ladelfina said:Fear of foreign investing is not just emotional or "my country is whupping your country's butt!"
Anyone who wants to buy individual foreign stocks will find it verrrry hard to get information. I have some Italian stocks and their annual reports come out about 1 year behind. Mexican stocks: I don't even get an annual report! No one in the US covers them, so people are rightly concerned since they don't even have access to the kind of generic info that one might come across in a local (Mexican, Italian, etc., ) newspaper.. The companies with ADRs are the tip of the foreign investing iceberg, and yet there is little to no analysis of even them.
On another level, I might not really want to see the results of serious analysis! The US is the most transparent investing environment by far, and yet we are periodically subjected to Enrons and Tycos and S&L debacles. Imagine the other countries!! It is somewhat the "Wild West" of investing.
I think there is about the same amount of info out there on foreign companies as US companies. We can cherry pick companies that have tons of info out there, or companies that have little info out, there all day long, so I'll just offer:
I can get tons of info on foreign stocks by just going to that company's website [current financials, etc.]. I just spot checked a couple of companies from Vanguard's European Index fund, and Vanguard's Pacific Stock Index Fund. Plus, there are quite a number of foreign companes that file with the SEC, including mexican companies. Not too mention that I can get info on Canadian companies at SEDAR.
Does the US media run stories about those foreign companies? Nope, because less people in the US would watch or read that station or newspaper, and then that media would lose readership and revenue.
As far as the analyst coverage, there are thousands of US public companies that have little or no analyst coverage.
- Alec