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If you were to do some brainstorming and search for different companies and brand, you probably think of common ones such as Wal-Mart, Amazon, Starbucks, etc. If you did some browsing, you could probably find some uncommon ones as well.

It is common that many people, especially most beginner investors, will concentrate their portfolio on domestic companies, if not investing 100 percent in domestic companies. Even citizens of other countries may be guilty of doing this.

Whether you realize it or not, a lot of the companies you know and see everyday are actually not American countries. They exists in other foreign countries. Some common ones include Toyota, Canon, and Nestle. Of course, there are many more foreign companies you don’t know.

These companies are listed on foreign Stock Exchanges from the country they reside in. If these companies are not American, should you be invested in them? Are they stable? Will they lose you money or make you more money?

Don’t avoid foreign companies. They could be just what you need in your investing portfolio. Investing in foreign companies is another great way to diversify and gives you more choice among both value and growth stocks. Why haven’t you been investing in foreign companies up until now? Probably because you didn’t think they were safe, worthwhile, or even available.

Look at all companies, not just domestic companies, when you are looking for a new investment. You could be missing out on a great investment. Toyota is a great investment because they have done so well in the hybrid market. Don’t assume they are riskier, all investments in stock are risky. As a matter of fact, all investments hold some risk.

If you’ve decided to start investing in foreign markets, that’s great, but don’t automatically go and sell all your domestic stock right off the bat. Start slow. Don’t think that one market is better than the other. It is the company you are investing in, not the location of the company.

Remember that financial and accounting standards are not always consistent from country to country or from market to market. What is required in the U.S. may not be required in a European or Asian country. This is probably the biggest extra risk when investing in foreign markets. As long as you do your research and buy and sell when necessary, it should not be much different from buying domestic stocks.