GuruFocus Premium Membership

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

Free Trial

Free 7-day Trial
All Articles and Columns »

International Guru David Herro's Top Third Quarter Stocks

Monica Wolfe

Monica Wolfe

121 followers
David Herro has been a manager of the Oakmark International Fund since 1992 and the Oakmark Inernational Small Cap Fund since 1995. Herro added five new stocks to the Oakmark International Fund over the duration of the third quarter.

As of September 30, Herro holds 58 stocks valued at approximately $23.147 billion. The following five companies are Herro’s five largest holdings in his Oakmark International Fund as of the close of the third quarter.

Credit Suisse Group (XSWX:CSGN)

David Herro’s largest holding is in Credit Suisse Group where he holds on to 40,046,000 shares of the company’s stock. His position in the company makes up for 5.3% of his total portfolio and 2.52% of the company’s shares outstanding.

During the third quarter Herro upped his holdings 28.36% by purchasing a total of 8,849,000 shares of the company’s stock. Herro bought these shares in the quarterly price range of CHF25.04 to CHF28.99, with an estimated average quarterly price of CHF27.66 per share. Since then the price per share has dropped approximately -4.1%.

1385569595038.png

Credit Suisse Group holds direct or indirect interests in all types of businesses in Switzerland and abroad, in particular in the areas of banking, finance, asset management and insurance. The company's business consists of two operating divisions: Private Banking & Wealth Management and Investment Banking.

Credit Suisse’s historical revenue and net income:

1385581686281.png

David Herro and the Signature Select Canadian Fund are the only gurus that hold a position in the Swiss Credit Suisse Group.

The analysis on the company reports that the company’s revenue has been in decline over the past three years, its dividend yield is close to a 3-year low and its P/E ratio is close to a 2-year low.

The Peter Lynch Chart suggests that Credit Suisse is currently overvalued:

1385581714589.png

Credit Suisse has a market cap of CHF42.23 billion. Its shares are currently trading at around CHF26.52 with a P/E ratio of 15.40, a P/S ratio of 1.52 and a P/B ratio of 1.54.

Intesa Sanpaolo (MIL:ISP)

The guru’s second largest position is in Intesa Sanpaolo where he holds on to 421,326,000 shares of the company’s stock. The guru’s holdings make up for 3.8% of his total port folio and 2.56% of the company’s shares outstanding.

During the past quarter Herro increased his holdings by 9%. He purchased a total of 34,771,000 shares in the third quarter price range of €1.22 to €1.70, with an estimated average quarterly price of €1.47 per share. The price per share has increased approximately 17.7% since then.

1385579103062.png

Intesa Sanpaolo is a banking group which was formed by the merger of Banca Intesa & Sanpaolo IMI. It provides financial products and services. The company's products and services include current and saving accounts, loans, mortgages, financing, insurance products, payment, leasing and factoring services.

Intesa Sanpaolo’s historical revenue and net income:

1385582863524.png

The analysis on Intesa Sanpaolo reports that the company’s dividend yield is near a 5-year low, its price is near a 2-year high, its revenue has been in decline over the past five years and its P/E and P/S ratios are currently trading near historical highs.

David Herro is the only guru that holds a position in Intesa Sanpaolo.

The Peter Lynch Chart suggests that the company is currently overvalued:

1385582908431.png

Intesa Sanpaolo has a market cap of €28.66 billion. Its shares are currently trading at around €1.74 with a P/E ratio of 34.70, a P/S ratio of 2.28 and a P/B ratio of 0.27. The dividend yield of Intesa Sanpaolo stocks is currently at 2.29%.

Allianz is an integrated and globally operating financial services provider that seeks to offer its clients value by providing a range of insurance and financial products as well as an extensive advisory capacity through its subsidiaries under strong and well-known brands.

Allianz’s historical revenue and net income:

1385583240485.png
The analysis on Allianz reports that the company’s dividend yield is near a 5-year low, its price is near a 5-year high and its P/S ratio is also near a 5-year high.

David Herro and the Invesco European Growth Fund are currently the only gurus who hold a position in Allianz.

The Peter Lynch Chart suggests that the company is currently undervalued:

1385583331175.png

Allianz SE has a market cap of €57.45 billion. Its shares are currently trading at around €126.00 with a P/E ratio of 9.80, a P/S ratio of 0.56 and a P/B ratio of 1.12. The company’s dividend yield is currently sitting at around 2.63%.

BNP Paribas (XPAR:BNP)

David Herro’s fourth largest position is in BNP Paribas where the guru holds on to 11,958,000 shares of the company’s stock. His holdings make up for 3.5% of his total portfolio and 0.96% of the company’s shares outstanding.

The guru upped his position 11.28% over the third quarter, buying 1,212,000 shares of the company’s stock. He bought these shares in the quarterly price range of €41.21 to €51.19, with an estimated average quarterly price of €48.11. Since then the price per share has increased approximately 14%.

1385580609614.png

BNP Paribas is a financial services company specializing in investment, finance, and asset management services. The France-based company's primary businesses include retail banking, corporate and investment banking, and asset management and services.

BNP Paribas’ historical revenue and net income:

1385583967727.png

The analysis on BNP Paribas reports that the company’s price is nearing a 3-year high, its revenue has been in decline over the past three years and its dividend yield is sitting near a 3-year low.

David Herro and the Causeway International Value Fund are the only two gurus that maintain a position in BNP Paribas.

The Peter Lynch Chart suggests that the company is currently undervalued:

1385583997051.png

BNP Paribas has a market cap of €68.23 billion. Its shares are currently trading at around €54.83 with a P/E ratio of 13.70, a P/S ratio of 1.01 and a P/B ratio of 0.73. The dividend yield for BNP Paribas stocks is currently at 2.74%.

Daimler AG (XTER:DAI)

The guru’s fifth largest holding is in Daimler where he holds on to 9,930,000 shares of the company’s stock. This position makes up for 3.3% of Herro’s total assets managed as well as 0.93% of the company’s shares outstanding.

During the third quarter Herro cut his holdings -13.68% by selling a total of 1,574,000 shares of the company’s stock. He sold these shares in the quarterly price range of €46.45 to €58.25, with an estimated average quarterly price of €53.73 per share. Since then the price per share has increased approximately 12.7%.

1385581513638.png

Daimler AG develops, manufactures, distributes and sells a wide range of automotive products, mainly passenger cars, trucks, vans and buses. It also provides financial and other services relating to its automotive businesses.

Daimler’s historical revenue and net income:

1385584369175.png

The analysis on Daimler reports that the company’s dividend yield is close to a 3-year low, its price is near a 5-year high and they have issued €32.8 billion of debt over the past three years, but overall its debt level is acceptable.

David Herro is the only guru that currently holds a stake in Daimler.

Daimler has a market cap of €64.76 billion. Its shares are currently trading at around €60.55 with a P/E ratio of 8.70, a P/S ratio of 0.56 and a P/B ratio of 1.54. The dividend yield of Daimler stocks is 3.63%. The company had an annual average earnings growth of 32.20%.

Check out David Herro’s complete third quarter portfolio here.

Try a free 7-day premium membership here.

Rating: 2.8/5 (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