Chapter 7. Buying the Best Bargains
7.1 Go global
Bargains are not evenly distributed around the world. At any one time, some national stock markets will have plenty of undervalued shares, while others will have hardly any. Thus, it is helpful to have the flexibility to invest in as many markets as possible. This enables the investor to widen the opportunity set and buy the very best bargains, wherever they may be. A recent study by James Montier58 demonstrated how large increases in the performance of simple value strategies can be achieved simply by widening the field from a regional universe to a global one.
Moreover, value investors should be aware that when national stock markets trade on very cheap multiples, they are usually excellent ...