David Herro, CIO International Equities & Portfolio Manager at Harris Associates, adviser to the Oakmark Funds, explains why he scours Europe for value companies, even when their home country may be troubled by war, political strife, or other issues that many investors believe are unfavorable. Watch the video for his perspectives on:
- Why companies that meet his value criteria – the price and quality of a business – tend to be based in Europe but do business around the world.
- Why less than half of Europe’s, Japan’s, and the United Kingdom’s revenues come from the continent of domicile.
- Why, even though Europe faces macroeconomic struggles, a harsh regulatory environment, and energy issues, they all have a very small impact on many companies’ ability to generate income and cash flow.
- How they buy financial assets with very long durations to take advantage of market inefficiencies.