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.
