Family Office Investments - The Concentrated Single Position
whatshot 5 snips
Dec 1, 2024
Family offices often face the challenge of having concentrated positions in their portfolios. Discover how one family's investment strategy nearly doubled their wealth, while others stumbled from emotional pitfalls. The discussion highlights the balance of leveraging expertise and maintaining a disciplined approach to avoid bias. Key insights include navigating risks, understanding the sunk cost fallacy, and the importance of solid governance to manage these concentrated investments effectively.
15:21
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Concentrated Investments
Family offices often desire to invest heavily in single companies, either privately or publicly.
This stems from a desire to leverage their experience and expertise in specific areas.
question_answer ANECDOTE
IKEA Investment
An Australian family office, after selling their IKEA franchise, invested heavily in a biotech company.
This demonstrates the tendency to reinvest in areas of interest or perceived expertise.
insights INSIGHT
Active vs. Passive
Family offices often seek active involvement in their investments, even in public companies.
Their "passive" investing means not running the business daily, but still actively guiding it.
Get the Snipd Podcast app to discover more snips from this episode
Nearly all family offices have a single overweight position in their portfolio. Inspired by a recent article on how a family had almost doubled their wealth via one investment, Shaun provides practical guidance on how he has seen this go well and go poorly. This episode is a guide on how families can take advantage of their super powers whilst maintaining good governance.
Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice. Before acting on any information contained in this Communication, each person should obtain independent taxation, financial and legal advice relating to this information and consider it carefully before making any decision or recommendation. Any views expressed in the Communication are those of the individual speaker only, unless expressly stated to be those of Hall Road Investments, or any of its related entities. Hall Road Investments does not accept liability in connection with the integrity of, or errors in, the Communication, computer virus, data corruption, interference or delay arising from or in respect of the Communication. The Communication remains the property of Hall Road Investments and is not for reproduction.
The Family Office Sherpa