I recently wrote about international investing on FA Trader. You can read the article here.
There’s a scene in the 1986 movie “Crocodile Dundee” where the tough Australian namesake character and his date are mugged by a young man with a small pocket knife. Dundee’s date is frightened and says to do what the mugger demands, because he has a knife. “That’s not a knife,” says Dundee, reaching into his shirt, “this is a knife”. He pulls out a comically huge bowie knife, causing the mugger to run for his life, clearly outmatched.
When people refer to value stocks in the United States, that scene comes to mind these days. “That’s not value. This is value,” I think to myself, pointing at international stocks. Nobody wants them, there’s a lot of bad news there, and they’re cheap. Many quality companies around the world are inexpensive compared to their U.S. counterparts, even when normalized for growth and sector. Read more.