1 00:00:00,200 --> 00:00:02,639 Speaker 1: Put your hand up if you've kissed more than one person, 2 00:00:03,120 --> 00:00:05,960 Speaker 1: and people will put their hand up and we're like, well, 3 00:00:05,960 --> 00:00:08,920 Speaker 1: that's diversification. You know, you're spreading the love. You're not 4 00:00:08,960 --> 00:00:12,360 Speaker 1: putting all your eggs in one basket. You hear so 5 00:00:12,640 --> 00:00:16,040 Speaker 1: many horror stories about investing in the stock market, which 6 00:00:16,079 --> 00:00:19,319 Speaker 1: I hate because nine times out of ten it's from. 7 00:00:19,200 --> 00:00:20,480 Speaker 2: People that haven't diversified. 8 00:00:20,840 --> 00:00:23,200 Speaker 1: I would rather go to sleep and not have to 9 00:00:23,720 --> 00:00:25,840 Speaker 1: wake up in the middle of night to make sure 10 00:00:25,880 --> 00:00:28,360 Speaker 1: that my portfolio hasn't fallen off a cliffs. One of 11 00:00:28,440 --> 00:00:31,040 Speaker 1: the easiest ways, and it's not a lazy way. It's 12 00:00:31,080 --> 00:00:34,400 Speaker 1: not a cheating way, it's not a you know, get 13 00:00:34,479 --> 00:00:37,560 Speaker 1: rich quick way. It's literally a strategy that many many 14 00:00:37,560 --> 00:00:38,800 Speaker 1: great vestas have used. 15 00:00:39,159 --> 00:00:42,159 Speaker 3: Kyota and Welcome to Shared Lunch, brought to you by Charesia's. 16 00:00:42,560 --> 00:00:45,600 Speaker 3: I'm Sonia Williams, co CEO and co founder at chairs 17 00:00:45,600 --> 00:00:48,400 Speaker 3: EA's and we're on a mission to create financial empowerment 18 00:00:48,440 --> 00:00:52,159 Speaker 3: for everyone. Today on the podcast, I'm excited to welcome 19 00:00:52,240 --> 00:00:56,760 Speaker 3: back Victoria Harris, co founder from financial education and investment 20 00:00:56,800 --> 00:01:00,360 Speaker 3: platform The Curve. In this episode, we'll get into the 21 00:01:00,440 --> 00:01:04,560 Speaker 3: nitty gritty of diversification, what it means, when to do it, 22 00:01:04,600 --> 00:01:07,040 Speaker 3: and some potential ways on how to do it. Before 23 00:01:07,080 --> 00:01:09,520 Speaker 3: we get started, here's some important information. 24 00:01:10,280 --> 00:01:13,360 Speaker 4: Investing involves risk. You might lose the money you start with. 25 00:01:13,640 --> 00:01:17,400 Speaker 4: We recommend talking to a licensed financial advisor. We also 26 00:01:17,440 --> 00:01:21,400 Speaker 4: recommend reading product disclosure documents before deciding to invest. Everything 27 00:01:21,440 --> 00:01:23,480 Speaker 4: you're about to see and here is current at the 28 00:01:23,520 --> 00:01:24,240 Speaker 4: time of recording. 29 00:01:24,400 --> 00:01:26,360 Speaker 5: Victoria, Welcome back to the podcast. 30 00:01:26,560 --> 00:01:29,080 Speaker 2: Hi, how are you? Thanks for having me. 31 00:01:29,480 --> 00:01:32,840 Speaker 3: Really cool to have you here to talk about a topic, 32 00:01:32,920 --> 00:01:34,560 Speaker 3: a very cool investing topic. 33 00:01:34,680 --> 00:01:39,080 Speaker 5: Diversification one of my favorite words. Well love that. 34 00:01:40,080 --> 00:01:41,720 Speaker 3: Do you want to tell us a bit about what 35 00:01:42,720 --> 00:01:43,720 Speaker 3: diversification is? 36 00:01:44,040 --> 00:01:45,600 Speaker 2: Yes, So diversification is. 37 00:01:45,800 --> 00:01:48,160 Speaker 1: It sounds like a mouthful, but really it's all about 38 00:01:48,360 --> 00:01:52,640 Speaker 1: spreading your risks, So investing in lots of different things, 39 00:01:52,720 --> 00:01:57,280 Speaker 1: spreading the love, splitting up your investments so you're not susceptible. 40 00:01:57,400 --> 00:01:59,880 Speaker 1: If you know, if you put all your investments into 41 00:02:00,040 --> 00:02:02,240 Speaker 1: into one company and it didn't do well, then you 42 00:02:02,280 --> 00:02:05,280 Speaker 1: wouldn't be too happy. So it's spreading the love around 43 00:02:05,280 --> 00:02:08,200 Speaker 1: and spreading investments around so you're less susceptible to one 44 00:02:08,240 --> 00:02:08,919 Speaker 1: bad decision. 45 00:02:09,600 --> 00:02:11,760 Speaker 3: Yeah, so let's jump into that a little bit more like, so, 46 00:02:11,800 --> 00:02:14,079 Speaker 3: what are the benefits why diversify? 47 00:02:14,400 --> 00:02:16,240 Speaker 1: The best thing that we want to do when we 48 00:02:16,320 --> 00:02:19,800 Speaker 1: invest is we want to get great returns with the 49 00:02:19,800 --> 00:02:22,959 Speaker 1: lowest amount of risk, and that's what everyone wants to 50 00:02:22,960 --> 00:02:24,120 Speaker 1: do at the end of the day. And the best 51 00:02:24,120 --> 00:02:28,080 Speaker 1: way to do that is to spread your investments around 52 00:02:28,160 --> 00:02:32,240 Speaker 1: multiple things, whether it's investing in lots of different companies, 53 00:02:32,320 --> 00:02:34,960 Speaker 1: so like investing in the S and P five hundred, 54 00:02:34,960 --> 00:02:36,800 Speaker 1: which is the top five hundred companies in the years, 55 00:02:37,200 --> 00:02:42,120 Speaker 1: or spreading your money around different assets so that could 56 00:02:42,120 --> 00:02:47,760 Speaker 1: be property in stocks, or investing in in different sectors. 57 00:02:47,800 --> 00:02:51,000 Speaker 1: There's lots of ways that you can diversify. But essentially 58 00:02:51,040 --> 00:02:54,000 Speaker 1: diversification is so that you are reducing your risk and 59 00:02:54,480 --> 00:02:57,760 Speaker 1: it's just a really great investment strategy for building long, 60 00:02:58,200 --> 00:02:58,919 Speaker 1: long term wealth. 