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Forget Financial Woes, These Europe Stocks Are Buys

Fast Money Portfolio
Fast Money Portfolio

Are some European stocks more appealing than most investors realize? Tom Russo, partner at Gardner, Russo and Gardner sure thinks so. He’s got a portfolio that’s chock full of them.

Currently about 70% of Russo’s holdings are companies that are either headquartered in Europe or do a whole lot of business in Europe.

At first glance that may seem like a terrible investment strategy, but Russo’s fund, which has $5 billion under management, has outperformed the S&P 500 for the past five years.

And he tells us during a live interview that although many European economies look weak, investors should put money to work, right now.

In fact he tells us the ongoing financial malaise, “allows investors to buy companies at a huge discount. Basically, Europe is on sale,” he says.

Among the companies he likes best are Switzerland-based Nestle , Amsterdam- based Heineken , and London- based Diageo.

However, not all overseas firms are created equal. Largely Russo is bullish on companies that have very strong brand recognition and not only in Europe but also the emerging world.

Despite the current woes, if a company has strong brand recognition in Europe and the emerging world then - whether profits come from China, India, VietNam or Africa, he says, the profits will come.

Posted by CNBC's Lee Brodie



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Trader disclosure: On June 5, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is short JUNE MINI S&P FUTURES; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA

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CNBC.com with wires.