the Oakmark International Fund and Oakmark International Small cap Fund, both of which outperformed on a relative basis in the second quarter. In his second quarter letter, he explained some of his outlook for the investing environment: “Despite today’s current challenges, I am extremely optimistic that the emerging world will propel medium- and long-term global growth. However, true structural reform, especially in the slow-growth, developed markets of Europe and Japan, would greatly supplement the more erratic growth patterns of emerging markets. Ultimately, we believe such policies would alleviate the ever pervasive macro fears and lead to an environment that would be extremely conducive to global equity markets.” Read more about his perspective in his second quarter letter here.

In the second quarter, Herro purchased six new stocks for the Oakmark International Fund. The largest are: Bayerische Motoren Werke AG (XTER:BMW), LVMH Moet Hennessy Louis Vuitton SA (MC), SKF Group (OSTO:SKF.A) and Continental AG (XTER:CON).

Bayerische Motoren Werke AG (XTER:BMW)

Herro purchased 4,994,000 shares of Bayerische Motoren Werke in the second quarter when it averaged $70 per share. Since then the stock increased 6%. The holding represents 2.7% of the portfolio.

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Bayerische Motoren Werke AG has a market cap of $44.37 billion; its shares were traded at around $73.70 with a P/E ratio of 8.58 and P/S ratio of 0.58. The dividend yield of Bayerische Motoren Werke Ag stocks is 2.30%. Bayerische Motoren Werke AG had an annual average earnings growth of 4.1% over the past 10 years. GuruFocus rated Bayerische Motoren Werke AG the business predictability rank of 2.5-star.

BMW earnings and revenue history:

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The Peter Lynch chart suggests the company is undervalued:

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LVMH Moet Hennessy Louis Vuitton SA (MC)

Herro purchased 1,264,000 shares of LVMH Moet Hennessy Louis Vuitton in the second quarter when it averaged $131. The position represents 1.3% of his portfolio. Shares have increased 6% since.

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LVMH Moet Hennessy Louis Vuitton SA has a market cap of $70.71 billion; its shares were traded at around $139.15 with a P/E ratio of 20.41 and P/S ratio of 2.49. The dividend yield of LVMH Moet Hennessy Louis Vuitton SA stocks is 2.08%. LVMH Moet Hennessy Louis Vuitton SA had an annual average earnings growth of 9.2% over the past 10 years. GuruFocus rated LVMH Moet Hennessy Louis Vuitton SA the business predictability rank of 4-star.

LVMH earnings and revenue history:

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The Peter Lynch chart considers the stock overvalued:

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SKF Group (OSTO:SKF.A)

Herro purchased 8,663,000 shares of SKF Group in the second quarter when the price averaged $157. The position occupies 1.3% of his portfolio. Shares have gained 13% since.

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SKF Group earnings and revenue history:

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The Peter Lynch chart suggests the stock is overvalued:

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Continental AG (XTER:CON)

Herro purchased 1,172,000 shares of Continental AG in the second quarter when the price averaged $96. The holding represents 0.97% of his portfolio. The shares have gained 24% since.

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Continental AG has a market cap of $23.71 billion; its shares were traded at around $118.55 with a P/E ratio of 11.72 and P/S ratio of 0.72. The dividend yield of Continental AG stocks is 0.93%. Continental AG had an annual average earnings growth of 16.4% over the past five years.

Continental earnings and revenue history:

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The Peter Lynch chart suggests the stock is undervalued:

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For more of David Herro’s holdings, visit his portfolio here.

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Rating: 5.0/5 (3 votes)

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