61 00:02:59,280 --> 00:03:01,520 Speaker 3: He touched on it, well, it's also like looking at 62 00:03:01,520 --> 00:03:05,440 Speaker 3: your whole wealth picture and how you might split or 63 00:03:05,520 --> 00:03:09,280 Speaker 3: consider diversifying, you know, your income or things like that. 64 00:03:09,440 --> 00:03:11,880 Speaker 1: Yeah, that's that's a really good point. You can diversify 65 00:03:11,960 --> 00:03:15,320 Speaker 1: in many ways throughout your life. The end of the day, 66 00:03:15,320 --> 00:03:17,280 Speaker 1: it's just all all about reducing your risk. If you 67 00:03:17,360 --> 00:03:21,480 Speaker 1: had diversified income streams and you lost your job and 68 00:03:21,520 --> 00:03:23,959 Speaker 1: you still had your side hustle, then that's great, you'd 69 00:03:24,000 --> 00:03:27,720 Speaker 1: be you'd have less stress if something happened or if 70 00:03:27,720 --> 00:03:30,560 Speaker 1: something didn't go right. And so that's the whole point 71 00:03:30,600 --> 00:03:32,959 Speaker 1: of justification is to kind of, I guess, reduce the 72 00:03:33,000 --> 00:03:37,080 Speaker 1: stress when something doesn't go right, protect yourself while also 73 00:03:37,560 --> 00:03:41,640 Speaker 1: on the investing side, build your wealth in a really sustainable, 74 00:03:42,760 --> 00:03:44,720 Speaker 1: sustainable kind of wealth creation way. 75 00:03:45,120 --> 00:03:47,600 Speaker 3: Is it just something you should consider when you're getting started, 76 00:03:47,760 --> 00:03:50,960 Speaker 3: or is it, you know, something that you need to 77 00:03:51,000 --> 00:03:52,840 Speaker 3: worry about when you're an experienced invested. 78 00:03:53,480 --> 00:03:56,320 Speaker 1: When we've started educating and we were talking about diversification 79 00:03:56,600 --> 00:04:01,120 Speaker 1: and we were talking to beginner investors, what we noticed 80 00:04:01,240 --> 00:04:04,520 Speaker 1: was that it was almost stressing them out more because 81 00:04:04,520 --> 00:04:06,840 Speaker 1: they were like, well, you know, I'm investing. All I 82 00:04:06,880 --> 00:04:09,520 Speaker 1: want to focus on is finding the right investment, investing 83 00:04:09,520 --> 00:04:11,240 Speaker 1: in one thing let alone, something else or something else 84 00:04:11,240 --> 00:04:15,680 Speaker 1: and something else, and diversifying. And someone said one day 85 00:04:15,680 --> 00:04:18,800 Speaker 1: to me. They were like, they were like, diversify when 86 00:04:18,839 --> 00:04:21,680 Speaker 1: you can. So if you're investing in the stock market 87 00:04:22,200 --> 00:04:24,719 Speaker 1: and then you have the financial ability to invest in 88 00:04:24,720 --> 00:04:27,120 Speaker 1: the property market, then you should. So it's like but 89 00:04:27,240 --> 00:04:29,880 Speaker 1: don't stress yourself out being like, oh gosh, I have 90 00:04:29,920 --> 00:04:32,920 Speaker 1: to invest in property and stocks and diversify within property 91 00:04:32,960 --> 00:04:35,920 Speaker 1: and diversy within stocks, and get stressed out about how 92 00:04:36,000 --> 00:04:37,280 Speaker 1: much you have to diversify. 93 00:04:37,720 --> 00:04:40,080 Speaker 2: It's like start, start with one thing. 94 00:04:40,800 --> 00:04:43,960 Speaker 1: And diversify in that if you can, and then diversify 95 00:04:44,000 --> 00:04:44,440 Speaker 1: beyond that. 96 00:04:44,720 --> 00:04:47,760 Speaker 3: Yeah, yeah, I just saw that kind of meme pop 97 00:04:47,760 --> 00:04:50,680 Speaker 3: into my head of the person staring off into middle distance. 98 00:04:50,320 --> 00:04:52,480 Speaker 5: While all the calculations are coming on. 99 00:04:52,520 --> 00:04:57,160 Speaker 3: As you're talking within diversifying and diversifying. 100 00:04:57,000 --> 00:05:01,400 Speaker 1: Even diversifying the word itself diversification, people's eyes glaze over 101 00:05:01,440 --> 00:05:03,520 Speaker 1: and we say, put your hand up if you've kissed 102 00:05:03,560 --> 00:05:06,280 Speaker 1: more than one person, And people will put their hand up, 103 00:05:06,320 --> 00:05:09,880 Speaker 1: and we're like, well, that's diversification. You know, you're spreading 104 00:05:09,880 --> 00:05:12,360 Speaker 1: the love. You're not putting all your eggs in one basket. 105 00:05:12,560 --> 00:05:14,560 Speaker 1: If you start dating, you don't want to date just 106 00:05:14,560 --> 00:05:16,440 Speaker 1: just one guy in case you might be a plunker 107 00:05:16,480 --> 00:05:18,520 Speaker 1: and then you've got to start again. You know, it's 108 00:05:18,520 --> 00:05:21,120 Speaker 1: like just you know, not date multiple gill at once, 109 00:05:21,160 --> 00:05:23,280 Speaker 1: but you know, keep your options open. You know you 110 00:05:23,360 --> 00:05:24,960 Speaker 1: might have a successfu one, you might have a done 111 00:05:24,960 --> 00:05:27,159 Speaker 1: so It's the same with investing. It's like invest in 112 00:05:27,160 --> 00:05:28,840 Speaker 1: lots of different things. So if one doesn't do as well, 113 00:05:28,880 --> 00:05:31,000 Speaker 1: it's like, so what, I've got all these other ones 114 00:05:31,000 --> 00:05:33,000 Speaker 1: that are doing well, and it's it's it's not going 115 00:05:33,040 --> 00:05:35,600 Speaker 1: to be as impactful for me on almost stress levels 116 00:05:35,640 --> 00:05:36,920 Speaker 1: but also my finances. 117 00:05:37,960 --> 00:05:41,080 Speaker 3: Yeah, totally. So now that we've established that, it's really cool. 118 00:05:43,120 --> 00:05:46,360 Speaker 3: It's really important as part of your investing, you know, 119 00:05:46,680 --> 00:05:49,760 Speaker 3: and considering wealth as a whole. You know, when should 120 00:05:49,760 --> 00:05:53,240 Speaker 3: people and how should people consider to start seriously thinking 121 00:05:53,279 --> 00:05:57,080 Speaker 3: about diversifying or moving different things into different buckets. 122 00:05:57,480 --> 00:06:02,280 Speaker 1: Yeah, I think the simplest and easiest way is to 123 00:06:02,320 --> 00:06:08,760 Speaker 1: start with ETFs. It removes the thought process of like, okay, 124 00:06:08,760 --> 00:06:11,200 Speaker 1: well how many how many stocks we have to invest in? 125 00:06:11,400 --> 00:06:13,680 Speaker 2: It is it four? Is it ten? Is it twenty? 126 00:06:13,920 --> 00:06:15,400 Speaker 2: Do I have to pack all those companies? 127 00:06:15,440 --> 00:06:15,640 Speaker 3: You know? 128 00:06:15,720 --> 00:06:18,640 Speaker 1: It's it removes that that that decision making element, while 129 00:06:18,680 --> 00:06:22,119 Speaker 1: you still get access to stop the US stock market. 130 00:06:22,160 --> 00:06:24,599 Speaker 2: Say, if you're invested in the S and P five hundred. 