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Wednesday, March 11, 2015

The "Gurus" are Buying European Stocks

I have been writing and investing based on the view that Europe and Germany in particular was undervalued vs the US for over 2 years And have written about adding currency positions to those positions over the last 12 months.

 As the more performance chasers join those that already own European stocks the better fior those "early birds"as they push prices higher.

At some point disciplined investors who got in early  will be rebalance and some of the gains sold off "selling high" as the performance chasers "buy high" I dont know whether the "gurus' are performance chasing or investment geniuses  but they are buying European stocks.

I came across this interesting article from Guru Focus

Which Regions And Sectors Are International Gurus Buying?

March 06, 2015

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.
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. 

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

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