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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