The Long View: Investing in Global Equities with David Herro and Rajiv Jain

In a recent episode of The Long View podcast, two renowned investors, David Herro and Rajiv Jain, shared their insights on international investing. Both investors have strategies that are rated Gold by Morningstar’s Manager Research team. They discussed the case for international investing, the impact of interest rates, geopolitical risks, and the future prospects of automotive manufacturers.

David Herro, known for his value investing approach, shared his thoughts on the impact of interest rates on international investing. He emphasized the importance of considering the fundamentals of a company, such as cash flow streams and valuation, rather than being swayed by short-term market movements. He also discussed his approach to currency hedging and the potential benefits of investing in undervalued currencies.

Rajiv Jain, on the other hand, highlighted the opportunities in emerging markets and the importance of bottom-up analysis when considering investments. He discussed the role of geopolitical risks and the impact of trade tensions on investment decisions. He also shared his enthusiasm for AI and technology stocks, emphasizing the importance of separating hype from reality in identifying winners within the sector.

Both investors addressed the question of investing in automotive manufacturers, with Rajiv Jain mentioning his recent purchase of Toyota Motor and David Herro preferring European auto manufacturers like BMW and Mercedes-Benz. They discussed the factors influencing their investment decisions in the automotive sector, including the shift towards hybrid vehicles and the potential benefits of premiumization.

Overall, the discussion provided valuable insights into the world of international investing, highlighting the importance of thorough research, long-term perspective, and a focus on fundamentals in making investment decisions.