CS/ CS FP, BMW GR, DEO/ DGE LN

Macro, Finance/Real Estate, Healthcare, Industrial/Transportation, Event Driven/Special Sit


Presented by: David Herro, CIO-International Equities, Harris Associates at The Excellence in Investing: San Francisco conference

Highlights

Mr. Herro believes the distortions created by headline risk in Europe created an opportunity to buy shares in companies such as Credit Suisse Group AG (CS/ CSF FP), Bayerische Motoren Werke Aktiengesellschaft (BMW GR), Diageo plc (DEO/ DGE LN). He generally only buys shares of companies trading at a 30%(+) discount to his intrinsic value (based on DCF). These three companies have sound fundamentals, and have been largely unaffected by the crises in Greece and mini-recessions in Italy and other peripheral countries; however, European GDP growth and share prices have lagged the recovery seen in the US.

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Idea Discussion

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