Herro: Use Caution in BRIC
Just because an economy is booming doesn't mean you should buy the stocks in that market, says International Manager of the Decade David Herro.
John Coumarianos: Let's talk a little bit more about emerging markets. You mentioned that you're gaining some exposure to them through the luxury goods makers. But you recently wrote about the so-called BRIC countries and the emerging markets in a shareholder letter. If you could repeat, for the audience, what you wrote in that letter and why you have the exposure you do to emerging markets.
David Herro: Quite clearly, the BRIC countries today--and the BRIC, Brazil, Russia, India, China--are what is going to propel this world to grow at an above-average rate over the next 20, 30, 40 years. And in particular China, and in particular India, because that's two billion people. One-third of the world's population is in these places.
John Coumarianos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.