An investor checks her portfolio on her smartphone. wera Rodsawang via Getty
German small investors invest more often in companies with a large presence in their city, shows a current analysis by Etoro.
The geographical proximity of an investor to a company therefore influences the investment decision.
A similar trend can be observed in almost all major German cities, such as Fraport in Frankfurt or Aurubis in Hamburg.
German small investors are up to four times more likely to invest in a company with a large presence in their city than investors from other regions. This is the result of a current evaluation of the trading and investment platform Etoro.
“A basic rule for good investments is to bet on what you understand”
The data shows that an investor’s physical proximity to a company can have a major impact on whether or not they invest in the company. For example, only 0.5 percent of German Etoro investors hold shares in the Schaeffler Group, which has two subsidiaries in Nuremberg. However, for investors based in Nuremberg, this share is 2.3 percent, which is more than four times higher than in Germany as a whole.
“One of the basic rules for good investments is to bet on what you know and understand. And our analysis clearly shows that German investors follow this advice when it comes to putting together their own portfolios,” says Ben Laidler, Global Markets Strategist at Etoro.
A similar trend can be observed in almost all major German cities. Investors from Frankfurt am Main rely on Fraport more often than other investors from Germany. In Hamburg, on the other hand, 1.2 percent of local investors have a stake in the copper producer Aurubis, which is based in the Hanseatic city. However, across Germany only 0.6 percent of Etoro investors have the share in their portfolio.
Similar in Essen: investors living there are far more willing to invest in the Hochtief construction group, which has its headquarters in the city. Or Düsseldorf: There, local Etoro investors are more than twice as likely to have invested in the city-based detergent and cleaning agent manufacturer Henkel. The same applies to investors in Cologne for the specialty chemicals group Lanxess. The proportion here is twice as high as in Germany as a whole.
These are the German investors’ favorite stocks by region
“>
External content not available
Do you have a contentpass subscription but still don’t want to miss out on displaying external content from third-party providers? Then click on “agree” and we will integrate external content and services from selected third-party providers into our offer to improve your user experience. You can view a current list of these third parties at any time in your privacy (link to privacy). In this context, usage profiles (including based on cookie IDs) can also be created and enriched, even outside the EEA. In this case, your consent also includes the transfer of certain personal data to third countries, including the USA in accordance with Article 49 Paragraph 1 Letter a) GDPR. Further details on data processing can be found in our data protection information and privacy policy, which are available at any time in the footer of our offer. You can exercise your consent to the integration of external content at any time in the footer of our offer via the “Revocation Tracking” link.
Agree and view external content
Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.