Investing in Israel
November 22, 2006
When on Wall Street, ask about investing in Israel . You'll hear that Israel has the second highest number of annual startups after America . That, after Canada, Israel has the second highest number of foreign based companies in the U.S. stock markets. You'll hear that Intel's latest chips were developed in Israel , that Teva Pharmaceuticals is the world's largest generic drug manufacturer, that ICQ, the worlds first instant messenger, was developed in Israel, and that Warren Buffet's only overseas investment, ever, was the purchase of Iscar.
When in shul, ask about investing in Israel . You'll hear about Israel Bonds.
How is it that Jews will donate to Israel , lend to Israel , but not invest in Israel? It is time for us to recognize the vast opportunities within the Holy Land. In the past five years, while the U.S stock markets have been stagnant (including dividends), the TA 100 has more than doubled over the same time period.
Or maybe Jews feel that it's safer to invest their entire portfolio in dollar denominated U.S. based assets despite the risks of a falling dollar, terror attacks, recession, or war.
A simple rule of long-term investing is to diversify assets to mitigate risk. That includes buying small amounts of equity in foreign based investments. Historically, people did this by buying stock in multinational corporations that have a strong international presence. Today, however, it's easier than ever to invest in emerging markets funds or purchase stock directly. You can view a list of Israeli companies listed on U.S. stock markets at www.israelfm.org. You can follow the latest news on Israeli companies at www.marketwatch.com .
So, the next time you hear people complaining about the stock market, remind them they could have doubled their money in the Israeli stock market.
- editor
