I once invested outside Canada, in US markets and in ADRs from the US market. It was interesting, but I did find in the end, that as a small investor, investing outside Canada, did not enhance my investment portfolio. I made more money on my Canadian investments that non-Canadian investments. I am basically only into the Canadian market at the present time.
It also was a lot of work investing outside Canada. When I look at US companies, I have spreadsheets using Canadian and US currencies. When I invested in ADRs (American Depositary Receipts), I have spreadsheets using 3 currencies. For example, my spreadsheet on Barclay’s Bank uses three currencies, Canadian, US and British. I also must know the change rate between these currencies. This is getting complicated.
The other thing I noticed was the amount and quality of information in their annual reports. From my perspective, Canadian financial information covers most of what I want. With Barclay’s Bank, the financial information is better than it used to be, but it can be limited. There are different rules for different countries.
For example, this year had a hard time finding full Cash Flow information. I did eventually find what I wanted in other documents for Barclays, but it was not obvious where to look. With US companies, I find that they give far too much information. What people do not always understand is that more information is not necessarily better information, it can sometime just be more. That means that you must spend time looking for the information you want.
On my other blog I wrote yesterday about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. Next, I will write about Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more on Wednesday, May 17, 2023 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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