Thomas Russo, Gardner, Russo & Gardner partner, discusses how long-term investing can meet the volatility in today’s economy.
“allows investors to buy companies at a huge discount. Basically, Europe is on sale,” he says.
Talk of inflation has been swirling for some time amid all the stimulus that's been pouring into the market and the soaring debt levels in the U.S. The Federal Reserve has said that any inflation that does occur will be temporary, but one hedge fund macro trader says there are plenty of reasons not to Read More
Full video and transcript below:
it is time for the fast money portfolio where long-term investing meets volatility. the next guest got a portfolio stocked with the european stocks and his fund is outperforming the s&p 500.partner of gardener russo and gardener who oversees the hedge fund. i think i same into the wrong studio. come the wrong can make you money in the returns. they are global grand companies. how does europe and the thread of a weakening europe factor in? it provides a terrific opportunity for us to invest at a give away price. europe is on sale in a couple of ways. the brands that identify with europe nestle products, those brands are coveted in the emerging and developing markets. our businesses are charged with the responsibility of investing against those brands to have them available. the right outlets for the economies as they develop in advance. those profits for the development come back to europe overtime in stronger currencies. at the moment it’s basically rope is on sale and the aspects that we look for within the companies are the assets growing in the parts of the world that should grow for along time. when you are in europe obviously everybody is worried about the euro disappearing. you have grown nestle stock in. do you think about that? the profit stream from thebusinesses we own in europe will be more heavily skewed to the parts that are growing. with the growth in those parts of the world, i think the currencies will strengthen. we are an american-based firm and we have to settle up in dollars. the profits coming from china or india or vietnam or africa go back to europe,more euros and translate back to stronger dollars. it is the great unknown. at the same time it’s not clear dollar will remain permanently strong. you are talking about the issuesthat will face as we go about the debit and whether or not wewill honor our obligation as a country. that will surface in the next six months. worry mastercard, what do you think about mastercard? has significant exposure around the world, h do you think about a name like that and what do you look for?again, it’s much like the european products. mastercard stumbled when we bought the shares because of domestic issues. the real growth in mastercard is that commerce that is happening away from the u.s. 80% of commerce offshore settsin currency and cash and that substitute from cash to paymentwill benefit mastercard and visa. we have a bigger investmentbecause we are so oft mystic about the management’swillingness to build off the income generation. we believe that the management has our type and it’s very slow money. we need the management to invest with a long-term mindedness for the investments to work out. thomas russo of the sempra vick. there is a lot more growth upside here in the united statesthan in europe for the emerging markets that were leading us up back in 2007, 2008. -focused and there is a lot of area thatis undervalued because of the lowdown in europe and the ng markets. i would focus more on the u.s. so you don’t likespoken like a true contrarian. there is a social network just this website is generating a lot of buzz and how it can help you make your next winning trade. ] meeting. ? ? there’ll be the usual presentations on research. and development.