131 00:06:25,120 --> 00:06:29,839 Speaker 1: And you're just owning one thing in your portfolio, which 132 00:06:29,880 --> 00:06:32,880 Speaker 1: is a share in an ETF, you're getting access to 133 00:06:33,000 --> 00:06:35,400 Speaker 1: all these underlying companies that are in it, and I 134 00:06:35,440 --> 00:06:38,080 Speaker 1: think that is one of the easiest ways. And it's 135 00:06:38,080 --> 00:06:41,080 Speaker 1: not a lazy way. It's not a cheating way. It's 136 00:06:41,120 --> 00:06:44,160 Speaker 1: not a you know, get rich quick way. It's literally 137 00:06:44,240 --> 00:06:47,680 Speaker 1: a strategy that many, many great investors have used, which 138 00:06:47,760 --> 00:06:53,080 Speaker 1: is buying ETFs and getting diversification that way. We get 139 00:06:53,080 --> 00:06:56,359 Speaker 1: a lot of questions of people asking, you know, do 140 00:06:56,400 --> 00:06:58,800 Speaker 1: I have to direct do I have to directly pickstocks? 141 00:06:59,320 --> 00:07:02,240 Speaker 1: And if I want to diversify, what is a correct amount? 142 00:07:02,320 --> 00:07:04,200 Speaker 2: Is it five? Is it ten? Is at twenty? And 143 00:07:04,240 --> 00:07:05,360 Speaker 2: there's no real answer. 144 00:07:05,440 --> 00:07:09,720 Speaker 1: It's you know, you could have ten companies that you're 145 00:07:09,720 --> 00:07:12,680 Speaker 1: investing in that are all in the healthcare industry. Yes, 146 00:07:12,720 --> 00:07:16,920 Speaker 1: you're diversified, but you're not You're not very well diversified 147 00:07:16,960 --> 00:07:22,160 Speaker 1: because you've still got exposure to one industry. So it's 148 00:07:22,200 --> 00:07:26,240 Speaker 1: really thinking about you know, diversification can reach so many 149 00:07:26,240 --> 00:07:26,840 Speaker 1: different areas. 150 00:07:26,840 --> 00:07:29,040 Speaker 2: It can be diversification and size of company. 151 00:07:29,320 --> 00:07:32,440 Speaker 1: It can be diversification in sector, it can be diverstic 152 00:07:32,760 --> 00:07:39,360 Speaker 1: diversification and country. It can be diversification in your asset classes, 153 00:07:39,360 --> 00:07:40,640 Speaker 1: so stocks. 154 00:07:40,200 --> 00:07:42,680 Speaker 2: Bonds, property, like, yeah, it's it's never ending. 155 00:07:43,640 --> 00:07:46,120 Speaker 3: Can you tell us a bit about different asset classes. 156 00:07:46,160 --> 00:07:49,360 Speaker 3: We've talked about those, but maybe might be helpful to 157 00:07:49,400 --> 00:07:52,000 Speaker 3: go into those in a bit more detail. 158 00:07:52,280 --> 00:07:58,960 Speaker 1: Yeah, So there's typically four asset classes. So we've got stocks, bonds, property, 159 00:07:59,000 --> 00:08:02,880 Speaker 1: and cash. And the reason that assets are lumped into 160 00:08:02,920 --> 00:08:06,200 Speaker 1: those classes is because they move in different ways. 161 00:08:06,480 --> 00:08:08,680 Speaker 2: We've got stocks, which. 162 00:08:08,440 --> 00:08:11,840 Speaker 1: Are high on the kind of risk but then higher 163 00:08:11,840 --> 00:08:15,880 Speaker 1: the reward spectrum in general, and then we've got then 164 00:08:15,880 --> 00:08:18,000 Speaker 1: we've got property next, and then we've got bonds, and 165 00:08:18,000 --> 00:08:20,280 Speaker 1: then we've got cash. So cash is at the bottom. 166 00:08:20,360 --> 00:08:22,800 Speaker 1: It's low risk, but it's also low return. If you 167 00:08:22,840 --> 00:08:25,840 Speaker 1: put one thousand dollars in the bank, you pretty much 168 00:08:25,880 --> 00:08:28,320 Speaker 1: know unless you've spent some of it that in a 169 00:08:28,400 --> 00:08:31,000 Speaker 1: year's time, you're going to wake up and there'll be 170 00:08:31,040 --> 00:08:34,600 Speaker 1: a thousand dollars in there. But because of that guarantee 171 00:08:34,760 --> 00:08:38,480 Speaker 1: or that I guess that security, you're not taking a 172 00:08:38,520 --> 00:08:40,640 Speaker 1: lot of risks, so therefore you're not compensated for that, 173 00:08:40,679 --> 00:08:43,040 Speaker 1: so there's not not a lot of return, whereas with 174 00:08:43,240 --> 00:08:46,559 Speaker 1: stocks at the other end of the spectrum, because you're 175 00:08:46,600 --> 00:08:51,240 Speaker 1: taking a lot more risk, then you're getting compensated for 176 00:08:51,280 --> 00:08:56,520 Speaker 1: it by a higher return on average. 177 00:08:56,600 --> 00:08:59,559 Speaker 3: Yeah, co and how about currencies. 178 00:09:00,080 --> 00:09:03,840 Speaker 1: With currencies, it is something to consider when investing a 179 00:09:03,880 --> 00:09:05,360 Speaker 1: lot of the companies that we invest in, a lot 180 00:09:05,360 --> 00:09:09,560 Speaker 1: of the household companies that we know companies in the 181 00:09:09,600 --> 00:09:12,600 Speaker 1: S and P. Five hundred, they're all US dollar companies, 182 00:09:12,960 --> 00:09:15,760 Speaker 1: and so we do have to transfer our New Zealand 183 00:09:15,760 --> 00:09:19,120 Speaker 1: dollars into US dollars. So therefore, if the currency moves 184 00:09:19,200 --> 00:09:22,600 Speaker 1: in the opposite direction, say our stocks go up, but 185 00:09:22,640 --> 00:09:25,840 Speaker 1: the currency moves in the opposite direction, and that's going 186 00:09:25,840 --> 00:09:28,520 Speaker 1: to impact our overall return in a negative way. 187 00:09:28,800 --> 00:09:30,240 Speaker 2: And so we're not going to get as much of 188 00:09:30,280 --> 00:09:32,120 Speaker 2: a return when we. 189 00:09:32,080 --> 00:09:35,839 Speaker 1: Convert our profits, all the money that we've made in 190 00:09:35,840 --> 00:09:38,640 Speaker 1: those stocks back to New Zealand dollars, and the opposite 191 00:09:38,800 --> 00:09:40,960 Speaker 1: happened can happen as well though, So if you invest 192 00:09:40,960 --> 00:09:44,520 Speaker 1: in US dollars and then the currency moves in your favor, 193 00:09:45,120 --> 00:09:49,280 Speaker 1: that can boost your returns. So I try, particularly for 194 00:09:49,360 --> 00:09:52,000 Speaker 1: beginner investors, to not get too hung up about currency. 