If you're – like me – concerned the Australian economy is heading towards a rough patch; one of the best ways you can protect your portfolio is by investing in companies with significant overseas interests.
You need not go through the rigmarole of opening a US stockbroking account and waiting for your money to clear. Instead, you can simply go ahead and buy ASX-listed companies with significant, or growing, overseas interests.
These next five companies, for example, offer modest but growing overseas exposure:
- Australia and New Zealand Banking Group (ASX: ANZ) has a goal of generating 25% to 30% of revenues from key overseas markets by 2017. Although ANZ will be a net loser from a slower Australian economy in the short to medium term, it remains the most diversified of Australia's big banks. It's worthy of a spot on long-term investors' watchlists.
- Computershare Limited (ASX: CPU) is a leading share registry services business, with operations in more than 20 countries. The $6.7 billion company accounts in US dollars and will be a net beneficiary of rising global interest rates.
- Flight Centre Travel Group Ltd (ASX: FLT) is a well-known Australian travel business. However, the group is currently growing in overseas markets, such as the UK. With 47% of store fronts located overseas, the long-term outlook for Flight Centre appears bright.
- Yowie Group Ltd (ASX: YOW) is a small-cap confectionary company rolling out across the US. The popular toy chocolate business has an exclusive patent to distribute its products across the country until 2017 and has recently signed an extended agreement with the biggest retailer in the world, Walmart.
- Altium Limited (ASX: ALU) designs, develops and distributes software for the creation of printed circuit boards. Recognising profits in US dollars, Altium has a global reach, and although it recently experienced some selling pressure on the back of adverse currency movements, the company looks a firm buy for the long term.
Are these five stocks a buy?
At today's prices I think Flight Centre, Altium, Yowie and Computershare are each deserving of a buy rating while ANZ is perhaps closer to a hold.
