1 00:00:04,920 --> 00:00:08,280 Speaker 1: Kyoda and welcome to this episode of Shared Lunch, which 2 00:00:08,320 --> 00:00:11,080 Speaker 1: we're recording from Melbourne. I'm so excited. 3 00:00:11,600 --> 00:00:12,720 Speaker 2: Welcome to my house. 4 00:00:13,160 --> 00:00:15,080 Speaker 3: Sorry, I was meant to be introduced, but I just 5 00:00:15,160 --> 00:00:16,080 Speaker 3: jumped Tridy in there. 6 00:00:16,280 --> 00:00:19,640 Speaker 1: Yeah. Well, and we've joined by Victoria Divine from She's 7 00:00:19,680 --> 00:00:22,040 Speaker 1: on the Money and we're going to be talking all 8 00:00:22,079 --> 00:00:25,680 Speaker 1: things about investing misconceptions and as well about investing in 9 00:00:25,720 --> 00:00:28,520 Speaker 1: the AX, which is the Australian Stock Exchange. 10 00:00:28,800 --> 00:00:31,880 Speaker 4: Investing involves risk you might lose the money you start with. 11 00:00:32,159 --> 00:00:35,920 Speaker 4: We recommend talking to a licensed financial advisor. We also 12 00:00:35,960 --> 00:00:39,920 Speaker 4: recommend reading product disclosure documents before deciding to invest. Everything 13 00:00:39,920 --> 00:00:42,000 Speaker 4: you're about to see and here is current at the 14 00:00:42,000 --> 00:00:42,760 Speaker 4: time of recording. 15 00:00:42,840 --> 00:00:45,479 Speaker 1: Before we get started, I'd like to acknowledge the traditional 16 00:00:45,479 --> 00:00:48,360 Speaker 1: custodians of the land, water and sky where we're coming 17 00:00:48,560 --> 00:00:51,440 Speaker 1: to you from today. There were reundery people of the 18 00:00:51,640 --> 00:00:54,840 Speaker 1: Kulin nation and paying my respects to their elders past, 19 00:00:54,880 --> 00:00:55,880 Speaker 1: present and emerging. 20 00:00:56,120 --> 00:00:57,320 Speaker 2: I'm so excited about this. 21 00:00:57,680 --> 00:01:00,440 Speaker 3: You've come to my house to talk about ourd and 22 00:01:00,480 --> 00:01:01,760 Speaker 3: butter like, how lucky. 23 00:01:02,040 --> 00:01:03,440 Speaker 1: Yeah, thanks for hosting us. 24 00:01:04,000 --> 00:01:06,160 Speaker 2: Oh wait, I'm excited about this. 25 00:01:06,280 --> 00:01:08,360 Speaker 3: I feel like it's going to be a good chat 26 00:01:08,400 --> 00:01:10,160 Speaker 3: but also just a fun chat. 27 00:01:10,360 --> 00:01:10,679 Speaker 5: Yeah. 28 00:01:10,800 --> 00:01:13,800 Speaker 1: Well we both love and visiting, really do we? 29 00:01:14,280 --> 00:01:15,399 Speaker 3: Who would have thought? 30 00:01:16,720 --> 00:01:18,440 Speaker 1: And here we are now we can share that love, 31 00:01:18,600 --> 00:01:21,200 Speaker 1: you know with everyone. You've been in the game, you know, 32 00:01:21,319 --> 00:01:22,360 Speaker 1: in this world now for a. 33 00:01:22,319 --> 00:01:25,640 Speaker 2: While, too long, too long? It's different all. 34 00:01:25,600 --> 00:01:29,600 Speaker 1: What's changed about the investing environment since you trained as 35 00:01:29,600 --> 00:01:31,360 Speaker 1: a financial advisor versus now? 36 00:01:31,680 --> 00:01:34,360 Speaker 3: I feel like so much has changed. In fact, I'm 37 00:01:34,400 --> 00:01:37,120 Speaker 3: probably a little bit guilty of holding on too much 38 00:01:37,280 --> 00:01:40,080 Speaker 3: because the industry is changing so much. I mean, when 39 00:01:40,200 --> 00:01:43,399 Speaker 3: I retired as an advisor, you guys weren't even in Australia. 40 00:01:43,720 --> 00:01:45,440 Speaker 1: Wow, And how long ago would that have been. 41 00:01:46,319 --> 00:01:51,480 Speaker 3: I retired in twenty twenty one officially and stopped doing 42 00:01:51,600 --> 00:01:55,160 Speaker 3: advice back then, handed in my license the year after that. 43 00:01:55,720 --> 00:01:58,640 Speaker 2: And I just feel like it's so much. 44 00:01:58,440 --> 00:02:01,680 Speaker 3: More approachable now, it's so much more accessible. There's also 45 00:02:01,720 --> 00:02:04,960 Speaker 3: a lot more competition in the market, not necessarily from 46 00:02:05,400 --> 00:02:08,799 Speaker 3: different shares, but different platforms. And I feel like there's 47 00:02:08,840 --> 00:02:12,279 Speaker 3: a lot of analysis paralysis from our community about. 48 00:02:12,040 --> 00:02:14,000 Speaker 2: Who do we trust, what do we do, where do 49 00:02:14,080 --> 00:02:14,440 Speaker 2: we go? 50 00:02:14,600 --> 00:02:18,360 Speaker 3: But even the idea and I mean I'm on the 51 00:02:18,360 --> 00:02:21,640 Speaker 3: Shares's podcast, so we're quite clearly fans of Shares's But 52 00:02:21,720 --> 00:02:24,280 Speaker 3: like even just the concept of being able to invest 53 00:02:24,320 --> 00:02:26,880 Speaker 3: with as little as one cent, like be for real, 54 00:02:27,000 --> 00:02:30,000 Speaker 3: that was never something that I was able to talk about. 55 00:02:30,120 --> 00:02:32,640 Speaker 3: And even when I started my investing journey, like you 56 00:02:32,680 --> 00:02:35,040 Speaker 3: would be the same you've come out of, you know, 57 00:02:35,160 --> 00:02:39,680 Speaker 3: actually legitimate big dog investing firms, and we used to 58 00:02:39,680 --> 00:02:43,120 Speaker 3: talk about investments that I could have at the time 59 00:02:43,280 --> 00:02:45,680 Speaker 3: only dreamed of being able to play with or be 60 00:02:45,919 --> 00:02:48,720 Speaker 3: involved in. And I remember talking to clients about minimum 61 00:02:48,720 --> 00:02:52,120 Speaker 3: investment amounts and there was this one fund that I 62 00:02:52,240 --> 00:02:54,400 Speaker 3: was like, oh, that sounds so good, but like the 63 00:02:54,440 --> 00:02:57,280 Speaker 3: minimum investment at the time was like twenty thousand dollars 64 00:02:57,320 --> 00:03:00,560 Speaker 3: and I remember thinking, oh, that's not for me. But 65 00:03:00,720 --> 00:03:03,880 Speaker 3: now I can have access to the same fund, and 66 00:03:04,040 --> 00:03:06,800 Speaker 3: I do now because it was more me going I 67 00:03:06,840 --> 00:03:09,040 Speaker 3: don't even want that. It's not even aligned to my 68 00:03:09,040 --> 00:03:11,440 Speaker 3: strategy anymore, but I want to buy it because historically 69 00:03:11,480 --> 00:03:12,760 Speaker 3: I thought I would never. 70 00:03:13,560 --> 00:03:15,919 Speaker 1: That was strategy right when you're if you can only 71 00:03:15,919 --> 00:03:16,720 Speaker 1: afford one. 72 00:03:16,840 --> 00:03:21,600 Speaker 5: Investment, yeah, And I think that's diversification is different acually, 73 00:03:21,800 --> 00:03:24,840 Speaker 5: like being able to spread, to have a really great 74 00:03:24,880 --> 00:03:27,440 Speaker 5: investment pootfolio, no matter how much you're looking to invest. 