195 00:09:52,679 --> 00:09:58,160 Speaker 1: I yeah, there's it's very hard to predict, you know, 196 00:09:59,040 --> 00:10:02,960 Speaker 1: currency moves, and I think if you just accept that, 197 00:10:03,160 --> 00:10:05,600 Speaker 1: you know, sometimes it will benefit you, sometimes it might not. 198 00:10:06,240 --> 00:10:09,520 Speaker 1: But over the long term, you know, it should be 199 00:10:09,520 --> 00:10:11,680 Speaker 1: the returns of the of what you're investing in. That 200 00:10:11,679 --> 00:10:14,200 Speaker 1: that's the most important. So you've been investing for a 201 00:10:14,200 --> 00:10:18,719 Speaker 1: while now, as you have and I have. Are there 202 00:10:18,720 --> 00:10:20,839 Speaker 1: any blind spots or what are the blind spots? What 203 00:10:21,280 --> 00:10:26,040 Speaker 1: catches people out? You hear so many horror stories about 204 00:10:26,080 --> 00:10:29,360 Speaker 1: investing in the stock market, which I hate because nine 205 00:10:29,400 --> 00:10:31,920 Speaker 1: times out of ten it's from people that haven't diversified, 206 00:10:31,960 --> 00:10:35,480 Speaker 1: and it's from people that have put, you know, their 207 00:10:35,679 --> 00:10:39,720 Speaker 1: entire life savings into bitcoin, for example, and that hasn't 208 00:10:39,760 --> 00:10:44,040 Speaker 1: gone to plan. And so that's and then those stories, 209 00:10:44,160 --> 00:10:46,040 Speaker 1: you know, flow down to beginner investors, and they get 210 00:10:46,040 --> 00:10:48,360 Speaker 1: spooked and they get stick scared, and then they or 211 00:10:48,520 --> 00:10:50,800 Speaker 1: they put they don't diversify from day one, and they 212 00:10:50,800 --> 00:10:52,800 Speaker 1: have the same experience and they never invest again. And 213 00:10:52,840 --> 00:10:56,240 Speaker 1: that's that's the opposite of what we want here. But 214 00:10:56,320 --> 00:10:59,840 Speaker 1: some other blind spots, I think you might might not 215 00:10:59,920 --> 00:11:03,800 Speaker 1: be as diversified as you thought, Like I was talking 216 00:11:03,800 --> 00:11:08,240 Speaker 1: about with you know, investing in maybe a healthcare healthcare 217 00:11:08,280 --> 00:11:11,480 Speaker 1: ETF for example, Yes you're diversified, but you're still in 218 00:11:11,480 --> 00:11:14,720 Speaker 1: the healthcare space. So say we had an election that 219 00:11:14,760 --> 00:11:18,000 Speaker 1: cut a whole lot of healthcare spending, then that ETF 220 00:11:18,040 --> 00:11:20,760 Speaker 1: would be impacted even though you're still investing in a 221 00:11:20,760 --> 00:11:25,880 Speaker 1: whole bunch of companies within that ETF, you're still you're 222 00:11:25,920 --> 00:11:30,760 Speaker 1: overexposed or investing heavily in one sector. That's why the 223 00:11:30,800 --> 00:11:33,280 Speaker 1: S and P five hundred is so great, because that 224 00:11:33,320 --> 00:11:38,280 Speaker 1: ETF has over five hundred companies across, like over nearly 225 00:11:38,280 --> 00:11:42,480 Speaker 1: twelve different sectors. Big companies, small companies, companies that get 226 00:11:42,520 --> 00:11:46,520 Speaker 1: most of their revenue from offshore or outside of the US, 227 00:11:46,640 --> 00:11:48,520 Speaker 1: companies that get their revenue from inside the US. So 228 00:11:48,520 --> 00:11:51,720 Speaker 1: there's a lot of I guess, risk mitigation going on 229 00:11:51,920 --> 00:11:55,800 Speaker 1: within that ETF. For example, it's probably not a blind spot, 230 00:11:55,800 --> 00:11:59,480 Speaker 1: but it's more of like something that people might stress 231 00:11:59,480 --> 00:12:05,000 Speaker 1: out about is is having too much focus on being 232 00:12:05,040 --> 00:12:07,160 Speaker 1: too diversified. So there's kind of I guess what I'm 233 00:12:07,160 --> 00:12:10,880 Speaker 1: getting at is there is a middle ground. Don't stress 234 00:12:10,880 --> 00:12:14,080 Speaker 1: yourself out about being you know, super super diversified and 235 00:12:14,160 --> 00:12:18,720 Speaker 1: owning you know, twenty different ETFs like that's you know, 236 00:12:18,760 --> 00:12:20,280 Speaker 1: if you've got if you've got a handful of them, 237 00:12:20,280 --> 00:12:24,720 Speaker 1: that's that's fine, or even just one well diversified ETF. 238 00:12:25,120 --> 00:12:29,200 Speaker 1: But yeah, don't stress yourself outself out about being you know, 239 00:12:31,080 --> 00:12:35,840 Speaker 1: needing to be so diversified that you're just owning things 240 00:12:35,840 --> 00:12:38,800 Speaker 1: for owning them, for owning them's sake. You know, you're 241 00:12:38,800 --> 00:12:42,480 Speaker 1: not actually owning them. You're actually making a conscious decision 242 00:12:42,520 --> 00:12:45,000 Speaker 1: of why you own that ETF or stock. 243 00:12:46,520 --> 00:12:48,040 Speaker 3: Yeah, that's such a good point, and we see that 244 00:12:48,080 --> 00:12:50,400 Speaker 3: play out and the data. 245 00:12:50,200 --> 00:12:51,920 Speaker 5: Around like how people use shares these as well. 246 00:12:52,080 --> 00:12:55,600 Speaker 3: So we've got over seven hundred thousand people investing and 247 00:12:55,679 --> 00:12:58,240 Speaker 3: most have you know, a few a few funds and. 248 00:12:58,200 --> 00:13:01,720 Speaker 5: A few companies like that. It's like level of data. 249 00:13:01,760 --> 00:13:04,960 Speaker 2: So yeah, or satellite approach. 250 00:13:05,320 --> 00:13:08,080 Speaker 1: I'm like, I should be I should be direct stock 251 00:13:08,120 --> 00:13:10,000 Speaker 1: picking all my stocks, but I don't give time. 252 00:13:10,080 --> 00:13:11,559 Speaker 2: I'm trying to like run a business as well. 253 00:13:11,600 --> 00:13:14,080 Speaker 1: And it's so I'm still interested in investing, and of 254 00:13:14,120 --> 00:13:16,000 Speaker 1: course I want to grow my money and grow my 255 00:13:16,360 --> 00:13:17,400 Speaker 1: you know, grow my wealth. 