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Most investors whom I met tend to have one thing in common. We tend to invest locally. This means that we have a natural tendency to invest in a stock that is listed on our country’s stock exchange or operates locally.

As we are starting out in investing, restricting ourselves to just investing locally is a great way to get ourselves familiar with the stock market. However, I do think that as we become more comfortable in managing our own portfolio, we should consider diversifying our portfolio internationally. That is because restricting ourselves to our home market can be riskier than you might think. Here’s why:

  1. The Illusion of Control

I remembered once when I have only been investing in the market for 3 to 4 years, a friend came up to me to encourage me to invest in a small …