The Risk Hiding in Your Client’s Portfolio - Ben Preston | Orbis

”Conventional wisdom will tell you that the lowest risk portfolio you can have is to have 70% of your assets in one country…that's a violation of common sense.” Ben Preston Portfolio Manager at Orbis Investment Management, warns that in markets dominated by a handful of mega-caps, portfolios that look diversified on the surface- may be carrying far more risk than advisors realise. We sat down with Ben to unpack where diversification breaks down and find out how advisors can better identify this hidden concentration risk. In this episode, you’ll learn: • How benchmark alignment can increase portfolio risk in narrow markets. • Why historical bubbles reveal the dangers of perceived diversification. • Practical ways to assess diversification across geographies, styles, and currencies. 📈 Stocks and ETFs Mentioned: NVIDIA, META, SK Hynix Inc. SK Square Co. Ltd, ASML. TSMC, Alphabet, Next Plc, PDD Holdings. 00:00 Cold Open Teaser 00:20 Diversification Still Misunderstood 03:05 Orbis’ Unique Stock Picking 05:33 Inside the 2025 Rally 07:23 Is This Another Tech Bubble 09:14 False Diversification Exposed 11:54 Lessons From Past Manias 15:18 What Real Diversification Means 17:25 Finding Value Beyond Mega-Cap 20:19 Geographic Bets Explained 24:06 Currency As A Diversifier 26:56 Positioning For 2026 ——— CPD Points: This episode has been accredited for CPD points by the Financial Advice Association of Australia (FAAA). To claim your points, complete the CPD Quiz and we'll send you your certificate (https://equitymates.com/episode/the-r...) ——— Want more Basis Points? Sign up to the Basis Points Newsletter here: https://basispoints.beehiiv.com/subsc... Follow Basis Points on LinkedIn:   / basis-points-by-equity-mates   Have a question? Send us a message on our website (https://equitymates.com/get-in-touch/) ——— Basis Points would not be possible without the support of our three launch partners: Orbis - Invest differently - https://www.orbis.com/au/investor/home Milford Asset Management - Invested in the outcome - https://milfordasset.com.au/ CBOE - Local market, global opportunities - https://www.cboe.com/au/equities/ Thank you to all three partners for helping us keep all of our content free and accessible. ——— Basis Points is a product of Equity Mates Media. This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional. Equity Mates Media operates under Australian Financial Services Licence 540697.

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