WEBVTT - Special edition: How The Australian’s Wealth team invests 0:00:10.760 --> 0:00:13.840 Hello, and welcome to the Australians Money Puzzle podcast. I'm 0:00:13.920 --> 0:00:17.119 James Kirby. Welcome aboard everybody, and welcome aboard to a 0:00:17.200 --> 0:00:20.880 special edition of this podcast because it's a pretty special 0:00:20.960 --> 0:00:24.520 day here at The Australian. We are launching a Wealth 0:00:24.920 --> 0:00:28.360 Vertical now. A Wealth Vertical is a digital unit within 0:00:28.400 --> 0:00:31.600 The Australian and it's going to be all about wealth 0:00:31.720 --> 0:00:34.400 in all its dimensions. And many of the people that 0:00:34.479 --> 0:00:39.080 you know and are familiar with from the podcasting myself 0:00:39.159 --> 0:00:42.040 and James Gerard, of course Stuart Williams. You here on 0:00:42.120 --> 0:00:46.000 Tuesday's Property podcast. You're going to see and read a 0:00:46.000 --> 0:00:49.720 lot more from them in The Australian, and you're going 0:00:49.760 --> 0:00:52.360 to hear a lot more from them in the podcast 0:00:52.440 --> 0:00:58.840 because we are widening the offering basically substantially, so seizing 0:00:58.960 --> 0:01:02.520 the opportunity to I've asked the Wealth editor of The Australian, 0:01:02.760 --> 0:01:05.240 Julianne Spragged, to come on the show. She's going to 0:01:05.280 --> 0:01:09.840 tell us about what's happening. And then when she's done that, 0:01:09.880 --> 0:01:12.039 we're going to do something we haven't tried before. We're 0:01:12.040 --> 0:01:15.039 actually going to talk about our own investing because both 0:01:15.040 --> 0:01:18.399 of us have been in financial journalism most of our 0:01:18.440 --> 0:01:22.240 lives and we have I hope, learned some very interesting 0:01:22.319 --> 0:01:24.240 things that we do want to tell you about. 0:01:24.440 --> 0:01:27.720 Hi Julianne, Hi James, thanks for having me on. 0:01:27.800 --> 0:01:30.520 Greater Have You on Marshafield has going to be Confession's 0:01:30.560 --> 0:01:32.480 going to be a confession session. 0:01:34.760 --> 0:01:39.000 Well partially confession and hopefully occasionally a part of celebration. 0:01:39.400 --> 0:01:43.080 Tell us first, what's happening with Wealth on the Australian 0:01:43.160 --> 0:01:48.720 and how our offering in all its multi media wonderfulness 0:01:48.880 --> 0:01:49.640 is going to change. 0:01:50.920 --> 0:01:52.000 It is exciting. 0:01:52.240 --> 0:01:55.280 We had some research that came through said lots of 0:01:55.280 --> 0:01:58.120 people want to be financially independent. People want to be 0:01:58.200 --> 0:02:02.160 able to have this job because they want to have 0:02:02.200 --> 0:02:04.040 a job for it to be a joy and not 0:02:04.080 --> 0:02:07.520 a chore. And the concern though, is that a lot 0:02:07.560 --> 0:02:10.760 of people aren't as financially literally as they want to be. 0:02:10.880 --> 0:02:13.240 They don't know where to go to get a lot 0:02:13.240 --> 0:02:15.840 of this information. They might see their mates or their 0:02:15.840 --> 0:02:18.400 friends and they're getting ahead, or they've got investment portfolios 0:02:18.440 --> 0:02:20.240 and things. I don't know the how, the why, the what, 0:02:20.880 --> 0:02:22.840 and so what we want to do is create this 0:02:22.919 --> 0:02:26.840 one stop hub, a place where you can get trusted information. 