75 00:03:27,520 --> 00:03:30,560 Speaker 3: If you told me in like twenty seventeen that I 76 00:03:30,639 --> 00:03:32,800 Speaker 3: listened to a finance podcast, I'd be like, what is 77 00:03:32,840 --> 00:03:35,960 Speaker 3: it like? Market updates from Morning Star? Like I would 78 00:03:35,960 --> 00:03:38,480 Speaker 3: have thought it would have been very technical and for 79 00:03:38,720 --> 00:03:42,280 Speaker 3: industry only because that's what that content was like. And 80 00:03:42,320 --> 00:03:45,040 Speaker 3: now it's this fun topic that everybody can get involved 81 00:03:45,040 --> 00:03:46,600 Speaker 3: in and it empowers us. 82 00:03:46,760 --> 00:03:50,400 Speaker 1: The updates thing is interesting because it's like, you definitely 83 00:03:50,520 --> 00:03:53,280 Speaker 1: know it's like numbers, numbers, numbers, But the thing is 84 00:03:53,280 --> 00:03:55,240 Speaker 1: is it like it's all the exciting stuff that goes 85 00:03:55,280 --> 00:03:58,800 Speaker 1: on behind the numbers that's really interesting as an investor. 86 00:03:58,880 --> 00:04:01,320 Speaker 1: And I talk about that being like, yes, my job's 87 00:04:01,320 --> 00:04:04,520 Speaker 1: and finance, but my job is not my own personal finance. 88 00:04:04,880 --> 00:04:07,120 Speaker 1: So you've still got to have interesting. It's still going 89 00:04:07,160 --> 00:04:08,880 Speaker 1: to be interesting to right to want to do it 90 00:04:08,920 --> 00:04:10,440 Speaker 1: one hundred percent day job. 91 00:04:10,440 --> 00:04:11,200 Speaker 2: One hundred percent. 92 00:04:11,240 --> 00:04:13,480 Speaker 3: And I feel like we have learned and I mean, 93 00:04:14,080 --> 00:04:15,920 Speaker 3: I feel like I've been passionate about this for a 94 00:04:15,960 --> 00:04:19,000 Speaker 3: long time, but I feel like the market and everyone 95 00:04:19,120 --> 00:04:22,240 Speaker 3: is catching up with this concept that money is inherently 96 00:04:22,279 --> 00:04:26,839 Speaker 3: psychological and so because of that so many more people 97 00:04:26,839 --> 00:04:31,000 Speaker 3: are connecting in with this finance concept that they've previously 98 00:04:31,040 --> 00:04:33,560 Speaker 3: buried their heads in the sand about because it was 99 00:04:33,560 --> 00:04:35,560 Speaker 3: overwhelming and I'm not good at budgeting and I'm not 100 00:04:35,600 --> 00:04:38,280 Speaker 3: smart enough or good enough or whatnot, and like that's 101 00:04:38,279 --> 00:04:41,080 Speaker 3: actually not true, and that's not the narrative, Like it's 102 00:04:41,120 --> 00:04:42,960 Speaker 3: how you feel, it's your money story and all of 103 00:04:42,960 --> 00:04:46,159 Speaker 3: that stuff that I'm passionate about. But yeah, the world 104 00:04:46,200 --> 00:04:48,800 Speaker 3: has changed, but I think it's for the better. I 105 00:04:48,839 --> 00:04:51,159 Speaker 3: would say when it comes to people taking charge of 106 00:04:51,160 --> 00:04:54,000 Speaker 3: their investment journeys, it's one hundred percent positive. 107 00:04:54,640 --> 00:04:56,840 Speaker 1: So quite a big culture shift then, like happened in 108 00:04:56,880 --> 00:05:01,320 Speaker 1: that time around like more you know, more financial behavior, 109 00:05:01,720 --> 00:05:05,320 Speaker 1: like bringing that in those good kind of habits, accessibility 110 00:05:05,440 --> 00:05:08,520 Speaker 1: becoming more mainstream, just the richness of content now that 111 00:05:08,520 --> 00:05:10,800 Speaker 1: we can all get access to. What about when it 112 00:05:10,800 --> 00:05:13,680 Speaker 1: comes to like investing products and what's available. 113 00:05:13,920 --> 00:05:16,640 Speaker 3: I would have lost my mind, Sonia if even like 114 00:05:16,800 --> 00:05:19,320 Speaker 3: three years ago you'd told me you'd be able to 115 00:05:19,320 --> 00:05:23,719 Speaker 3: buy cryptocurrencies on the ASEX before real like that to 116 00:05:23,800 --> 00:05:27,760 Speaker 3: me is mind blowing. In fact, cryptocurrencies for me was 117 00:05:27,800 --> 00:05:31,159 Speaker 3: something that I discussed with my finance friends because we 118 00:05:31,160 --> 00:05:34,160 Speaker 3: were really nerdy and used to read Reddit threads like 119 00:05:34,480 --> 00:05:37,200 Speaker 3: that was not something that I ever thought would become 120 00:05:37,880 --> 00:05:41,680 Speaker 3: part of the mainstream conversation. And I mean here in Australia, 121 00:05:41,800 --> 00:05:46,920 Speaker 3: cryptocurrencies are not a recognized financial asset, which, to be honest, 122 00:05:47,000 --> 00:05:50,000 Speaker 3: I think we're probably headed that way because for me, 123 00:05:50,720 --> 00:05:54,800 Speaker 3: whilst I've been quite public about not adoring cryptocurrencies because 124 00:05:54,800 --> 00:05:56,920 Speaker 3: I feel like the risk is too much and it 125 00:05:56,960 --> 00:05:59,679 Speaker 3: does blow my mind that so many people are willing 126 00:05:59,760 --> 00:06:01,839 Speaker 3: to go so oh I invest in crypto, but the 127 00:06:01,839 --> 00:06:06,320 Speaker 3: share market is too overwhelming. That's clearly an education piece, 128 00:06:06,440 --> 00:06:09,280 Speaker 3: not necessarily the truth. And I think that when we 129 00:06:09,480 --> 00:06:14,000 Speaker 3: have these conversations about cryptocurrencies, people are confused because they say, 130 00:06:14,120 --> 00:06:16,840 Speaker 3: be like, you don't like crypto, why would you want 131 00:06:16,880 --> 00:06:17,800 Speaker 3: it to be recognized. 132 00:06:18,000 --> 00:06:19,520 Speaker 2: I want it to be recognized, sonya. 133 00:06:19,600 --> 00:06:22,760 Speaker 3: So it's regulated so that if that's your interest, you're 134 00:06:22,800 --> 00:06:24,240 Speaker 3: protected in that space. 135 00:06:24,560 --> 00:06:26,760 Speaker 2: So historically, I used to. 136 00:06:26,839 --> 00:06:29,120 Speaker 3: Work in a space where we were working with ultra 137 00:06:29,200 --> 00:06:32,440 Speaker 3: high net wealth individuals and so I worked in a 138 00:06:32,480 --> 00:06:35,640 Speaker 3: position where I had exposure. I think you could say 139 00:06:35,800 --> 00:06:38,200 Speaker 3: to a lot of self managed super funds. So here 140 00:06:38,240 --> 00:06:41,440 Speaker 3: in Australia, we have what's called a self managed superannuation fund. 141 00:06:41,640 --> 00:06:45,120 Speaker 3: So for us that was always like kind of reserved 142 00:06:45,200 --> 00:06:48,360 Speaker 3: for the really rich, and for me at the time, 143 00:06:48,400 --> 00:06:51,119 Speaker 3: I was envious because of the control that you had 144 00:06:51,440 --> 00:06:54,640 Speaker 3: so people could pick literally any type of asset. Now 145 00:06:54,680 --> 00:06:58,719 Speaker 3: that control we have now and we can invest in 146 00:06:58,800 --> 00:07:01,640 Speaker 3: literally anything we want without having to go down this 147 00:07:01,839 --> 00:07:05,440 Speaker 3: very complicated self managed route. So I don't know, just 148 00:07:05,520 --> 00:07:09,480 Speaker 3: this idea that things are not only more accessible, just 149 00:07:09,520 --> 00:07:12,280 Speaker 3: more fun, and like, how cool is it that we 150 00:07:12,360 --> 00:07:15,560 Speaker 3: have so much control over our own futures and. 151 00:07:15,920 --> 00:07:16,920 Speaker 2: What we set up today. 