Knowing what you own is one of the most underrated parts of investing. #InvestingStrategy

If you invest in something like the ASX 300, most of your money is sitting in the biggest companies. The top 25 make up around two thirds of the index. The top 50 make up about 80 percent. The 100th largest company is only 0.15 percent. So even if a smaller business performs brilliantly, an index investor barely notices it.

Index funds are fine. They are cheap and predictable. But they also dilute your exposure to smaller and mid-cap businesses that can genuinely move the needle.

When we build portfolios, we invest directly into high quality businesses all over the world, including a select group of small and mid-cap companies outside the top 50 and top 100. They are still diversified, just not watered down. These are the ones that can become portfolio makers and deliver the long term returns that actually matter.

And knowing what you own helps. Not by watching the share price, but by reading what the business is doing. It gives you confidence that real people are working hard for themselves, their company and their shareholders.

General advice only
AFSL 495401

#InvestingStrategy #SmallCaps #PortfolioManagement #LongTermInvesting #knowwhatyouown

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Advice Disclaimer || Any advice given by the presenter/s has been prepared without considering your individual objectives, financial situation or needs. So, before you act on the advice you should think about whether the advice suits your objectives, financial situation or needs. If the advice relates to acquiring a financial product you should obtain a copy of the Product Disclosure Statement for that product and consider it before making a decision. This presentation has been prepared by Consortium Private Wealth Pty Ltd (ABN 74 616 250 965) (AFSL 495401). If you require advice which takes into account your objectives, financial situation and needs you should speak to a financial adviser.

Robert Goudie (ASIC Reg 235974), Ashley Rowan (ASIC Reg 433899), Olivia Glare (ASIC Reg 1262290), Rachael Todman (ASIC Reg 1270413) & Amy Lehmann (ASIC Reg 1292710) are Authorised Representatives of Consortium Private Wealth Pty Ltd ABN 74 616 250 965 AFS Licence 495401.