Selfwealth’s latest data on its over 1,200 millionaire investors has found a trend towards blue-chip mining stocks, along with heavy investments in the big four banks in their portfolios.
Selfwealth had 129,000 stockholders, and 1,200 were millionaires, the firm said, with the largest portfolio being $97 million in size.
The average account size for this demographic, however, was $2.6 million and 386 (32 per cent) were held in self-managed superannuation funds (SMSFs).
Looking at their allocations, Selfwealth’s chief executive, Cath Whitaker, tended to go for blue-chip companies.
“Our millionaire portfolio investors hold strong companies in strong sectors. When it comes to ETFs, they go for the biggest, and when it comes to non-traditional single stocks, they’ve picked those that have seen very high returns.”
Fortescue, Vanguard’s Australian Shares Index fund, and BHP were among the top millionaire shareholdings by volume, according to the trading platform’s latest data.
Westpac stood in the fourth position, while ANZ and Commonwealth Bank were in the sixth and seventh spots, respectively. Macquarie stood at ninth, while NAB just missed the top 10 holdings, coming in at 11th.
The data found that these investors were less dependent on ETFs, preferring instead to opt for single stocks.
Also, while the larger Selfwealth majority leaned into lithium stocks, there was only one lithium company in the top 20 stocks of millionaires: Pilbara Minerals at 17th. Meanwhile, Rio Tinto stood at 14th.
A stand-out stock in the millionaire stocks top 10 was Neuren Pharmaceuticals, which saw its share price rocket 265 per cent in the last year.
Additionally, Apple was the only non-ASX stock in the top 20, coming in at 15th.
When looking at the trading data for the first quarter of 2023 on the basis of age, Baby Boomer millionaires’ top 10 largely tracked the largest ASX companies by market cap, which included BHP, Fortescue, Woodside, CBA, NAB, ANZ, and Macquarie.
They also made significant plays in BetaShares’ Australian High Interest Cash, indicating a portfolio mix between cash and equities.
Meanwhile, Gen X was the platform’s “tech generation”, featuring Apple, Google, and Microsoft among their top holdings. Amid major developments in the banking sector, they were also found to have jumped on Bank of America and Citibank stocks.
SelfWealth data observed millennials to be the biggest risk takers, making big plays in leveraged and shorting products and investing in ETFs. An outlier for this cohort was Leo Lithium, a stock virtually ignored by the other age groups, with 80 per cent of all activity in the last two months being buys.
At the bottom of the table were Gen Z, who were the smallest group among portfolio holders. They were aged between 20 and 24, all male, bought only Vanguard ETFs and had not sold a single stock, according to the trading platform.
