One of the best blogs in our Top 50 Blogs 2017 is Jason Zweig.
Zweig just wrote a great article called How to Invest in the U.S. Without Even Trying.
Here’s an excerpt from that article:
Imagine you wanted to own a mononational U.S. portfolio. S&P Dow Jones Indices estimates that among those companies in the S&P 500 reporting sufficient data, only 42 got less than 15% of revenues from outside the U.S. in 2015. A pure U.S.-only portfolio would have to exclude not just Amazon.com and Apple but even such firms as Costco Wholesale and Home Depot, all of which do significant business abroad.
So the mononational approach makes sense only as a small speculation, says Tadas Viskanta, who blogs about investing at AbnormalReturns.com and has written several research papers on global diversification.
Buying purely domestic companies is probably best-suited for trading on geopolitical events or the growth prospects of a specific country. But it’s not worth overhauling your whole portfolio for.
You can read the full article here.
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple: