Bought an Australian stock $TEA at A$5.13 when 1 AUD was only around C$0.86. Now the stock is around A$9.88, and AUD/CAD is basically around parity. So I didn’t just make money because the stock went up; the currency move helped too. My original 2,331 shares cost about C$10.3K at the time. At today’s stock price and roughly 1:1 AUD/CAD, the position is worth about C$23K. That means roughly C$3.2K of the current value difference comes from FX alone compared with what the same position would be worth if AUD was still at 0.86. This is one underrated part of investing internationally. The upside: If the foreign currency strengthens against CAD, your returns get an extra boost when you convert everything back. The downside: It works both ways. You can pick a stock that goes up 20%, but if that country’s currency drops hard against CAD, part of your gain can disappear. So when buying international stocks, you’re technically making two bets: 1. The company 2. The currency Sometimes both go your way. Sometimes FX absolutely ruins the party.
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