152 00:07:16,960 --> 00:07:18,680 Speaker 3: It doesn't have to be the same as tomorrow or 153 00:07:18,720 --> 00:07:23,200 Speaker 3: even in fifteen years, but it does count towards future 154 00:07:23,280 --> 00:07:25,560 Speaker 3: us being in the best possible position. I think that's 155 00:07:25,600 --> 00:07:26,320 Speaker 3: like low key. 156 00:07:26,160 --> 00:07:29,040 Speaker 2: Really sexy. 157 00:07:29,200 --> 00:07:31,360 Speaker 1: I agreed. So, now, if we look at the A 158 00:07:31,520 --> 00:07:34,840 Speaker 1: six itself, what are some of the emergent emerging sectors? 159 00:07:34,880 --> 00:07:37,720 Speaker 1: We see like lots of mining, lots of banking, but 160 00:07:37,760 --> 00:07:39,880 Speaker 1: there's also a lot more going on. Can you tell 161 00:07:39,960 --> 00:07:42,640 Speaker 1: us about some other parts of the AX that are. 162 00:07:42,720 --> 00:07:43,640 Speaker 2: So the AX? 163 00:07:43,760 --> 00:07:45,560 Speaker 3: I don't know, it's pretty special because it's like our 164 00:07:45,640 --> 00:07:48,080 Speaker 3: little island. We are very big in mining, we are 165 00:07:48,160 --> 00:07:52,000 Speaker 3: very big in emerging our industries. Technology is a really 166 00:07:52,080 --> 00:07:55,600 Speaker 3: big one here. Education is something that I think is 167 00:07:55,640 --> 00:07:58,679 Speaker 3: definitely emerging in this space. But also I would say 168 00:07:58,760 --> 00:08:03,480 Speaker 3: that post COVID, people who've really prioritized essentials, So we're 169 00:08:03,520 --> 00:08:07,680 Speaker 3: seeing more people at a younger demographic purchasing things like 170 00:08:07,800 --> 00:08:12,360 Speaker 3: supermarkets and transurban, which is, you know, they run all 171 00:08:12,360 --> 00:08:15,280 Speaker 3: of our roads and toll roads here in Australia, here 172 00:08:15,320 --> 00:08:18,720 Speaker 3: in Victoria and New South Wales and in Australia. And 173 00:08:18,800 --> 00:08:22,080 Speaker 3: I find that we have gone from trying to find 174 00:08:22,120 --> 00:08:25,880 Speaker 3: something new and different and emerging to going, hey, how 175 00:08:25,880 --> 00:08:28,960 Speaker 3: can I find something that helps us beat inflation but 176 00:08:29,120 --> 00:08:32,200 Speaker 3: isn't blowing the lights out because I think our demographic 177 00:08:32,280 --> 00:08:35,319 Speaker 3: and this is like gen Z's and gen x is, 178 00:08:35,679 --> 00:08:39,200 Speaker 3: we're talking about just making sure that future US is 179 00:08:39,200 --> 00:08:42,320 Speaker 3: in the best possible position. When we hear about what's 180 00:08:42,360 --> 00:08:46,160 Speaker 3: going on in the broader international market, we hear, oh, 181 00:08:46,240 --> 00:08:49,240 Speaker 3: there's definitely a recession coming, we are often more protected 182 00:08:49,280 --> 00:08:52,239 Speaker 3: from that, and I think that that's given our investors 183 00:08:52,360 --> 00:08:55,960 Speaker 3: and our community a lot more security knowing that. And 184 00:08:56,000 --> 00:08:59,040 Speaker 3: I also think that there has been a lot more 185 00:08:59,080 --> 00:09:03,880 Speaker 3: pressure put on businesses to be transparent about their ESG policies. 186 00:09:04,160 --> 00:09:07,360 Speaker 3: I really welcome that, like I adore that people are 187 00:09:07,400 --> 00:09:12,040 Speaker 3: being held to what they are saying right Like historically, 188 00:09:12,120 --> 00:09:15,160 Speaker 3: I feel like a lot of businesses spoke or talked 189 00:09:15,160 --> 00:09:17,079 Speaker 3: to the talk, but didn't walk the walk. And now 190 00:09:17,120 --> 00:09:19,920 Speaker 3: people are being held accountable, and like that increase in 191 00:09:20,000 --> 00:09:24,000 Speaker 3: transparency is not just coming from I guess the ASX, 192 00:09:24,000 --> 00:09:27,160 Speaker 3: but platforms like Chase's who are you know deciphering that 193 00:09:27,240 --> 00:09:31,120 Speaker 3: information for people who aren't investing professionals to be able 194 00:09:31,160 --> 00:09:33,079 Speaker 3: to absorb, and they're the ones that are going to 195 00:09:33,120 --> 00:09:35,960 Speaker 3: hold them accountable because while we might be investing tiny 196 00:09:35,960 --> 00:09:38,000 Speaker 3: amounts along the way, we. 197 00:09:38,080 --> 00:09:40,040 Speaker 2: Have a lot of power on mass. 198 00:09:40,040 --> 00:09:43,800 Speaker 3: So I think that's really good for us, but also 199 00:09:43,880 --> 00:09:45,600 Speaker 3: nice to see they're being more responsible. 200 00:09:45,679 --> 00:09:47,640 Speaker 1: It's really that rise of the stakeholder, right. 201 00:09:47,800 --> 00:09:51,160 Speaker 3: I don't think anyone really took that seriously until when 202 00:09:51,240 --> 00:09:54,240 Speaker 3: Game Stop happened. And I feel like when Game Stop 203 00:09:54,320 --> 00:09:59,160 Speaker 3: happened and the rise of the minority investor really showed 204 00:09:59,160 --> 00:10:04,439 Speaker 3: its power, investing companies and organizations had to really go wow, 205 00:10:04,840 --> 00:10:08,680 Speaker 3: Like we didn't think that people with minor investments in 206 00:10:08,720 --> 00:10:10,640 Speaker 3: our business would have that much powered and. 207 00:10:10,640 --> 00:10:14,280 Speaker 1: I think like, yeah, I think people as well, Like 208 00:10:14,320 --> 00:10:16,280 Speaker 1: what it is showing is like there is a lot 209 00:10:16,280 --> 00:10:20,560 Speaker 1: of engagement, and it's a group that should be engaged 210 00:10:20,600 --> 00:10:21,600 Speaker 1: and unlocks. 211 00:10:21,240 --> 00:10:22,760 Speaker 2: A lot of potential when it is engaged. 212 00:10:22,800 --> 00:10:24,880 Speaker 1: Really well, you know, when we started ches Is, there 213 00:10:25,000 --> 00:10:27,640 Speaker 1: was this idea that people weren't engaged, didn't want to 214 00:10:27,679 --> 00:10:30,640 Speaker 1: be engaged. And I think that over time you show 215 00:10:30,720 --> 00:10:33,880 Speaker 1: actually people are people find this really interesting and want. 216 00:10:33,679 --> 00:10:35,959 Speaker 3: To be engaged and like we've been jumping up in 217 00:10:36,040 --> 00:10:38,400 Speaker 3: data out there for a really long time, sonya, and 218 00:10:38,400 --> 00:10:41,679 Speaker 3: finally they're hearing us, and that's really exciting, Like listen 219 00:10:41,760 --> 00:10:42,120 Speaker 3: to us. 220 00:10:42,120 --> 00:10:44,760 Speaker 2: Investing is cool now. 221 00:10:45,040 --> 00:10:47,360 Speaker 1: I think like so much has changed. You're right around 222 00:10:47,400 --> 00:10:49,440 Speaker 1: like the experience and what we expect, and I think 223 00:10:49,520 --> 00:10:52,680 Speaker 1: it is, you know, democratizing access to information. You know, 224 00:10:52,760 --> 00:10:55,920 Speaker 1: that's what you know. Yeah, you're so right. The channels 225 00:10:55,920 --> 00:10:57,440 Speaker 1: are there to be able to do that. So if 226 00:10:57,440 --> 00:11:01,080 Speaker 1: we kind of flip now into say more investing in general, 227 00:11:02,000 --> 00:11:05,640 Speaker 1: what are some common misconceptions about investing? 