Why Britain's got talent in domestic stocks

ON UK INCOME

One of the attractions of investing in the UK stock market is the international nature of companies listed here, from specialist engineering and technology companies selling to global firms, to leading consumer-facing businesses operating on several continents.

Given the challenges facing the domestic economy investors have typically had a preference for companies that earn a significant proportion of profits overseas. However just like a recently televised talent programme – Britain’s Got Talent – you may just be surprised at the breadth and depth of corporate talent operating predominantly in the UK. We do not have a particularly optimistic view on the UK economy; however as investors we are investing in companies and not economies. It is often when economic growth is a little harder to find that those franchises with sound business mod...