Investors / stance tracking
What David Herro is saying
FollowFollowingUnfollowCo-CIO international equities, Harris Associates (Oakmark)
7 dated public stances tracked since 2011-05-21, most recently 2011-05-21. Each line carries the date and the venue it came from; quotation marks mean verbatim. Methodology.
The stances below are c8alpha's editorial distillation of David Herro's public commentary — television, podcasts, and interviews — compiled by automated transcript analysis and dated to the episode they came from. They may lag the speaker's current view and may contain extraction errors. Text in quotation marks is verbatim from the episode; everything else is our paraphrase. David Herro is not affiliated with c8alpha and has not endorsed this page. Nothing here is investment advice.
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7
tracked stances
7
themes
0
side flips
2011-05-21
last heard
Most-argued themes
| Theme | Stances | Lean | Mix | Last |
|---|---|---|---|---|
| DEO | 1 | 1 bullish | 2011-05-21 | |
| Em Equities | 1 | 1 bearish | 2011-05-21 | |
| Japan Equities | 1 | 1 bullish | 2011-05-21 | |
| SAN | 1 | 1 bullish | 2011-05-21 | |
| Small Caps | 1 | 1 bullish | 2011-05-21 | |
| T | 1 | 1 bullish | 2011-05-21 |
Tracked stances
bullish / bearish is a view they argued; owns / short is a position they said they hold.
2011-05-21
Japan Equities
bullish
Bill Nygren · video
Japanese stocks trade below book value at ~8x cash flow (lowest developed market), down from 40,000/65x earnings in 1989, while corporate behavior—ROE, operating profitability, capital allocation—is noticeably improving
“This is the time to do it, especially since the corporate behavior of Japanese companies is noticeably improving”
David Herro
Daiwa Securities is the second-largest conduit to Japanese savers and benefits directly from deregulation that opened the postal savings network to brokerage products, giving it network access to 15-17% of the Japanese asset pool
David Herro
Banco Santander derives less than 30% of profits from Spain and over half from high-growth emerging markets including Brazil and Mexico, so the Spanish sovereign macro risk is substantially overstated in the share price
David Herro
2011-05-21
Em Equities
bearish
Bill Nygren · video
EM stocks are at their lowest-ever portfolio weight (~3%) because surging capital inflows have pushed valuations to levels that ignore opaque corporate governance and poor capital allocation, analogous to buying dot-coms because everyone was using the internet
“people are not looking at what they're buying, they're overlooking the lousy corporate governance”
David Herro
2011-05-21
Small Caps
bullish
Bill Nygren · video
International small caps trade at a slight discount (~5-6%) to international large caps unlike the US where small caps trade at a premium, providing a valuation advantage that should translate into 1-2% annual outperformance over a 5-6+ year horizon
David Herro
Diageo is the world's largest spirits company trading at ~10x gross cash flow with a secular tailwind from aging populations trading up from beer to spirits and rising emerging-market alcohol consumption, while strong capital allocation and brand moat reduce…
“unless you believe we're going to have global prohibition, this is going to be a very good stock to own”
David Herro
2011-05-21
TITAN CEMENT
bullish
Bill Nygren · video
Greek-domiciled Titan Cement earns significant revenue from Egypt and the US Sunbelt (Florida), so its depressed valuation from Greek macro fears misprices a business with genuine geographic diversification into long-term growth markets
David Herro
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