"I do like earnings coming from abroad versus earnings in the United States."
In his three hour appearance on Squawk Box this morning, Warren Buffett used the above quote in reference to his reasonings regarding recent investments he has made. His comments certainly make sense in light of the dollar's continued weakness over the last several months. As long as the recent trends in the dollar continue, one Euro's worth of earnings will be worth more in dollar terms next year than today.
In a report issued last May, we highlighted S&P 500 revenues based on the percentage of revenues that each company generates in the US versus overseas. The chart below is reproduced from that report, and it provides a sector by sector summary of the percentage of revenues that each sector generates from international sources. As shown, Technology, Materials, and Energy generate the greatest percentage of their sales outside the US, while Telecom Svcs, Utilities, and Health Care are the most exposed to the US.
Whether you think the dollar is reaching a bottom or will continue to fall, investors making specific stock decisions should know where the companies they are investing in generate their sales. With that in mind, the Bespoke International Revenues database is a handy tool that provides the percentage of revenues that each company in the Russell 1000 generates inside and outside the United States. This database is available free of charge to all Yearly subscribers to our Bespoke Premium service.