Going Where the Value Is Greater: International Equities

Big price dispersions on quality businesses and currency discounts excite international value investing expert David Herro.

Price dispersions between growth and value stocks appear to be unsustainable to David Herro, CFA®, CIO-International Equities, Portfolio Manager, Harris Associates/Oakmark Funds. This and other factors, he believes, should be favorable for international value investing as we move into the new year.

Among the investing considerations highlighted by Herro in the video:
  • There is currently a double discount in international equities today – lower stock prices and foreign currencies versus the US.
  • While Europe may be viewed as a slow-growth region, it is home to quality companies that do business all over the world.
  • Merger and acquisition activity within the small cap universe makes it an exciting place to be invested in today.
  • Continued volatility in 2024 may provide attractive buying opportunities in international markets should prices on quality companies become discounted.
For more information, download a whitepaper from the Harris Associates international markets team for a more in-depth look at how international markets are priced today.

The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of December 2023 and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.

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.

Investing in foreign securities presents risks that in some ways may be greater than in US investments. Those risks include: currency fluctuation; different regulation, accounting standards, trading practices and levels of available information; generally higher transaction costs; and political risks.

Currency exchange rates between the US dollar and foreign currencies may cause the value of the Fund's investments to decline.

Volatility is the range of variation in the value of a security.

Equity securities/stocks are volatile and can decline significantly in response to broad market and economic conditions.

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