The Tao of Global Investing

SpoonFed Investor takes a global approach. We look to purchase stocks in multiple countries. We seek to understand the global trends that drive the markets and align our investing in the best ways possible.

We are deeply connected to the market and receive research from some of the best financial minds in the world. This means that occasionally we come across global investment opportunities that are too good to pass up.

Global investing requires a strong knowledge of market trends, as well as constant research to stay on top of the changes. We prefer to follow high quality analysis and research and stay away from the day-to-day market news. It is the large global trends that we are concerned about, and understanding these requires us to divorce ourselves from market noise

What is global investing

Global investing is buying stocks and and other investments from more than one country. This could be purchasing value stocks in Australia, America or Hong Kong. It could be specific investments in things such as commodities or bonds (where you lend a government or company money).

Global investing is about understanding the large trends at play in the markets. You can then invest your money with these in mind. For example, if you understand what the retirement of baby boomers in America means to the US dollar, then you could invest in a position that capitalises on this.

The importance of global investing

There three important benefits to widening our investment scope across the globe.

  • Many Investors buy stocks exclusively in the country they live in. This dramatically dilutes the amount of opportunities they are able to take up.
  • Investing in one country only means your portfolio could be highly correlated. I.e. if the one market you are in drops, then it is likely all your stocks will drop.
  • A less well-known benefit of global investing is protection from a decrease in your home country‚Äôs currency. If your currency goes down in value by 20% then your global purchasing power has been dramatically reduced. Conversely, if you invest wisely and protect yourself from currency drops, then it can make a big difference to your wealth.

Our global investing strategy

On it’s simplest level, we apply our value investing strategies to global stock markets. These include:

  • United States
  • Singapore
  • Australia
  • Hong Kong
  • Canada
  • United Kingdom
  • Europe

We look at the global trends to define which countries and industries are likely to thrive in the current market conditions. We then pick stocks in industries and countries that should grow in the coming years. If a great company is in a booming industry, then we have a high probability investment.

Being deeply connected to the markets, we often come across global trades and investments that are worth looking into further. Sometimes these opportunities are not that simple for retail investors to jump on board. We take the best of these idea’s and re-work them so that they are easy to implement into your portfolio. These ideas can be very useful, because they often benefit when our value stocks might be going down in price.

We follow a number of global markets that have strong fundamentals and look for times to buy and sell. These markets don’t produce opportunities often, but when they do we can get in on very strong trends.

If you would like to receive a $1 trial of our beautifully simple global investing ideas, please click here.

 

General Advice Warning and Disclaimer: The ideas and information contained in this blog post are for general information only. They do not take into consideration your personal circumstances or objectives. Please considering if these ideas are appropriate for your needs before taking any action. We suggest you seek advice from a financial professional if necessary.

In addition please note that past performance is not always a reliable indicator of future results.

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About the Author

Sam Eder

Sam Eder is the founder of the market beating SpoonFed Investor stock investing service. He is also the author of several books and courses.