256 00:13:17,679 --> 00:13:20,360 Speaker 2: So I'm going to put eighty percent in ETFs and. 257 00:13:20,679 --> 00:13:23,439 Speaker 1: Funds, But then I might read about a company that 258 00:13:23,480 --> 00:13:27,760 Speaker 1: I'm like, oh that's interesting, or yeah, by buy companies 259 00:13:27,760 --> 00:13:29,800 Speaker 1: that I that I want to almost like double down 260 00:13:29,840 --> 00:13:32,320 Speaker 1: and support because I think they're going to do They're 261 00:13:32,320 --> 00:13:33,280 Speaker 1: going to do really well. 262 00:13:33,440 --> 00:13:35,280 Speaker 2: So I'll do that as well, So. 263 00:13:35,880 --> 00:13:38,520 Speaker 1: There's no right or wrong, it's it's kind of what 264 00:13:38,600 --> 00:13:39,640 Speaker 1: works for you as well. 265 00:13:40,559 --> 00:13:43,480 Speaker 3: Yeah, that's that's so great to hear it because that's 266 00:13:43,520 --> 00:13:47,400 Speaker 3: exactly how I invest as well. And and it's one 267 00:13:47,400 --> 00:13:49,480 Speaker 3: of those almost myths that we're trying to bust, which 268 00:13:49,520 --> 00:13:52,000 Speaker 3: is when people say, oh, I'm just a beginner, so 269 00:13:52,040 --> 00:13:53,959 Speaker 3: I invest like this, and it's like, well, I've actually 270 00:13:54,080 --> 00:13:56,480 Speaker 3: been using for a while now and I miss like 271 00:13:56,600 --> 00:14:00,079 Speaker 3: that too, Like I know, yeah, So it's kind of 272 00:14:00,160 --> 00:14:04,040 Speaker 3: almost like you know, trying to that is we you know, 273 00:14:04,160 --> 00:14:07,000 Speaker 3: it's the great principles to start with, great principles to 274 00:14:07,040 --> 00:14:11,120 Speaker 3: continue doing. And it's cool to hear that, you know, 275 00:14:11,160 --> 00:14:14,280 Speaker 3: and and it's well known like that really sophisticated investors 276 00:14:14,280 --> 00:14:16,600 Speaker 3: can continue to invest in that way. 277 00:14:17,480 --> 00:14:18,160 Speaker 5: Coming back to. 278 00:14:18,200 --> 00:14:21,320 Speaker 3: Your comment about like when you come across like a 279 00:14:21,360 --> 00:14:24,080 Speaker 3: few companies you're keen to invest in as part of 280 00:14:24,120 --> 00:14:27,760 Speaker 3: that course satellite approach, there's another phrase that you hear 281 00:14:27,800 --> 00:14:29,680 Speaker 3: a lot in investing, which is like invest in what 282 00:14:29,800 --> 00:14:33,880 Speaker 3: you know? How do you think about that? And what 283 00:14:33,920 --> 00:14:35,200 Speaker 3: do you what are your reckons? 284 00:14:36,000 --> 00:14:37,040 Speaker 2: Yeah? I love it. 285 00:14:37,120 --> 00:14:40,560 Speaker 1: I love that phrase, and that was one of I 286 00:14:40,560 --> 00:14:43,680 Speaker 1: remember my first day as an analyst, and my boss 287 00:14:44,400 --> 00:14:47,120 Speaker 1: threw a book down on my my DearS can. He said, 288 00:14:47,120 --> 00:14:48,520 Speaker 1: I don't want to do anything today. I just want 289 00:14:48,520 --> 00:14:51,280 Speaker 1: you to read this book and it was Peter Lynch 290 00:14:51,280 --> 00:14:54,360 Speaker 1: One Up on Wall Street. And the key takeaway from 291 00:14:54,360 --> 00:14:57,200 Speaker 1: that book is invest in what you know. And that 292 00:14:57,360 --> 00:14:59,640 Speaker 1: is just stood buy me. You know, my entire investing 293 00:14:59,640 --> 00:15:02,680 Speaker 1: in career. And it's so true. 294 00:15:02,760 --> 00:15:09,040 Speaker 2: And I think investing has got, you know, so complicated. 295 00:15:08,400 --> 00:15:11,520 Speaker 1: And can be so overwhelming and confusing for so many people. 296 00:15:11,520 --> 00:15:14,520 Speaker 1: But if you strip it back, it's like what do 297 00:15:14,600 --> 00:15:16,880 Speaker 1: you enjoy, what are you passionate about, what are you 298 00:15:16,920 --> 00:15:21,880 Speaker 1: interested in? What products do you use? Yeah, and it's 299 00:15:21,880 --> 00:15:24,440 Speaker 1: like what are your values? All of that just comes 300 00:15:24,480 --> 00:15:28,240 Speaker 1: down to investing in what you know. And for me, 301 00:15:28,480 --> 00:15:32,040 Speaker 1: it's like, I don't know biotech. I'm not going to 302 00:15:32,120 --> 00:15:34,680 Speaker 1: know if some clinical trial is going to be a success. 303 00:15:34,880 --> 00:15:37,200 Speaker 1: I'm not going to invest in those companies like I'll 304 00:15:37,280 --> 00:15:38,840 Speaker 1: leave them for someone else to invest in. 305 00:15:39,080 --> 00:15:40,600 Speaker 2: I'm going to stick to. 306 00:15:40,600 --> 00:15:45,880 Speaker 1: Companies that I'm interested in, like technology companies, media companies, retailers. 307 00:15:46,240 --> 00:15:49,760 Speaker 1: All of that really interests me, and I it doesn't 308 00:15:49,800 --> 00:15:55,960 Speaker 1: seem like like it's it's tiresome, or it's just something 309 00:15:56,000 --> 00:15:58,080 Speaker 1: I have to do. It's because I'm interested in it. 310 00:15:58,440 --> 00:16:01,800 Speaker 1: I'm following those companies, I'm reading articles on them, I'm 311 00:16:02,320 --> 00:16:05,360 Speaker 1: using their products, I'm looking, you know, using their new features. 312 00:16:05,400 --> 00:16:08,400 Speaker 1: So I know, because I'm a user and it's and 313 00:16:08,400 --> 00:16:12,600 Speaker 1: it's a company. I know if for whatever reason I don't, 314 00:16:12,680 --> 00:16:14,800 Speaker 1: I don't use it anymore, or I see all my 315 00:16:14,880 --> 00:16:18,200 Speaker 1: friends not using it, or they're using something some other platform, 316 00:16:18,320 --> 00:16:22,000 Speaker 1: or or they're buying a different product, then that is 317 00:16:22,080 --> 00:16:24,880 Speaker 1: that's research, and that's investment research. And so I'll be like, oh, 318 00:16:25,160 --> 00:16:28,200 Speaker 1: hang on, if all these people and myself are now 319 00:16:28,360 --> 00:16:30,600 Speaker 1: no longer using this product or no longer interested in 320 00:16:30,640 --> 00:16:34,240 Speaker 1: this in this company, surely there must be other people. 321 00:16:34,280 --> 00:16:35,720 Speaker 2: And so you start to. 322 00:16:36,960 --> 00:16:40,840 Speaker 1: Be in this investing world without realizing it. And at 323 00:16:40,840 --> 00:16:42,760 Speaker 1: the end of the day, you know, if you're a 324 00:16:42,800 --> 00:16:46,080 Speaker 1: consumer and you're you're you're voting with your wallet for 325 00:16:46,120 --> 00:16:48,440 Speaker 1: that company, you know you may as well benefit as 326 00:16:48,440 --> 00:16:51,800 Speaker 1: an investor as well and benefit from that company's growth. 