MENU

3 international shares to diversify your ASX share portfolio

Macquarie Group Ltd (ASX: MQG) shares, Platinum Asset Management Ltd (ASX: PTM) shares and CSL Limited (ASX: CSL) shares could add more than just growth potential to your portfolio.

Why buy international shares?

Academics have shown that around 30 (random) shares are enough to capture most of the benefits of diversification. Others have found that international exposure is the only way to capture additional benefits.

Many people think they need to open a US or international stockbroking account to get international exposure. That is perhaps the best way to get overseas exposure. However, in my opinion, buying local ASX-listed shares with international operations is another worthwhile investment strategy.

3 ASX shares for international diversification

Platinum Asset Management

Platinum is a funds management business based in Sydney. Despite its location, Platinum invests in international shares with a focus on US, European and Asian markets. Being a fund manager, Platinum’s business is highly scalable and profitable — but it is cyclical. Right now, shares look cheap, in my opinion.

Macquarie Group

Macquarie is Australia’s number-one investment bank, doing everything from financing aeroplanes to stock market research and corporate advisory. Macquarie conducts most of its business internationally, where the largest financial markets can be found.

With strong growth and a wide opportunity set in those markets, Macquarie shares provide a healthy amount of diversification.

CSL

CSL has quickly become one of Australia’s largest companies. The biopharmaceutical heavyweight sells products that may sound complex, but the fact is that tens of thousands of people around the world depend on its therapies and vaccines. With demand for its life-saving products coming from all parts of the globe, it’s easy to see why many investors remain confident in its long-term future.

Buy, Hold or Sell

Diversification is a risk-reduction technique. Yet by reducing the risk in your investment portfolio, you can dramatically improve your long-term investment returns.

Of these three companies, I think Platinum shares are good value at today’s prices. And although Macquarie and CSL shares might look expensive, I would be happy to stomach the volatility and hold them for the long-run (five years or more), if I bought them at a lower price.

The 1 Thing Every Investor Should Know About Buffett's Portfolio

You've probably heard a lot about billionaire investor Warren Buffett. After all, a herd of analysts and journalists has tracked his every move - for decades. Yet here's something you may not know...

Simply click here to learn more.

Motley Fool Contributor Owen Raszkiewicz owns Platinum shares. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Platinum Investment Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.