Foreign Investors vs Local Investors

[Crystal]

Large institutional funds are not always looking for the cheapest stocks. They are looking for stocks big enough to absorb their money. That’s why they crowd into Tier-1 banks and cement:
Liquidity – they can buy billions without moving price too much
Stability – big companies are less likely to disappear
Dividends – steady income while they wait
Coverage – analysts follow these companies closely
So while retail investors look for undervalued small caps, institutions often look for reliable large caps. That’s the difference in strategy.

Well put. Large institutional investors prioritize liquidity, scale, and stability over just valuation. Their need to deploy significant capital efficiently naturally leads them to Tier-1 banks and large-cap stocks where depth exists. For retail investors, understanding this difference helps explain why capital tends to concentrate in certain segments of the market rather than spreading evenly.