Renalytix AI and Kidney Disease Diagnostics
People often confuse “invest in what you know” with “invest in domestic stocks only.” Index provider MSCI builds an all-encompassing global index called the “MSCI ACWI IMI AC Index.” Forget about what all those cryptic acronyms mean, all you need to know is that 99% of all stocks around the globe from 49 countries are found in the 14,625 members of this index. If you’re a U.S.-only investor, this means that you’re not looking at 6,288 stocks out there found in 48 countries around the globe.
Most individuals and institutions don’t look outside their own countries when making investment decisions, something that’s so strange they’ve coined it “the equity home bias puzzle.” It’s particularly bad in ‘Murica because that’s where the majority of equity investment opportunities lie. Why look elsewhere when there’s enough stuff to look at in your own backyard? Why get a passport when you live in a country that is so geographically varied? Why idolize people that do great things for mankind – scientists, doctors, researchers – when you have the Kardashians?
Given the American tendency towards ethnocentricity, foreign companies are often forced to list shares on American stock exchanges so they start falling under the radar of investors. One such company is RenalytixAI (LSE:RENX) which is a pure-play