228 00:11:06,360 --> 00:11:08,880 Speaker 3: So I would say, first thing, you need to be 229 00:11:09,000 --> 00:11:11,560 Speaker 3: wealthy to be able to invest is the number one 230 00:11:12,320 --> 00:11:14,840 Speaker 3: thing that I still see in my community. I feel 231 00:11:14,840 --> 00:11:17,640 Speaker 3: like I'm a broken record, and obviously you guys would 232 00:11:17,640 --> 00:11:19,920 Speaker 3: be the same. But when you're a retail investor, I 233 00:11:19,960 --> 00:11:22,600 Speaker 3: feel like so many people go, oh, I can't start 234 00:11:22,600 --> 00:11:25,480 Speaker 3: investing because I'm not wealthy enough or I don't have 235 00:11:25,920 --> 00:11:28,440 Speaker 3: enough money yet, And I think that it's kind of 236 00:11:28,520 --> 00:11:32,240 Speaker 3: like I've akin to this to like learning on the job. 237 00:11:32,400 --> 00:11:34,840 Speaker 3: So you go to university for years, right, and then 238 00:11:35,120 --> 00:11:39,280 Speaker 3: you finally graduate and you get so annoyed because you 239 00:11:39,480 --> 00:11:42,000 Speaker 3: learned so much more on the job in the first 240 00:11:42,080 --> 00:11:44,600 Speaker 3: three months and you haven't even finished probation yet than 241 00:11:44,640 --> 00:11:47,000 Speaker 3: you did in the whole time you're at university. And 242 00:11:47,040 --> 00:11:50,400 Speaker 3: I think that's investing in a nutshell. You can do 243 00:11:50,520 --> 00:11:53,520 Speaker 3: so much research. You can listen to every podcast, you 244 00:11:53,600 --> 00:11:58,040 Speaker 3: can absorb every single written piece of content, but you're 245 00:11:58,080 --> 00:12:00,320 Speaker 3: going to learn the most when you put yourself into 246 00:12:00,320 --> 00:12:04,120 Speaker 3: the market. For me, that tangible experience where you've got 247 00:12:04,120 --> 00:12:05,760 Speaker 3: some skin in the game is going to teach you 248 00:12:05,800 --> 00:12:09,000 Speaker 3: a lot more than you reading up on how to 249 00:12:09,200 --> 00:12:11,800 Speaker 3: you know, do an in species transfer. So I would 250 00:12:11,800 --> 00:12:14,880 Speaker 3: say not being in a position to invest, because the 251 00:12:14,920 --> 00:12:18,320 Speaker 3: assumption is you need to be contributing massive amounts each 252 00:12:18,320 --> 00:12:21,840 Speaker 3: and every single month or you know you are still 253 00:12:21,880 --> 00:12:25,280 Speaker 3: in debt. That's probably another big one. I see a 254 00:12:25,320 --> 00:12:27,760 Speaker 3: lot of my community asking the question of like, should 255 00:12:27,760 --> 00:12:29,839 Speaker 3: I invest if I'm in debt? And I mean as 256 00:12:29,880 --> 00:12:33,000 Speaker 3: a blanket response, no, At the end of the day, 257 00:12:33,040 --> 00:12:36,360 Speaker 3: you shouldn't be investing significantly if you have a heap 258 00:12:36,400 --> 00:12:40,720 Speaker 3: of personal debt. But when we talk about debt, we 259 00:12:40,800 --> 00:12:42,960 Speaker 3: need to decipher whether it's good debt or bad debt. 260 00:12:43,160 --> 00:12:46,360 Speaker 3: Good debt is good debt is helping you create wealth. 261 00:12:46,440 --> 00:12:49,440 Speaker 3: So for me, that's things like your mortgage or a 262 00:12:49,520 --> 00:12:52,720 Speaker 3: loan that you've got for a business, whereas bad debt 263 00:12:52,760 --> 00:12:55,880 Speaker 3: it's consumer debt. It's things where you've spent the money, sonya, 264 00:12:55,920 --> 00:12:58,120 Speaker 3: and you've got literally nothing to show for it except 265 00:12:58,120 --> 00:12:58,960 Speaker 3: some good memories. 266 00:12:59,200 --> 00:12:59,960 Speaker 2: And like, don't get me. 267 00:13:00,160 --> 00:13:02,880 Speaker 3: Wrong, I used to do that. I was the victim 268 00:13:03,040 --> 00:13:06,880 Speaker 3: of a personal loan. But so many people go, well, 269 00:13:06,960 --> 00:13:10,200 Speaker 3: I can't touch an investment until I've paid that debt 270 00:13:10,240 --> 00:13:13,559 Speaker 3: down and that's gonna be another seven years. That doesn't 271 00:13:13,600 --> 00:13:16,559 Speaker 3: mean you can't invest on the side, little bits so 272 00:13:16,559 --> 00:13:20,040 Speaker 3: that you're giving yourself that financial literacy and you're learning 273 00:13:20,120 --> 00:13:23,199 Speaker 3: on the go, and you're feeling empowered because they think 274 00:13:23,240 --> 00:13:25,679 Speaker 3: that when we're paying down debt, often we can crucify 275 00:13:25,720 --> 00:13:28,160 Speaker 3: ourselves the whole time and be like, I'm the worst. 276 00:13:28,200 --> 00:13:31,240 Speaker 3: I can't believe I've gotten myself into this position. But 277 00:13:31,679 --> 00:13:33,640 Speaker 3: if you're doing a little bit of an investment on 278 00:13:33,679 --> 00:13:35,319 Speaker 3: the side, maybe you're doing like ten dollars a month, 279 00:13:35,360 --> 00:13:38,600 Speaker 3: We're not talking like hundreds here, because your debt. 280 00:13:38,440 --> 00:13:39,520 Speaker 2: Should be your priority. 281 00:13:39,840 --> 00:13:42,200 Speaker 3: Like you're proving to yourself you have the capacity to 282 00:13:42,280 --> 00:13:46,000 Speaker 3: save that amount. Let's turn that into a benefit for 283 00:13:46,120 --> 00:13:48,920 Speaker 3: future you instead of going I can't do anything along 284 00:13:48,920 --> 00:13:49,280 Speaker 3: the way. 285 00:13:49,760 --> 00:13:52,240 Speaker 1: And it's true, you do like that experience. Sometimes you 286 00:13:52,280 --> 00:13:54,880 Speaker 1: can only just get there through doing it. I'll say, 287 00:13:54,920 --> 00:13:58,000 Speaker 1: like differently, have picked up some great listens through that. 288 00:13:58,480 --> 00:14:01,719 Speaker 3: You're just gonna learn on the job, right, like it right, 289 00:14:01,720 --> 00:14:05,040 Speaker 3: it's down now, Like we're all just learning and growing. 290 00:14:05,320 --> 00:14:08,040 Speaker 3: And I think that a lot of people outside of 291 00:14:08,040 --> 00:14:11,679 Speaker 3: this investing conversation crucify themselves for being in debt and 292 00:14:11,679 --> 00:14:14,680 Speaker 3: then label themselves as being bad with money or not 293 00:14:14,800 --> 00:14:17,960 Speaker 3: good with money, when in reality, sonya, you just spent 294 00:14:18,040 --> 00:14:20,640 Speaker 3: more than you weren't. That's actually really easy to fix. 295 00:14:20,720 --> 00:14:22,880 Speaker 3: We don't need to talk about our past mistakes and 296 00:14:22,920 --> 00:14:25,480 Speaker 3: crucify ourselves. It's just draw line in the sand and 297 00:14:25,520 --> 00:14:27,800 Speaker 3: be like, did you want to do something different? We 298 00:14:27,880 --> 00:14:31,320 Speaker 3: can like that's completely within your power. 