Ben Griffiths - Small cap legend builds a 30 year portfolio | Summer Series
Dec 15, 2024
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Ben Griffiths, co-founder and executive chairman of Eley Griffiths, brings over 30 years of investment expertise to the conversation. He emphasizes the overlooked potential of small-cap stocks and shares his unique strategies for building a 30-year investment portfolio. Ben discusses how he educates his children about financial principles and the importance of quality management in investments. He underscores diversification and long-term thinking as keys to successful investing, making this a masterclass in prudent wealth-building.
Ben Griffiths emphasizes the strategic importance of focusing on smaller companies for potentially higher long-term growth returns.
He shares valuable lessons learned from personally educating his children about investing, highlighting the significance of early financial literacy.
Griffiths outlines a diversified 30-year investment strategy that includes allocations in tech, mid-caps, and emerging sectors to balance risk and enhance returns.
Deep dives
The Power of Food Gifts
An innovative platform for sharing iconic foods from various restaurants is discussed, showcasing offerings like Chicago deep dish pizza, New York bagels, and Maine lobster rolls. The service caters to those seeking unique gifts, emphasizing the emotional connection food can create. Furthermore, promotional discounts are available, making gourmet gifts even more appealing to customers. This highlights the evolving landscape of gift-giving, focusing on experiential and personal connections.
Investing Insights from an Industry Veteran
Ben Griffiths, a veteran in funds management with decades of experience, shares his nuanced approach to investing, particularly in the small-cap space. He notes that his firm, Ely Griffiths, has significantly outperformed the small-cap index over the years, which has led to insights about successful investment strategies. Key factors in his philosophy include a focus on quality management teams and robust industry structures. His insights provide valuable lessons for retail investors looking for long-term growth.
Teaching Investment to Future Generations
There is an emphasis on the importance of educating children about investing and money management at a young age. Griffiths shares personal anecdotes about how he directly involved his children in understanding the value of stocks, using relatable companies to ignite their interest. This approach fosters appreciation for the importance of growth assets while enabling children to realize the benefits of investing early. The concept of experiential learning through familiar businesses paves the way for future financial literacy.
Building a Long-Term Investment Portfolio
A proposed long-term investment strategy is outlined, suggesting specific allocations for various types of assets over a 30-year horizon. The recommendation includes a significant proportion allocated to US industrial stocks and tech, followed by Australian mid-caps and emerging companies. Additionally, investments in uranium, lithium, and cryptocurrency are advised, reflecting the emerging trends and growth potential in these areas. This strategic allocation aims to maximize returns while balancing risk through diversification.
Patience and Resilience in Investing
Griffiths emphasizes the critical importance of patience in investing, particularly the need to hold on to winning positions through market fluctuations. This principle is supported by anecdotes illustrating that significant gains often come from remaining invested during turbulent times. He warns against the pitfalls of day trading and setting arbitrary sell targets, advising investors to focus on long-term growth. The overarching message is clear: successful investing requires steadfastness and a belief in your chosen assets.
Ben Griffiths is the cofounder, executive chairman and senior portfolio manager at Eley Griffiths.
Throughout this Summer Series, we're speaking to 12 accomplished investors and financial advisors to unpack their journeys in finance and the lessons they've learned along the way.
In today's conversation with Ben, we're unpacking:
Ben's start in the funds management industry
Why Ben thinks investors should pay attention to the smaller end of the market
How Ben is teaching his kids to invest
Key characteristics of his successful investments over the years
How Ben would set up a retail investors portfolio for the next 30 years
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Thank you to Viola Private Wealth for sponsoring this Summer Series and helping us keep all of our content free.
Trusted by the Equity Mates community, Viola Private Wealth helps investors grow and protect their wealth. With over $2.5 billion under management, they provide sophisticated investment strategies backed by decades of experience.
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