Global Market Investing

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

Yes. Decades ago I did invest in one or two individual foreign companies, based mostly on their momentum. I knew I was in above my head when I got the first annual reports and struggled to understand what was being reported, much less how to use the information to make decisions on the investments. Since I have no accounting training, and their financial terminology and formats were so different from what I was used to, I was lost. I switched to investing in funds and ETFs focused on individual countries and reporting to the American investment community. The fees were worth the expense.

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

Yes. Decades ago I did invest in one or two individual foreign companies, based mostly on their momentum. I knew I was in above my head when I got the first annual reports and struggled to understand what was being reported, much less how to use the information to make decisions on the investments. Since I have no accounting training, and their financial terminology and formats were so different from what I was used to, I was lost. I switched to investing in funds and ETFs focused on individual countries and reporting to the American investment community. The fees were worth the expense.

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

foreign headquartered companies are included in the SI Pro database.  I have not hesitated to include companies in the database that pass my screens.  So I have invested in Asian, European, and South American based companies that have passed my screens on SI Pro.  I do not explicitly exclude them, but they usually make up only a small part of my 40+ individual stock portfolio.  Like U.S. based stocks, some have turned out to be busts and others have turned out to be long time winners.  Nothing unusual here.  Lately have totally bailed from Chinese stocks, but still have positions in some South American and European based stocks. I generally avoid most ETFs and funds, as I trust my own stock picking over those of broadly based foreign stock managers. - Mike

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

Hi Michael,

I have enjoyed reading everyone's comments! 

It's interesting that your strategy of focusing on foreign stocks indicates a more hands-on approach. This does require a higher level of confidence and skill in one's stock-picking abilities. Michael, your strategy has the benefit of a more customized portfolio, but as you acknowledged, it carries the same risks and rewards as picking domestic stocks-some will win, and some will lose.

You also noted, Michael, that you've bailed from Chinese stocks. This touches on another important aspect of international investing: geopolitical risks. Governments can make policy changes that heavily impact the stock market. The ongoing regulatory crackdown in China, for example, has left many investors cautious.

Overall, international investing can offer diversification and new opportunities but also comes with a unique set of challenges, including different accounting standards, regulatory environments, and geopolitical risks. Whether to go it alone with individual foreign stock picks or to invest through funds and ETFs that offer expert management is a decision that can depend on your investing skills, your tolerance for risk, and the time you can commit to understanding foreign markets.

Thanks for sharing your perspectives, Michael! 

foreign headquartered companies are included in the SI Pro database.  I have not hesitated to include companies in the database that pass my screens.  So I have invested in Asian, European, and South American based companies that have passed my screens on SI Pro.  I do not explicitly exclude them, but they usually make up only a small part of my 40+ individual stock portfolio.  Like U.S. based stocks, some have turned out to be busts and others have turned out to be long time winners.  Nothing unusual here.  Lately have totally bailed from Chinese stocks, but still have positions in some South American and European based stocks. I generally avoid most ETFs and funds, as I trust my own stock picking over those of broadly based foreign stock managers. - Mike

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.

Hi All,

I have a question for the group. Different countries have unique cultural attitudes toward business, as well as diverse regulatory landscapes that can significantly impact investment strategies. Have you ever bought shares in a foreign company? What did you learn from the experience?

Thanks in advance for your perspectives.