24-09-2023, 11:05 AM
I think that from an investor's perspective, when you invest in a foreign stock exchange, it may be better to separate the forex risk from the business performance risk. Many businesses have international exposure either in the cost of sales component or revenue component, or both. So they will (hopefully) take the appropriate hedging measure. So we judge the business performance base on it operating, financial and forex capabilities and project the performances accordingly. We will then use this to decide whether to go in or not. Then we layer the forex issue which is about our money in vs our money out. I think it is easier to separate the forex impact this way .