Herro Says There Are Buying Opportunities in Italy

David Herro of Harris Associates discusses his investments in Italy, highlighting the country's political instability and its impact on the banking sector, particularly Intesa. Despite the challenges, Herro sees investment opportunities due to market volatility, emphasizing the importance of long-term value investing.

What is a notable characteristic of Italy's political landscape since World War Two?

• It has had no government changes.

• It has experienced frequent government changes.

• It has had a stable government.

• It has been under a single-party rule.

How has the political instability in Italy affected the banking sector?

• It has had no impact on the banking sector.

• It has led to an increase in share prices.

• It has caused a significant drop in share prices.

• It has improved the banking sector's performance.

Despite the drop in share prices, what is the condition of Intesa Sanpaolo's business?

• The business is facing bankruptcy.

• The business is expanding rapidly.

• The business is struggling with high loan losses.

• The business is performing well with decreasing loan losses.

What strategy does David Herro suggest for dealing with market volatility?

• Sell all investments to minimize risk.

• Analyze and measure value for long-term investments.

• Invest in short-term opportunities.

• Avoid investing during volatile times.

What does David Herro believe the market has provided for investors?

• A selling opportunity.

• A chance to exit the market.

• A buying opportunity.

• A reason to avoid investments.