By Francesca Washtell, Financial Mail On Sunday
21:51 08 Apr 2023, updated 21:51 08 Apr 2023
Many of us try to support local businesses when we go shopping, but new data shows we do the same when we invest.
Private shareholders across the UK favour companies close by, according to trading platform eToro.
Scottish investors are far keener than Sassenachs on buying shares in AG Barr, the maker of Irn Bru. Etoro users in Glasgow are almost seven times more likely to own the stock than those in the rest of the UK and four times more in Aberdeen.
Traders in Newcastle are much more likely to back bakery chain Greggs, which has its head office in the city, whereas it is under-represented in the investments of stock market dabblers in Plymouth, a city in the South West that takes pride in its pasty heritage.
Other favourite local companies include easyJet in Luton, AstraZeneca in Cambridge and – unsurprisingly – shares in US-listed Manchester United across Greater Manchester and Warrington. Dan Moczulski, UK managing director at eToro, said: ‘Traditional wisdom tells you to invest in what you know, and it’s unmistakably clear that this advice is being followed.
‘People are much more likely to invest in the businesses that are famous in their own region.’
He added, however, that they may also be choosing to buy stock in their own employers.
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As well as an element of tribalism in their investments, cities are also found to live up to their stereotypes.
In the green, hippy seaside haven of Brighton and Hove, shareholders are significantly more likely to back vegetarian and vegan stocks, such as oat milk maker Oatly and Beyond Meat. They also splash more money on average than investors in the rest of the country on buying shares in renewable energy groups such as First Solar and Vestas Wind.
In addition to backing United, sportswear clothing companies including Nike, Adidas and JD Sports are also more popular on average in Manchester.
Londoners prefer banking stocks, with Wise, American Express and Metro Bank far more likely to be in their portfolios than in other regions.
And Belfast stays true to its shipbuilding heritage, with residents over-investing in Norwegian Cruise Line and Royal Caribbean Cruises.
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