The power of a diverse registerThe power of a diverse register

This idea applies across almost every kind of organisation, from businesses to community groups. A collective that includes different backgrounds and perspectives tends to adapt better, move more fluidly, and hold up well in unpredictable conditions.

Attracting a broad range of investors is a powerful strategy for building a supportive long-term shareholder base. Long-term investors are less concerned with short-term volatility and more focused on avoiding permanent losses or missed opportunities. A diversified register gives companies the runway to navigate uncertainty and stick to their strategic path.

The data on diversity and loyalty

Retail investors are an intrinsically diverse group, spanning levels of experience, ages, interests, and socio-economic backgrounds. They’re also often assumed to be reactive, dividend-oriented, or focused on the short-term. But with trading data for the 800,000 investors across Australia and New Zealand on the Sharesies platform, we see a different picture.

Despite the outdated reputation of retail investors for being fickle during periods of heightened volatility, our data suggests the opposite. Through COVID, interest rate hikes, and ongoing market swings, we’ve never had a net sell month. We’ve consistently seen a preference for buying, continuing to invest in the shares that our investors believe in, and taking a long-term view.

Our data also disproves the common belief that retail is fixated on dividends. On Sharesies, investors are more focused on growth than on short-term yields. We’re seeing strong uptake in Dividend Reinvestment Plans (DRPs), with participation rates now around 60%, and in some cases even higher. This level of engagement shows a willingness to support companies reinvesting for the future, indicating long-term thinking over short-term cash grabs. 

The creator model

I recently saw the potential of diverse support demonstrated in an unexpected place. Ali Abdaal, a doctor turned YouTuber and educator, shared a conversation with a professor of AI on the security and intellectual freedom provided by academia. It reminded him of the creator economy: being supported to pursue your interests by a broad, decentralised community who values your work. As Abdaal puts it:

“You’re not beholden to one entity. Instead, you’re supported by people who appreciate your unique perspective... This decentralisation can actually be more stable and fulfilling.”

That same idea maps across to capital markets. If a company is reliant on a handful of institutional investors, there’s risk. If mandates change or passive funds rebalance, the company could see large, sudden shifts. On the other hand, a broad base of retail and institutional investors who understand and support your strategy can provide far more stability.

The wisdom of crowds

With a diverse mix of investors drawn to your mission and long-term plan, you're better positioned to make strategic moves—like pausing dividends to reinvest in growth—without facing outsized resistance. This is especially relevant in the New Zealand market, where companies often feel pressure to distribute earnings rather than fund future opportunities.

Sharesies trading data shows that retail investors are ready to back companies with long-term ambition. A diverse shareholder base that includes a loyal and engaged retail cohort means flexibility. It allows companies to pivot when needed, raise capital efficiently, and align with investors who are in it for the long haul.

In an unpredictable political and economic environment, a diverse range of shareholders is a stabilising force—and a strategic advantage.