For True Diversification: 3 Stocks You Can Buy Now

Most investors believe that a diversified portfolio is simply buying an index fund or spreading their investments across different industries within the United States, which is only halfway true. True diversification, as described by one of the most successful macro investors in the world, Ray Dalio, means being invested across different countries and regions as well to be truly diversified.

Of course, there is an aspect of commodity and fixed income or currency exposure in Dalio’s view, though buying stocks in other countries inherently also brings some exposure to that country’s commodity and currency cyclicality.

Thus, today’s list is a helpful way for investors to tap into future upside and risk management opportunities.

Looking at Asia’s powerhouse (China), investors can pick one of that country’s biggest blue chip company Alibaba Group (NYSE: BABA), or at some of Latin America’s biggest economies like Brazil through Nu Holdings Ltd. (NYSE: NU) and beyond into other countries within that region through a larger player like Mercado Libre Inc. (NASDAQ: MELI) to provide them with a successfully diversified portfolio.

Alibaba Doesn’t Care How Markets Feel

Ever since 2022, Alibaba stock has been one of the most “hated” names in the market, primarily because it is a Chinese company. For three years, the stock struggled to break its tight channel and see a price quoted above $80 per share, though management kept churning out stellar results.

Billions in stock buybacks, increased free cash flow, and expansion outside of the e-commerce platform most associate Alibaba with. Very few investors see Alibaba as a data center and cloud computing play, which it is growingly becoming across some of Asia’s fastest-growing economies.

This gives Alibaba access to consumer data, consumers who will inevitably start contributing to the region’s consumer discretionary sector, and data becomes gold at that point.

Being first in this race (before it even starts) gives Alibaba a strong positioning to keep expanding its financial profile, which may be why it delivered a net rally of 42.2% so far into 2025.

All of these factors also give Wall Street analysts the confidence to land on a consensus view of a Moderate Buy attached to a $159.7 per share valuation on Alibaba stock. This implies a potential upside of 32.5% from where it trades today, which would still be a fraction of the stock’s all-time high of just over $300 per share during the peak COVID-19 months.

Institutions Like Nu Holdings

This stock represents a Brazilian finance platform that serves as a new type of bank, addressing the needs of a growing middle class that views traditional banking as inefficient for managing personal finances. Investors can view Nu Holdings as the Brazilian counterpart to Robinhood Markets Inc. (NASDAQ: HOOD).

As Brazil’s economy continues to grow, making it one of the largest in the Latin American market, it’s no surprise that institutional buyers are seeking exposure to this story. As of mid-August 2025, those from State Street Corp decided to boost their holdings in Nu stock by 2.4%.

While this may not sound like much on a percentage basis, on dollar terms, State Street now holds a net position of $1.25 billion today, or 1.9% ownership in the entire company. After a year-to-date performance of 27.4%, Nu Holdings stock also gave Wall Street analysts some confidence to express their own opinions as well.

While the consensus view is of a Moderate Buy and a $15.8 per share price target, one Itau BBA Securities analyst placed an opinion above this consensus. This outlier calls for an Outperform rating and a valuation of $18 per share on Nu Holdings stock, implying an additional upside potential of 36% from today’s trading price.

Mercado Libre Is the Premium Latin American Stock

Tied to the middle-class growth in the Latin American economic region, investors can look to Mercado Libre and how it provides a way to allocate this new disposable income. Investors can view Mercado Libre as the region’s version of Amazon.com Inc. (NASDAQ: AMZN), offering a simpler way to understand the business model tailored to the region.

With all of the growth the region is expected to see, and how Mercado Libre’s market share will help it benefit in terms of financial expansion and valuations, it makes sense for Wall Street analysts to forecast $13.79 in earnings per share (EPS) for the fourth quarter of 2025, a net jump of 33.7% from today’s reported $10.31 in EPS.

All this growth and macro setup explain why the market is also willing to value Mercado Libre stock at a premium. By trading at a price-to-earnings (P/E) ratio of 57.8x today, Mercado Libre commands a premium above the rest of the internet commerce industry and its average P/E of 27.9x, meaning the market has high expectations for a bullish future.

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