How Do I Invest Overseas?

Nonfinancial issues can also have an impact on your investment in a foreign company. For example, dealing with language barriers (with your broker or with the company's filings) can be a consequence of investing abroad.

While there are admittedly quite a few things to consider when investing in foreign companies, the upside can make the hurdles well worth it.

The Bottom Line

Complications grow exponentially when you invest in foreign stocks directly, which is why buying domestic investments based on foreign stocks (like mutual funds, ETFs and ADRs) can be a good solution for newer investors.

Investing in companies abroad shouldn't be done on a whim. However, with a reasonable amount of understanding, foreign investments can translate into some huge gains for your portfolio .

To learn more about international investing, check out these recent stories on TheStreet.com:

• Daftary to Take World by Storm
• Stockpickr: Top 'Foreign' Stocks Without the Fear
• Sizzlin' Returns: Mexico Funds Enjoy Big Gains
• Russia Energy ETF: Big Risks, Bigger Rewards
• Malaysia Rises on Crude's Tide
• High-Yield 'BRICs' to Help Build Your Portfolio
• European Stocks Might Be Getting Too Frothy
• Franklin Templeton Could Feel Darfur's Heat
• Heed the Red Flag on China-Focused Funds