Insights

Only 28% of shareholders are in profit.

Tom Uhlhorn

Oct 3, 2024 — 1 min read

When analysing shareholder data, the numbers can often paint a stark picture. Based on our recent analysis of over 350,000 shareholders, it becomes clear that many investors are facing a challenging climate. Here’s a detailed breakdown of where investors currently stand:

28% of shareholders are in profit: Amidst the wider volatility, over a quarter of ASX investors are seeing positive returns.
4% are breaking even: For a small percentage of investors, their portfolios are maintaining balance – neither losing nor gaining significantly.
68% of shareholders are at a loss: The majority of shareholders, however, are finding themselves underwater, with 68% currently facing losses. On average, these losses amount to around -46%.

Breaking down the differences: High net worth investors.

It’s interesting to note that high net worth investors are faring somewhat better than the average shareholder. Their losses are averaging closer to 32%. This difference may be attributed to how they entered their investments (usually off-market at a discount) or, for others, they have been buying more shares during the recent bull market that are now in the black.

What can we learn from these insights?

It is clear that macro-economic factors are having a "double whammy" impact on investors, with an increased cost of living limiting investors' abilities to take advantage of cheaper investment opportunities combining with investors' wealth being down 46-32% as a result of a weak market.

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