0:02:27.480 --> 0:02:29.959 So that's no matter what stage of the financial journey 0:02:30.080 --> 0:02:35.000 you are on. So there'll be information about investing, property, investing, superannuation, 0:02:35.480 --> 0:02:39.680 retirement planning, all those bits about that are very important 0:02:39.720 --> 0:02:41.919 for your life. But I don't know about you, James, 0:02:41.919 --> 0:02:43.280 but you just get caught up, don't you. 0:02:43.919 --> 0:02:48.600 Yeah, you do. And we've always had a lot of 0:02:48.720 --> 0:02:51.639 material and there's always like there's always been a good 0:02:51.680 --> 0:02:54.200 materia coming in different ways in different parts is such 0:02:54.200 --> 0:02:56.440 a big operation. And then we have podcasts, and then 0:02:56.480 --> 0:03:00.680 we have like Baron's Top Advisors, we have videos and 0:03:01.760 --> 0:03:03.800 we haven't put them all in the one place before, 0:03:04.000 --> 0:03:06.359 so I think that's part of it. So I do 0:03:06.400 --> 0:03:08.800 I recommend all the listeners have a look at this. 0:03:08.880 --> 0:03:12.000 It's launching today and I don't think there's ever been 0:03:12.040 --> 0:03:14.720 anything quite like it in media. 0:03:15.240 --> 0:03:18.040 Can I just say true for your listeners who love 0:03:18.120 --> 0:03:20.320 to listen to you. Twice Withightly on the Money Puzzle, 0:03:20.760 --> 0:03:23.280 we have put together a video series so that one 0:03:23.600 --> 0:03:26.360 to see James Kirby in real life. 0:03:26.560 --> 0:03:29.680 We did it on before we started the show. We 0:03:29.680 --> 0:03:32.080 were just laughing. The day we did it was the 0:03:32.120 --> 0:03:36.480 worst day I can ever remember. Weather wise, I should say, 0:03:36.600 --> 0:03:38.760 but we all flew in to do this video, folks, 0:03:38.800 --> 0:03:42.480 and it was just so bad. It was unreal, and 0:03:42.760 --> 0:03:44.960 we were all late, and all the flights, the two 0:03:44.960 --> 0:03:47.320 flights before me were canceled on the two after. I mean, 0:03:47.320 --> 0:03:49.840 it was a miracle that I got actually to that 0:03:49.880 --> 0:03:53.480 session at all. But the videos will be on this site, 0:03:53.560 --> 0:03:57.240 and we've done a whole series of masterclass videos which 0:03:57.280 --> 0:03:59.720 capture some of the sort of core areas of in 0:04:00.800 --> 0:04:03.840 and I recommend them to you. They will be distributed, 0:04:03.880 --> 0:04:05.880 or at least they'll be published. To see the sequential 0:04:05.920 --> 0:04:07.640 fashion in the days of head So look out for 0:04:07.680 --> 0:04:10.480 that now, Juliane, since I've got you in the hot seat, 0:04:10.760 --> 0:04:14.040 let's do this. I've been awfully careful on this show over. 0:04:14.240 --> 0:04:16.040 I mean, we launched a show in twenty twenty three, 0:04:16.360 --> 0:04:20.120 and I only kind of respond when we have listener questions. 0:04:20.160 --> 0:04:22.800 I respond, So if someone says, do you have shares 0:04:22.920 --> 0:04:26.160 in something? I'll answer. But I've never really expounded upon 0:04:26.279 --> 0:04:29.760 my portfolio on air before. I'm happy to do it 0:04:29.800 --> 0:04:32.240 on this show. We split it into shares here in 0:04:32.240 --> 0:04:34.920 the first segment, and then we might talk about property, 0:04:35.440 --> 0:04:39.880 and then we might talk about super which shares. It's 0:04:39.920 --> 0:04:43.240 interesting Eric Johnson and I were just talking in the 0:04:43.279 --> 0:04:46.840 office today. Eric's course associated her business. He was talking 0:04:46.960 --> 0:04:51.200 about it's the Compseck was launched thirty years ago this 0:04:51.279 --> 0:04:53.599 week and he'd been talking to the guy who launched 0:04:53.640 --> 0:04:57.680 at Michael Katz and it was extraordinary about Compsack and 0:04:57.960 --> 0:05:01.120 nap Trade and the other online brokers. When they came in, 0:05:01.160 --> 0:05:03.520 they changed everything. Because I don't know when you bought 0:05:03.520 --> 0:05:06.520 your first shares, but the day I bought shares the 0:05:06.560 --> 0:05:11.080 first time, I bought two shares five hundred dollars to 0:05:11.200 --> 0:05:15.880 each one Pacific Dunlop and National Australia Bank, and I 0:05:15.920 --> 0:05:18.200 had to go in. I was twenty five. I had 0:05:18.200 --> 0:05:20.880 to go in and sit in the reception of Potter 0:05:21.000 --> 0:05:26.360 Warburg in Collin Street, and some unfortunate stockbroker came out 0:05:26.400 --> 0:05:29.080 and talked to me about what I was doing. And 0:05:29.120 --> 0:05:31.640 the diversification of my portfolio was that I bought two 0:05:31.640 --> 0:05:35.880 shares rather than one, and one was terrific National Australia Bank. 0:05:35.880 --> 0:05:39.760 It doubled in price and the other one went almost 0:05:39.760 --> 0:05:43.280 to nothing. So it was a very good early adventure 0:05:43.400 --> 0:05:47.600 in shared trading. Can you remember your first shares. 