2 Building-Block Stocks to Give Your Portfolio Global Exposure
Picking individual stocks can often be a fun exercise for investors, but real long-term returns often depend on the composition of the overall investment portfolio. A key principle in constructing a balanced equity portfolio is diversification, and an important way to achieve diversification is by gaining exposure to quality companies that earn their revenue and operate from different parts of the world.
While there are multiple index funds that offer opportunities to invest in international companies, U.S. investors looking to invest in individual businesses likely won't go wrong considering positions in MercadoLibre (NASDAQ: MELI) and Adyen (OTC: ADYE.Y). The performances of these two businesses should put them on investors' radars regardless of their locations, and their geographic diversity just gives an added reason to make them a part of the portfolio.
The world has gone through multiple economic challenges over the past 15 years, but there has been one constant for MercadoLibre's investors: the company's outperformance of the S&P 500 index. The Latin American e-commerce and fintech leader has handily beaten the S&P 500 index over the previous one-year, five-year, and 10-year periods, and has returned over 4,000% relative to S&P 500's 174% since the company's initial public offering in 2007.
Source Fool.com