299 00:14:31,640 --> 00:14:33,040 Speaker 2: And I think that's really exciting. 300 00:14:33,160 --> 00:14:35,680 Speaker 1: Yeah, and I like the idea of like really struggle 301 00:14:35,720 --> 00:14:37,720 Speaker 1: with like getting something wrong. It's like there's really no 302 00:14:37,840 --> 00:14:39,840 Speaker 1: right on wrong. You just got to kind of keep 303 00:14:40,080 --> 00:14:41,080 Speaker 1: going through it or it. 304 00:14:41,600 --> 00:14:44,200 Speaker 3: I'm a bit fluffy that way too. I always say 305 00:14:44,200 --> 00:14:46,720 Speaker 3: to my team there are no mistakes. They're either blessings 306 00:14:46,800 --> 00:14:49,040 Speaker 3: or lessons, like it's one or the other. 307 00:14:49,560 --> 00:14:52,840 Speaker 1: So you know, now that people know you can just 308 00:14:53,200 --> 00:14:55,280 Speaker 1: enviss with what you can afford, and it's not about 309 00:14:55,600 --> 00:14:59,120 Speaker 1: necessarily just one thing and you can you know, it's 310 00:14:59,160 --> 00:15:02,560 Speaker 1: about considering a broader your broader picture with money. Like 311 00:15:02,640 --> 00:15:05,680 Speaker 1: we have over eight thousand investments on sheers Ease, and. 312 00:15:05,600 --> 00:15:08,320 Speaker 3: You okay, that's just a little bit of a flex. 313 00:15:08,520 --> 00:15:11,080 Speaker 1: I know that one of the common questions where you're 314 00:15:11,120 --> 00:15:12,560 Speaker 1: asked is what should I invest in? 315 00:15:13,640 --> 00:15:16,960 Speaker 3: I hate that question, Sonya that if beef over you, 316 00:15:17,040 --> 00:15:17,680 Speaker 3: you know, if we. 317 00:15:17,680 --> 00:15:20,480 Speaker 1: Kind of pivot that question into you know, how how 318 00:15:20,520 --> 00:15:23,360 Speaker 1: should people consider that feeling of being overwhelmed when it 319 00:15:23,360 --> 00:15:24,720 Speaker 1: comes to investing. 320 00:15:24,800 --> 00:15:27,480 Speaker 3: I feel like, I feel like it's a really good question, 321 00:15:27,600 --> 00:15:29,640 Speaker 3: like what should I invest in? I'm so glad you 322 00:15:29,680 --> 00:15:33,400 Speaker 3: asked genuinely, because if you're asking what I should invest in, 323 00:15:33,840 --> 00:15:36,400 Speaker 3: like you might be ready to invest, and that's an 324 00:15:36,440 --> 00:15:41,080 Speaker 3: exciting position to be in. But I can't legally tell you, hey, Sonia, 325 00:15:41,200 --> 00:15:45,000 Speaker 3: go buy abcd ETF because it's the best, because that 326 00:15:45,080 --> 00:15:48,680 Speaker 3: would be wildly irresponsible, not only from a licensing perspective, 327 00:15:48,920 --> 00:15:51,520 Speaker 3: but that actually might not be the right fit for you. Like, 328 00:15:51,760 --> 00:15:54,760 Speaker 3: there is no one asset, and I mean, if a 329 00:15:54,840 --> 00:15:58,840 Speaker 3: business creates one asset that meets the criteria of absolutely everybody, 330 00:15:58,920 --> 00:16:02,200 Speaker 3: they're going to make trilli. But that is not what 331 00:16:02,280 --> 00:16:05,400 Speaker 3: the world is like, that's not how markets work. It's 332 00:16:05,920 --> 00:16:07,600 Speaker 3: you need to work that out on your own. 333 00:16:07,880 --> 00:16:09,880 Speaker 2: What are your goals? Why are you investing? Are you 334 00:16:09,920 --> 00:16:10,840 Speaker 2: investing for future? 335 00:16:10,880 --> 00:16:10,960 Speaker 1: You? 336 00:16:11,320 --> 00:16:13,560 Speaker 3: Are you investing because in seven to ten years you 337 00:16:13,560 --> 00:16:14,920 Speaker 3: want to buy a property and you kind of want 338 00:16:14,920 --> 00:16:17,000 Speaker 3: to get a little bit ahead on that goal. Are 339 00:16:17,040 --> 00:16:19,840 Speaker 3: you investing because you've got fomo with your friends, like 340 00:16:20,120 --> 00:16:23,320 Speaker 3: deeply understand why you want to invest? Because that why 341 00:16:23,480 --> 00:16:26,360 Speaker 3: is then going to tell me how? So then the 342 00:16:26,400 --> 00:16:28,480 Speaker 3: next thing you're going to do. I'm going to assume 343 00:16:28,480 --> 00:16:29,000 Speaker 3: you've done. 344 00:16:28,880 --> 00:16:30,160 Speaker 2: Your risk profile already. 345 00:16:30,200 --> 00:16:32,840 Speaker 3: Here, I'm assuming that this person is at the stage 346 00:16:32,840 --> 00:16:36,760 Speaker 3: where they've downloaded the Chas's app and then saying far 347 00:16:36,920 --> 00:16:39,160 Speaker 3: out Chazy's has grown a bit. They don't have six 348 00:16:39,200 --> 00:16:41,600 Speaker 3: ETFs anymore, They've got eight thousand options. 349 00:16:41,840 --> 00:16:42,600 Speaker 2: How do I pick? 350 00:16:43,040 --> 00:16:46,120 Speaker 3: The question I would then ask myself is do I 351 00:16:46,200 --> 00:16:48,480 Speaker 3: want to be a direct share investor? Or do I 352 00:16:48,520 --> 00:16:52,320 Speaker 3: want to own an exchange traded fund? Now, both of 353 00:16:52,360 --> 00:16:55,280 Speaker 3: these have their pros and cons. If you're going down 354 00:16:55,320 --> 00:16:58,520 Speaker 3: the route of having direct shares, that's a bit more 355 00:16:58,560 --> 00:17:02,080 Speaker 3: responsibility because you've got to make sure you're well diversified. 356 00:17:02,280 --> 00:17:04,679 Speaker 3: So you can't just go and purchase BHP and be 357 00:17:04,760 --> 00:17:08,240 Speaker 3: done with it, Whereas you're going to get instant diversification 358 00:17:08,680 --> 00:17:11,439 Speaker 3: from choosing an ETF. So we need to make that 359 00:17:11,520 --> 00:17:14,040 Speaker 3: decision of like, Okay, well maybe in the future I 360 00:17:14,119 --> 00:17:16,479 Speaker 3: might have both, so maybe you go, We'll be I'm 361 00:17:16,520 --> 00:17:20,480 Speaker 3: a first time investor, and that diversification thing it feels 362 00:17:20,480 --> 00:17:23,040 Speaker 3: really overwhelming, so maybe I do start with an exchange 363 00:17:23,080 --> 00:17:26,480 Speaker 3: traded fund. Fantastic, We've already wiped out a heap of 364 00:17:26,520 --> 00:17:29,560 Speaker 3: the market and now we're only looking at what exchange 365 00:17:29,600 --> 00:17:31,359 Speaker 3: traded funds you would like to invest in. 366 00:17:31,760 --> 00:17:33,879 Speaker 2: Then we're going to go back to our values. Does 367 00:17:33,960 --> 00:17:34,480 Speaker 2: it need to be. 368 00:17:34,480 --> 00:17:37,240 Speaker 3: An ethical fund? Do you want an ETF with only 369 00:17:37,280 --> 00:17:40,359 Speaker 3: women on the board? Do you just want tried and true, 370 00:17:40,720 --> 00:17:44,199 Speaker 3: something like a Vanguard ETF that you know lots and 371 00:17:44,240 --> 00:17:46,760 Speaker 3: lots of people use. That's going to make you feel 372 00:17:46,760 --> 00:17:50,560 Speaker 3: comfortable for your introduction to investing. What does that look like? 373 00:17:51,160 --> 00:17:55,399 Speaker 3: Are you somebody who just wants an ASX two hundred 374 00:17:55,400 --> 00:17:58,840 Speaker 3: index fund? Where that is that's an index fund that 375 