In one sentence: Phil walks Danielle through how he would start on an unfamiliar foreign company: confirm it's public, read its own "about" page and history, weigh the country, language and currency, and then use the list of Irish names to practise.
Key ideas
- Start with Google, then investor relations. If a company has no investor page, Phil moves on as unsophisticated. [04:00–06:00]
- Understand before valuing. He reads the "about" or "our journey" page first to see where the company came from and whether it's in his wheelhouse, before any numbers. [06:00–08:30]
- Values from the start. He wants to own only companies he respects, and notes companies say things they don't do, so a stated value is only a starting point. [08:00–09:00]
- Country risk. Phil has a no-go list (China, Russia), is skeptical of continents he doesn't know, and expects great companies to list on international exchanges. [10:00–13:00]
- Stability means predictability. For a country like Norway, he'd look at political stability, labour and financial-system risk (he cites Ireland's and Iceland's crises), and he learns about the country while learning about the company. [13:00–16:00]
- Currency. Both the currency of the business and of your investment matter: a Turkish lira company can be up in lira and down in dollars. Some Turkey-based firms earn in euros or dollars. [15:30–20:00]
- India as a case. Phil likes it but a friend's fund nearly died there, and foreign ownership was restricted. He notes Indian law at the time he practised, and says this may have changed. [16:30–19:00]
- Language and disclosure. Documents in an unfamiliar language are a real barrier. Don't rely on machine translation. [19:00–20:00]
- Handling a list. He scans for names he knows; his main list is the quarterly 13F buys of investors he respects. Foreign names won't appear there, so they need more digging, including building your own spreadsheet. [24:00–28:00]
- Be a reporter. Be skeptical of what companies say. Getting to a quick "no" is a win because it frees time for the real candidates. [28:00–29:00, 32:30–33:30]
- Glanbia preview. First look: a nutrition company that grows by acquisition, which he finds worth examining. [30:00–31:00]
How it maps to RuleOne
- The screen is built from US filings with 15 years of data; Phil says exactly this is what foreign names lack.
- The funnel is the same as in 001: business first, then moat and management, then price.
Buffett, Munger and Graham links
- Buffett's circle of competence (1996 letter) applies to countries as well as industries.
- Munger on staying away from what you can't understand (001).
- Graham's Intelligent Investor ch. 2 on inflation and currencies bears on the lira example.
Words to know
- Investor relations (IR): the company web page for shareholders and filings.
- 13F: quarterly holdings filings of large US managers.
- Currency risk: gain or loss from exchange-rate moves.
Try this
Pick one foreign company you know. Find its investor-relations page, read its history, and write down its country, home currency and reporting language. Then note what you'd need to build your own history of the numbers.
Check yourself
- What's Phil's first check on an unknown foreign company?
Answer
Whether it is public, via Google and an investor-relations page. - Why does currency matter?
Answer
The business can grow in a weak currency while your dollars fall in value. - Why do 13F lists not help for foreign names?
Answer
They cover only US-listed holdings, so international names need extra research.
Short quotes
"If I can get to a no quickly, that's a win." (Phil, ~33:00, auto-transcribed)