Investing in foreign companies

[cilution]

Hey guys, I've recently set up a global trading account and I'm looking to diversify. The goal is to have a fair amount of my net worth in foreign companies (non US dollar denominated) or currencies. I was wondering if anyone here has much experience with that sort of thing, and if so, do you have any advice or resources you'd recommend?

I'm mainly looking at the Japan and Hong Kong markets, but Canada might not be a bad option either.

 

[cubical]

Well remember it does not matter what something is priced in. What matters is what that something is. And I don't know what kind of fees or hassles are involved in actually buying on a foreign exchange, but I don't see why buying ADRs will be any more or less risky. I own many Canadian stocks, but those stocks are traded on NYSE/ARCA. I also own a CYD, which is an ADR of a company in Singapore(that owns a company in China).

 

[jclay2]

Just do yourself a favor and buy Gold. Stocks will not do well in inflation. They might go up, but overall your purchasing power will go down. There are no safe countries either as the economy is global and any appreciation/depreciation in the currency market is quickly resolved with money printing from the appreciating currency's central bank. We are about to enter an inflationary global depression and gold/silver will outshine almost everything else. The entire developed world is insolvent, there are no safe haven countries with what is coming.

Along with gold/silver, I think any real tangible asset that is not related to the ponzi stock market is worth looking into. The world is rapidly growing with a fixed resource base. Investments in oil/gas are probably not a bad idea.

 

[Arklatex]

What I think is most vital is a greenhouse to grow some of your own food. Good healthy hobby.

I say with all extra $$$ buy semi numismatic bullion like the "rare 24k taku", the rest needs to be toward land/estate/improving life

Inflation is here, I was reminded at the sports store, the premium .270 cartridges are double in price what they were just yesteryear it seems. Things are more expensive and most citizens don't have any money left over after taxes and scandalous health care costs to invest.

 

[LibertyCitrus]

For foreign companies:

Discount brokers usually rip off customers on foreign currency exchange rates, and foreign exchanges have high transaction costs compared to American ones.

Maybe this helps too:
Esprit was founded as an American company, derives most of it's profits from European markets, and is listed on the Hong Kong Exchange. Buying shares would be investing in a retail clothing business in Europe(Euro), that happens to be listed on the Hong Kong Exchange. If they convert profits into Hong Kong dollars then the cash they hold is pegged to the USD.

Yum! Brands is an American business that operates KFC, Taco Bell, and Pizza Hut listed on American exchanges. 48% of their revenue comes from America, and 52% comes from foreign markets.

Millicom International Cellular started as an American company, is now listed on American pink sheets, with revenues from operations in Latin America and Africa.

Many foreign countries have their telecoms listed on American markets. China Mobile is the state owned telecom operator in China, listed on the NYSE as an ADR. All their revenues are in Chinese Yuan.

You are purchasing a slice of a business operation!

Hope that helps.