Global Companies vs. National Economies

• The DAX's double-digit growth despite Germany's struggling economy highlights a disconnect between national economic performance and the success of globally operating companies.
• Many large German companies, like Mercedes, derive substantial earnings from overseas markets, making them less reliant on domestic economic conditions.
• This global revenue stream allows them to trade at higher valuations compared to companies with limited international exposure.
• This insight suggests that investors should focus on the global reach of individual companies rather than solely relying on national economic indicators.
• Jonathan Farrow argues that investors may inaccurately 'nationalize' global companies, ignoring much of their business.