Tom Russo (Trades, Portfolio), partner at Gardner Russo & Gardner, told Bloomberg yesterday that value investors will make money over time, and it will depend on the ability of the companies in which they've invested to reinvest the money over time. Russo has large positions in Richemont (XSWX:CFR, Financial), Pernod (XPAR:RI, Financial), Heineken (XAMS:HEIA, Financial), which have large exposure to emerging markets. But most of his companies have a long-term outlook and ability to withstand sudden downturns such as China, he said.
Russo also said he maintains confidence in Warren Buffett (Trades, Portfolio)'s ability to deploy large amounts of capital but he likely lacks opportunity at the present time. He doubts Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) will repurchase shares on their recent slump because Buffett would rather spend the money on buying businesses.