0:05:48.400 --> 0:05:52.719 I can remember the first discussion about shares. It was 0:05:52.800 --> 0:05:57.560 my dad and I think I was eighteen or nineteen 0:05:57.640 --> 0:06:02.120 at the time, so of an age where shares had 0:06:02.400 --> 0:06:08.000 little value to me. You know, it was it was 0:06:08.640 --> 0:06:11.320 you know, it was a time where you're studying university 0:06:11.400 --> 0:06:15.120 and out at the pub and it was I'm trying 0:06:15.160 --> 0:06:18.880 to remember which iteration it was, but it was Telstra. Oh, yes, 0:06:19.040 --> 0:06:20.480 Now I don't know if yeah, I don't know if 0:06:20.480 --> 0:06:21.479 it's T two or T three. 0:06:21.760 --> 0:06:22.960 Yeah, one of the floats. 0:06:24.120 --> 0:06:25.160 It was one of the floats. 0:06:25.400 --> 0:06:27.880 And Dad was saying to me, you've got to get in, 0:06:27.920 --> 0:06:29.800 You've got to get these shares. And I said, well, 0:06:29.800 --> 0:06:32.000 how much do I have to spend? And he said 0:06:32.480 --> 0:06:35.560 two thousand dollars and I just I can still remember 0:06:35.880 --> 0:06:36.600 just saying. 0:06:36.360 --> 0:06:38.120 To him, you are crazy. 0:06:38.279 --> 0:06:40.800 That is a lot of money and I'm not going 0:06:40.839 --> 0:06:42.960 to be doing that. I look back and think, well, 0:06:43.000 --> 0:06:44.760 just as well, that was Telstra. Imagine if he was 0:06:44.760 --> 0:06:47.120 recommending CBA or something to me. I wish that I 0:06:47.120 --> 0:06:49.600 had spent the two thousand dollars on CBA back then. 0:06:50.160 --> 0:06:52.200 So I didn't buy shares. I came to it later. 0:06:52.279 --> 0:06:53.920 I remember one of the first shares. 0:06:53.839 --> 0:06:56.440 We ever bought. My husband and I it was. 0:06:57.920 --> 0:07:00.200 And we'll get to property soon, but we were Actually 0:07:00.240 --> 0:07:02.520 it was sort of boom times in Perth. It was 0:07:02.520 --> 0:07:05.240 to two thousand and six, two thousand and seven around. 0:07:04.920 --> 0:07:06.000 Them, the mining boom. 0:07:06.240 --> 0:07:09.240 Mining boom was in peak property prices. It felt like 0:07:09.279 --> 0:07:11.440 they were doubling every few weeks. They weren't, but that's 0:07:11.480 --> 0:07:13.000 what it felt like when you were here. We were 0:07:13.000 --> 0:07:15.640 trying to get our first place, and so we were 0:07:15.880 --> 0:07:18.760 at a housing estate. It was roughly about thirty kilometers 0:07:18.840 --> 0:07:21.960 north of Perth, and you had to camp out to 0:07:22.000 --> 0:07:26.480 get the land. Wow, it was seven nights in the back. 0:07:26.280 --> 0:07:27.000 Of a ute. 0:07:27.120 --> 0:07:31.880 Wow like plots, I know, Yeah, that's like a story 0:07:31.880 --> 0:07:32.640 from the gold Rush. 0:07:34.120 --> 0:07:36.040 One hundred percent. It was one hundred percent. And I 0:07:36.080 --> 0:07:36.720 just remember seeing that. 0:07:36.880 --> 0:07:39.880 The property developer of the estate that we were buying 0:07:39.920 --> 0:07:42.120 in was Pete and I was seeing this and I 0:07:42.160 --> 0:07:44.800 could just I was like, day, I'm making so much 0:07:44.840 --> 0:07:46.680 money and I can't believe I have to be sleeping 0:07:46.680 --> 0:07:48.960 in the back of a You ticket land, we should 0:07:49.000 --> 0:07:52.120 buy shares, and so we did buy shares in the developer. 