Herro's Take On Greece

Recently, David Herro of Harris Associates spoke to CNBC about his thoughts on the Greece instability, and how that affects European investments — and the top fund manager’s outlook may well surprise you.

While the general population is wary of European equities, Herro is finding “good quality businesses at low prices” in the region. Herro attributes this to the “Grexit,” or the possibility of Greece leaving the Eurozone. Many people assume Grexit will negatively impact other European businesses and have begun pulling their money from European stocks, causing stock prices to plummet.

But Herro believes overreaction has created a number of bargains that will lead to significant profits over the long haul.
After looking over key European financials, Herro has discovered that many have very little direct exposure to Greece, making unlikely the possibility that Greece’s woes will spread to other parts of Europe.