David Herro

David Herro Premium Guru

Last Update: 05-27-2016
Related: Oakmark Intl Small Cap

Number of Stocks: 57
Number of New Stocks: 2

Total Value: $25,027 Mil
Q/Q Turnover: 12%

Countries: USA GBR CHE FRA ITA JPN SWE NLD CAN DEU HKG AUS KOR
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Herro' s Profile & Performance

Profile

David Herro has been a manager of the Oakmark International Fund (OAKIX) since 1992, the Oakmark International Small Cap Fund (OAKEX) since 1995 and the Oakmark Global Select Fund (OAKWX) since 2006. He is also the Chief Investment Officer for International Equities at Harris Associates, which he joined in 1992.

His career honors include being named Morningstar's International Stock Fund Manager of the Year in 2006 and International Stock Fund Manager of the Decade for 2000-09.

Mr. Herro has an M.A. in Economics from the University of Wisconsin-Milwaukee (1985) and a B.S. in Business/Economics from the University of Wisconsin-Platteville (1983).

Web Page:https://www.oakmark.com/oakmark/web/me.get?WEB.websections.show&OAKMARK_948

Investing Philosophy

1. Buy businesses that are trading at a significant discount to his estimate of the company's intrinsic value.

2. Invest with companies expected to grow shareholder value over time. Value investors can sometimes fall into the trap of buying a stock that is inexpensive for a reason—because the company just does not grow. He looks for good quality, growing businesses with positive free cash flow and intelligent investment of cash.

3. Invest with management teams that think and act as owners. He seeks out companies with management teams that understand the dynamics of per share value growth and are focused on achieving such growth. Stock ownership and incentives that align managements' interests with those of shareholders are key components of this analysis

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Oakmark International Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-3.831.19-5.0
2014-5.4113.69-19.1
201329.3432.39-3.0
3-Year Cumulative17.7 (5.6%/year)52.3 (15.1%/year)-34.6 (-9.5%/year)
201229.221613.2
2011-14.072.11-16.2
5-Year Cumulative30.6 (5.5%/year)80.4 (12.5%/year)-49.8 (-7%/year)
201016.2215.061.2
200956.326.4629.8
2008-46.06-37-9.1
2007-0.515.49-6.0
200630.615.7914.8
10-Year Cumulative66.3 (5.2%/year)102 (7.3%/year)-35.7 (-2.1%/year)
200514.124.919.2
200419.0910.888.2
200338.0428.689.4
2002-8.46-22.113.6
2001-5.13-11.896.8
15-Year Cumulative171 (6.9%/year)107.5 (5%/year)63.5 (1.9%/year)
200012.5-9.121.6
199939.4721.0418.4
1998-7.0128.58-35.6
19973.3333.36-30.0
199628.0222.965.1
20-Year Cumulative423 (8.6%/year)381.4 (8.2%/year)41.6 (0.4%/year)
19958.3237.58-29.3
1994-9.061.32-10.4
199353.5810.0843.5
19920.437.62-7.2

Top Ranked Articles

Deeply Discounted, Solid European Banks David Herro Is Buying Value guru says they're gaining strength, able to withstand storms and wrongly priced
The threat of a British exit from the European Union has contributed to a drastic decline in prices for European financial stocks, and at least one value guru, Oakmark Funds’ David Herro (Trades, Portfolio), believes the sector is highly attractive, according to his interview Thursday on CNBC. Read more...
Gurus Who Bought LinkedIn Cheap in 2nd Quarter See Big Gains Stock's drop met some estimates of intrinsic value before Microsoft merger
The Microsoft-LinkedIn deal this week conferred some much needed mercy on funds this quarter, if they owned LinkedIn (NYSE:LNKD) stock. Read more...
David Herro Buys Ferrari, 2 Other Italian Stocks The Oakmark International Small Cap Fund found plenty of opportunity in Europe
David Herro (Trades, Portfolio) of the Oakmark International Small Cap Fund found opportunities in five companies during the first quarter, three of which were Italian firms, according to data reported by GuruFocus Real Time Picks. Read more...
David Herro's Top 2 Additions in 1st Quarter Have Margins of Safety Exceeding 30% DCF Calculator: Japanese financial services company, British industrial equipment rental company selling below fair value
The top four transactions made by David Herro (Trades, Portfolio) of Oakmark International Fund in the first quarter were additions to existing stakes. The top two sold with margins of safety that exceeded 30%, according to the DCF Calculator. Read more...
Bill Nygren, David Herro Comment on Oracle Guru stock highlight
The largest contributor to performance for the quarter was Oracle (NYSE:ORCL) (U.S.), which returned 12%. Shares reacted positively to stronger-than-expected fiscal third quarter results from the cloud-based business. We believe Oracle’s successful transition to the cloud indicates that the company is on the right track. Management also recently announced a $10 billion increase to Oracle’s existing share repurchase program. Even though its stock has enjoyed recent price increases, we believe Oracle remains undervalued relative to its normalized earnings power. Read more...
» More David Herro Articles

Commentaries and Stories

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

David Herro: Brexit Reaction Manager of 3 global Oakmark funds addresses uncertainty caused by Brexit David Herro - David Herro: Brexit Reaction
David Herro (Trades, Portfolio) is a Partner, Deputy Chairman, Portfolio Manager and the Chief Investment Officer of International Equity at Harris Associates. With 30 years of investment experience, David co-manages three Oakmark Funds: the Oakmark International Fund (OAKIX), the Oakmark International Small Cap Fund (OAKEX), and the Oakmark Global Select Fund (OAKWX). Prior to joining Harris Associates in 1992, he was a Portfolio Manager with both The State of Wisconsin Investment Board and The Principal Financial Group. David earned a BS from the University of Wisconsin-Platteville (1983) and an MA from the University of Wisconsin-Milwaukee (1985). More...