0:07:52.200 --> 0:07:54.360 I look back on that now and think that's probably not. 0:07:54.320 --> 0:07:56.360 The smartest thing to do. I was probably doubling down. 0:07:56.240 --> 0:07:56.840 On the investment. 0:07:56.840 --> 0:07:58.840 We bought the land and he bought the developer. 0:07:58.840 --> 0:08:01.360 I probably should have for people to do that, though. 0:08:01.400 --> 0:08:04.640 They gravitate towards what they understand. If the factory at 0:08:04.640 --> 0:08:06.680 the corner over your street seems to be going great, 0:08:06.760 --> 0:08:09.480 and you realize it's on the stock exchange, then if 0:08:09.520 --> 0:08:12.440 I don't you, it's like bottom up investing. I actually 0:08:12.520 --> 0:08:16.960 had a marvelous example of bottom up investing. I was 0:08:17.000 --> 0:08:19.520 involved in a startup which was called well Mid Clothes, 0:08:19.560 --> 0:08:22.200 and it was an online clothing retailer. They had been 0:08:22.240 --> 0:08:26.120 going for a while and they got in a widget 0:08:26.200 --> 0:08:30.200 basically a piece of software called after pay, and they 0:08:30.240 --> 0:08:33.960 put it on, they installed it or whatever one evening, 0:08:34.480 --> 0:08:37.920 and the next morning they got all these orders that 0:08:37.960 --> 0:08:43.600 they'd never got before. And I remember thinking, that's very interesting. 0:08:43.640 --> 0:08:45.880 There's like hard evidence from the ground bottom up, if 0:08:45.880 --> 0:08:47.360 you know what I mean. I knew the top down, 0:08:47.400 --> 0:08:49.400 and I knew the story from top down, and we 0:08:49.440 --> 0:08:52.480 all know that the view of the market or whatever, 0:08:52.640 --> 0:08:55.520 you know, the big picture. But when I heard that, 0:08:55.640 --> 0:08:58.280 I remember thinking, this is no joke. This after fably 0:08:58.360 --> 0:09:01.440 is something and that was an example. I remember getting 0:09:01.480 --> 0:09:03.920 into after Pay and it went really well and it 0:09:03.960 --> 0:09:05.760 was a really good investment. And that was something that 0:09:05.880 --> 0:09:10.839 came through almost like you know the street. But that 0:09:10.880 --> 0:09:12.880 doesn't happen very often, can I. 0:09:12.880 --> 0:09:14.680 Ask you though? And sorry, we're going to go down. 0:09:14.880 --> 0:09:16.160 We'll go down different rabbit holes. 0:09:16.160 --> 0:09:18.800 But say so, if you got on too after pay early, goodbye, 0:09:18.880 --> 0:09:22.319 good tip by you. What happened then in the pandemic 0:09:22.720 --> 0:09:26.400 after pay dropped, there was a it just dropped like 0:09:26.400 --> 0:09:28.959 a star. I can't remember exactly what it went down to, 0:09:29.040 --> 0:09:31.040 about eight dollars or something like that, that's right. And 0:09:31.120 --> 0:09:34.240 I remember being pretty smug because I didn't buy after pay, 0:09:34.600 --> 0:09:37.160 and I remember thinking, hah, I knew this was all 0:09:37.200 --> 0:09:38.920 sort of smokes and mirrors and this is all going 0:09:38.960 --> 0:09:41.640 to be cactus and toast. And then it just rebounded 0:09:41.840 --> 0:09:44.720 nothing else because ye locked down and everyone started shopping. 0:09:44.840 --> 0:09:47.240 That's right, you know, ended up at one hundred bucks 0:09:47.280 --> 0:09:47.680 or something. 0:09:47.520 --> 0:09:51.480 To it was magnificent, stark. That is a magnificent trade. Really, 0:09:51.559 --> 0:09:55.200 I mean it was always wild and I didn't stay 0:09:55.280 --> 0:09:58.480 till the end, you know, so you always leave something 0:09:58.520 --> 0:10:00.319 out of the table. But was probably what are the 0:10:00.320 --> 0:10:02.720 best stocks they ever bought from me? I probably got out. 0:10:02.760 --> 0:10:04.839 I did get out too soon, but it was a 0:10:04.960 --> 0:10:06.880 terrific stock. I did well, you did well. 0:10:06.920 --> 0:10:09.760 I did well, So to your point, and maybe that's 0:10:09.760 --> 0:10:11.760 the lessons here for people if they want to start 0:10:11.800 --> 0:10:14.840 investing in stocks, is maybe it is smart to invest 0:10:14.880 --> 0:10:16.880 in what you know or have a sense of what 0:10:16.920 --> 0:10:18.880 the market is. So the one I did well on 0:10:19.800 --> 0:10:22.400 was coals. So this was before West Farmers bought Coals, 0:10:22.880 --> 0:10:26.040 and I remember going there Coals. I still have my 0:10:26.120 --> 0:10:29.800 coal's name badge from my university job on the delicatessen. 