Despite the terrible headlines coming out of Spain, for investors there are two silver linings in Spanish equities. First, European shares have been battered by the euro zone crisis and trade at a considerable discount to US shares. Europe presents better value. For this reason, I said in January that I expected European shares to outperform US shares in 2012. Moreover, this discount does not represent a value trap. Inditex, the Spanish retailer I linked to a few days ago, which owns the Zara brand is a perfect example.
Inditex, based in La Coruña, became Spain's biggest listed company this week. Founder Amancio Ortega, the fifth richest man in the world, still controls 59% of the company. Ortega is the son of a railway worker who left school at 14 but used his life ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.