Herro Answers 'Why Go Overseas?'
Any time you can broaden your subset, broaden your investable universe, you have a higher probability of achieving success, says the Oakmark manager.
John Coumarianos: Broadly speaking, I think American investors sometimes have a difficult time investing internationally. They worry about it. Make the case for international investing and tell us what part of the overall world stock market capitalization foreign stock markets represent.
David Herro: Yeah. I think, to answer your second question first, foreign markets are now a majority, they're probably 55% or 60%. But that, per se, isn't the reason to do it. The reason to do it is why limit yourself to one place? And the analogy used early on--I started in this business in 1986, and I find myself continuing still to fight this battle on "Why go overseas?"
John Coumarianos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.