00:17:58,880 --> 00:18:02,119 Speaker 3: basically takes the top two hundred companies in Australia, divides 376 00:18:02,160 --> 00:18:04,320 Speaker 3: your money across all of those, and you get the 377 00:18:04,359 --> 00:18:07,680 Speaker 3: average returns of the market. So I think it's about going, well, 378 00:18:07,680 --> 00:18:09,520 Speaker 3: which route do I want to go down? And then 379 00:18:09,560 --> 00:18:12,320 Speaker 3: once you're there, slowly whittling it down. It's like an 380 00:18:12,400 --> 00:18:15,320 Speaker 3: upside down triangle. We're making sure that we're starting really 381 00:18:15,359 --> 00:18:19,119 Speaker 3: broad and then we're starting really broad. And I promise 382 00:18:19,200 --> 00:18:22,000 Speaker 3: you if you keep doing this process of elimination and 383 00:18:22,040 --> 00:18:25,320 Speaker 3: going No, I do want an ETF. Okay, No, I 384 00:18:25,359 --> 00:18:27,720 Speaker 3: do want to make sure it's an ethical fund. No, 385 00:18:27,880 --> 00:18:30,800 Speaker 3: I do probably want one from the top five companies 386 00:18:30,800 --> 00:18:33,320 Speaker 3: in Australia. You're going to end up back where ches 387 00:18:33,440 --> 00:18:36,920 Speaker 3: is started with six options. In saying that I am 388 00:18:36,920 --> 00:18:39,879 Speaker 3: a victim of going through your app and just having 389 00:18:39,880 --> 00:18:42,200 Speaker 3: a bit of a look around. And I mean, I'm 390 00:18:42,240 --> 00:18:45,240 Speaker 3: not here to sell your app today, but the AI 391 00:18:45,400 --> 00:18:48,359 Speaker 3: tool that's pretty enough. DA Like the fact that you 392 00:18:48,400 --> 00:18:50,800 Speaker 3: can just type in what you're interested in and it's like, hey, 393 00:18:50,840 --> 00:18:54,280 Speaker 3: this might work, slagh like be for real, Like that 394 00:18:54,440 --> 00:18:58,920 Speaker 3: is actually so powerful because right now I can't even 395 00:18:58,920 --> 00:19:01,920 Speaker 3: Google that and get a clear response, whereas I can 396 00:19:01,920 --> 00:19:04,200 Speaker 3: look it up on your app and it will actually 397 00:19:04,280 --> 00:19:08,000 Speaker 3: give me legitimate options that are currently appearing on the ASX. 398 00:19:08,040 --> 00:19:10,320 Speaker 3: I feel like it's a really good educational tool. I 399 00:19:10,320 --> 00:19:12,320 Speaker 3: think people are going to assume that it's a search 400 00:19:12,359 --> 00:19:14,359 Speaker 3: and it will just spit out prout, but it doesn't. 401 00:19:14,680 --> 00:19:18,760 Speaker 1: So then coming back to getting information about your investments, 402 00:19:20,320 --> 00:19:23,359 Speaker 1: what's how should people do due diligence or what's what's 403 00:19:23,359 --> 00:19:24,960 Speaker 1: some ways of don some due diligence? 404 00:19:25,320 --> 00:19:27,159 Speaker 3: And I guess that's dotting all your eyes and crossing 405 00:19:27,200 --> 00:19:28,879 Speaker 3: all your t's to make sure that this is the 406 00:19:28,960 --> 00:19:31,680 Speaker 3: right investment for you. And I guess due diligence goes 407 00:19:31,760 --> 00:19:35,080 Speaker 3: in two parts. There's due diligence. Are they a legitimate company? 408 00:19:35,320 --> 00:19:37,440 Speaker 3: And that's quite easy to check, Like if they are 409 00:19:37,560 --> 00:19:40,440 Speaker 3: on the Shares's app, they're legit because they are listed 410 00:19:40,560 --> 00:19:43,680 Speaker 3: on the Australian Stock Exchange or literally all the other 411 00:19:43,720 --> 00:19:46,840 Speaker 3: stock exchanges you guys have access to. So that's a 412 00:19:46,960 --> 00:19:49,680 Speaker 3: very big tick because it means that they can ply 413 00:19:49,800 --> 00:19:53,520 Speaker 3: with a sick they you know, are the Australian securities 414 00:19:53,600 --> 00:19:55,760 Speaker 3: exchanges looked at them and been like, yeah, okay, that's 415 00:19:55,840 --> 00:20:00,200 Speaker 3: pretty good. But the flip side of due diligence is 416 00:20:00,400 --> 00:20:04,040 Speaker 3: for me, is this right for you? Like I think 417 00:20:04,080 --> 00:20:06,600 Speaker 3: a lot of the time we get caught up in 418 00:20:06,680 --> 00:20:10,440 Speaker 3: not just analysis paralysis over deep diving too much, but 419 00:20:10,480 --> 00:20:13,960 Speaker 3: also fomo Like your due diligence is always going to 420 00:20:14,000 --> 00:20:16,520 Speaker 3: go back to the type of investment strategy you have. 421 00:20:17,000 --> 00:20:20,480 Speaker 3: So are you a buy and hold type of investor? 422 00:20:20,640 --> 00:20:22,200 Speaker 3: Like if you're going to purchase a SHA so on 423 00:20:22,280 --> 00:20:24,119 Speaker 3: your I mean, I don't know why I'm telling you 424 00:20:24,160 --> 00:20:25,800 Speaker 3: this because like you're going to know it better than me, 425 00:20:25,920 --> 00:20:28,719 Speaker 3: But is your plan to purchase the share hold it 426 00:20:28,760 --> 00:20:31,520 Speaker 3: over the long term and benefit from the dividends and 427 00:20:31,560 --> 00:20:34,520 Speaker 3: the ongoing growth of that share, or are you purchasing 428 00:20:34,560 --> 00:20:36,560 Speaker 3: that to kind of like flip it, Like you know 429 00:20:36,560 --> 00:20:38,919 Speaker 3: how people flip houses, They renovate them, they make more 430 00:20:38,960 --> 00:20:40,960 Speaker 3: money in twelve months, they sell it, they move on. 431 00:20:41,480 --> 00:20:44,840 Speaker 3: Some people purchase shares in order to get that upside. 432 00:20:45,160 --> 00:20:47,760 Speaker 3: That share might not pay any dividends, but they know 433 00:20:47,880 --> 00:20:51,359 Speaker 3: that over time it would increase significantly in value. Like 434 00:20:51,400 --> 00:20:54,840 Speaker 3: that's called value investing. Whereas I'm not a value investor, 435 00:20:54,960 --> 00:20:57,159 Speaker 3: I can't pick it. If I could time the market, 436 00:20:57,240 --> 00:21:00,200 Speaker 3: if I could predict what stocks are going to be doing, well, 437 00:21:00,440 --> 00:21:03,480 Speaker 3: Baba wouldn't be on this podcast. I'd be in the Bahamas, 438 00:21:03,600 --> 00:21:06,000 Speaker 3: like I'd be living my best life. Call me Warren 439 00:21:06,000 --> 00:21:09,040 Speaker 3: Buffett like I would not, And I can't do that. 440 00:21:09,440 --> 00:21:11,320 Speaker 3: So I think we need to work out what our 441 00:21:11,720 --> 00:21:15,399 Speaker 3: investing strategy is to then kind of reverse engineer it 442 00:21:15,440 --> 00:21:17,520 Speaker 3: and go, well, what does due diligence look like for me? 443 00:21:18,600 --> 00:21:21,040 Speaker 3: So for me, due diligence is about making sure it's 444 00:21:21,080 --> 00:21:22,639 Speaker 3: right for you, but then also making sure it's a 445 00:21:22,720 --> 00:21:25,800 Speaker 3: legitimate investment. Here in Australia, same goes for like New 446 00:21:25,880 --> 00:21:30,159 Speaker 3: Zealand and every other stock exchange, but I would literally go, well, 447 00:21:30,720 --> 00:21:32,800 Speaker 3: is this a company that I want to be involved in? 448 00:21:33,200 --> 00:21:36,320 Speaker 1: Say people are ready to live a lot out, they've 449 00:21:36,320 --> 00:21:39,040 Speaker 1: been envesting for a week, while how do people go 450 00:21:39,119 --> 00:21:42,080 Speaker 1: about getting more knowledge or liveling up? 451 00:21:42,280 --> 00:21:46,199 Speaker 3: There is so much free content online. You don't need 452 00:21:46,240 --> 00:21:48,720 Speaker 3: to go to university to learn about this. There is podcasts. 