Warren Buffett said in an interview published on 2/25/2015 in the newspaper Handelsblatt that his holding company Berkshire Hathaway is definitely interested in companies in Germany. “Germany is a terrific market, lots of people, lots of buying power, productive, it’s got a legal system we feel very good with, it’s got a regulatory system we feel very good with, it’s got people we feel very good with - and customers,” Buffett said.
George Soros, one of history’s most successful financiers, has been selling US holdings to buy European stocks. It is said that he has moved about $2 billion into companies in Asia and Europe, according to a person familiar with the strategy.
Robert Shiller, who popularized the cyclically adjusted price-to-earnings ratio (commonly known as Shiller P/E), is also thinking about exiting US stocks and getting into Europe. He said in a television appearance on 2/18/2015 “I'm thinking of getting out of the United States somewhat. Europe is so much cheaper.” Specifically, Shiller has already purchased stock indices in Spain and Italy.
Leon Cooperman wrote in an investor letter in January this year remained bullish on the U.S., while predicting bigger gains elsewhere. He said “We expect the European and Japanese equity markets to outperform the U.S. in the coming year.”
The US stock market was up more than 30% in 2013, the best year since the go-go years of the 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. The US stock market appears to be really high. Maybe it is the time to find some real bargains in the international markets. Now let’s look at GuruFocus’ top international gurus to see which regions and sectors these gurus hold the most in recent quarter.
Top Regions
Note: the percentage numbers in these charts may not be added to 100% since we rule out the cash and fixed income assets. Only common and preferred shares are considered in this article.
From the above charts, we are confident to say Europe, Asia, and UK/Ireland are the top regions those international gurus holds their positions. Please be aware that we do not consider USA in this article.
| Portfolio Name | Top Regions | ||
| Oakmark International Fund | Europe | UK/Ireland | Asia |
| Oakmark International Small Cap | Europe | Asia | UK/Ireland |
| IVA International Fund | Asia | Europe | UK/Ireland |
| IVA Worldwide Fund | Europe | Asia | UK/Ireland |
| Wasatch International Growth Fund | Asia | Europe | UK/Ireland |
| Causeway International Value Fund | Europe | Asia | UK/Ireland |
| Tweedy Browne Global Value Fund | Europe | UK/Ireland | Asia |
| Polaris Global Value Fund | Europe | UK/Ireland | Asia |
| Wintergreen Fund | Europe | Asia | UK/Ireland |
| MS Global Franchise Fund | UK/Ireland | Europe | Asia |
| Bestinfond | Europe | UK/Ireland | Asia |
| Invesco European Growth Fund | Europe | UK/Ireland | Asia |
Among the 12 international gurus, 9 funds have their largest holdings in Europe, 2 funds have their top holdings in Asia, and one in UK/Ireland. 3 funds have their second largest holdings in Europe, 4 funds in Asia, and 5 in UK/Ireland. Asia and UK/Ireland divide the third largest holding regions.
Top Sectors
The above charts are the sector allocations of GuruFocus’ top international gurus. The data is from each guru’s recent factsheet.
| Portfolio Name | Top Sector (abouve 10%) | ||||
| Oakmark International Fund | Consumer Discretionary | Financials | Industrials | Ă‚ | Ă‚ |
| Oakmark International Small Cap | Industrials | Information Technology | Financials | Consumer Staples | Ă‚ |
| IVA International Fund | Consumer Discretionary | Ă‚ | Ă‚ | Ă‚ | Ă‚ |
| IVA Worldwide Fund | Information Technology | Consumer Discretionary | Financials | Ă‚ | Ă‚ |
| Wasatch International Growth Fund | Information Technology | Industrials | Consumer Discretionary | Consumer Staples | Financials |
| Causeway International Value Fund | Financials | Industrials | Consumer Discretionary | Materials | Health Care |
| Tweedy Browne Global Value Fund | Financials | Consumer Staples | Consumer Discretionary | Ă‚ | Ă‚ |
| Polaris Global Value Fund | Financials | Materials | Consumer Discretionary | Information Technology | Health Care |
| Wintergreen Fund | Consumer Staples | Consumer Discretionary | Financials | Ă‚ | Ă‚ |
| MS Global Franchise Fund | Consumer Staples | Information Technology | Consumer Discretionary | Ă‚ | Ă‚ |
| Bestinfond | Consumer Discretionary | Financials | Industrials | Ă‚ | Ă‚ |
| Invesco European Growth Fund | Consumer Discretionary | Financials | Industrials | Ă‚ | Ă‚ |
Those are the top sectors (more than 10% of their holding values) these international gurus hold. Most focus on consumer discretionary, financials, consumer staples, and information technology sectors.
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