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Small-Cap Value The World is Your Investment Playground
Sometimes we talk about foreign companies in Penny Sleuth. When we do this, often we get people asking why we would not just stick to U.S. small-caps. The answer is best described by Christopher Browne, from legendary Tweedy, Browne Co. LLC:
Investing globally is sometimes a turnoff for many investors. Understandably, it is not always easy. Different exchanges around the world require different prerequisites for companies to be listed. Many of these exchanges don’t require nearly as much financial information as say the NYSE or the NASDAQ. Obviously, when this happens most people tend to shy away from those types of investments. But, it doesn’t have to be like that… Why do you have to trade on foreign markets to buy shares of foreign companies? You don’t. Many companies trade on the NYSE as well as their own country’s exchange. Even if a killer company is only on foreign exchanges, most people don’t have the time to dig into the nitty-gritty research. (On a side note, investigating foreign companies is the specialty of one of our finest Sleuth contributors. Right now he has four amazing foreign picks, including this company, which he calls the “world’s best growth stock.”) Investing abroad does require much more work. First, you have to learn what is going on politically in that country to make sure it’s still a safe bet. You don’t want a government seizing control of the company without paying out the shareholders. ************************* 48 Hours Until This Offer Disappears Forever… This top-shelf offer will give you more than everything you will ever need and a lifetime of picks, for an unbelievable price that won’t stay around forever. By Thursday at midnight, we can never offer it at this price again… Hurry and read on. ************************* Once you are sure the company won’t be taken over by a government, you have to make sure that the currency used by the company is stable. Then, you might also have to find out about the company’s industry in its country to make sure it can even compete. After all of this, is when you should start your real research on whether or not it is a solid company for you to invest in just like you would here. It is a lot of work, but sometimes it may be some of the only good investments. Take a look at this:
As you can see, at least one foreign market destroyed the United States’ every year for over a decade. But what’s really interesting is if you take another look at that chart, notice not one of those countries are unstable third world countries. They are all large and, for the most part, Westernized countries. Well, however you feel about putting your money in a foreign company’s hands, it’s undeniable that there is money to be made by doing it. Sincerely, P.S.: If you are interested in these investment opportunities abroad, one of my fellow Penny Sleuth editors will be of some help to get you the information you need by doing all the painstaking research, himself. Currently, he has four beautiful picks from four different countries (all can be bought on the major U.S. exchanges), and if you act now you can be first to get in on the one he’s working on now. Read on… |
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Jim Nelson is the managing editor of Penny Sleuth, a daily small-cap e-letter with more than 110,000 subscribers. Jim has been playing the stock market since he was 14, always with a preference toward smaller companies. He has honed his stock picking skills at Agora Financial since 2004, effectively combining a growth and value approach. He holds a degree in Political Science with a minor in History from the University of Pittsburgh. |
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