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Company Risk - Concentration

Overview

Company financial reports disclose:

  • Industries in which they operate; and
  • Countries in which they have businesses.

This provides an insight to the concentration versus diversification of a company’s activities.

Many ASX listed companies now operate regionally and others on a global basis to the extent some are listed on multiple stock exchanges.

Concentration of both industry and country segments may be elements in composing a share investment strategy. Alternatives are diverse. Investing in ASX listed companies with businesses in a strategy preferred country provides an alternative to investing directly on the foreign stock exchange. Additionally, a strategy may focus on particular industry segments or companies that are specialists or diversified.

Industry and Geography graphs

Market Shares provides graphs and tables of a company’s industry and geographical segments as reported in the last financial results.

Industry graph
Geography graph