David Winters, CEO, Wintergreen Advisers, who manages $2.2-billion (incl. $210-million Renaissance Global Markets Fund in Canada) is optimistic about finding great value around the world, and in the U.S., and he talks to CNBC about where and what he likes, even in these markets.
CNBC Transcript
Bill: Our next guest sees troubles as more of distraction from real opportunities he sees around the world in markets. David Winters, CEO of Wintergreen Advisors, considers himself in the minority and they have far outpaced the broader markets with returns of 25%. Where is he finding value with 60% of his $2 billion in assets in companies outside the U.S.? You get about 20% in the U.S. as well. Good to see you.
David Winters: Good to see you as well, Bill.
Bill: You're not sitting here fretting about the Greek vote?
Winters: That's the sideshow. There's such big opportunities in the far east and around the world. There's a couple billion people who want everything that we have, Bill, and they will work really hard to get it.
Bill: You came from the east, been in Asia the last six weeks. What did you find? We hear anecdotally, there's wear and tear on margins now on the red hot economies over there.
Winters: Absolutely. At the end of the day though, girls still want jewelry, men want watches, everybody wants a better life for their children. So we think that if you focus on the long term, Bill, there's a lot of money to be made.
Bill: What about here in the U.S.? You have 20%. What are you investing in?
Winters: We own companies like Norfolk Southern railroad, which will benefit from the recovery in the economy. They have vast coal reserves and they're well run and we think there are companies to invest in, here in the United States, but if you cast your net globally, you have a lot of opportunity to make money.
Bill: You find a lot of opportunity in Singapore, right?
Winters: Singapore is interesting, but a small place. we like a company like Jardine Matheson that trades there, but earns its money throughout Southeast Asia. We like the idea of making money 24 hours a day.
Bill: Are you concerned China is due for a major correction at some time? does it concern you? I imagine you will look beyond that one as well.
Winters: I'm worried, of course. I have seen lots of construction, but at the end of the day, you have a billion and a half people and they want to work hard and they want everything. I'm sure there will be blips but we're optimistic.
Do you play it by investing directly or do invest in Multinationals are are able to provide those goods and services overseas.
Winters: As they say, Bill, right on the nose. Global companies, super-regionals; we haven't really found too many local companies yet but we're looking.
Bill: Before I let you go, we should point out you like Berkshire Hathaway at these levels?
Winters: Yes, Berkshire, like most of the New York Stock Exchange is unloved, and we think it's cheap. you would buy it at these levels here. I'm not supposed to say that, but I would say this.
Bill: What's the catalyst to move that higher?
Winters: I think at some point the sentiment changes. People wake up and they go, things are really going to be all right and stocks move much higher, and I think Berkshire will be one of the stocks that moves higher.
Bill: David Winters, always good to see you.
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