Why do you have to be foreign shares?

I came across an interesting article in Forbes and decided to share with the readers of blogs. I offer you an adapted translation of the text on why we should buy foreign stocks.

To invest their money in the investment, by all accounts, a difficult task. You hope that made the right choice, and your money will grow without bumping into excessive risks.

This feeling of pleasure
fueling an interesting observation:
We tend to favor shares issued
in our own country. Of course,
you might say! We feel safer,
when we know that our money is close to
home! But American companies
They are global and are well known,
and their laws and the judicial system is well
work.

But we must not forget
that the same thing happens in India,
Japan, Russia, Brazil - almost any
a country where there is its own stock exchange.
Everyone thinks that companies based
in their country better and deserve more
confidence, and some deliberately avoided
opportunity to receive investment from
abroad.

From this effect
"Attachment to the home" - when the Americans
owned by US companies, Indians
owned Indian firms, etc. -
losing both sides.

Ask why?
Let's say you have a US stocks
very large but slow-growing
companies. They tend to give
dividends, of course, but in a limited
volume, as most of the major
American companies are stable
growth.

You can compensate
so with small companies - for example,
buying shares of high-tech
companies anyway oriented
on the US economy. Even if the entire economy
It will grow slowly, there remain
prospects for even the most aggressive
from start-ups. But again, they are all
located in your country.

If, for example, an investor
She lives in another country, especially in the
a developing country, it has access
to a better growth of their money.
The economy of developing countries has
greater volatility, and companies
generally smaller, so opportunities
for a major increase much more.

The ideal portfolio
thus it looks like this: investor
It owns its shares and bonds
countries, but also to the extent of buying shares
foreign companies. Balanced,
well thought out portfolio of stocks can
secure payment with low growth
value and helps to reduce the
risks that the investor owns only
"Their" shares.