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Markets. We should be a little bit concerned about the Portugal banking incident as we don’t want to see contagion happen. Right now it is a one-off, and has a little bit to do with a parent company transferring some debt. Hopefully it is contained. There are definitely still problems in European markets. In Spain and Portugal particularly, as well as Italy things are a little bit volatile. We are going to get periods where we hear this, and then it will quiet down. Doesn’t think it is an endemic problem any more, but if there is a slowdown in the economic peripheral parts of Europe, it will start to bubble up again.

US Markets. Manufacturing data and ISI Truckers survey are telling him that things are strong in the US. The ISI numbers are as strong as they have been in almost 8 years. This deals with things that are manufactured and shipped in the US. Unemployment numbers are starting to look better, and wages are starting to go up. From a top down point of view, the US is looking like the strongest place to invest in.

What is the principal purpose and reason for the existence of American Depository Receipts (ADRs)? What is the advantage of owning a depository receipt versus simply buying a stock directly? He does not buy the ADRs as he has access to markets around the world. ADRs are there to allow retail investors to participate in a non-US name in the US stock market. It adds to an investor’s ability to buy shares, where they don’t have access to Europe, Asia, etc.

Diabetes is the primary driver of the story behind this company. Well-run company, and is dominant in the diabetes field. Diabetes is considered pandemic, so if you are a leader in the production of a product that caters to diabetes, then you should do very well. This is trading at about 25X forward earnings, and the growth rate is probably half that, so it has a PEG ratio of about 2. He typically tries to avoid companies trading at this high a growth rate.

Owns more than 20% of Alibaba, and is the best way to get exposure to Alibaba before its IPO in the next 12 months or so. His fund owns this company primarily for that reason.

Likes this. One of the best, if not the best, European integrated oil company. Very strong management. Fully integrated oil company, so you are getting exposure from upstream all the way to the downstream.

He doesn’t have anything right now in Indian banks, but that is not to say that he won’t. This wouldn’t be his first choice, but that is because he can buy locally, and doesn’t need to buy ADRs. If you could only buy an ADR, this would probably be the one.

Elevator company from Finland. A really good company, but he just doesn’t like the space right now. Demand for elevators is not going to grow as fast as it has in the past 10 years or so.

Grocery business in England is similar to here in that it is highly competitive, and has slim margins. It is hard for him to see where you were going to get growth in earnings. Has avoided this whole sector for many years.

(A Top Pick June 7/13. Down 11.38%.) Still likes this a lot. Has suffered in the last 12 months because of 1) the very strong sterling, and 2) testing inspection for commodities has declined, as demand for commodities has declined. Opportunity for them is still there, because more and more companies are outsourcing their testing inspecting. The real kicker is China. Right now you can’t do inspection for China in China, but China is talking about opening it up to foreign competitors, and this is one of the big 3.

(A Top Pick June 7/13. Up 17.54%.) The investment story here is their wealth management side. Tied for #1 spot with Merrill Lynch. Very strong franchise. ROE should go up, and he thinks they can get higher than 15%. Feels the stock is worth at least $35, if not even more.

(A Top Pick June 7/13. Down 19.32%.) Since he selected this, he has switched into the parent Femsa. This company was facing some taxes because of the sugary drinks. Still likes the business and management. The parent company also has business in convenience stores, and now have expanded into pharmacies, as well as a stake in Heineken.

Prefers Honeywell (HON-N), which has good exposure to the domestic market. We are seeing a pickup in manufacturing in the US where Honeywell has a much higher percentage of exposure. Also, excited about some of the divisions in Honeywell.

This is China’s Google. Have done a great job of catching up to Google (GOOG-Q). They’ve had their eye on the ball, and are focused on the transformation to mobile, and are making money from it. Growth rate in earnings this year is going to slow, but the growth rate in revenues is not slowing. They are reinvesting significantly in mobile, which he feels is the right strategy.

World’s largest telecom. The trouble is, they are growing subscribers, but it has a lot of headwinds. Because of that, it is hard for them to grow revenue, and even harder for them to grow profits.