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Sunday, 9 October 2011

Invest in stocks listed in overseas stock exchanges is investing globally?

Just For Thinking ....

Read? Investing Made Simple by Uncle8888 (10)

Read? Major STI market cycles - Horrible Bears and Beautiful Bulls!

Why do we as local investors in Singapore have developed such thinking that if we don't buy some stocks that are listed in some overseas stock exchanges we are not investing globally.

Are there any strong reasons to justify our local big blue chips listed in  SGX e.g. Keppel Corp, Semb Corp, ST Eng, SingTel, DBS, etc have not diversified their businesses across globally or regionally enough to qualify as MNC in those countries where they have set up their global or regional presence to do businesses there.

Frankly speaking, I know a few fellow investors who have bought some stocks listed in some overseas stock exchanges. Are they currently doing better than me in term of real monetary gains after currency conversion and tax? I don't think so. Their absolute real returns with these global stocks will speak for themselves. So is Overseas moon still rounder, is it?

3 comments:

  1. the realisation that global singapoare companies may not be best of breed compare to overseas. example singtel vs vodafone.

    ReplyDelete
  2. If we go by market capitalisation, foreign stocks which have a bigger market to sell to (in comparison to SG) will probably fare better from a business POV.
    For eg, if your profit on your product is $1. The SG market only has 5million buyer. But the Malaysia market (for eg) has at least twice as much. Then profit would be much greater.

    I do however agree with you that due to the dynamics of the stock market, and in recent years the volatility of the currency market, buying overseas stock might not be so desirable.

    ReplyDelete
  3. Hi,
    Besides, the extra risks & costs, i think if you
    can know your own market well enough, you have already some advantages. To borrow an analogy, like football, we have "home- advantage" Ya? No? Not applicable? O. K., O. K., to each his own.
    Nevertheless, page 262 CNA will show daily, all the world's major indexes move in tandem. Very rarely out of syn. Especially nowadays what you called, "Globalisation of the World". To me i believe there is/are "syndicates". The "BIG BOYS". We are just ikan billis trying to survive in sharks infested water. Ha! Ha!
    Cheers!

    ReplyDelete

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