ZW Research Team: Innovation is Global, So Why Invest Just Locally
Every investor should aspire to own shares in the best companies in the world. While the global market leading companies are headquartered in many different countries, their operations and customers are spread across the world. Why should investors restrict themselves to one market when the best companies are found across multiple markets all around the world?
A look at a “Made in” tag can make one appreciate how global our world has become. Yet a Made in China or Made in India tag doesn’t fully capture the complexities of globalization. Many products are designed in one country and assembled in another with tools and parts from different countries.
We live in a world that is deeply interconnected by global companies through the products we use, the places we live in, and the ways we communicate. While our lifestyle has become global, our investments remain rooted in the “home bias” toward the geography we know best: our own. By only investing in companies whose shares are listed on home country stock markets, investors are missing an important opportunity to participate in and grow wealth by an investing approach that is free from home bias.* Building a truly global portfolio of businesses will enable an investor to participate in the growth trends which will transform the world economy in the next decade.
*This statement is the opinion of the Zephyr Waterfield Research Team.
