1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (5983) 

David Herro on Where to Invest Now

August 30, 2010 | About:

David Herro, portfolio manager of the Oakmark International Fund, tells CNBC where he's putting his money to work now.

The famous money manager has pulled off a 10.5% annual average since 1992 when he started his fund. His success strategy is very simple: buying good business at price at least 40% discount from estimated value.

What about if one is confident about the value estimate and yet the stock keeps declining, “keep buying more”, he said.

Right now David Herro has a bulk of his money invested in Europe. One example he gave is Banco Santander (STD) which draws 70% of its profit from Brazil, Mexico, UK, and even US. It is based in Spain and has some sovereign debt of Spanish government, therefore it is penalized. But Herro thinks it is undervalued and has bought a large position.

As of now, Herro thinks it is perfect time to look at stocks. He thinks US economic concerns does not overshadow global growth. However, he does not think emerging stock market represents good value as all the good news tend to be baked in the price already. Taking a contrarian viewpoint, Herro thinks Japan is sweet spot to invest in currently.

Rating: 5.0/5 (4 votes)


Please leave your comment:

Performances of the stocks mentioned by guruek

User Generated Screeners

ligeron.4gJoel Greenblatt
opadovaniP min
liuzishuNon-Div Beneish EV/EBITDA
liuzishuNon-Div Beneish ROA/E
alberto.lopezblancoMomentum / Deep Value_V2
alberto.lopezblancoMomentum / Deep Value_volume
alberto.lopezblancoAdquirer's Multiple
HOLKLSUTest First Group Trump Trade
pbarker46Begin here, dividend growth
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)

GF Chat