Franklin Templeton Investmenets presents
Behavioral Finance For Everyday Investors
Creating awareness around concepts
to help you with your long-term investing success.
Today's lesson - Home Country Bias
To help understand what home country bias is,
let's talk about the world's premiere athletic competition.
Not that premier competition! The one where they kick a ball.
The beautiful game. [crowd cheering]
As the top country teams from around the world take the field
their fans' passions run high.
[crowd cheering]
Is cheering for your nation's team home country bias?
Definitely.
And supporting your team is the right thing to do...
-Gooooaaaal!
-…even when they're not always a winner.
But what if you could build the world's ultimate soccer team?
Chances are you would choose the best from around the world.
You might even have a Canadian goalie. Or not.
The point is, the world's elite soccer players
come from many different countries, not just one.
So what does soccer have to do with investing?
It turns out many investors are like soccer fans.
Whether they're from Algeria or Argentina
their investments tend to hail from the same country they call home.
But in reality it only makes sense that the best companies,
like the best players, are going to come from different countries.
So, as you draw up a strategy to find the right mix of investments,
maybe you need to consider adding more international players.