Invest in Overseas Stocks

Morning Investors!

My humble apologies if I have not been updating my blog for some time. Just settled into my new job.

Today, I would like to share about my thoughts of investing in overseas stocks. Personally, I think Malaysian Companies do not have the Economic Moat some of the foreigners have. Investing in the KLSE alone does not give you adequate diversification for your portfolio.

2 stocks I am eyeing at the moment is Bank of China listed on the Hong Kong Stock Exchange and ComfortDelGro listed on the Singapore Stock Exchange. BOC is the 3rd largest bank in China while ComfortDelGro is the 2nd larget transportation company in the world. Both are trading at a PE of around 15 which is reasonable taking into consideration their tremendous earnings potential. As a margin of safety, I would only buy these 2 stocks when the PE drops to 12.

If you look at the Economic Moat of BOC and ComfortDelGro it makes you think that our Malaysian Companies are rather small in size in comparison with these guys.

If you really need to invest in Malaysian stocks, some companies worth looking into are:
1. KLK - Reliable as ever
2. Batu Kawan - ditto -
3. IOI Corp - ambitious
4. Public Bank - Good dividend yields of late
5. Maybank - ??
6. YTL Corp - Well run
7. YTL Power - Builds shareholder wealth as well as power stations