327 00:16:51,840 --> 00:16:53,840 Speaker 1: If you're kind of giving it the tick of approval 328 00:16:53,840 --> 00:16:57,600 Speaker 1: as a customer, it kind of makes sense to double 329 00:16:57,640 --> 00:17:01,600 Speaker 1: down and benefit from it as an as well. 330 00:17:01,760 --> 00:17:04,320 Speaker 3: Yeah, I love that, And I think the way I 331 00:17:04,320 --> 00:17:06,520 Speaker 3: think about it too is, you know it really you 332 00:17:06,560 --> 00:17:10,480 Speaker 3: can turn observation into your superpower because when you invest 333 00:17:10,520 --> 00:17:13,040 Speaker 3: in the things that you're just around and you're amongst, 334 00:17:13,119 --> 00:17:17,600 Speaker 3: and you're observing, you can really say huh, like yeah, 335 00:17:17,640 --> 00:17:19,679 Speaker 3: as you say, like the taste of this thing has 336 00:17:19,800 --> 00:17:22,520 Speaker 3: changed or they've changed the recipe, I'm not that into it. 337 00:17:22,680 --> 00:17:25,960 Speaker 1: And something like for women, it's like we make up 338 00:17:26,000 --> 00:17:29,400 Speaker 1: eighty percent of global spending and so it's like, yes, 339 00:17:29,440 --> 00:17:33,480 Speaker 1: you're a consumer, so it's like you are dictating where 340 00:17:33,520 --> 00:17:36,159 Speaker 1: that money is spent, you know as a gender or 341 00:17:36,240 --> 00:17:39,200 Speaker 1: you know your majority of spending. It's like you can 342 00:17:39,280 --> 00:17:43,600 Speaker 1: see these trends and you are almost part of the trend. 343 00:17:44,280 --> 00:17:49,560 Speaker 1: So you've got that foresight before a lot of other people, particularly. 344 00:17:49,080 --> 00:17:49,720 Speaker 2: Men, might have. 345 00:17:49,880 --> 00:17:52,080 Speaker 1: You know. It's like using these these things to your 346 00:17:52,119 --> 00:17:55,159 Speaker 1: advantage rather than kind of being like, oh, it's not 347 00:17:55,200 --> 00:17:58,280 Speaker 1: a world for me, or it's I'm not part of it. 348 00:17:58,280 --> 00:17:59,919 Speaker 2: It's like we're all part of it, whether we are 349 00:17:59,960 --> 00:18:00,520 Speaker 2: like it or not. 350 00:18:01,080 --> 00:18:03,920 Speaker 5: Like yeah, it's such a good point. 351 00:18:04,560 --> 00:18:07,240 Speaker 3: Let's deep dive into rest, Like how how does risk 352 00:18:07,280 --> 00:18:10,280 Speaker 3: plan to diversification and you know, how do we think 353 00:18:10,320 --> 00:18:11,760 Speaker 3: about how should people think about that? 354 00:18:12,960 --> 00:18:17,400 Speaker 1: Yeah, so risk is effectively the movement up and down 355 00:18:17,840 --> 00:18:22,639 Speaker 1: of prices. So if something is got big movements in 356 00:18:22,680 --> 00:18:25,720 Speaker 1: its in its price, then it's got a lot of risk. 357 00:18:26,160 --> 00:18:29,879 Speaker 1: So things like cryptocurrency, they you know, there's big moves 358 00:18:29,880 --> 00:18:32,920 Speaker 1: in cryptocurrency. You know, Bitcoin for example, has has moved 359 00:18:32,960 --> 00:18:34,800 Speaker 1: around a lot over the last couple of years. 360 00:18:34,960 --> 00:18:36,520 Speaker 2: Therefore it's quite risky. 361 00:18:37,760 --> 00:18:42,879 Speaker 1: So when it comes to risk and diversification, the the 362 00:18:43,000 --> 00:18:47,240 Speaker 1: two intertwined, and the fact that yes, if you if 363 00:18:47,280 --> 00:18:49,720 Speaker 1: you spread your risk, so you invest in lots of 364 00:18:50,119 --> 00:18:53,280 Speaker 1: lots of different companies. Let's say, for argument's sake, you 365 00:18:53,359 --> 00:18:55,920 Speaker 1: invest in lots of different companies. Some of them might 366 00:18:55,960 --> 00:18:58,200 Speaker 1: have big moves, some of them might not move at all, 367 00:18:58,720 --> 00:19:03,159 Speaker 1: but the average of those is not a lot of movement. 368 00:19:03,920 --> 00:19:06,800 Speaker 1: I think it comes back to you never know what's 369 00:19:06,920 --> 00:19:13,800 Speaker 1: around the corner. And yes, you might invest in something 370 00:19:13,880 --> 00:19:18,360 Speaker 1: that has done very well over the last few years, 371 00:19:18,520 --> 00:19:21,800 Speaker 1: and you know the ins and outs of that investment 372 00:19:21,880 --> 00:19:23,760 Speaker 1: or that company or whatever it is, and you are 373 00:19:24,000 --> 00:19:27,119 Speaker 1: so positive that it's going to do well, but that 374 00:19:27,320 --> 00:19:29,399 Speaker 1: just the world is so unknown and you never know 375 00:19:30,040 --> 00:19:32,840 Speaker 1: also how other investors are going to react, because when 376 00:19:32,880 --> 00:19:36,639 Speaker 1: you're buying and selling a share that's off other investors, 377 00:19:36,680 --> 00:19:39,679 Speaker 1: So how they react is you also have to take 378 00:19:39,720 --> 00:19:41,840 Speaker 1: into consideration if they don't want to own this stock 379 00:19:41,880 --> 00:19:45,240 Speaker 1: anymore or this company, but you do, and there's a 380 00:19:45,280 --> 00:19:47,080 Speaker 1: whole lot more of them than there are of you, 381 00:19:47,200 --> 00:19:48,680 Speaker 1: than the share price is going to go down. So 382 00:19:49,240 --> 00:19:51,600 Speaker 1: it's you've got to take all that into consideration as 383 00:19:51,600 --> 00:19:54,199 Speaker 1: well as kind of what's going on with the company, 384 00:19:54,000 --> 00:19:57,240 Speaker 1: the world that there's a lot of There's a lot 385 00:19:57,280 --> 00:20:00,119 Speaker 1: going on that you need to consider if you it's 386 00:20:00,119 --> 00:20:02,800 Speaker 1: going to be still one thing we didn't foresee COVID, 387 00:20:02,840 --> 00:20:05,400 Speaker 1: for example, and that led to a lot of sheer 388 00:20:05,440 --> 00:20:09,240 Speaker 1: price falls. But again that's probably a really good example 389 00:20:09,240 --> 00:20:12,919 Speaker 1: of diversification. If you'd owned, you know, heading into COVID, 390 00:20:12,960 --> 00:20:17,840 Speaker 1: if you'd owned just travel companies, then your portfolio would 391 00:20:17,840 --> 00:20:21,359 Speaker 1: have looked pretty dire, Whereas if you'd owned some travel 392 00:20:21,359 --> 00:20:24,600 Speaker 1: companies and some tech companies, you would have, you know, 393 00:20:24,920 --> 00:20:27,240 Speaker 1: feared a lot better. Yes, the travel companies would have 394 00:20:27,240 --> 00:20:29,200 Speaker 1: gone down and the tech companies would have gone up. 395 00:20:29,280 --> 00:20:31,320 Speaker 3: It can be an event like that, but it can 396 00:20:31,359 --> 00:20:34,480 Speaker 3: also just be the subtle changes of trends or how 397 00:20:34,560 --> 00:20:37,000 Speaker 3: people you know, Like I think even at the moment 398 00:20:37,040 --> 00:20:39,800 Speaker 3: when you consider like run club culture, like that feels 399 00:20:39,880 --> 00:20:44,080 Speaker 3: like something that's like really a fundamental shift that it's 400 00:20:44,119 --> 00:20:47,359 Speaker 3: like almost going back to you know, like aerobics in 401 00:20:47,400 --> 00:20:49,719 Speaker 3: the nineties being this really but the whole like social 402 00:20:49,760 --> 00:20:50,960 Speaker 3: and exercise coming together. 