DavidHerroHarrisAssociates

BarronsTheArtofSuccessfulInvestingConferenceOctober21,2013
Hashadamazinglongtermperformance,up~40%lastyear
Japaneseequitiesweredepressedaftertheearthquake
o Priceswerealreadylowandtheearthquakewascherryontop
o Priceswerelowbutthequalitywasimproving
o Japanneedsstructuralreform
o Managementsaregenerallynotfocusedonprofits,corporateattitudesarevery
differentfromtheU.S.
CurrentlybelievesCanonInc.(CAJ)isverycheap
o ROEisnow1516%
o Companyismisunderstoodbecausepeopleassumetheyarestilldependentoncamera
saleswhichisadecliningindustry
o Theyactuallyderivethevastmajorityfromdigitalprintertechnology,camerasareade
minimis
Toyotaisaconservativebetbecauseitsbalancesheetistoosafe
o U.S.automarketisina5yearslump
75%ofhisportfolioisinvestedinEurope
Daimleristradingata56P/E
Findsthatpeopleoftenconflateacompanysearningspowerwiththeeconomicstandingofthe
countryinwhichitisdomiciled
o Eachcountryisalsodifferentandshouldntbelumpedtogetherunderonetermlike
Europe
CreditSuisse(CS)ismisunderstood
o Regulatorsarecurrentlytighteningthescrewsonthemandmarketperceptionis
negative
Chinawillbeapropellantoffuturegrowth
o TherearefewhighqualitystocksinChinabuttheonesthatdoexistareextremely
expensive
OwnsasmallamountofAstellasPharmaInc(ALPMY)
o BasedinJapanandshareholderfriendly
SomespacesintheEuropeanbankingsectorneedcapitalbutnotthelargebanks[Zulaufheld
theoppositeview]
Fearsofsovereigndefaultaredisappearing
Canadahasbeentooexpensive,notespeciallyinterestedinitnow
Emergingmarketsareovervalued
Russiadoesnothaveruleoflawandinvestorsmusttakethatintoaccount