Why the US is still the dominant investment region (and how Aussies can access the opportunity)

What's really attractive about the US, is there's something for everyone and it's much more diversified with local markets like here in Australia. 

Of course, it's really well-known for being the home of many technology leaders, (e.g. Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), Tesla (NASDAQ: TSLA)). You're reflecting all of the innovation coming out of Silicon Valley and other regions in the US.

But the US markets are also home to leading global companies across many different sectors. For example, McDonald's (NYSE: MCD) in quick service restaurants, Procter & Gamble (NYSE: PG) in consumer goods, Visa (NYSE: V) in payments, Coca-Cola (NYSE: KO). We all know what Coca-Cola does, and that's the point. It's a list of household names across a diverse range of industries and it just keeps going on.

Given the size of the US economy, domestic companies can grow to a significant size and become great investments. A company like Chipotle (NYSE: CMG), which is a Mexican-style quick service restaurant, it's largely domestic but it's delivered 19% compound returns for the last decade and is now a $58 billion company. 

The US just offers so many opportunities for investors.

It is a relatively safe investment destination in terms of investor protection, in terms of politics. It's noisy from time to time, but economically and politically, it's a reasonably stable part of the world. 

There is a huge number of companies that are specialised, quite different from what you're seeing in the local markets. So it can require a different skillset in terms of the analysis. Having said that, it's definitely worth doing. 

Of course, you've got to be aware of the usual tax and currency implications. But overall, it's a relatively safe destination.

For a properly diversified stock portfolio, exposure to the US really is a must. 

It's something you should be thinking about doing if you haven't already done it. You can organise access through most major online brokers, or global equity funds such as the Magellan Global Fund or Magellan High Conviction Fund will have exposure to US equities.

Microsoft (NYSE: MSFT). It's a really good example of what the US region offers. It's a globally dominant, multinational with products readers will be familiar with, and it's a well-established, highly profitable business. 

It's serving corporates and consumers with computer operating systems, work-based productivity software, servers, Xbox, LinkedIn, Bing search. I can go on, but you're getting the picture here. It's a dominant business with multiple drivers.

Microsoft also continues to lead in technological innovation. They're the second-largest type of scale cloud provider and the shift to the cloud is only in its early stages. And most recently they're taking the lead in generative AI through their partnership with OpenAI, the company behind ChatGPT. They're an early investor, owning 49% of OpenAI, and are embedding generated AI across their products suite.

It's delivered a strong return for investors but the long-term outlook remains bright for this innovative market leader.