International investment is profitable
Dilution of the portfolio of securities of other countries allows improving the ratio of profit to risk 1) due to the growth of expected income with the same risk of falling 2) of the same income, but with a lower risk of volatility.
This is an opportunity to buy securities of a good company at a lower price than the analogue in their country
This is an opportunity to buy securities of the most powerful and best companies in the world, for example, BMW, Siemens, VW, Nestle, Roche - in Europe; Microsoft, Google, Coca-Cola - in the USA ...
This is an opportunity to invest in "countries of the future" like China, India, Mexico, Turkey and others
This is an opportunity to invest in "unpopular" countries: Greece, Argentina or Russia - fashion comes and goes, but profit remains.
Over the past years, the investor’s life has changed dramatically: information has become much more accessible and more available, transaction costs have decreased, international and direct investments have become a reality for the investor.
And one of the main opportunities is international investment. The world of stocks has literally become “limitless.” The best investors, for example, Buffett, are investing around the world: in Europe, Israel, Korea, China, India, etc.
Think and invest in international securities, this greatly broadens your horizons and increases your yield!
It is also necessary to say about ETF funds.
ETF (English Exchange Traded Fund), literally - a stock exchange-traded fund. ETF funds invest in any set of stocks, bonds or other assets according to a pre-thought out algorithm that allows you to count on profitability.
Further, these funds issue their own shares, which we can buy on the stock exchange. The cost of one such share is equal to the value of the acquired assets divided by the number of shares issued. The fund cannot issue unsecured shares. In other words, the change in the price of the purchased stock reflects the change in the value of the assets in which the ETF invests. By purchasing ETF stocks, we acquire a proportionate portion of a pre-arranged portfolio.
But there are a lot of them around the world.
The ETF itself is over 2,000.
ETF is a long-term investment tool.
It reduces overall risk and increases portfolio diversification.
In Russia, the list of available ETFs is very small, only about 20.
But I work through a US broker Interactive Brokers.
And as I said, they provide access to more than 100 markets around the world.
And over 2000 ETFs are available.
If you have not heard about ETF, then I recommend that you familiarize yourself with past records. There in more detail about them.
The main advantage of ETF is diversification. Basically, customers are more likely to address the creation of long-term ETF portfolios. Low risk, high diversification.
And most importantly, now is the time to enter ... It is very profitable to buy a portfolio long-term.
The main idea is “why look for a needle in a haystack if you can buy all the hay” - John Bogle (creator of one of the first Vanguard index funds)
It is important to always remember:
ETF is an opportunity to earn for those who want to invest on the principle of "bought and forgotten." Such investors are also called passive.
Wall Street has many tools and features.
The exchange itself in the USA (NYSE) exists already
since May 17, 1792.
That is, several centuries.
I hope the post was useful to you.
That's all.
Always yours, Victor Bavin)
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