top of page
  • Writer's pictureAdmin

What impact do cultural differences have on investments?




This topic is regularly discussed in different articles and we have even discussed it in our blog on several occasions. There are, however, several angles of approach to this subject. Several studies have determined that the value premium is higher in countries where investors are more impatient and less risk averse. In Anglo-Saxon countries, investors are willing to pay more to hold shares. In other countries as in the countries of Northern Europe (it is possible here to quote Germany or Sweden), there is more value traders.


Value trading evolves around an existing portfolio of carefully selected stocks with an investment horizon of over one year. The strategy begins by identifying the market trend. Value traders are thus prepared to hold their investments for long periods of time in order to obtain the returns they expect. There are many studies that have shown that investors with the same experiences and the same cultural background tend to invest in the same way. This is because their practical and emotional factors tend to be similar. However, other factors strongly influence the way people invest. Obviously, their wealth is a major component. Even if you invest the same portion of your equity, the size or size of your investment will make a difference. It is easy to understand this principle with a numerical example. Take investor A who has a net worth of 2 million euros and who invests 10% of his wealth in shares; this investor therefore has a share portfolio of 200,000 euros. A so-called B investor who invests the same proportion of his wealth in equities but who has a net worth of only 100,000 euros will thus have a portfolio of shares of 10,000 euros. Despite the existing similarities, it will not be possible to manage in the same way a portfolio of 10,000 euros and a portfolio of 200,000 euros.

Recent Posts

See All
bottom of page