0:10:30.280 --> 0:10:32.800 No one will slice purtidos thinner than I can slice it. 0:10:32.880 --> 0:10:34.439 Fel oh, very fantastic. 0:10:35.160 --> 0:10:37.439 But it was went gym up so before West Farmers 0:10:37.679 --> 0:10:41.040 had bought Coals. Obviously it's on its own ownership now, 0:10:41.080 --> 0:10:43.880 but it was in the Doldrums. It wasn't a great supermarket, 0:10:43.920 --> 0:10:45.720 and I can just remember thinking this is a duopoli, 0:10:45.760 --> 0:10:47.560 that this there's not enough supermarkets in this country and 0:10:47.559 --> 0:10:49.520 it's not going to be down in the Doldrums forever. 0:10:49.640 --> 0:10:52.320 So I remember getting in early and the West Farmers 0:10:52.320 --> 0:10:53.800 came in and then spruced her. 0:10:53.679 --> 0:10:56.760 Up best farmers come in and paid an enormous amount 0:10:56.760 --> 0:11:00.560 for it, right smack at that two hours before GFC. 0:11:01.040 --> 0:11:04.160 So I think one of the things that's useful folks 0:11:04.240 --> 0:11:08.640 about share investing is ideally if you can if you 0:11:08.640 --> 0:11:11.160 do understand the stock, it helps enormously at least your 0:11:11.200 --> 0:11:14.440 connection to it is better. Anyone can start and play. 0:11:14.440 --> 0:11:17.480 Basically you can buy a stock or two stocks this. 0:11:17.880 --> 0:11:20.360 You can always buy exchange traded funds as well, which 0:11:20.400 --> 0:11:22.680 is what I generally meant. If someone says to me 0:11:22.720 --> 0:11:24.760 what stocks should I buy and they don't know anything, 0:11:24.760 --> 0:11:27.800 they've never done anything, I always say, buy an exchange 0:11:27.800 --> 0:11:29.280 traded fund by the AX. 0:11:29.400 --> 0:11:31.640 I'll ask you about that now, though, because I'm in 0:11:31.640 --> 0:11:33.200 this basket where I think I need to do better 0:11:33.240 --> 0:11:34.800 with my stocks. 0:11:35.000 --> 0:11:36.479 You know, I've just sort of almost. 0:11:36.640 --> 0:11:40.280 Played with them rather than proper investing anythink and ATF 0:11:40.400 --> 0:11:44.160 the way to go. Atfs have exploded so much that 0:11:44.240 --> 0:11:48.000 I now find them incredibly confusing. There's almost too many ETFs. 0:11:48.200 --> 0:11:49.160 Which one are you're back? 0:11:49.880 --> 0:11:53.800 Yeah, they've drifted from the original proposal. Absolutely. The original 0:11:53.880 --> 0:11:56.680 proposal was really good, you know, it was by the market. 0:11:56.920 --> 0:11:58.960 Just buy the ASX two hundred or buy the S 0:11:59.000 --> 0:12:02.040 and P five hundred plus vanilla, and whatever happened to 0:12:02.080 --> 0:12:04.560 that market happened to your ETF. So if you both 0:12:04.559 --> 0:12:07.480 the ASX two hundred ETF a year ago, you'd have 0:12:07.559 --> 0:12:10.680 made fourteen percent, because the ASX two hundred med fourteen 0:12:10.679 --> 0:12:14.200 percent in the twelve months to June thirty, being you know, 0:12:14.400 --> 0:12:17.280 ten percent plus four percent for your dividends. I think 0:12:17.320 --> 0:12:19.960 that's still the dominant model. The problem is with these guys, 0:12:19.960 --> 0:12:24.319 you know, Julianne, they can't sit down and leave good alone. 