Oakmark’s David Herro says he’s finding opportunities in beaten-down shares in Japan and Europe, but is wary of Chinese stocks. Herro tells Barron’s that Japanese stocks are extremely cheap, and Japanese blue chips are starting to do a better job of using their cash and increasing margins. In Europe, he says he’s looked for good, strong franchises with safe balance sheets and capital positions that will allow them to weather the continent’s economic storm. As for China, he says good, quality companies’ shares look expensive, while shares that look inexpensive are essentially wards of the state.