{"id":4603,"date":"2021-08-30T10:11:48","date_gmt":"2021-08-29T23:41:48","guid":{"rendered":"https:\/\/strawman.com\/blog\/?p=4603"},"modified":"2021-08-30T10:11:48","modified_gmt":"2021-08-29T23:41:48","slug":"benefits-of-investing-in-the-australian-stock-market","status":"publish","type":"post","link":"https:\/\/strawman.com\/blog\/benefits-of-investing-in-the-australian-stock-market\/","title":{"rendered":"Benefits of investing in the Australian stock market"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Australian stock market is less than 2% of the entire global equities market and doesn\u2019t contain any of the world-renowned high flying stocks like Apple, Amazon or Facebook. So why then is there huge upside potential in investing down under? Three main reasons give us Australians a huge advantage when it comes to buying stocks in our own backyard.&nbsp;<\/p>\n\n\n\n<p><strong>Local gems&nbsp;<\/strong><\/p>\n\n\n\n<p>In his bestselling book <em>One Up On Wall Street<\/em>, Peter Lynch told investors to buy what they know. He explained that recognising high quality businesses in our day-to-day lives can be an incredible starting point for retail investors like you and me &#8211; and that we can beat the Wall Street guys by using this advantage! By noticing things like competitive advantage, pricing power, innovation and scalability we can see the hallmarks of a great company as we go about our regular lives.&nbsp;<\/p>\n\n\n\n<p>Noticing that Afterpay had been popping up in more and more stores and that it\u2019s a business that has a mainly positive relationship with consumers would have been an awesome indicator that this might be a business to investigate further. Additionally, seeing the growth of A2 Milk in supermarkets across Australia could have been an outward indicator of it\u2019s growing adoption and consumer interest.&nbsp;<\/p>\n\n\n\n<p>Being aware of these local businesses that Wall Street wouldn\u2019t be as aware of is a huge advantage as Australians, and that because of their lowkey status in the Australian market, they can be underreported by analysts and the global stock market community.&nbsp;<\/p>\n\n\n\n<p><strong>Underreporting&nbsp;<\/strong><\/p>\n\n\n\n<p>Australia\u2019s greatest weakness may also be its greatest strength &#8211; being less than 2% of the global market means it doesn\u2019t receive as much granular coverage as China or the United States.&nbsp;<\/p>\n\n\n\n<p>For us, this means if we have some local knowledge, we can use it to our advantage before the masses flood into the stock. Finding companies in their infancy is a great opportunity to enter into the stock at a great value price point and potentially make those multi-bagger gains. Afterpay was trading at $1.00 five years ago &#8211; an entry point some investors enjoyed immensely as the now juggernaut didn\u2019t receive much international nor local acclaim.&nbsp;<\/p>\n\n\n\n<p>Capitalising on online investing communities like Strawman can help us find under-the-radar companies that haven\u2019t had the type of exposure that large-cap companies attract in markets like the United States.&nbsp;<\/p>\n\n\n\n<p><strong>Small cap opportunity<\/strong><\/p>\n\n\n\n<p>Last but not least, loads of Australian companies sit in the small cap sector &#8211; a category of stocks that have relatively low market capitalisations. This means that the potential upside is greater due to the law of large numbers.&nbsp;<\/p>\n\n\n\n<p>It\u2019s harder for a company like Apple, which has over a $2 trillion valuation, to double in value, as it would have to have revenues or profits increase in the billions of dollars to justify the value increase. Conversely, smaller companies have longer \u201crunways\u201d and greater opportunities to double, triple or octuple in price due to their comparative size.&nbsp;<\/p>\n\n\n\n<p>Being in Australia doesn\u2019t just mean meat pies, AFL and Vegemite &#8211; we also have an exciting, growing and dynamic stock market at our fingertips. With a little knowledge, some environmental awareness, a fundamental understanding of the stock market and a long term view, you might just stumble upon the next gold mine &#8211; and I\u2019m not talking about the Eureka Stockade.<br><\/p>\n\n\n\n<p> <\/p>\n\n\n\n<p class=\"has-text-color has-background has-normal-font-size has-very-dark-gray-color has-very-light-gray-background-color\"><em>Strawman is Australia\u2019s premier online investment club. <br>Members share research &amp; recommendations on ASX-listed stocks by managing Virtual Portfolios and building Company Reports. By ranking content according to performance and community endorsement, Strawman provides accountable and peer-reviewed investment insights. <\/em> <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-text-color has-very-light-gray-color has-background has-tertiary-background-color\" href=\"https:\/\/strawman.com\/member\/landing\/signup\"> Create your FREE Strawman account<\/a><\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-color has-cyan-bluish-gray-color\"><em><strong>Disclaimer\u2013<\/strong> Strawman is not a broker and you cannot purchase shares through the platform. All trades on Strawman use play money and are intended only as a tool to gain experience and have fun. No content on Strawman should be considered an inducement to to buy or sell real world financial securities, and you should seek professional advice before making any investment decisions<\/em>.<\/p>\n\n\n\n<p class=\"has-text-color has-text-align-center has-cyan-bluish-gray-color\">\u00a9 2021 Strawman Pty Ltd. All rights reserved.<\/p>\n\n\n\n<p class=\"has-text-align-center\">| <a href=\"https:\/\/strawman.com\/member\/landing\/privacy\">Privacy Policy<\/a>&nbsp;|&nbsp;<a href=\"https:\/\/strawman.com\/member\/landing\/terms\">Terms of Service<\/a> | <\/p>\n\n\n\n<p class=\"has-text-color has-text-align-center has-cyan-bluish-gray-color\">ACN: 610 908 211 <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian stock market is less than 2% of the entire global equities market and doesn\u2019t contain any of the world-renowned high flying stocks like Apple, Amazon or Facebook. So why then is there huge upside potential in investing down under? Three main reasons give us Australians a huge advantage when it comes to buying stocks in our own backyard.&nbsp; [&hellip;]<\/p>\n","protected":false},"author":7153,"featured_media":4604,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Benefits of investing in the Australian stock market - Strawman Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/strawman.com\/blog\/benefits-of-investing-in-the-australian-stock-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Benefits of investing in the Australian stock market - Strawman Blog\" \/>\n<meta property=\"og:description\" content=\"The Australian stock market is less than 2% of the entire global equities market and doesn\u2019t contain any of the world-renowned high flying stocks like Apple, Amazon or Facebook. So why then is there huge upside potential in investing down under? Three main reasons give us Australians a huge advantage when it comes to buying stocks in our own backyard.&nbsp; [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/strawman.com\/blog\/benefits-of-investing-in-the-australian-stock-market\/\" \/>\n<meta property=\"og:site_name\" content=\"Strawman Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-29T23:41:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2021\/08\/ASX.png\" \/>\n\t<meta property=\"og:image:width\" content=\"573\" \/>\n\t<meta property=\"og:image:height\" content=\"430\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Samuel Turner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Samuel Turner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/\"},\"author\":{\"name\":\"Samuel Turner\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/2bb2f73104fb265a971a399075e6b4ac\"},\"headline\":\"Benefits of investing in the Australian stock market\",\"datePublished\":\"2021-08-29T23:41:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/\"},\"wordCount\":704,\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/08\\\/ASX.png\",\"articleSection\":[\"General\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/benefits-of-investing-in-the-australian-stock-market\\\/\",\"name\":\"Benefits of investing in the Australian stock market - 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