Lux Investing

How do you research and invest in stocks worldwide ? What does it cost & how much money is needed ?

Public Comments

1. The safest way would be to pay a monthly amount (usually minimum £25 or £50) into a Tracker Fund. There are loads of these funds - go to www.thisismoney.co.uk and browse around.
2. Yahoo Finance is pretty comprehensive when it comes to international investing. Bear in mind that many international companies are listed on American exchanges as well these days. In terms of daily reading I find the Financial Times the best source of information there is. The Wall Street Journal is also good. Both have online editions besides the print issues but I find the FT is even more international. I would also search for local newspapers from the country of my interest that publishes on the internet in English or whatever language I can read. There are many available.
3. You can invest $250 in a Global mutual fund that will own companies all around the world.
4. In my opinion, for most people a mutual fund or index fund that invests in foreign stocks is the best vehicle for making foreign stock investments. That way you own a diversified portfolio of foreign stocks. There are funds that invest in specific countries such as China or India or Japan or many other countries. There are also funds the invest in certain regions such as Latin America, Europe, Pacific Rim countries, etc. Exchange traded funds including index funds and closed end funds which are traded like stocks can be purchased for almost any amount you might wish to invest, but for practical purposes a minimum investment of around $500 should be considered although you could purchase one share of a fund for maybe $70 or even less. Open ended mutual funds in many cases have minimum purchase amounts ranging from $500 to in extreme cases $100,000. Most are in the $2000 range. Some open ended mutual funds have front end loads, averaging about 5.75%. It is a sales charge. But in general these type funds also have lower initial investment amounts. American Funds minimum is $250. One such American Fund is New World Fund with 77% invested in non-U S companies. Life of fund return is 11.54% after load. Minimum investment is $250. The fund was initiated in 1999. The expense ratio is 1.00%. In the realm of index funds there are many to choose from. One that might interest you is DOO, WisdomTree International Top 100 Dividend Fund. It is a newer fund and does not have much of a track record. It sells for $61.82. So you could buy just one share for $61.82 plus broker commission. Return since inception is 22%.