Stocks held by Warren Buffet, CEO of Berkshire Hathaway, remain a favorite of many global investors. American Express, The Coca Cola Company, and Wells Fargo & Co are some of the stocks that Warren Buffett’s Berkshire Hathaway has held for more than a decade. The US stock market provides access to investors to invest in some of the biggest global brands. From Facebook, Google, Apple, Amazon, Microsoft to Tesla, the list of stocks is endless that investors may consider buying and holding on a long-term basis.

The US stock market remains the largest space in the world of investments with easy access to the global investor community. From individual stocks to exchange traded funds across a gamut of indices and themes, the US stock market offers huge possibilities for investors globally. Indian investors who are holding Indian stocks also have the opportunity to own some of the biggest global blue-chip stocks sitting here in India.

To an Indian investor, there are some inherent advantages of investing in international markets:

Diversification across markets

Diversification across asset-class, market capitalization etc is incomplete unless you diversify geographically. To diversify your domestic portfolio among some of the leading global technology, Internet, Pharma and manufacturing companies amongst others, the US stock market provides a big opportunity to Indian investors.
Investing solely in one economy keeps funds exposed to country-risk. There are several micro and macro economic geo-political factors that impact a nation’s economy. In order to minimize risk and maximize the potential of returns, you need to diversify your investment portfolio.

Rupee-Dollar exchange rate

The rupee-dollar exchange rate has a role to play in the returns you generate from international stocks. Historically, Indian Rupee has fallen against the US dollar and the possibility to slide further exists. Any depreciation of rupee against dollar helps in boosting returns if dollar denominated assets such as US stocks gain. Even if international stocks under-perform or remain stagnant, you gain if the rupee falls against the dollar over the long term.

Fractional Investing

Unlike in India, investors can buy US stocks even in fractions. Buying Amazon shares that trades at nearly $3000 may not be affordable to all as you need almost Rs 2.25 lakh to own a single share. However, you may own a portion by investing even a small sum of Rs 5,000 or even lower through Fractional Investing from here in India. Over time, you can accumulate more or build a portfolio of US stocks with limited funds.

You can buy Nasdaq stocks from India or trade several thousand of ETFs and stocks on any other leading indexes like S&P 500, Nasdaq 100, Dow 30 indices or the Russell 2000 Index. From technology to pharmaceutical companies and from large-cap to small-cap stocks, the US stock market has a wide spectrum of top global firms.

Facebook, Apple, Amazon, Netflix and Google – collectively referred to as FAANG stocks are waiting to be grabbed as the US stock market is showing some weakness. Maybe it’s time to accumulate them for long term wealth creation!

Disclaimer: The investing decision in these or any other stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks. Financial Express Online does not bear any responsibility for their investment advice.