4 superior foreign stocks to buy

These undervalued wide- and narrow-moat names were recently added to the Morningstar Global ex-US Moat Focus Index

Susan Dziubinski 30 July, 2019 | 2:27AM

European alleyway

In a recent article, my colleague Ben Johnson argued that investors have fewer reasons than ever for maintaining "home bias" in their portfolios. What's home bias? It's investors' tendency to tilt their portfolios in favor of domestic stocks versus foreign fare. He points out that U.S. stocks constitute about 55% of the world's public equity market cap, with foreign stocks representing the remaining 45%. But most Canadian-based investors' equity allocations are nowhere close to that breakdown.

"When it comes to investing overseas, many decide to ditch diversification at the border," Johnson notes.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ABB Ltd ADR18.77 USD1.24
Anheuser-Busch InBev SA/NV ADR40.90 USD-0.61
China Mobile Ltd ADR34.88 USD-1.97
Tencent Holdings Ltd ADR1,287.00 MXN0.00

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for Morningstar.com.