I speak with and listen to investors daily, from large institutions to retail. There are valuable insights to derive from what they are doing and what they perceive about any sector or specific investment.
I wish juniors did a lot more on this front. Market research is crucial to understand your place in a competitive market, even when you are not selling a product.
And hey, in my mind your stock is a product… but I digress.
One key takeaway from a recent conference is that many established institutional investors were unapologetically staying on the sidelines for the foreseeable future.
Whenever things get volatile many investors will move to cash. Sound practice, we know. I recall one particular group at that event who said they were keeping close to half of their total AUM in cash.
Yes, close to half. Ouch. Damn.
What can you do to incentivise groups like these to deploy capital and ‘take a chance on you’ when the market is choppy?
Not an easy task.
But here are some ideas:
- Find out what the main objections are for investors to avoid investing in your firm (I.e. repeating feedback)
- Analyse these reasons and decide what (if anything) you can do or say to address them and articulate clear, compelling answers for each. Are there misconceptions or partial truths you can clarify and expand on? Is something being misunderstood?
- Weave these answers into your company presentations, social media content and interviews. Repeat them often (until they are so clear they are no longer a top question)
- Monitor what works and what doesn’t to iterate. Perception is everything so you need to address these topics AND make sure the message is being understood.
- Now… here’s the thing: if a significant portion of the feedback is in direct conflict with a cornerstone part of your business, you got some soul-searching to do.
That’s it for today.
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Synergy Resource Capital is a boutique investment and corporate advisory firm focused on natural resources and technology, and based in Sydney.
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