Millennial Retail Shareholder: Tariq Hamoodi’s Insights
The discussion, titled “The Engagement Appeal’ Elevenses’ with Tariq Hamoodi, millennial retail shareholder,” took place on YouTube and was hosted by Sheryl Cuisia. This discussion was particularly significant as it marked the launch of The Engagement Appeal’s white paper, ‘The Path to Inclusive Investor Engagement – A Roadmap for Mutual Benefit‘. Tariq Hamoodi was invited to provide a millennial perspective on shareholder investment, offering unique insights into the mindset of younger investors.
Tariq Hamoodi, who has been investing since he was 16, shared his investment philosophy and strategies. He shared that his investment strategy is rooted in long-term commitments. Hamoodi prefers to invest in businesses that cater to enduring consumer demands and emphasised the significance of thorough due diligence to determine the company’s long-term capability.
Furthermore, he highlighted the necessity of substantial savings for investment, noting that the average savings in the UK hover around £70,000, a figure he considers relatively high. However, he also acknowledged the increasing number of smart private retail shareholders who manage smaller amounts of capital but are passionate and educated about their investments.
When asked about his stance on cryptocurrency, Hamoodi expressed a negative view, calling it a “successful form of fraud” and a “tool of speculation” with no intrinsic value. He criticised the lack of regulation in the crypto space and expressed concern over the horror stories he heard.
Afterwards, Hamoodi shared his best and worst investments. His best investment was in an Australian-listed gold mine that had shut down due to a dispute with the Thai government. He bought the company at a 50% discount to its cash value, which was a profitable decision. Conversely, his investment in Montepaschi, an Italian bank, didn’t fare as well, which he attributed to his insufficient understanding of the historical context of the banking system in continental Europe.
The discussion also touched on the topic of shareholder engagement. Hamoodi explained that activism might arise from engagement when a management team doesn’t respect the rights of shareholders or show signs of good governance or stewardship. He emphasised the importance of asking questions about the management team’s motivations and care for the company and its people.
In the conversation, we also covered the topic of AGMs (Annual General Meetings). Hamoodi expressed the view that AGMs must be in a hybrid format, allowing for in-person and digital attendance. He also criticised the shift towards exclusively digital formats, arguing that shareholders should have the opportunity to meet their management teams face-to-face.
The discussion concluded with a Q&A session where Hamoodi responded to audience queries. When asked about his experiences with startup investments, he confessed that they hadn’t been successful, yet he still recognises the potential in venture investment. He also stressed the value of knowledge sharing and active engagement with other investors, from small retail investors to large institutional ones.
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