Value Investing with Sven Carlin, Ph.D.|31. Aug.
Internationals & US Investing Strategic Approach!!! (4 Stocks To Buy)
Global Wealth Strategy: International vs. US Investing
The video argues that a mix of US and international stocks is optimal for long-term wealth accumulation, focusing on price, reward, and risk comparison.
Why International Markets?
- Absolute undervaluation matters most. Example: S&P 500 P/E of 30 vs. emerging markets P/E of 5-10.
- Many investors avoid international markets out of fear or complexity, missing key value opportunities.
- China case study: After negative sentiment (2022, 2024), prices surged up to 50%. Buying cheap pays off.
Current Market Context
- S&P 500 is up 12x since 2009. Historically, such valuations lead to poor subsequent returns.
- GMO forecast: US stocks may see -5% to -7% annual returns over the next 7 years.
- Emerging market ETFs are overexposed to AI stocks (e.g., TSMC, ASML). Better to pick individual stocks.
The Strategy: Build a Second Pillar
- Don't sell everything. Gradually build a separate portfolio of undervalued international stocks.
- Invest small amounts monthly and buy during fear phases.
- Focus on safety: Understand the businesses, which have grown 10-20x over decades.
4 Stocks to Watch
| Company | Highlights |
|---|---|
| Naspers | European Tencent proxy, P/E 9, AI exposure |
| JD.com | Strong logistics, high cash, cyclical downturn – cheap |
| Tencent | P/E 15, still growing, massive AI deployment |
| Unnamed Indonesian firm | Food conglomerate, P/E 4, dividend yield 5% – defensive |
Risks & Conclusion
- Currency risk: Often aligns with sentiment – buy when weak.
- Geopolitical risk (Taiwan): Real, but many companies are global.
- Key takeaway: Patience, analysis, and discipline. Buy when others are fearful.
Note: The creator uses Interactive Brokers (affiliate link) and warns about scam emails.
