The title, sophisticated investor, is mostly...

The title, sophisticated investor, is mostly misleading.

Sophisticated doesn’t mean they are intelligent, that they have researched, that they are aligned with shareholders. It doesn’t mean that they have ever heard of the company or that they themselves are actively managing their investments.

So when a company ever mentions, sophisticated investor, don’t be too comforted. It’s very likely just a passive investor who pays a financial institution, however big or small, to manage their account. It could be a smsf account or any other. All they ever see is their quarterly and annual performance.

And to the subject of institutional investors, they aren’t usually Macquarie or similar. They are the smaller brokers that manage the soph accounts that get tapped for the funding.

Placements are rarely as impressive as they are dressed up to appear.

It’s a dance. When your toes keep getting stepped on, walk away and find a new dance partner (investment).