Author Topic: Foreign investing - how much?  (Read 5136 times)

DocCyane

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Foreign investing - how much?
« on: May 21, 2013, 04:49:01 PM »
What part of your portfolio is in stocks or funds of foreign companies?

daverobev

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Re: Foreign investing - how much?
« Reply #1 on: May 21, 2013, 05:19:42 PM »
Define foreign, really.

Is Apple American? Coke? "Yes" but...

Are you asking out of curiousity, or to gain some insight? What are you *really* asking?

You might be better off asking... what %age truly *national*, multinational, and *international* - where national and international would be the smaller cap companies that only operate in their local markets.

Just a thought... :)

DocCyane

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Re: Foreign investing - how much?
« Reply #2 on: May 21, 2013, 05:31:53 PM »
The majority of my investments are in mutual funds in Vanguard. So what I'm really asking is, what percentage of that should be in foreign investments?

Think simple. You all are quite knowledgeable but my query is rather basic.

Undecided

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Re: Foreign investing - how much?
« Reply #3 on: May 21, 2013, 07:52:05 PM »
I can tell you what mine is, but I don't claim it's what yours should be: About 25% of my "account" investments (that is, excluding rental property, for me) are in ex-US equity index funds and a couple of percent in ex-US corporate bonds that happen to be picked up in one of my bond index funds (vs. about 55% in US equity index funds).

GreenGuava

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Re: Foreign investing - how much?
« Reply #4 on: May 22, 2013, 12:25:30 AM »
My stocks are held such that 70% are in Vanguard's total stock (U.S.) market index (VTSAX) and the remaining 30% are in Vanguard's total international stock market index (VTIAX).

I think Jack Bogle has suggested as little as 20% international is fine, while market cap for international would mean a 45:55 ratio in favor of international.  Most large companies - foreign and domestic - do business in both the United States and outside.  The above distinction is really just where they're based.

And a reminder:  if you treat all your retirement assets as one large portfolio, put the international stocks in taxable so they're eligible for the foreign tax credit.

nktokyo

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Re: Foreign investing - how much?
« Reply #5 on: May 22, 2013, 03:34:58 AM »
The US markets are foreign to 90% of the world...

happy

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Re: Foreign investing - how much?
« Reply #6 on: May 22, 2013, 04:12:56 AM »
Yup I was just gonna say that. Of equities I hold 46% Aussie and 54% International (which almost certainly includes a fair whack of US stocks, but I don't have that breakdown).  I was looking at this :http://www.bogleheads.org/wiki/Lazy_Portfolios

and noticed that a Canadian recommendation for a lazy portfolio holds a ratio of 33%Canadian stocks to 66% US and international.

Better the devil you know?

nktokyo

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Re: Foreign investing - how much?
« Reply #7 on: May 22, 2013, 06:19:43 AM »
Yup. I invest 100% in NZ real estate. You are all foreign.

I should really start buying equities or indexes or any of that stuff. I just know absolutely nothing about it, having spent the last 5 years hustling to get good at property. I only like paying people for results... are their any funds who take nothing if they don't make money but a gradually higher percentage of profit if they do well?

grantmeaname

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Re: Foreign investing - how much?
« Reply #8 on: May 22, 2013, 07:24:25 AM »
I should really start buying equities or indexes or any of that stuff. I just know absolutely nothing about it, having spent the last 5 years hustling to get good at property. I only like paying people for results... are their any funds who take nothing if they don't make money but a gradually higher percentage of profit if they do well?
What do you mean, 'if they make money'? The markets don't always go up, and if you're not overpaying for your mutual fund then the fund is making the bare minimum to meet its costs whether the fund goes up or down. Are you proposing that the expense ratio should be higher in years that the stock market is good and lower in the others?

Mr Mark

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Re: Foreign investing - how much?
« Reply #9 on: May 22, 2013, 07:51:51 AM »
Yup. I invest 100% in NZ real estate. You are all foreign.

I should really start buying equities or indexes or any of that stuff. I just know absolutely nothing about it, having spent the last 5 years hustling to get good at property. I only like paying people for results... are their any funds who take nothing if they don't make money but a gradually higher percentage of profit if they do well?

You know this is quite dangerous? Having all your eggs in one basket , especially an over valued one like Australasian real estate, and a soft currency like nz$.

By investing in a low cost index you " buy the market" .  It will go up and down. Generally up.

icefr

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Re: Foreign investing - how much?
« Reply #10 on: May 22, 2013, 10:23:50 AM »
You need to do some figuring on your own on this. Vanguard suggests anywhere from 20% up to the market weighting of 55%. I've personally opted for a 50/50 US/International split. I like the currency diversification and I don't have a US-centric worldview like many people do. It seems to be working fine for me so far.

nktokyo

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Re: Foreign investing - how much?
« Reply #11 on: May 22, 2013, 06:06:42 PM »
Yup. I invest 100% in NZ real estate. You are all foreign.

I should really start buying equities or indexes or any of that stuff. I just know absolutely nothing about it, having spent the last 5 years hustling to get good at property. I only like paying people for results... are their any funds who take nothing if they don't make money but a gradually higher percentage of profit if they do well?

You know this is quite dangerous? Having all your eggs in one basket, especially an over valued one like Australasian real estate, and a soft currency like nz$.

By investing in a low cost index you " buy the market" .  It will go up and down. Generally up.

I know it's quite dangerous. I buy/renovate/sell property heavily and from that and a couple of other business ventures I have a fair bit of free cash now.

The thing is, property is the devil I know and through it I'm financially free. More than that I've worked in finance/banking and don't trust the people shilling investments in the global market past the end of my arm.

I've started to talk to a contact about buying into the US real estate market and with the high NZ dollar I'm thinking about parking money in USD.

As for the markets... I'm more interested in focusing on a small niche, learning it and doing well than investing in the average. That approach has worked for me so far with property but it was a multi-year learning and growth curve. The thought about doing it from scratch again in another form of investing makes me feel tired....

kyleaaa

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Re: Foreign investing - how much?
« Reply #12 on: May 24, 2013, 01:26:21 PM »
50% of my equities are investing internationally.

grantmeaname

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Re: Foreign investing - how much?
« Reply #13 on: May 25, 2013, 07:36:54 AM »
As for the markets... I'm more interested in focusing on a small niche, learning it and doing well than investing in the average. That approach has worked for me so far with property but it was a multi-year learning and growth curve. The thought about doing it from scratch again in another form of investing makes me feel tired....
That's a nice idea, but it just ain't possible in publicly-traded equities. So kick back, pop open a frosty beverage, and buy the market.

Kriegsspiel

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Re: Foreign investing - how much?
« Reply #14 on: May 25, 2013, 01:17:32 PM »
Out of my stocks, I aim for 25% foreign, 75% US.  It's pretty simple and easy to stick to.