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Oakmark FundsDeep research22 Jan 2026Source: oakmark.com

International equities reignite: Finding value in today's markets

Oakmark is the mutual fund family launched in 1991 by Harris Associates, the Chicago deep-value firm founded in 1976 (about $105bn AUM). Bill Nygren runs the flagship Oakmark Fund and David Herro the Oakmark International Fund, buying businesses at large discounts to intrinsic value and holding them like owners — publishing quarterly fund commentaries, market commentaries and insight articles.

Bill Nygren、David Herro · 1991 · 美国芝加哥Deep value / contrarian long-term

In plain words

This report says international stocks (like companies in Europe and Japan) have risen a lot recently, but they're still not overpriced. With global growth speeding up, there's room for more gains. For ordinary investors, don't be scared off by the rally—focus on quality firms with strong profits, low debt, and steady cash flow. Now could be a good time to add some international stocks, especially in Europe and Japan.

AI SummaryAI-generated · may contain errors · verify against the original

Oakmark research article notes that after the strong performance of international equities in 2025, the outlook remains optimistic due to attractive valuations and accelerating global growth. Tony Coniaris, Co-CIO and Head of International Equities, believes that opportunities can currently be found

5 sections
Deep Analysis

Theme and Background

This chapter discusses the investment outlook following the strong performance of international equities in 2025. The report notes that despite significant market gains, valuation attractiveness and accelerating global growth continue to support international equities.

Core Viewpoint

The author believes the outlook for international equities remains optimistic, with the core logic being that valuations have yet to fully reflect growth potential. The counterintuitive point is that while the market generally fears international equities have "risen too far," the author judges that opportunities can still be found among high-quality global companies at current levels.

Key Arguments and Data

  • Valuation Attractiveness: The report does not provide specific P/E data but emphasizes that current valuation levels remain below historical averages, offering a margin of safety for growth.
  • Growth Acceleration: Global economic growth expectations have been revised upward, with earnings growth in non-U.S. markets (such as Europe and Japan) expected to outpace that of the United States.
  • Quality Screening: The author focuses on "quality companies" (high ROE, low debt, stable cash flow), arguing that such firms are more resilient in a slowing growth environment.

Companies/Assets Involved

This chapter does not mention specific company names or individual stocks. The author discusses the overall opportunity in international equities only from a macro perspective, without specifying bullish or bearish targets.

Investment Implications

Investors should focus on international equities with reasonable valuations and high earnings quality, rather than chasing short-term gains. The current period represents a window for systematically increasing allocations to non-U.S. markets, particularly high-quality companies in Europe and Japan, which may benefit from accelerating global growth.