Investing abroad

1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18   

12. Investing in American companies

There are countless sources of information on the Internet about US companies. Many are excellent, reflecting the fact that American investors are the wealthiest and most sophisticated in the world. Among the most highly recommended are:

Between them, these sites offer just about all the fundamentals, technical data, news, background and price quotations you could wish for. US companies themselves also treat shareholders in exemplary fashion by comparison with the UK. You will find their Investor Relations departments only too willing to provide information and copies of annual accounts.

Once you are ready to buy, you have a choice between dealing via a UK broker, or opening an online account with a US broker. Your decision will be a function of

• convenience
• cost
• how frequently you plan to deal.

For small and/or occasional deals, you may as well stick to a UK broker. For large and/or frequent deals, you will probably benefit from signing up with a US broker and opening a dollar account. Commissions, administration fees and other charges tend to be much lower in the US than here.

It is impossible to say for certain which is the most suitable service for you. Brokers frequently change their terms and conditions, so it is essential for you to shop around and make up your own mind.

IMPORTANT WARNING: The names of all brokers and data services in this course are provided for your information only and should not be regarded or interpreted in any way as recommendations by us.

1. Why invest abroad? 2. Risk and reward in foreign investment 3. Custody risk 4. Currency risk 5. UK companies are foreigners too 6. Foreign unit and investment trusts 7. Picking foreign trusts 8. How to make the most of trusts 9. Tracker funds for foreign markets 10. Foreign companies on the London exchange 11. American Depository Receipts 12. Investing in American companies 13. Investing in European companies 14. Investing in Asian companies 15. Investing in other markets 16. Dividends and withholding taxes 17. Markets go global 18. Conclusion

• Mobius on Emerging Markets