Why Oakmark's David Herro Just Bought His First Chinese Stock

This proven picker of foreign stocks is taking advantage of scary headlines and falling share prices to put his fund’s cash to work.

David Herro has been visiting China every year since the late 1980s. Here’s the thing: In all that time he never bought a Chinese stock for Oakmark International (symbol OAKIX), the fund he has run or comanaged since 1992. Why? He couldn’t find a high-quality company selling at a cheap enough price—until now. As the Chinese economy is showing signs of derailing, Herro just bought his first Chinese stock—and he added to his holding during the global market meltdown on August 24. (Alas, he says he won’t be able to disclose the stock’s name until the end of the quarter for regulatory reasons.)

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.