International living allows you to enjoy the best of everything. You relax on the nicest beaches, date the most beautiful women, and dine at the finest of restaurants. In addition to all this, becoming global lets you park your money in assets with the biggest growth. And that’s why today’s article highlights the importance of becoming a sovereign investor.
What is a sovereign investor?
It’s someone who isn’t limited to buying domestic stocks or real estate. Instead, they can deploy their capital internationally for maximum returns.
Oh, you may think to yourself, isn’t the United States already the best possible place to invest your money?
Historically, yes. Right now? Not so much. A lot of new companies abandon traditional metrics like earnings or sales, and their value is entirely based on pure speculation. It’s a lot like the Dot Com Bubble of 1999, something many investors are learning the hard way.
Just look at the “spectacular” returns of Wall Street darlings like Peleton.
Call me old-fashioned, but I don’t think losing 82.45% of your money is a good investment. Other high-fliers (like Zillow or Netflix) aren’t doing much better. Because of this, it’s a good idea to look for undervalued and profitable companies. And right now, these are hard to find in the United States.
That’s where being a sovereign investor helps. Looking around the globe allows you to scoop up all kinds of undervalued and profitable assets.
Take an investment I recently made for example: Embotelladora Andina S.A.. This is a Chilean company that bottles and sells Coca-Cola in Chile. It’s an established business that turns a steady profit and rewards shareholders with quarterly dividend payments.
I bought this stock for less than $12 and it currently trading for $12.88.
On top of this, investors receive a $0.29 / share dividend early next week, and they’ll get three more of these payments at later points in the year.
Now obviously buying an odd little Chilean soda bottler isn’t for everyone and this article is not financial advice. However, I wanted to use this company as an example of the opportunities a sovereign investor can enjoy. And, of course, you don’t have to buy stocks either. There’s real estate, bonds, or maybe even specialty good and commodities. All of which can outperform the overinflated Wall Street hype.
How To Become A Sovereign Investor
The easiest way to become a sovereign investor is to travel. You go somewhere, see a good asset, and then buy it. This is how I stumbled on Embotelladora Andina S.A., a company no American media outlet has ever covered, as well as several other foreign companies.
The second easiest way to invest internationally is read. There are two great books on international investing, and both will give you some fantastic ideas for growing your money.
World Right Side Up, is a newer book (published in the last 10 years) all about different investment opportunities around the world. The author, Chris Mayer, covers every continent. And you end up getting a lot of stock, real estate, and private equity ideas from Asia, Africa, and even the Americas.
Investment Biker, is a classic book by Wall Street legend and international adventurer Jim Rogers. The title recounts Rogers’ worldwide motorcycle trip and all of the interesting places and economies that he encountered. Even though this book is old, it still contains a lot of relevant advice. And funny enough, some of the countries Rogers invested in (like Chile) are still teeming with opportunity.
Reading, traveling, and thinking outside the box are all essential skills for becoming a sovereign investor. But once you hone these abilities, you’ll be able to separate yourself from the pack and make smart decisions that maximize your money.