  • Currently 4.00/5

Rating: 4.0/5 (2 votes)

Deeply Discounted, Solid European Banks David Herro Is Buying Value guru says they're gaining strength, able to withstand storms and wrongly priced David Herro - Deeply Discounted, Solid European Banks David Herro Is Buying
The threat of a British exit from the European Union has contributed to a drastic decline in prices for European financial stocks, and at least one value guru, Oakmark Funds’ David Herro (Trades, Portfolio), believes the sector is highly attractive, according to his interview Thursday on CNBC. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro Likes European Financials in Spite of Brexit Herro on Credit Suisse, BNP Paribas, Daimler and valuation David Herro - David Herro Likes European Financials In Spite Of Brexit
David Herro (Trades, Portfolio) of Harris Associates and Oakmark Funds discusses the impact of Brexit on European financials. He holds some financials in Europe such as Credit Suisse (NYSE:CS) and BNP Paribas (LSE:TRYS). He also discussed holdings Daimler (XTER:DAI) and BMW (XTER:BMW). More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Gurus Who Bought LinkedIn Cheap in 2nd Quarter See Big Gains Stock's drop met some estimates of intrinsic value before Microsoft merger Bill Nygren,David Herro - Gurus Who Bought LinkedIn Cheap In 2nd Quarter See Big Gains
The Microsoft-LinkedIn deal this week conferred some much needed mercy on funds this quarter, if they owned LinkedIn (NYSE:LNKD) stock. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Herro Buys Ferrari, 2 Other Italian Stocks The Oakmark International Small Cap Fund found plenty of opportunity in Europe David Herro,Oakmark Intl Small Cap,Wasatch Interna - David Herro Buys Ferrari, 2 Other Italian Stocks
David Herro (Trades, Portfolio) of the Oakmark International Small Cap Fund found opportunities in five companies during the first quarter, three of which were Italian firms, according to data reported by GuruFocus Real Time Picks. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Herro's Top 2 Additions in 1st Quarter Have Margins of Safety Exceeding 30% DCF Calculator: Japanese financial services company, British industrial equipment rental company selling below fair value David Herro - David Herro's Top 2 Additions In 1st Quarter Have Margins Of Safety Exceeding 30%
The top four transactions made by David Herro (Trades, Portfolio) of Oakmark International Fund in the first quarter were additions to existing stakes. The top two sold with margins of safety that exceeded 30%, according to the DCF Calculator. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Guru Stocks With Steady Returns, Profitability Companies with 10 years of strong returns and no debt Frank Sands, David Herro - Guru Stocks With Steady Returns, Profitability
According to GuruFocus' All-in-One Screener, the following stocks have had strong performance over the last 10 years with high and steady returns, as well as profitability. EPS has also grown steadily with the company’s revenue. Most of these companies have a great cash-to-debt ratio. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Herro Comments on EFG International Guru stock highlight
The Fund’s largest detractor for the quarter was a Swiss private bank holding company, EFG International (XSWX:EFGN). During the quarter, EFG International announced a proposed acquisition of one of the oldest private Swiss banks, BSI. BSI’s assets under management are similar in size to EFG’s and the combined entity would become the fifth-largest private bank in Switzerland. Due to the size of the deal, EFG will need to issue equity to finance the transaction; this news hurt EFG’s share price during the quarter. However, in our view, the longer-term synergy opportunities are significant and if the merger is executed properly, we believe that the combined entity’s earnings power should be materially higher than EFG as a stand-alone entity. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro Comments on Primary Health Care Guru stock highlight
The top-performing stock for the quarter was Primary Health Care (ASX:PRY). Primary operates more than 70 health care clinics in Australia and is also one of the largest providers of pathology and diagnostic imaging services in the country. During the quarter, Primary reported its fiscal year 2016 first-half earnings, which met analysts’ outlook for the reporting period and showed that the company’s medical centers business demonstrated stronger growth and margin development despite a lower number of doctors for the year and fee index freezes. On a recent trip to Australia, we met with CEO Peter Gregg and CFO Malcolm Ashcroft, and we continue to believe that management at the company has improved significantly. We believe the company is taking necessary actions including moving to a more sustainable doctor recruitment model, increasing the level of talent within the organization and reducing financial leverage. Furthermore, we like that management is focused on recycling capital from non-core assets, such as the recent sale of the company’s software business More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro Comments on Glencore Guru stock highlight
