When I first moved to Saigon, there were huge sections of the city which still looked “third world.” People living in corrugated tin shacks along the river, and families raising chickens and pigs in their urban backyards. This certainly wasn’t the whole city. But it was a somewhat common sight. Today, those same neighborhoods are filled with regular houses, small cafes, restaurants, and other typical “middle class” staples. Watching this level of economic growth is enough to make anyone curious about how they can invest in foreign countries and ride the wave of success.
And today’s article will explain the fastest, easiest way for doing so.
How Not To Invest
Many people (myself included) try to invest in foreign countries by studying local markets or searching for “rental properties.” When people do this, they end up well outside their area of expertise. They start risking their money on Vietnamese fish canneries and Chinese chemical exporters. You can see actual examples of this in the new son a near weekly basis, with foreign businesses like Luckin Coffee or NIO imploding on themselves.
Trying to buy foreign stocks or properties is often a great way to get scammed.
Luckily, there’s a safer and smarter way to grow your money and capitalize on the emerging markets.
The Best Way To Invest In Foreign Countries
Blue chip American companies are the best way to invest in foreign markets. Businesses like Coca-Cola and Colgate-Palmolive sell just as much (if not more) product overseas as they do back home.
The smallest, most remote corner shops in Vietnam and Cambodia still Coca-Cola and Pepsi products. Likewise, big American conglomerates, such as Procter & Gamble, supply most staple items like razors and tampons and laundry soap.
In other words, you can set down in any emerging market country around the world, walk into the smallest corner shop you can find, mentally note the American products being sold there, buy shares of those companies, and then spend the rest of your trip relaxing and having fun. The concept sounds simple, but most people completely overlook the strategy. I know I did.
All my time spent looking at real estate or reading about local economies could have been saved by merely buying 10 – 20 shares of Coca-Cola each month and letting compound interest do the rest.
Luckily, you don’t have to make this mistake.
If you want to invest in foreign countries, go with the big brands. They’ll provide all the capital gains and dividend payments you need.
Final Thoughts
Picking stocks is easy, when you know what you are doing. That’s why I suggestion making an investment in knowledge before you invest in anything else.
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