Value Hive Podcast Erik_YWR (Part 2): French Stocks, European Banks, and South Korea
50 snips
May 9, 2025 The discussion dives into the resurgence of European bank stocks, highlighting their earnings momentum and growth potential. It also explores underappreciated investment opportunities in South Korea, focusing on low earnings multiples despite challenges for foreign investors. Insights into the evolving global investment landscape reveal trends in sectors like biotech and emphasize the psychological aspects of long-term investing, inspired by legendary investors. Lastly, there's a light-hearted take on Theodore Roosevelt's adventurous life and conservation legacy.
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European Banks' Untapped Upside
- European bank stocks still have significant upside with conservative estimates showing 40% potential gains.
- Investor perception is shifting from US-only focus to appreciating global opportunities, boosting European banks' appeal.
Monitor Fund Flows for Entry
- Track international investor flows using specialized data like EPFR to gauge trends out of US into Europe.
- Fund flows rarely match performance immediately; watch flow changes as early signals of shift.
Drop Country Bias on European Stocks
- French banks and other European financials suffer from negative top-down views and neglect despite strong global franchises.
- Ignoring country politics to focus on business quality reveals undervalued opportunities trading below intrinsic worth.