403 00:20:50,960 --> 00:20:53,200 Speaker 5: You're like, oh, I see, I see where this is going. 404 00:20:54,119 --> 00:20:56,720 Speaker 3: And that like when you come back to the COVID thing, 405 00:20:56,880 --> 00:20:59,480 Speaker 3: like who would have thought that it would be totally 406 00:20:59,520 --> 00:21:01,200 Speaker 3: fine and a lot of businesses to. 407 00:21:01,200 --> 00:21:02,400 Speaker 5: Work remotely to. 408 00:21:03,960 --> 00:21:07,159 Speaker 3: You know, like there's just so much that is that 409 00:21:07,760 --> 00:21:12,840 Speaker 3: reset in motion that you know, new new like emerging 410 00:21:12,880 --> 00:21:15,920 Speaker 3: technologies or emerging ways of doing things, emerging businesses, like 411 00:21:16,000 --> 00:21:17,320 Speaker 3: new stuff pops up tod. 412 00:21:17,280 --> 00:21:21,200 Speaker 1: And in those times, you know, when there is uncertainty, 413 00:21:21,680 --> 00:21:24,040 Speaker 1: you want to worry about yourself. You don't want to 414 00:21:24,080 --> 00:21:27,200 Speaker 1: sit there worrying about your investments. And so if you diversify, 415 00:21:28,080 --> 00:21:30,760 Speaker 1: there's kind of less uncertainty you. 416 00:21:30,680 --> 00:21:31,560 Speaker 2: Have to worry about. 417 00:21:31,960 --> 00:21:33,679 Speaker 1: You know, you can you can be selfish and you 418 00:21:33,680 --> 00:21:35,520 Speaker 1: just worry about yourself because you know you've got your 419 00:21:35,600 --> 00:21:39,359 Speaker 1: investments sorted and so you can just focus on the 420 00:21:39,400 --> 00:21:43,679 Speaker 1: things that that are important rather than stressing about your investments. 421 00:21:44,040 --> 00:21:45,520 Speaker 2: Because yeah, it's not. 422 00:21:45,520 --> 00:21:49,320 Speaker 3: That I do the sleep at night test, which is 423 00:21:49,400 --> 00:21:51,280 Speaker 3: just like that to me is priceless. 424 00:21:51,720 --> 00:21:52,280 Speaker 2: Yeah. 425 00:21:52,520 --> 00:21:55,400 Speaker 3: So it's like if there's yes, winning is awesome, but 426 00:21:55,520 --> 00:21:57,919 Speaker 3: like I would rather have a portfolio that meant that 427 00:21:57,960 --> 00:21:59,960 Speaker 3: I could sleep at night and like sleep comfort. 428 00:22:00,520 --> 00:22:00,760 Speaker 5: Yes. 429 00:22:00,920 --> 00:22:05,640 Speaker 1: Yeah, And some people love having the spicy stocks assets 430 00:22:05,680 --> 00:22:07,280 Speaker 1: in their portfolio and that's fine. 431 00:22:07,440 --> 00:22:09,200 Speaker 2: That is not for me. I'm sorry. 432 00:22:09,400 --> 00:22:11,800 Speaker 1: I would rather go to sleep and not have to 433 00:22:12,320 --> 00:22:14,120 Speaker 1: wake up in the middle of the night to make 434 00:22:14,160 --> 00:22:16,560 Speaker 1: sure that my portfolio hasn't fallen off a cliff. I 435 00:22:16,760 --> 00:22:23,600 Speaker 1: just yeah, I would rather do a more pragmatic, considered 436 00:22:24,040 --> 00:22:25,720 Speaker 1: a tried and true way. 437 00:22:25,560 --> 00:22:27,280 Speaker 2: Of investing through diversification. 438 00:22:27,560 --> 00:22:30,200 Speaker 5: Yeah yeah, but a garnish, but a garnish here and there. 439 00:22:30,600 --> 00:22:34,440 Speaker 1: Yeah, but chili flake would be would be good for you. 440 00:22:37,280 --> 00:22:40,080 Speaker 3: So how does it differ between you know, how an 441 00:22:40,080 --> 00:22:43,240 Speaker 3: individual might think about it or manage diversification versus like 442 00:22:43,280 --> 00:22:47,320 Speaker 3: a professional like a fund manager or different money managers. 443 00:22:48,040 --> 00:22:53,240 Speaker 1: Yeah. So when I was a fund manager, we were active, 444 00:22:53,600 --> 00:22:56,640 Speaker 1: active fund managers, so we were out there picking stocks, 445 00:22:56,800 --> 00:23:00,400 Speaker 1: picking companies on behalf of clients, and so we had 446 00:23:00,440 --> 00:23:03,360 Speaker 1: a duty to make sure that the portfolio was well 447 00:23:03,359 --> 00:23:07,840 Speaker 1: diversified all the time. And you know that that was 448 00:23:07,960 --> 00:23:10,240 Speaker 1: the reason that our clients had given us money, was 449 00:23:10,280 --> 00:23:11,719 Speaker 1: to make it grow, and so we had to make 450 00:23:11,720 --> 00:23:12,720 Speaker 1: sure it was diversified. 451 00:23:12,760 --> 00:23:14,200 Speaker 2: So we would have about. 452 00:23:14,640 --> 00:23:16,760 Speaker 1: Depending on the fund, but you know, an average of 453 00:23:16,800 --> 00:23:20,719 Speaker 1: maybe like thirty different companies to invest in to make 454 00:23:20,760 --> 00:23:23,080 Speaker 1: sure that we were properly diversified as well as. 455 00:23:23,160 --> 00:23:24,680 Speaker 2: Generating good returns. 456 00:23:26,040 --> 00:23:29,439 Speaker 1: Whereas and so that's kind of when you give your 457 00:23:29,440 --> 00:23:32,280 Speaker 1: money to a fund manager that's or an active fund manager, 458 00:23:32,480 --> 00:23:34,040 Speaker 1: what that's what they'll do for you, and that's what 459 00:23:34,080 --> 00:23:36,879 Speaker 1: you pay them a fee for. The thing with the 460 00:23:36,920 --> 00:23:41,720 Speaker 1: professionals is they've got usually teams around them, so it's 461 00:23:41,760 --> 00:23:44,600 Speaker 1: not just and when you're doing it individually, you usually 462 00:23:44,600 --> 00:23:47,640 Speaker 1: only got yourself, so it's yeah, they've got a lot 463 00:23:47,680 --> 00:23:51,840 Speaker 1: of other people and systems and research feeding into those decisions. 464 00:23:51,920 --> 00:23:54,159 Speaker 1: So when I say they're picking kind of twenty to 465 00:23:54,200 --> 00:23:58,159 Speaker 1: thirty stocks to be diversified, you doing that yourself is 466 00:23:58,200 --> 00:24:00,360 Speaker 1: going to be a lot more time consuming, a lot 467 00:24:00,400 --> 00:24:01,159 Speaker 1: more take a. 468 00:24:01,160 --> 00:24:02,800 Speaker 2: Lot more research and effort. 