Glencore (LSE:GLEN) (Switzerland), one of the world’s largest commodities and trading companies, was the top contributor for the quarter, returning 70%. Concerns about weaker-than-expected demand for copper in China drove the price of commodities lower last year and negatively impacted Glencore’s share price. The market overreacted to the weaker demand, and we used the opportunity to buy shares at what we believed to be attractive prices. Glencore has taken action to counter the negative market impact. During the quarter, investors reacted positively to news that the company delivered on recent guidance for fiscal 2015, as well as to management’s aggressive and well-specified plan to deleverage the company’s balance sheet. Management has indicated that the debt restructuring plan and asset sales are progressing as expected. Despite the continued weak commodity prices, Glencore should still be able to generate $3 billion in free cash flow in fiscal 2016, which will aid in debt reduction. Additionally, management noted that they are seeing stronger demand More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bill Nygren, David Herro Comment on Credit Suisse Guru stock highlight
Credit Suisse (NYSE:CS) (Switzerland) was the largest detractor for the quarter, declining by 34%. Although CEO Tidjane Thiam warned that fourth-quarter earnings would be weak, some one-off expenses related to litigation, pension true-up charges and write-downs on certain credit assets were negative surprises during the period. However, this has caused the management team to accelerate the restructuring and reduction of non-core investment banking lines of businesses. The goal is to emphasize the wealth management business that has very good secular growth trends, is fee based and requires little capital. We believe Credit Suisse’s capital position remains solid with a Tier 1 capital ratio of 11.4% as of year-end, which is in excess of regulators’ 10% requirement. Despite some near-term challenges, we continue to believe that over time shareholders will benefit from CEO Thiam’s initiatives to correct some legacy missteps, grow the business and reduce costs. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bill Nygren, David Herro Comment on Oracle Guru stock highlight
The largest contributor to performance for the quarter was Oracle (NYSE:ORCL) (U.S.), which returned 12%. Shares reacted positively to stronger-than-expected fiscal third quarter results from the cloud-based business. We believe Oracle’s successful transition to the cloud indicates that the company is on the right track. Management also recently announced a $10 billion increase to Oracle’s existing share repurchase program. Even though its stock has enjoyed recent price increases, we believe Oracle remains undervalued relative to its normalized earnings power. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro's Oakmark International Small Cap Fund: First Quarter 2016 Commentary Commentary on markets and holdings David Herro - David Herro's Oakmark International Small Cap Fund: First Quarter 2016 Commentary
The Oakmark International Small Cap Fund declined 1% for the quarter ended March 31, 2016, underperforming the MSCI World ex U.S. Small Cap Index, which returned 1% for the same period. Since the Fund’s inception in November 1995, it has returned an average of 9% per year. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro's Oakmark International Fund: First Quarter 2016 Commentary Commentary on markets and holdings David Herro - David Herro's Oakmark International Fund: First Quarter 2016 Commentary
The Oakmark International Fund declined 3% for the quarter ended March 31, 2016, underperforming the MSCI World ex U.S. Index, which declined 2% over the same period. Most importantly, the Fund has returned an average of 9% per year since its inception in September 1992, outperforming the MSCI World ex U.S. Index, which has averaged 6% per year over the same period. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bill Nygren and David Herro's Oakmark Global Select Fund: First Quarter 2016 Commentary Commentary on markets and holdings Bill Nygren,David Herro - Bill Nygren And David Herro's Oakmark Global Select Fund: First Quarter 2016 Commentary
The Oakmark Global Select Fund declined 4% for the quarter ended March 31, 2016, underperforming the MSCI World Index, which was flat for the quarter. The Fund has returned an average of 7% per year since its inception in October 2006, outperforming the MSCI World Index’s annualized gain of 4% over the same period. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Oakmark International Invests in Japanese Bank, Media Company David Herro-led fund buys 3 new holdings David Herro - Oakmark International Invests In Japanese Bank, Media Company
David Herro (Trades, Portfolio) of the Oakmark International Fund purchased three new holdings during the fourth quarter across a variety of industries. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro Writes 'A Tough Start to 2016' Oakmark's Herro discusses why he believes market decline doesn't reflect economic reality David Herro - David Herro Writes 'A Tough Start To 2016'
Fellow Shareholders, More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Herro Buys 3 New International Stocks in Q4 The investor found market volatility a good time to buy David Herro - David Herro Buys 3 New International Stocks In Q4
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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

International Investing Guru David Herro Is Finding Great Opportunities Herro talks with CNBC about his investing ideas David Herro - International Investing Guru David Herro Is Finding Great Opportunities
David Herro (Trades, Portfolio) thinks it is time to be buying stocks. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Auto Stocks Struggle Despite Strong Sales How the gurus are responding to declining prices David Tepper, David Herro - Auto Stocks Struggle Despite Strong Sales
Despite record car sales over the past year, Wall Street is seeing auto stocks tank due to factors such as rising interest rates and the struggling Chinese economy, which is the largest market for automobiles. More...

Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

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)
FEEDBACK