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by orwin 784 days ago
Weirdly, there is also a premium on US multinationals.

When you compare dividends+buybacks from UK/French/German companies to US companies, expected returns over 10years, and stock price, excluding "growth" companies (Tesla, netflix, Uber), you can see a 10 to 20% premium. Is it stability priced in?

1 comments

If given choice to invest in a US company or an EU company, all things being equal, I'd pick US any day of the week. 10% to 20% premium seems kinda low in fact.
Yeah, i think it is a totally reasonable thing to do, if you're a day trader or a short term investor, or you invest in "growth" companies

_I_ also think it shouldn't matter in non-tech, non-growth companies. If Nestlé or lactalis crash (lactalis might be a bad example, i don't think they have public investors), i doubt Cargill or Heins will take the hit better. If you're a long-term investor (and let's be honest, most of us are) and mostly count on dividends to "make" money, you should be better off investing in old brand without paying the US premium.