Interview with Francisco Garcia Parames

Bestinver Asset ManagementH/T to David of, for sending this to me.

Below is a short and interesting interview conducted by Wealth Insight, with Francisco Garcia Parames, co-manager of Spain based Bestinver Asset Management (he has been called “the Warren Buffett of Europe”.  Ask anyone familiar with the Spanish (orany European value funds)  and they will tell you Bestinver is by far the value fund in Spain.

The older Bestinfond Fund launched in 1993 has  a cumulative return of 1,757% (as of Feb 28,2011) as compared to only 416% for the benchmark. That’s a 17.5% compounded annual return (CAGR) over the last 18 years compared to benchmark returns of 9.5%— a record that would put many a fund managerinto the shade. The newer Bestinver Internacional Fund launched in1998 has given cumulative returns of 278% asagainst the 16 per cent (cumulative) returned by thebenchmark MSCI World Index (as of Feb 28, 2011).That’s a 10.6% CAGR compared to1.1 per cent returned by the benchmark.

Below is a brie excerpt followed by the document in scribd:

How do you differentiate between a company that has astrong competitive advantage and one that has only a strong brand?

Well, take the case ofSony. Sony is a good brand andeveryone knows Sony. But it cannot charge 20 per centmore than its competitors. On the other hand, take BMW.It can still charge more than its competitors. So by defi-nition, you have a good competitive advantage ifyou cancharge higher prices and as a result ofwhich you willend up with higher returns than the competition.
Below is the full document in scribd:

Interview Francisco Garcia Parames

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