Some of you might quail at the mere mention of Europe as an investment destination, but if you have a higher risk appetite and long-term time horizon, this may be an opportunity rather than a liability.
IC TIP:
Buy
at
284.25p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
- Strong performance
- Capable manager
- Global exposure
- Low southern Europe exposure
Bear points
- Concentrated portfolio
Shares in world-class European companies remain depressed but the market for European products is global and a weaker euro makes exports more competitive. Emerging markets such as China continue to show strong demand for European luxury products, which often have high margins, and businesses with the right strategy can be extremely profitable. It's a similar story for many of Europe's industrial companies.