Admittedly, the term "foreign investing" sounds, well, foreign. The companies are far away, regulated by other governments (if at all), and are seemingly less transparent than those under SEC scrutiny in the United States. All these reasons make American investors far more comfortable sticking with American stocks.

That's too bad, because some international investors are beating the pants off those huddled around only U.S. companies. While the U.S. stock market appreciated 15% last year, it ranks near the bottom when compared to world markets.

Myth-busting 101
The first things that come to your mind when you think of international investing are probably some combination of these:

  1. High risk.
  2. Complicated.
  3. Only professionals do it.

While these are some of the most common beliefs about international investing, they also propagate oft-repeated myths. Consider how each of these can be blinding you from a world of great stocks:

Myth No. 1: International markets are unstable and too volatile.
No doubt, foreign investing isn't a no-risk business. But many think international investing means stomaching volatile markets in China, Russia, or Brazil -- none of which conjure feelings of stability. But these are not the only profitable, emerging international market opportunities. Actually, companies in places such as Australia and Chile are far more stable with more genuine growth prospects than many U.S. companies.

In truth, getting a good price on shares in an international conglomerate growing at more than 20% a year could contain less risk than betting on Sirius Satellite Radio (NASDAQ:SIRI) or XM Satellite Radio (NASDAQ:XMSR). If you have the courage to pay a steep price for the hope of future profitability in the expanding digital radio market, you have way more chutzpah than it takes to tap international growth. Ditto if you're willing to put money behind the likes of expensive growth stocks Google (NASDAQ:GOOG) or Yahoo! (NASDAQ:YHOO). Sleepier industries such as diversified energy and consumer staples also exist abroad, making for plenty of international opportunities within the risk category of most investors.

Myth No. 2: I have to invest in exotic shares or exchanges to get a piece of a foreign company.
Many international companies offer shares on U.S. exchanges in the form of American Depositary Receipts (ADRs), which are receipts exchanged for company shares on their home exchange. This makes it easy for U.S.-based investors to invest in hundreds of international firms. You may not even know some of the largest, most well-known companies in the world trade as ADRs, such as Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC).

While some investors chose to buy shares on other exchanges through brokers, it's not a requirement. Tapping exploding international markets may come from investing in a U.S.-listed company that derives significant revenue from outside the country as well.

Myth No. 3: You have to be a professional to do well.
Yeah, this is the same story pushed on U.S. individual investors a decade ago -- you can't do it yourself, you need to pay someone else to do it, you'll lose all your money, etc. All bunk. If you're diligent about finding good investments in the United States, you're ready for the next level -- it's only a short hop to navigate international stocks. The process is the same -- find a solid company with good management, great products, and a growing market. And buy the stock at a reasonable price compared to prospects.

It's time to go global
If your goal is market-beating returns in 2007, international stocks must have a spot in your portfolio. To help you get there, we've recently launched our new Motley Fool Global Gains international investing service. Lead analyst Bill Mann and his team dispel the myths and show just how easy it can be to find great, undervalued international stocks.

As always, you can test-drive the service free for 30 days just by clicking here. No loss leaders or high-pressure sell jobs -- just full access to the service for a month to get the complete skinny and see which stocks Bill and his team have picked for exceptional returns.

Fool contributor Dave Mock just learned from his 7-year-old son that the tooth fairy is a myth. No verdict yet on Santa Claus or the Easter Bunny. He owns no shares of companies mentioned here. The longtime Fool is also the author of The Qualcomm Equation. XM is a former Motley Fool Rule Breakers recommendation. Yahoo! is a Stock Advisor recommendation. The Motley Fool has a disclosure policy.