453 00:21:48,760 --> 00:21:52,040 Speaker 3: If you're not an audio learner, you can read books. 454 00:21:52,080 --> 00:21:54,640 Speaker 2: There is a plethora of books on the market. 455 00:21:54,880 --> 00:21:57,879 Speaker 3: If you aren't like that, you can watch this podcast 456 00:21:57,960 --> 00:22:01,760 Speaker 3: on YouTube. You can watch video. You can literally absorb 457 00:22:01,960 --> 00:22:04,879 Speaker 3: so much content, like what community can I join? That 458 00:22:04,960 --> 00:22:07,639 Speaker 3: kind of perpetuates that and keeps it moving so that 459 00:22:08,000 --> 00:22:10,679 Speaker 3: it doesn't become stale or stagnant. Like do you have 460 00:22:10,720 --> 00:22:12,760 Speaker 3: a friend that might be on a similar savings or 461 00:22:12,800 --> 00:22:15,240 Speaker 3: investment journey where you could have like little monthly check 462 00:22:15,280 --> 00:22:17,280 Speaker 3: ins with them. Doesn't have to be your partner to 463 00:22:17,280 --> 00:22:18,280 Speaker 3: do money check ins. 464 00:22:18,400 --> 00:22:21,439 Speaker 1: You know, when you talk about liveling up, you know, 465 00:22:21,520 --> 00:22:26,240 Speaker 1: it's kind of like I think the community angle as 466 00:22:26,280 --> 00:22:28,359 Speaker 1: a way of leveling up, I think was a really 467 00:22:28,480 --> 00:22:32,320 Speaker 1: unique and I think an actually really effective way by 468 00:22:32,560 --> 00:22:33,240 Speaker 1: leveling up. 469 00:22:33,320 --> 00:22:35,800 Speaker 2: Because I'm obsessed with my community. 470 00:22:35,480 --> 00:22:38,000 Speaker 1: But I think it's so true. We know that that's 471 00:22:38,000 --> 00:22:40,000 Speaker 1: actually what helps us in other areas of our life, 472 00:22:40,000 --> 00:22:43,840 Speaker 1: and money is the same. Like the ingredients that go 473 00:22:43,880 --> 00:22:46,119 Speaker 1: into making really good habits and other areas of your 474 00:22:46,160 --> 00:22:49,080 Speaker 1: life are also helps you with money. So love that 475 00:22:49,200 --> 00:22:49,920 Speaker 1: as a liver up. 476 00:22:50,000 --> 00:22:52,560 Speaker 3: But it's true, like, if you're not ready to publicly 477 00:22:52,960 --> 00:22:53,920 Speaker 3: talk about. 478 00:22:53,680 --> 00:22:55,600 Speaker 2: You know, a debt is a massive one. 479 00:22:55,840 --> 00:22:57,919 Speaker 3: People carry a lot of shame around that, and they 480 00:22:57,920 --> 00:23:00,359 Speaker 3: shouldn't because at the end of the day, you didn't 481 00:23:00,359 --> 00:23:03,080 Speaker 3: have the tools and resources that you have today. And 482 00:23:03,920 --> 00:23:06,000 Speaker 3: if you're not ready to talk about that, that's so fine. 483 00:23:06,040 --> 00:23:08,199 Speaker 3: But look how much content and a community you can 484 00:23:08,280 --> 00:23:11,000 Speaker 3: engage in without having to share your personal details. 485 00:23:11,080 --> 00:23:14,720 Speaker 1: The other one is like where you think people think 486 00:23:14,760 --> 00:23:16,480 Speaker 1: you should be better than you are, so you're kind 487 00:23:16,480 --> 00:23:18,359 Speaker 1: of not willing to admit that you're not. 488 00:23:19,119 --> 00:23:22,320 Speaker 3: Kind of Oh, I'm the first finance professional. I promise 489 00:23:22,400 --> 00:23:24,600 Speaker 3: you that will tell you do as I say, not 490 00:23:24,680 --> 00:23:27,040 Speaker 3: as I do. I know a lot of stuff I 491 00:23:27,040 --> 00:23:30,440 Speaker 3: would say, I'm very smart, but come to personal finances, 492 00:23:30,600 --> 00:23:32,160 Speaker 3: could you please not look. 493 00:23:32,080 --> 00:23:36,800 Speaker 1: So we've talked a bit about diversification, yes, what how 494 00:23:36,840 --> 00:23:39,119 Speaker 1: do people make sure they are truly diversified, what does 495 00:23:39,160 --> 00:23:40,040 Speaker 1: it even mean. 496 00:23:40,680 --> 00:23:44,919 Speaker 3: Diversification in its most simple form, I suppose is just 497 00:23:45,040 --> 00:23:47,040 Speaker 3: making sure that you don't have all your eggs in 498 00:23:47,080 --> 00:23:50,840 Speaker 3: one basket. Like that's the most common example, right that 499 00:23:50,880 --> 00:23:55,240 Speaker 3: our industry uses, and it's not it's going to mean 500 00:23:55,240 --> 00:23:57,919 Speaker 3: something different to other people. Like if you are talking 501 00:23:57,960 --> 00:24:02,240 Speaker 3: about diversification and you're a direction share investor. Historically, when 502 00:24:02,280 --> 00:24:05,840 Speaker 3: I was putting together direct share portfolios for people, we 503 00:24:05,920 --> 00:24:08,840 Speaker 3: would have between seven and maybe twelve shares, and like 504 00:24:08,880 --> 00:24:12,120 Speaker 3: twelve felt like a lot in that but every single 505 00:24:12,400 --> 00:24:15,760 Speaker 3: share that they held was in a different industry, and 506 00:24:15,840 --> 00:24:18,800 Speaker 3: we would, you know, hold maybe one that's probably a lie. 507 00:24:18,840 --> 00:24:21,360 Speaker 3: We maybe hold two banks, like one or two banks 508 00:24:21,640 --> 00:24:24,080 Speaker 3: and see what was going on. We'd never hold all 509 00:24:24,119 --> 00:24:26,000 Speaker 3: of them, but we'd make a decision at the time 510 00:24:26,040 --> 00:24:29,520 Speaker 3: of investing as to which bank in that sector was 511 00:24:29,680 --> 00:24:32,200 Speaker 3: performing well enough and was a good investment and wasn't 512 00:24:32,240 --> 00:24:36,360 Speaker 3: overvalued or underperforming or whatnot to put it into their portfolio. 513 00:24:36,640 --> 00:24:42,359 Speaker 3: So diversification in that aspect is something that you have 514 00:24:42,480 --> 00:24:46,959 Speaker 3: to manage ongoing, whereas diversification can be instant, Like in 515 00:24:47,000 --> 00:24:50,600 Speaker 3: that situation, these people that I was putting portfolios together, 516 00:24:50,680 --> 00:24:53,879 Speaker 3: for they were paying a lot of money to have 517 00:24:54,040 --> 00:24:57,119 Speaker 3: me manage those portfolios on a monthly basis, and I 518 00:24:57,160 --> 00:24:59,919 Speaker 3: mean every three months, I'd go in and make adjustment 519 00:25:00,160 --> 00:25:02,880 Speaker 3: and you know, take some profit off some and put 520 00:25:02,880 --> 00:25:05,399 Speaker 3: it back into another one, because you know, you wanted 521 00:25:05,440 --> 00:25:08,240 Speaker 3: to make sure that you always were consistent and met 522 00:25:08,240 --> 00:25:11,840 Speaker 3: their risk profile as well. But on the flip side, 523 00:25:12,080 --> 00:25:15,560 Speaker 3: we talk about instant diversification inside an ETF, and that's 524 00:25:15,560 --> 00:25:18,560 Speaker 3: because you've got a portfolio manager or a fund manager 525 00:25:18,920 --> 00:25:22,800 Speaker 3: making sure that everything inside that asset that you're purchasing 526 00:25:22,880 --> 00:25:26,280 Speaker 3: is okay and looked after. But essentially it's making sure 527 00:25:26,840 --> 00:25:30,399 Speaker 3: that if one industry is not doing so well, another is. 528 00:25:30,760 --> 00:25:34,159 Speaker 3: Like if you've got twelve different investments and over that 529 00:25:34,400 --> 00:25:38,520 Speaker 3: twelve one is actually down like thirty percent, that's terrifying. 