International equities: The zip code doesn’t matter
International equities: The zip code doesn’t matter
Portfolio Manager David Herro of Harris Associates explains why a firm’s home country doesn’t sway his search for quality companies at low prices.
- 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.
There can be no assurance that developments will transpire as forecasted. Actual results may vary.
Investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
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