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Barry Ritholtz

Your Local Investing Bias Could Cost You

Where you live shouldn't distort your portfolio.
Don't let it sway you.

Don't let it sway you.

Photographer: Don Emmert/AFP/GettyImages

Most investors are (or at least should be) familiar with the concept of "home country bias" -- the natural tendency to be more familiar and comfortable with public companies in your home country.

Investors everywhere consistently display this trait, which is in direct conflict with the basic principles of international diversification.