💬 [E9563] Russo recommends currency diversification rather than hedging for global value investors, noting Americans already face multiple currency exposures through goods and services. Hedging can be prohibitively expensive during crisis periods precisely when the best opportunities arise, making unhedged foreign equity exposure a deliberate strategic choice for dollar-based investors.

🟢 [E9565] Foreign markets often remain less efficient than US markets, dominated by short-term trends and overreactions with fewer analysts conducting thorough analysis. Russo's Weetabix investment exemplifies this: bought at 7x P/E with 14% free cash flow yield, 10% cash position, and strong UK brand dominance, ultimately returning 10x over approximately 20 years (investment through 2003 sale).

💬 [E9564] Graham and Dodd's value investing framework applied internationally emphasizes finding businesses at reasonable prices with superior brands, genuine competitive advantage, conservative capital structures, and owner-minded management. Buffett's observation that investors may have only 20 great ideas in a lifetime argues for expanding the global search set rather than limiting to domestic markets.

💬 [E9562] Thomas Russo's essay on international value investing argues Graham and Dodd principles apply globally. Yale's equity allocation model used 30% initial with 15-40% dynamic rebalancing range. Foreign markets remain less efficient due to operational barriers, creating opportunities for disciplined value investors willing to navigate currency risk, accounting differences, and governance challenges.