NEW YORK ( TheStreet) -- Over the past half-decade, the liquidity-driven bull market has been very generous to shareholders of blue chips such as Exxon Mobil, (XOM), IBM (IBM), Wal-Mart (WMT) and others. But the years ahead, based on demographics, should feature strong growth for foreign small caps such as Adecoagro (AGRO - Get Report), Audioboom, InterOil (IOC) and LiteBulb. Here are three reasons why investors should look to foreign small caps for future gains.
Many of the greatest money managers own foreign small caps as many are excellent stocks.
In addition to being a major shareholder in Exxon Mobil, IBM and Wal-Mart, last October legendary investor Warren Buffett bought Ray-Q Interconnect, an Israeli high tech with about 60 employees (IBM has 431,212, according to Finviz). That is the third Israeli company Buffett has bought. Billionaire hedge fund investor George Soros has done well with foreign small caps such as Adecoagro in farming, and InterOil an energy firm, among many others.
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