469 00:24:03,400 --> 00:24:07,800 Speaker 1: If you're doing it yourself, then the best way is 470 00:24:07,800 --> 00:24:11,160 Speaker 1: to do it through through an ETF, where you're getting 471 00:24:11,200 --> 00:24:14,480 Speaker 1: that diversification, you're not getting that kind of personal element 472 00:24:14,560 --> 00:24:19,840 Speaker 1: because it's ETFs essentially run by computers that don't really 473 00:24:19,920 --> 00:24:23,600 Speaker 1: change that much. They're pretty stock standard. But as an 474 00:24:23,640 --> 00:24:27,600 Speaker 1: individual you can you can pick that yourself, and the fees. 475 00:24:27,440 --> 00:24:31,680 Speaker 2: Are a lot lower. So an ETF is usually the easier. 476 00:24:31,720 --> 00:24:33,480 Speaker 2: But also you. 477 00:24:33,440 --> 00:24:38,879 Speaker 1: Know, in most cases just as high returning strategy to 478 00:24:39,000 --> 00:24:39,520 Speaker 1: invest in. 479 00:24:40,200 --> 00:24:45,040 Speaker 3: You mentioned like diversifying within diversifying within diversifying, can you 480 00:24:45,119 --> 00:24:46,960 Speaker 3: be to diversify it? 481 00:24:47,400 --> 00:24:49,560 Speaker 5: And what do you do about it? On Once you. 482 00:24:49,520 --> 00:24:55,640 Speaker 1: Realize if you're investing in things that you either don't understand, 483 00:24:55,640 --> 00:24:58,760 Speaker 1: you don't know, you don't want to own, but you 484 00:24:58,840 --> 00:25:01,360 Speaker 1: just have to own because you to be diversified, that's 485 00:25:01,400 --> 00:25:05,480 Speaker 1: not a good sign because then if it doesn't do well, 486 00:25:06,240 --> 00:25:07,639 Speaker 1: you won't know why you owned it, you won't know 487 00:25:07,680 --> 00:25:10,440 Speaker 1: what it does. And it's just I think you can 488 00:25:10,480 --> 00:25:13,840 Speaker 1: definitely have too many things in your portfolio. It can 489 00:25:13,840 --> 00:25:18,000 Speaker 1: become very stressful being across you know all those companies, 490 00:25:18,040 --> 00:25:21,800 Speaker 1: what's going on, you know their financial results, What if 491 00:25:21,840 --> 00:25:25,600 Speaker 1: the CEO leaves, what if there is a product failure. 492 00:25:25,600 --> 00:25:28,159 Speaker 1: What if there's some technological innovation at a competitor or what. 493 00:25:28,440 --> 00:25:30,480 Speaker 1: You know, there's a lot of things to be going on. 494 00:25:30,960 --> 00:25:33,199 Speaker 1: There's a lot of things to be across when you 495 00:25:33,280 --> 00:25:36,480 Speaker 1: own a lot of companies in your portfolio. Some people 496 00:25:36,480 --> 00:25:39,240 Speaker 1: love that and that's great, but I think for a 497 00:25:39,280 --> 00:25:43,080 Speaker 1: lot of investors that can be very overwhelming and almost 498 00:25:43,119 --> 00:25:47,160 Speaker 1: take the shine off investing and the fun off investing. 499 00:25:47,920 --> 00:25:51,000 Speaker 1: And I think that's that's a place we don't want 500 00:25:51,040 --> 00:25:57,160 Speaker 1: to get to. I think you can achieve the same 501 00:25:57,240 --> 00:26:02,919 Speaker 1: or similar outcome by a much more simplify strategy, and. 502 00:26:02,080 --> 00:26:04,000 Speaker 2: That is through and through ETFs. 503 00:26:05,080 --> 00:26:09,520 Speaker 1: And I'm not endorsed by any ETF anyway, you know, 504 00:26:09,640 --> 00:26:12,960 Speaker 1: I keep keep keep, you know, holding up the fame ETFs, 505 00:26:13,000 --> 00:26:15,840 Speaker 1: but I'm definitely not being endorsed by them. But I 506 00:26:15,920 --> 00:26:20,000 Speaker 1: just think it's for a beginner to intermediate you even 507 00:26:20,080 --> 00:26:23,440 Speaker 1: advanced invested. I just feel like it is such a 508 00:26:23,480 --> 00:26:26,320 Speaker 1: good strategy, and yeah, it makes for a very clean 509 00:26:26,560 --> 00:26:27,840 Speaker 1: looking portfolio as well. 510 00:26:28,119 --> 00:26:32,080 Speaker 3: If our listeners were to take three actions from this episode, 511 00:26:32,880 --> 00:26:35,240 Speaker 3: what what do you recommend if. 512 00:26:35,080 --> 00:26:38,920 Speaker 1: You forget beginning your investing journey, always start with diversification, 513 00:26:40,160 --> 00:26:44,720 Speaker 1: Also invest in what you know and go to a 514 00:26:44,720 --> 00:26:47,240 Speaker 1: farmer's market and buy some oranges and apples. 515 00:26:48,600 --> 00:26:49,320 Speaker 5: Love that get you. 516 00:26:49,960 --> 00:26:50,840 Speaker 2: Think of a third one? 517 00:26:51,119 --> 00:26:53,560 Speaker 3: Oh and hey, what was the book that you got 518 00:26:53,560 --> 00:26:55,399 Speaker 3: handed when you're at work? That? 519 00:26:55,880 --> 00:26:58,679 Speaker 2: Yes, Peter Lynch One Up on Wall Street. 520 00:26:59,160 --> 00:27:01,800 Speaker 1: It's very old, it's probably about forty years old now, 521 00:27:02,160 --> 00:27:05,919 Speaker 1: but like that even in itself, you know, there's people 522 00:27:06,359 --> 00:27:08,840 Speaker 1: that have made fortunes, that have been investing this way 523 00:27:09,040 --> 00:27:11,320 Speaker 1: for such a long time, and it's stood the test 524 00:27:11,320 --> 00:27:14,560 Speaker 1: of time and it's still a way that I invest today. 525 00:27:14,760 --> 00:27:17,359 Speaker 1: And yeah, it's Peter Lunch One Up on Wall Street. 526 00:27:17,400 --> 00:27:17,840 Speaker 2: Great book. 527 00:27:18,000 --> 00:27:21,320 Speaker 3: Awesome, love a good book. Book recommend I add that 528 00:27:21,359 --> 00:27:26,160 Speaker 3: to my good Reads. Hey, thanks Hete for joining us, Victoria, 529 00:27:26,200 --> 00:27:29,719 Speaker 3: it's been an awesome conversation. Thanks on Yeah, thanks everyone 530 00:27:29,720 --> 00:27:32,359 Speaker 3: as well for tuning in. You can watch it Shared 531 00:27:32,440 --> 00:27:36,040 Speaker 3: Lunch on YouTube, or follow the podcast on Apple, Spotify, 532 00:27:36,160 --> 00:27:38,919 Speaker 3: or you get your podcasts. Leave us a rating and 533 00:27:38,960 --> 00:27:41,480 Speaker 3: comment on what you'd like to hear about next, and 534 00:27:41,600 --> 00:27:44,639 Speaker 3: enjoy the rest of your week.