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Author: TMFBuySellBelle One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 111  
Subject: What to Look for Date: 3/26/2007 12:14 PM
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Hey guys, thanks for your valuable input! For shy newcomers, could you describe the things you look for when investing in a company that's situated outside the US? (What additional factors do the "international" part bring into the equation?)
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Author: TMFOtter Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29 of 111
Subject: Re: What to Look for Date: 3/26/2007 12:26 PM
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For shy newcomers, could you describe the things you look for when investing in a company that's situated outside the US?

Great question. We get this a lot.

To me there are a few factors that I include on a macro level. Understand, though, that I don't require them, just that the fewer in evidence the cheaper the stock has to be.

I look for a company that operates in a market that offers some semblance of protection for outside shareholders. The biggeswt clue is whether the home stock market has a central registry for shareholders. I look for countries that are actually emerging -- there's no need to invest in countries where capital tends to disappear down a rathole.

Those are the biggest things. As company-specific investors, though, I'll give back some top-level considerations if the company itself offers better protection intrinsically.

Bill Mann

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Author: TMFDoraemon Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 31 of 111
Subject: Re: What to Look for Date: 3/26/2007 12:29 PM
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Hey guys, thanks for your valuable input! For shy newcomers, could you describe the things you look for when investing in a company that's situated outside the US? (What additional factors do the "international" part bring into the equation?)


The process I use to evaluate a domestic company versus an international one isn't very different. I'm still looking at the company's financials, its management, how capital is allocated, etc. It's more a question of how does a company being international start to change how you look at a company's growth and risk profile and if developments in the markets it does business in offer any interesting advantages/disadvantages. This is particularly important if there is a long-term development or trend that should play out. Of course, currency exchange rates also come into play a bit, but generally that's a case where going outside the U.S. is likely to work to your benefit at the moment. In the end all these assumptions allow for various valuations and ideas about what might come to pass.

Best,

Nate

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