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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: mungofitch ✹✺🐝🐝🐝 SILVER
SHREWD
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Number: of 6373 
Subject: Re: Fund, MEWD
Date: 08/17/26 9:08 AM
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What 'country of risk' means, I have no idea. Economic risk e.g. from a crash? from tax/law changes, tariffs? in terms of revenue?

Maybe in the sense that it's risky for them to call a European company European if it's listed in New York? : )

I am comfortable that the companies are all, within rounding error, "European". The definition of the index is "Large and mid cap securities across 15 Developed Markets (DM) countries in Europe", where "DM countries in Europe include: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK." So at the stage of index inclusion, they are all deemed to be "in" one of those 15 countries.

The MSCI rules tree for that determination is long, but most often it doesn't place much weight on listing. It's usually country of HQ and incorporation, ties broken by principal operations and historical investor perception, with a special case for firms domiciled in low-tax jurisdictions in which case they tend to use country of listing. The rules tree for Russell index inclusion has always seemed very sane to me, less discretion.

Jim
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This community has written 606 posts about Non-US Stocks. The article-length ones it recommended most:
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