Investing abroad
McRae
Capital Management, Inc.
Investment Counsel
Number 48
April 2007
COMMENTARY
Investing abroad by staying at home
Putting your money into foreign stocks is like vacationing in other countries:
The lure is intriguing, but where you go and how you go about it make all the difference.
by Peter McRae ost people like foreign travel. And why not? It broadens your perspective.
You see things you’ll never see in the U.S. You’re exposed to different people and different cultures. After all, there’s only one place to stroll the Champs d’Elysee on a beautiful summer day. If you want to see masterpieces by Goya and El Greco, you’ll visit the Prado Museum. The glory of imperial Russia lives on in
St. Petersburg. Only on the Sydney harbor does the famed Opera House unfurl its concrete sails. Every visitor wonders about the secrets locked in the ancient stones of the lost city of the Incas, Machu Picchu.
M
I had the good fortune of seeing several foreign countries “up close and personal” because I lived and worked abroad for several years.
I began my career in corporate finance in Europe and traveled not only throughout Europe but also the
Middle East, Asia and Latin America.
For all the pleasures of traveling the world’s highways and byways, we’ll bet you plan your trip with great care. (I know I always did when I lived abroad and still do today even though I live in New
Jersey.) It’s helpful to consult others, whether a knowledgeable travel agent or friend who has been where you’re planning to go – or both.
Fact is, a well thought-out itinerary can make or break your trip. And, as we all know, not all the world is so welcoming. You’d go to Milan, for example, but probably not to Mogadishu.
Thinking about international travel introduces the subject of this
Commentary: international investing.
Like American tourists who have been flocking abroad for years, many investors are making an allocation to
Capital Management, Inc.
Investment Counsel
Number 48
April 2007
COMMENTARY
Investing abroad by staying at home
Putting your money into foreign stocks is like vacationing in other countries:
The lure is intriguing, but where you go and how you go about it make all the difference.
by Peter McRae ost people like foreign travel. And why not? It broadens your perspective.
You see things you’ll never see in the U.S. You’re exposed to different people and different cultures. After all, there’s only one place to stroll the Champs d’Elysee on a beautiful summer day. If you want to see masterpieces by Goya and El Greco, you’ll visit the Prado Museum. The glory of imperial Russia lives on in
St. Petersburg. Only on the Sydney harbor does the famed Opera House unfurl its concrete sails. Every visitor wonders about the secrets locked in the ancient stones of the lost city of the Incas, Machu Picchu.
M
I had the good fortune of seeing several foreign countries “up close and personal” because I lived and worked abroad for several years.
I began my career in corporate finance in Europe and traveled not only throughout Europe but also the
Middle East, Asia and Latin America.
For all the pleasures of traveling the world’s highways and byways, we’ll bet you plan your trip with great care. (I know I always did when I lived abroad and still do today even though I live in New
Jersey.) It’s helpful to consult others, whether a knowledgeable travel agent or friend who has been where you’re planning to go – or both.
Fact is, a well thought-out itinerary can make or break your trip. And, as we all know, not all the world is so welcoming. You’d go to Milan, for example, but probably not to Mogadishu.
Thinking about international travel introduces the subject of this
Commentary: international investing.
Like American tourists who have been flocking abroad for years, many investors are making an allocation to