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International Favorite David Herro's Top Five Holdings at Year End

Monica Wolfe

Monica Wolfe

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David Herro is a favorite among an exclusive group of international gurus. As the chief investment officer of International Equities for Harris Associates, you would think he had his hands full enough already, but Herro is also the portfolio manager of the Oakmark International Fund, the Oakmark International Small Cap Fund and the Oakmark Global Select Fund. The international guru has 28 years of investing experience under his belt and has been with Harris Associates since 1992.

Herro launched his Oakmark International fund in September 1992 and since then he’s seen strong performances in all market conditions. David Herro joined Harris Associates in Chicago in 1992 as a portfolio manager and has since then moved into the position of partner and CIO of international investments.

As of Dec. 31, David Herro (Trades, Portfolio) holds on to 58 stocks, with one of them being a new buy over the quarter. His portfolio is valued at over $26.7 billion. The following five companies represent the guru’s top five positions as of the close of the fourth quarter.

Credit Suisse Group (XSWX:CSGN)

David Herro’s largest holding is in Credit Suisse Group where he holds on to 46,773,000 shares of the company’s stock. His position in the company makes up for 5.4% of his total portfolio and 2.94% of the company’s shares outstanding.

During the fourth quarter Herro upped his holdings 16.8% by purchasing a total of 6,727,000 shares of the company’s stock. Herro bought these shares near the estimated average quarterly price of CHF27.35per share. Since then the price per share has increased approximately 2.7%.

Herro’s historical holding history:

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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:

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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:

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Credit Suisse has a market cap of CHF44.75 billion. Its shares are currently trading at around CHF28.10 with a P/E ratio of 16.40, a P/S ratio of 1.61 and a P/B ratio of 1.54.

Allianz (XTER:ALV)

Herro’s second largest position is in the Germany-based Allianz where he maintains 5,612,000 shares of the company’s stock. This position takes up 3.8% of his entire portfolio as well as 1.23% of the company’s shares outstanding.

During the fourth quarter Herro upped his position 9.93% by purchasing 507,000 shares of the company’s stock. He purchased these shares near the estimated average quarterly price of €124.08 per share. Since then the price per share has increased approximately 4.6%

Herro’s fourth quarter historical holding history:

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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:

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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 (Trades, Portfolio) and the Invesco European Growth Fund (Trades, Portfolio) are currently the only gurus who hold a position in Allianz.

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

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Allianz SE has a market cap of €59.16 billion. Its shares are currently trading at around €129.75 with a P/E ratio of 10.00, a P/S ratio of 0.58 and a P/B ratio of 1.12. The company’s dividend yield is currently sitting at around 2.55%. The company also had an annual average earnings growth of 9.40% over the past five years.

Intesa Sanpaolo (MIL:ISP)

The guru’s third largest position is in Intesa Sanpaolo where he holds on to 413,903,000 shares of the company’s stock. The guru’s holdings make up for 3.8% of his total port folio and 2.52% of the company’s shares outstanding.

During the past quarter Herro reduced his holdings by -1.76%. He sold a total of 34,771,000 shares near the estimated average quarterly price of €1.75 per share. The price per share has increased approximately 27.4% since then.

The guru’s historical holding history:

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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:

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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:

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Intesa Sanpaolo has a market cap of €36.71 billion. Its shares are currently trading at around €2.23 with a P/E ratio of 54.00, a P/S ratio of 3.03 and a P/B ratio of 0.27. The dividend yield of Intesa Sanpaolo stocks is currently at 1.79%.

BNP Paribas (XPAR:BNP)

David Herro (Trades, Portfolio)’s fourth largest position is in BNP Paribas where the guru holds on to 11,262,000 shares of the company’s stock. His holdings make up for 3.3% of his total portfolio and 0.90% of the company’s shares outstanding.

The guru reduced his position -5.82% over the fourth quarter, selling 696,000 shares of the company’s stock. He sold these shares near the estimated average quarterly price of €53.67. Since then the price per share has increased approximately 9.2%.

David Herro (Trades, Portfolio)’s historical holding history:

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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:

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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.

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

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BNP Paribas has a market cap of €72.96 billion. Its shares are currently trading at around €58.63 with a P/E ratio of 14.20, a P/S ratio of 1.10 and a P/B ratio of 0.73. The dividend yield for BNP Paribas stocks is currently at 2.56%, and over the past five years the company has seen an annual average earnings growth of 41.30%.

Daimler AG (XTER:DAI)

The guru’s fifth largest holding is in Daimler where he holds on to 10,164,000 shares of the company’s stock. This position makes up for 3.3% of Herro’s total assets managed as well as 0.95% of the company’s shares outstanding.

During the fourth quarter Herro increased his holdings 2.36% by purchasing a total of 234,000 shares of the company’s stock. He purchased these shares near the estimated average quarterly price of €59.45 per share. Since then the price per share has increased approximately 12.9%.

Herro’s historical holding history:

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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:

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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.

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

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

Daimler has a market cap of €71.8 billion. Its shares are currently trading at around €67.13 with a P/E ratio of 9.60, a P/S ratio of 0.62 and a P/B ratio of 1.54. The dividend yield of Daimler stocks is 3.28%. The company had an annual average earnings growth of 39.90%.

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

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