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Additional Reading from MarketBeat.com 3 International Stocks Most U.S. Investors Have Never Heard OfAuthor: Bridget Bennett. Originally Published: 3/20/2026. 
Key Points - The gap between United States and European equity valuations has widened, pushing some global stock pickers to look overseas for “quality at a reasonable price.”
- Pieter Slegers highlighted Games Workshop, Investor AB, and LVMH-Moet Hennessy Louis Vuitton as examples of durable businesses he believes are priced more attractively than many U.S. peers.
- The argument rests on selective stock-picking rather than a blanket “Europe is better” call, with the main risk being that cheaper European valuations persist longer than expected.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
U.S. markets have dominated for the better part of two decades. But the cycle may be turning—and the valuation gap between American and European equities is getting harder to ignore. Pieter Slegers of Compounding Quality spends his time searching for businesses with high margins, strong balance sheets and durable competitive advantages. Increasingly, the best risk-reward setups are showing up outside the United States. Why the U.S.-Europe Valuation Gap Matters Now San Francisco is the strangest city in America right now—you can hop into a self-driving car and be chauffeured by a robot, but out the window you see addicts slumped in doorways, open-air drug markets, the mentally ill screaming at the sky, and entire city blocks consumed by homeless encampments. It's ground-zero for the most disruptive technological forces of our age, and Erez lives in the Bay Area plugged into the capital, the connections, and the companies reshaping the world—the advancements in AI, blockchain, computing, and biosciences are unlike anything the world has seen before, and a tsunami of disruption is coming for everything all at once. During our most recent broadcast, we exposed what we're calling the most asymmetric opportunity of our careers: an overlooked financial company hiding a multi-billion-dollar blockchain asset Wall Street hasn't priced in—it's one of those rare situations Warren Buffett would describe as raining gold when all you have to do is step outside if you want to get rich. Watch the broadcast before the window closes now Slegers doesn't suggest Europe is broadly superior to the United States. He readily admits that U.S. companies, on average, have higher margins and stronger fundamentals. But that makes selective European investing particularly interesting right now: when you find a European company that matches U.S. quality, you're often paying 14 or 15 times earnings instead of 25. Markets move in cycles. Historically, the United States outperforms international markets for about eight years, then the pattern reverses. The current U.S. streak has lasted roughly 16 years—an unusually long run. Slegers recommends investors consider allocating 40% to 50% of investable assets outside U.S. stocks for genuine geographic diversification. As he put it, quoting Buffett: "Only when the tide goes out do you discover who's been swimming naked." That backdrop frames the stocks he highlighted. Games Workshop: The Compounder Hiding in Plain Sight The first name is one almost no U.S. investor will recognize: Games Workshop (LON: GAW). The UK-based company produces miniatures for tabletop board games—a niche market where passionate customers create durable pricing power. The GAW chart is striking. Games Workshop has compounded at 140x since 1994, making it one of the best-performing stocks in the United Kingdom over that period. The company raises prices 5%-6% annually, and customers keep coming back. Slegers compared the loyalty to addiction: "Once you are a Games Workshop player, you always stick to the game." One anecdote he shared involved a club leader who owned $125,000 worth of miniatures. The same CEO has led the company for more than 20 years, and a pending deal with Amazon (NASDAQ: AMZN) could be the next major catalyst. At current levels, this isn't a company where the growth story is over—it's one where the moat appears to be widening. Investor AB: Europe's Answer to Berkshire Hathaway If you want broad European exposure through a single stock with a proven track record, Investor AB (OTCMKTS: IVSBF) is the name Slegers highlighted. This Swedish holding company has been around since 1916, and the Wallenberg family still owns about 20% of the business. Investor AB operates across three segments: direct stakes in listed European companies like Atlas Copco (OTCMKTS: ATLKY) and ABB (NYSE: ABBNY), private equity activities, and growth investments. Since 2001, the stock has roughly doubled every five years. Slegers has met with the CFO and head of investor relations multiple times and says the management team "walks the walk." The case is straightforward: if you're seeking first-time European exposure, Investor AB has significantly outperformed the Stoxx Europe 600 over the medium and long term, with management incentives deeply aligned with shareholders. LVMH Moët Hennessy Louis Vuitton: Luxury at a Discount to the S&P 500 LVMH Moët Hennessy Louis Vuitton (OTCMKTS: LVMUY) needs little introduction. The French luxury conglomerate behind Louis Vuitton, Dior and dozens of other iconic brands is one of Europe's largest companies. Bernard Arnault, the richest man in Europe, owns roughly 50% and continues to buy shares. Two dynamics make LVMH compelling at current prices. First, luxury is extraordinarily difficult to replicate—brand equity built over decades doesn't get disrupted overnight. Second, the company's growth in China and broader Asia remains a powerful long-term tailwind. Trading at roughly 20 to 21 times earnings, LVMH sits slightly below the S&P 500 average while offering fundamentals that are meaningfully better than a typical index constituent. Cheaper and better is a combination worth noting. The Common Thread Across These Names Every stock on this list shares a few traits: founder-led or long-tenured management, durable competitive advantages, and valuations that look attractive relative to U.S. peers. The risk is that European markets stay cheap longer than expected. The upside is that a rerating appears to be underway as more institutional capital rotates toward international equities. You don't need to go all in on Europe to benefit. But ignoring the opportunity entirely—especially when quality names trade at meaningful discounts—means leaving diversification and potential returns on the table. That's the setup heading into the rest of 2026. Watch the full video above for a deeper look at these names (and more). | 
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