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.

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