Diversification Includes Going Global

Going Global A Look at Public Company Listings, an article by Dimensional Funds highlights the fact that there has been a decline in the number of publicly trades U.S. companies. However, this decline is offset by an increase in publicly traded companies around the globe.

Sticking with a U.S. only investment portfolio may lead you to fewer total investments even though, there is greater opportunity available.

King Solomon recommended dividing our investments into “seven, or even to eight” ventures. Because we do not know what misfortune may occur on the earth.

I would submit one of those portions in your portfolio cold be some non U.S. company stock. Perhaps even to an equal weight of your U.S. portion. Imagine if an English investor only invested in English companies  (6% world market cap) or a Swedish investor only in Swedish companies (1% world market cap).

As King Solomon also said,  “The way of a fool is right in his own opinion, but the one who listens to advice is wise.

Consider it, Dan