Investing in Foreign Countries
January 19, 2011
– Comments (9)
Obviously, if you are going to invest in foregin countries you should know a basic overview of the country. However there are a multitude of good companies to choose from many different countries. Unless you are just very knowledgable of geography in general, how much research do you do into a country before buying a good company in that country? For instance, my only direct Chinese holding is CCME. I have been reading for a decent amount of time that China may be a bubble. I have read arguments for and against. I also know about the RTO frauds, RMB re-evaluation, how much of our debt they hold, the overview of how their politicla system is, and some demographics. Is that enough? Also for Brazil, I hold BRF...I know they have the Olympics in 2012 and World Cup in 2014. I know their GDP growth is ridiculous, and it hasn't been for too long that it becomes suspicious. I also know plenty of people that would want to travel there if it was safer, and it is becoming safer. Their politicians are becoming more stable, their new car market is 4th largest in the world, and they are becoming consumers. That clearly is not a ton...how much research do you put into 1) buying foreign etf's 2) buying foreign adr's?
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