0:12:24.840 --> 0:12:27.079 They got to keep coming up with things, right they 0:12:27.559 --> 0:12:29.760 you know, there's seven hundred people in Vanguard. What did 0:12:29.800 --> 0:12:33.160 they all do? Well? Guess what? They get new ideas 0:12:33.320 --> 0:12:36.520 and they go into the boss and they say, hey, boss, 0:12:36.720 --> 0:12:38.839 guess what, I've got something in mind that would be 0:12:38.920 --> 0:12:42.440 really good. And so that ETF thing is drifting. So 0:12:42.480 --> 0:12:44.360 I think when we talk about ETFs on the show, 0:12:44.440 --> 0:12:47.679 certainly I always make the points plain vanilla ETFs, and 0:12:47.720 --> 0:12:50.080 I would say to most people most of the time, 0:12:50.120 --> 0:12:53.360 if you're starting with shares, ETFs are great. And if 0:12:53.360 --> 0:12:55.720 they had been around when I was starting buying shares, 0:12:55.720 --> 0:12:58.400 it would have been so much better than buying two shares, 0:12:58.720 --> 0:13:00.240 one of which turned out to be great and one 0:13:00.280 --> 0:13:02.439 of which turned out to be useless, and you don't 0:13:02.440 --> 0:13:04.000 that's the sort of risks you don't want to take. 0:13:04.240 --> 0:13:05.599 If you could go back in time, just pretend that 0:13:05.640 --> 0:13:07.880 ETFs where they, you would have bought an index ATF 0:13:08.240 --> 0:13:08.600 I would. 0:13:08.640 --> 0:13:11.720 I would suggest to anyone starting get some ETFs, hold 0:13:11.760 --> 0:13:14.200 them for a year, start to understand how it all works, 0:13:14.200 --> 0:13:16.640 Watch how you get your dividends come through, and how 0:13:16.640 --> 0:13:18.680 it works with tax and everything else, and get a 0:13:18.679 --> 0:13:21.280 handle on it. And you've you know, you're taking very 0:13:21.320 --> 0:13:25.240 little risk because you're just taking you're just buying the market. 0:13:25.280 --> 0:13:27.520 And then after a while, when you're a bit more 0:13:27.559 --> 0:13:29.360 sure of it, it doesn't have to take forever. It could 0:13:29.360 --> 0:13:32.080 take six months, it could take a year. Then you 0:13:32.120 --> 0:13:36.320 can start to strike out and you can say, okay, 0:13:36.360 --> 0:13:40.280 this time, I'm going to buy direct shares because personally, 0:13:40.280 --> 0:13:43.680 I think ten shares is about as much as anyone 0:13:43.679 --> 0:13:47.120 should have. That's as much as you can hold in 0:13:47.160 --> 0:13:48.840 your head. Really, I should be if you've got I 0:13:48.840 --> 0:13:50.920 always say, if you've got chairs, I should be able 0:13:50.920 --> 0:13:53.480 to ask you what are they and how much are 0:13:53.520 --> 0:13:56.920 they today? And unless you're you know, got a photographic 0:13:56.960 --> 0:13:59.240 memory or something. I reckon about ten shares is about 0:13:59.280 --> 0:14:02.040 as much as the one should have, and it is enough. 0:14:02.120 --> 0:14:04.360 It can really you can diversify. You can buy banks 0:14:04.360 --> 0:14:06.800 and miners and tech companies and everything else. That's something 0:14:06.800 --> 0:14:08.400 I would say. The other part I would say is 0:14:08.840 --> 0:14:11.720 that at a certain point you've got to get serious 0:14:11.760 --> 0:14:14.240 about shares if you're a long term investor, especially if 0:14:14.280 --> 0:14:16.680 you're thinking of building your own portfolio or your self 0:14:16.720 --> 0:14:20.480 managed super fund, and at that point then you don't 0:14:20.520 --> 0:14:22.240 have to have a connection with them. It's all about 0:14:22.280 --> 0:14:24.760 the numbers, you know, It's all about is this share 0:14:24.800 --> 0:14:27.320 good value? At the moment it's the old Roger Montgomery 0:14:27.440 --> 0:14:30.280 thing about value and Roger of courses. Another person's off 0:14:30.320 --> 0:14:32.040 and on the show rights for the Australian will be 0:14:32.040 --> 0:14:34.680 involved in our new vertical. He's whole thing that you know, 0:14:34.720 --> 0:14:37.840 you're buying a piece of a company, you're buying a 0:14:37.880 --> 0:14:40.720 little TV bit of the company. So what really matters 0:14:40.800 --> 0:14:43.000 is their company and how is the company going. 