Brands you recognize - stocks you don’t invest in!
A lot of the brands like Amazon, Apple, Facebook, Dominos, McDonalds that we use regularly are not listed on Indian exchanges. Look at their performance over the longer run. Here are some of the long-term price charts of International companies.
A lot of innovation does not happen in India but internationally. If you look at companies like Tesla, Zoom and Netflix you never can participate in their growth sitting here in India. All these companies have hogged limelight in last decade.
It’s not only about international brands that you use and tech innovation that happens. A lot of momentum stocks and defensives also do well when you look globally. Vaccine companies, blockchain companies, EV companies (all the momentum themes) of last 1 year or so would make your portfolio look much better in 2020 rally. These “sectors” literally kept you out of major global rally in India because they don’t exist here.
It took us more than a decade to understand “India growth story” marketing is fine but as an investor our portfolio should have international diversification. We finally have exposure there and planning to build in the future. There are few ETF offerings from mutual fund houses too.
But since we run our momentum investing strategy in the US, we go direct through Interactive Brokers. If you plan to build your portfolio in US, please do reach out to us at firstname.lastname@example.org.
Financial fitter and stronger together.