much currency risk. So that's interesting and helpful. However, currency does a lot of different things to different companies in different parts of the world. We had a morning meeting today. We were discussing how a change in yen value impacts the book value of Japanese companies. And you have to be aware that currencies have a major impact on how companies report. It's a global economy. BMW and Germany does 40% of its business in China. It has a large business in the United States. Although you're investing in a euro-based company, its actual business exposure to the euro is very low relative to its dollars and Chinese currency. You have to take all that consideration, figure out whether or not the companies hedge themselves and then whether or not you want to overlay a hedge on top of that. So currency is something you take into consideration when you're evaluating a company, the risk to that company in terms of where it's doing business. It gets very complicated, particularly when (32/57)
You are viewing a single comment's thread from: