I thank him for his feedback!
My reply was to assure him not to not believe too much in textbook theories! They claim that you will take multiple layers of risk by buying stocks in your country or the company you are working in.
This is actually useful advice if I am a Vietnamese working and buying Vietnam stocks.
Try telling Warren Buffett that?
If he were to follow the textbook theories of risk management religiously, he will not buy companies like Coca Cola, Gillette, Procter and Gamble and Wrigleys!
He also cannot buy shares of Berkshire Hathaway, since he is the CEO!
The sub prime crisis, Iraq war, 911 are all considered "calamities" at the point when it happened.
But he is still the richest man on planet Earth.
My belief if to buy companies which you believe and have studied in. The geographical location is secondary for a value investor. Although a good investment climate is favourable for stocks growth and must be taken into consideration.
The real risk is investing without proper study of the underlying business. Also, I prefer to learn from the best!