Episode Details

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Should a well diversified portfolio include international stock funds? That's the question I'm covering in this video. I'll first walk through several reasons an international stock fund is NOT necessary. Then I'll explain why I nevertheless invest in international stocks. Finally, I'll cover what I think is the most important factor as you decide what is best for your investment portfolio.

Video Outline

- U.S. vs. International
    - Performance (Portfolio Visualizer)
    - Current Valuations (VTI vs VXUS--Morningstar)
- Reasons NOT to own international stocks
    1. Warren Buffett & Jack Bogle
        - Warren Buffett Portfolio--https://robberger.com/warren-buffett-...
        - Bogle on Investing
            - https://www.morningstar.com/articles/...
            - https://jasonzweig.com/invest-globall...
    2. International stocks may have lower valuations for a reason
    3. The U.S. is the best place to invest
        -  entrepreneurial
        - Soundest institutions
        - Excellent governance
        - Well diversified economy
    4. U.S. companies do business around the world (so we already have int'l exposure)
        - About 50% of revenue and earnings come from abroad
    5. Diversification may not be that great
        - U.S. Small Cap Value may provide more diversification
            - https://www.morningstar.com/articles/...
    6. Many countries are unstable politically, economically or both
- Why I own international stocks