0:14:44.720 --> 0:14:49.560 My problem, I reckon is because we're in newsrooms and 0:14:49.560 --> 0:14:51.360 we cover a lot of stories. We cover a lot 0:14:51.880 --> 0:14:56.120 of stories about stocks that go absolutely bananas. They deliver 0:14:56.240 --> 0:14:59.800 incredible returns. But for every one of those stories, we're 0:14:59.840 --> 0:15:02.520 all doing stories or when things go wrong, yes, and 0:15:02.560 --> 0:15:05.320 we should when he's a collapsing and share prices are tanking, 0:15:05.360 --> 0:15:07.320 and so it does leave you sort of kind of 0:15:07.360 --> 0:15:09.560 clinging to the sidelines because you don't know which way 0:15:09.600 --> 0:15:09.880 to go. 0:15:10.800 --> 0:15:12.440 You know too much, You almost know too much. 0:15:12.560 --> 0:15:14.520 I have threatened to do it, and maybe for this 0:15:14.560 --> 0:15:19.200 new vertical I should. I was going to create a 0:15:19.280 --> 0:15:23.320 list of when I had met a billionaire or rich. 0:15:23.360 --> 0:15:23.680 This does. 0:15:23.680 --> 0:15:26.800 My former job was editing rich lists for the Financial Review, 0:15:27.680 --> 0:15:29.440 and I look at some of the share price growth 0:15:29.440 --> 0:15:31.400 and I think, if I had bought shares when I 0:15:31.440 --> 0:15:34.640 met that rich list, yes, would I be in fact 0:15:34.720 --> 0:15:37.280 talking to you on this podcast today at the book, James, 0:15:37.320 --> 0:15:39.320 I'm not sure. I was with Andrew Forrest in the 0:15:39.320 --> 0:15:41.480 Pilborough in two thousand and six having a look at 0:15:41.680 --> 0:15:44.320 what would become four to Skew Metal screwp. He's looking 0:15:44.320 --> 0:15:46.040 at the dusty Pilborough. 0:15:45.640 --> 0:15:47.320 And oh, what a great story, Yeah, and. 0:15:47.320 --> 0:15:50.480 Asking me whether it is the most beautiful thing I've 0:15:50.520 --> 0:15:52.640 ever seen. And I'm looking at a concrete pylon in 0:15:52.680 --> 0:15:55.520 the middle of nowhere, and I'm thinking I've seen prettier things, 0:15:55.600 --> 0:15:57.240 you know, but I could see why he. 0:15:57.440 --> 0:15:59.960 The share is republic a dollar or something at the time, 0:16:00.400 --> 0:16:01.680 I think that could have been less. 0:16:01.880 --> 0:16:04.880 Yeah, pretty sure. I emailed someone just. 0:16:04.840 --> 0:16:06.640 The other week actually, just to get a comment for 0:16:06.680 --> 0:16:09.120 a story, and I said, oh, I just want to 0:16:09.120 --> 0:16:11.320 look back the last time, you know, we'd spoke properly, 0:16:11.320 --> 0:16:13.560 and it was a couple of years ago. And if 0:16:13.560 --> 0:16:18.480 I had bought shares in that particular company, Promedicus, I 0:16:18.480 --> 0:16:20.440 think I worked out if I bought a thousand shares, 0:16:20.440 --> 0:16:23.040 I would have my three hundred thousand dollars. You know 0:16:23.520 --> 0:16:25.840 what I could have should at James. 0:16:25.640 --> 0:16:28.880 Well, as you say, the thing is, it's all about risk. 0:16:29.400 --> 0:16:31.920 So if you buy the ETFs, this is the minimum 0:16:32.000 --> 0:16:35.600 risk approach to shares, and then after that it's a 0:16:35.680 --> 0:16:39.480 question of the more risk you take, then the more 0:16:39.680 --> 0:16:43.400 likely you will have volatility. And volatility, as you know, folks, 0:16:43.480 --> 0:16:45.520 basically means it's going to go way up or way down. 0:16:45.840 --> 0:16:49.840 So for every pro Medicus, there's ninety nine little medical 0:16:50.360 --> 0:16:53.400 device companies that go nowhere. And maybe we'll leave it 0:16:53.560 --> 0:16:55.840 just there, because that's the point we really want to 0:16:55.880 --> 0:16:58.400 make about shares. We'll have a break and we will 0:16:58.400 --> 0:17:00.520 come back and we will talk about what everybody loves 0:17:00.560 --> 0:17:09.359 to talk about. Property. Back in a moment. Hello, Welcome 