The Dangers of Comfortable Investing

Auscap Asset Management

Auscap Asset Management

It often feels less risky to be invested in the most widely held stocks… but is this actually the case? By their very nature, these well owned companies are well known, very large and typically well-capitalised businesses. Their size and familiarity offer comfort to the investor and somewhere along the way both future earnings and price can become secondary considerations. Rarely has this been more evident than in the current Australia market. And yet when we analyse the fundamental state of business for these companies, we don’t find particularly compelling reasons to invest. In our November Newsletter, we highlight some of the headwinds facing the largest companies on the ASX, and discuss the potential risks around comfortable investing. Click here to read more: (VIEW LINK)


Auscap Asset Management is a value-based Australian equities manager founded in 2012. Auscap manages the Auscap Long Short Australian Equities Fund which targets solid absolute risk-adjusted returns, looking to invest in companies that generate...

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