David Herro (Trades, Portfolio) is the manager of the Harris Associates’ Oakmark International Fund who has delivered 10 percent returns on average per year since its 1992 inception. In an update, he talked about some new additions to the fund’s portfolio in the fourth quarter: Grupo Televisa, SMFG and Wolseley.
Last week Herro shrugged off market drops and negative macroeconomic data mainly out of China.
“If you’re an investor you’re measuring a business based on the present value of future cash flow streams, and that value of the business doesn’t move around close to the rate of change of share prices,” he said on CNBC.
“Share prices significantly weakened, and it’s really hard to say that intrinsic value of most good, well-run businesses has weakened, providing an opportunity for investors.”
Herro’s portfolio contained 60 stocks valued at $25.4 billion as of the end of the third quarter. At the end of the fourth quarter, the Oakmark International Fund had 66% of its holdings in Europe, 20% in Japan and 3% in Australia.
Below is an overview of his newest disclosed positions.
Grupo Televisa (TV, Financial)
Herro described Grupo Televisa as “a Mexican media company and the most dominant producer of Spanish-language content in the world.” Thus far in 2016 the shares have declined 6%.
Grupo Televisa SAB was incorporated on Dec. 19, 1990. Grupo Televisa SAB has a market cap of $14.86 billion; its shares were traded at around $25.69 with a P/E ratio of 27.77 and P/S ratio of 3.39. The dividend yield of Grupo Televisa SAB stocks is 0.43%. Grupo Televisa SAB had an annual average earnings growth of 8.7% over the past 10 years. GuruFocus rated Grupo Televisa SAB the business predictability rank of 3.5-star.
Sumitomo Mitsui Financial Group (SMFG, Financial)
SMFG, with a $48.8 billion market cap, is the third largest bank in Japan. Year to date its shares fell roughly 11%.
Sumitomo Mitsui Financial Group Inc. was established on Dec. 2, 2002. Sumitomo Mitsui Financial Group Inc. has a market cap of $46.35 billion; its shares were traded at around $6.78 with a P/E ratio of 8.16 and P/S ratio of 1.52. The dividend yield of Sumitomo Mitsui Financial Group Inc. stocks is 3.72%.
Wolseley Plc (LSE:WOS, Financial)
Wolseley is “the world’s largest traded distributor of plumbing and heating products and leading supplier of building materials based in the U.K.” The shares declined 9% year to date.
Wolseley Plc was incorporated and registered in Jersey on Sept. 28, 2010, under the Jersey Companies Law as a public company limited by shares. Wolseley Plc has a market cap of $8.79 billion; its shares were traded at around $33.54 with a P/E ratio of 42.09 and P/S ratio of 0.67. The dividend yield of Wolseley Plc stocks is 2.64%. Wolseley Plc had an annual average earnings growth of 79.0% over the past five years.
To see more of David Herro (Trades, Portfolio)’s stock picks, visit his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days.