0:17:09.359 --> 0:17:12.719 back to the Australians Money Puzzle podcast. James Kirby here 0:17:12.760 --> 0:17:16.760 with Julianne Spragg. Julian is the Wealth editor of The Australian, 0:17:16.800 --> 0:17:20.439 and we are talking on the occasion of the launch 0:17:20.600 --> 0:17:23.720 of a new Wealth vertical on The Australian, which is 0:17:23.720 --> 0:17:26.040 going to be really terrific and I'm delighted to see 0:17:26.040 --> 0:17:29.479 it because it's basically putting a lot of effort and 0:17:29.640 --> 0:17:33.919 investment and people into the area that we've been working 0:17:33.960 --> 0:17:36.480 on here for some time on the Money Puzzle, and 0:17:36.520 --> 0:17:39.199 the Money Puzzle too actually, as I say, is effectively 0:17:39.240 --> 0:17:43.240 being relaunched inside this Wealth vertical. This week you'll see 0:17:43.240 --> 0:17:47.919 a lot more episodes, some new voices involved here, and 0:17:48.080 --> 0:17:51.520 we'll do some shows a wider nature than we've been 0:17:51.520 --> 0:17:54.920 doing to this point. Now. As you know, Tuesday's Property 0:17:55.119 --> 0:17:59.480 Show is becoming very popular and I've dealt with property 0:17:59.480 --> 0:18:01.639 for a long time and one of the things I 0:18:01.680 --> 0:18:04.960 want to talk to Juliane about is again something of 0:18:05.080 --> 0:18:08.480 a confessional in the way that we talked about shares there, 0:18:08.520 --> 0:18:09.919 and by the way in the first part we were 0:18:09.960 --> 0:18:12.200 all very smart talking about how the shares we had 0:18:12.200 --> 0:18:14.199 that were great and that there were big winners. I 0:18:14.240 --> 0:18:16.800 do want to mention that I've had some absolute duds. 0:18:17.320 --> 0:18:19.439 I had Great Southern Plantations, which was one of the 0:18:19.440 --> 0:18:22.040 worst shares in the history of the world. And even 0:18:22.080 --> 0:18:24.919 at the moment in my little ten portfolio, I have 0:18:25.200 --> 0:18:28.120 I think a dud, and I just won't sell it 0:18:28.160 --> 0:18:30.600 because it keeps teasing me that it's going to get better, 0:18:30.640 --> 0:18:33.960 which is Ramsey Healthcare hearing me loud and clear, Ramsey Healthcare. 0:18:34.160 --> 0:18:38.600 Now on the property, you can't make mistakes on property 0:18:38.720 --> 0:18:40.920 like you can make mistakes on shares, can you, Julianne, 0:18:40.920 --> 0:18:44.560 It's a different story. It's a big commitment. That's the 0:18:44.560 --> 0:18:46.639 first thing, isn't it to explain to people. It's a 0:18:46.720 --> 0:18:50.080 big commitment. It's illiquid, it takes a lot of effort, 0:18:50.880 --> 0:18:52.439 it takes a lot of commitments. I mean, you needed 0:18:52.600 --> 0:18:55.320 an almost like you almost need like a settled lifestyle 0:18:55.720 --> 0:18:58.640 and a really clear model to do property. You can't 0:18:58.720 --> 0:19:00.439 play with it like you can play with shares. 0:19:01.640 --> 0:19:05.840 I think also it's the sums of what's involved. At 0:19:05.880 --> 0:19:08.320 the beginning our shares, you might be able to sort 0:19:08.359 --> 0:19:10.240 of do five ten thousand or build up to a 0:19:10.280 --> 0:19:13.639 fifty thousand or one hundred thousand portfolio. As I mentioned earlier, 0:19:13.680 --> 0:19:16.120 when we brought out the shares and the property developer, 0:19:16.720 --> 0:19:19.320 we were camping out for this block of land at 0:19:19.320 --> 0:19:21.119 the time. And I know people who are looking into 0:19:21.160 --> 0:19:23.200 property now will be thinking, oh, heavens, I wish I 0:19:23.240 --> 0:19:24.320 could get a block of land for that. But I 0:19:24.320 --> 0:19:26.239 think the block of land was around two hundreds, two 0:19:26.320 --> 0:19:29.080 hundred and twenty thousand, something like that, and that, just 0:19:29.320 --> 0:19:32.160 for me in my twenties was an extraordinary sum of money. 0:19:32.200 --> 0:19:33.600