530 00:25:38,840 --> 00:25:40,760 Speaker 3: Like if you said to me, hey, Ve, would you 531 00:25:40,760 --> 00:25:44,399 Speaker 3: be comfortable with your portfolio being down thirty percent? Be like, 532 00:25:44,440 --> 00:25:46,399 Speaker 3: absolutely not, sonya not willing to. 533 00:25:46,440 --> 00:25:47,119 Speaker 2: Take the risk. 534 00:25:47,480 --> 00:25:50,320 Speaker 3: But last year, if I look at my share portfolio, 535 00:25:50,640 --> 00:25:54,320 Speaker 3: there was an asset in my portfolio that returned negative 536 00:25:54,320 --> 00:25:55,680 Speaker 3: thirty two percent. 537 00:25:56,280 --> 00:25:57,320 Speaker 2: It made me feel sick. 538 00:25:57,840 --> 00:26:00,400 Speaker 3: But if I look at my portfolio as a whole 539 00:26:00,520 --> 00:26:01,480 Speaker 3: because everything. 540 00:26:01,240 --> 00:26:02,400 Speaker 2: Else kind of held it up. 541 00:26:02,680 --> 00:26:05,400 Speaker 3: My portfolio returned about fourteen and a half percent, which 542 00:26:05,440 --> 00:26:09,320 Speaker 3: is very sexy, but that means that I wasn't all 543 00:26:09,320 --> 00:26:11,880 Speaker 3: in on one asset. So if one's doing really well, 544 00:26:12,000 --> 00:26:15,719 Speaker 3: something else is usually just slugging along. But that's the 545 00:26:15,760 --> 00:26:20,280 Speaker 3: beauty of diversification. My personal wealth and my wealth creation 546 00:26:20,520 --> 00:26:23,920 Speaker 3: journey was not impacted by the performance of that one share. 547 00:26:24,160 --> 00:26:25,800 Speaker 3: So we need to make sure that not all our 548 00:26:25,840 --> 00:26:27,720 Speaker 3: eggs are in one basket, because if you trip over, 549 00:26:28,080 --> 00:26:29,880 Speaker 3: you've broken all your eggs. 550 00:26:30,880 --> 00:26:35,520 Speaker 1: And so, once you have built this investment portfolio and 551 00:26:35,520 --> 00:26:39,600 Speaker 1: it's taking along, it's not just you know, sit and 552 00:26:39,640 --> 00:26:40,280 Speaker 1: forget forever. 553 00:26:40,800 --> 00:26:42,000 Speaker 2: Oh that's annoying. 554 00:26:42,680 --> 00:26:45,520 Speaker 1: So you know, how do people you know, how should 555 00:26:45,520 --> 00:26:48,119 Speaker 1: people be checking in on their portfolio once it's running? 556 00:26:48,840 --> 00:26:51,240 Speaker 1: And as well, you know, how should people stay informed 557 00:26:51,400 --> 00:26:52,919 Speaker 1: about the things that are in the airport. 558 00:26:52,960 --> 00:26:56,399 Speaker 3: You've got the big questions today. I appreciate it. So 559 00:26:57,000 --> 00:27:00,399 Speaker 3: going back a little bit, this diversification is really important 560 00:27:00,480 --> 00:27:03,159 Speaker 3: for you, understand. So if you're a direct share investor 561 00:27:03,800 --> 00:27:06,399 Speaker 3: versus like an ETF investor, or even let's pretend you 562 00:27:06,400 --> 00:27:08,800 Speaker 3: have two ETFs, You've got an International ETF and you've 563 00:27:08,800 --> 00:27:13,160 Speaker 3: got an Australian ETF and maybe because of your risk profile, 564 00:27:13,200 --> 00:27:15,280 Speaker 3: which is essential for you to understand. And if you 565 00:27:15,320 --> 00:27:17,919 Speaker 3: don't understand your risk profile, there is so much content 566 00:27:17,960 --> 00:27:20,119 Speaker 3: on your website about it, like there are blogs. Do 567 00:27:20,119 --> 00:27:23,680 Speaker 3: you know how often I'm using your resources because I'm 568 00:27:23,720 --> 00:27:25,879 Speaker 3: too lazy to create my own that I send to 569 00:27:25,880 --> 00:27:27,840 Speaker 3: the sheese on the mining community when they dm us, 570 00:27:27,880 --> 00:27:29,520 Speaker 3: I'm like, oh, actually, shares this did a really good 571 00:27:29,560 --> 00:27:33,800 Speaker 3: blog on this. So it's really important to remember your 572 00:27:33,920 --> 00:27:37,199 Speaker 3: risk profile. So your risk profile, I was explaining it 573 00:27:37,240 --> 00:27:39,840 Speaker 3: earlier today to somebody. It's kind of like a pie 574 00:27:40,240 --> 00:27:42,439 Speaker 3: and you cut up your pie in different amounts and 575 00:27:42,480 --> 00:27:45,080 Speaker 3: some people say, I'm not that hungry, Victoria, I only 576 00:27:45,080 --> 00:27:47,119 Speaker 3: want a little bit of pie, or someone will be like, 577 00:27:47,160 --> 00:27:50,080 Speaker 3: I am ravenous, I need the whole thing. And that's 578 00:27:50,119 --> 00:27:52,919 Speaker 3: where your portfolio is going to differ from one person 579 00:27:52,960 --> 00:27:55,199 Speaker 3: to another. So if you're like a conservative person, you 580 00:27:55,280 --> 00:27:57,480 Speaker 3: probably asked for a small amount of pie and not 581 00:27:57,560 --> 00:28:00,840 Speaker 3: all of your assets are investor in the share market, 582 00:28:00,920 --> 00:28:02,879 Speaker 3: whereas if you are like me and pie is on 583 00:28:02,960 --> 00:28:05,320 Speaker 3: the table, like, most of my assets are in the 584 00:28:05,320 --> 00:28:08,119 Speaker 3: share market, So if most of my assets are in 585 00:28:08,119 --> 00:28:11,200 Speaker 3: the share market, and I know that of my portfolio, 586 00:28:11,800 --> 00:28:13,960 Speaker 3: let's say ninety five percent of my money is inside 587 00:28:14,000 --> 00:28:16,880 Speaker 3: the share market. Of that money, I would have then 588 00:28:16,920 --> 00:28:19,439 Speaker 3: broken it up. I would have then gone okay. So 589 00:28:19,720 --> 00:28:21,840 Speaker 3: some of it needs to be exposed to the Australian 590 00:28:21,880 --> 00:28:23,960 Speaker 3: share market and some of it needs to be exposed 591 00:28:24,000 --> 00:28:28,400 Speaker 3: to the international market. And let's pretend I've spent five 592 00:28:28,520 --> 00:28:31,080 Speaker 3: hundred dollars on an Australian ETF and five hundred dollars 593 00:28:31,119 --> 00:28:35,840 Speaker 3: on an international you cannot expect them to perform identically 594 00:28:35,960 --> 00:28:39,200 Speaker 3: over twelve months. So in twelve months time, we go 595 00:28:39,280 --> 00:28:41,920 Speaker 3: back and check, and let's pretend ones at seven hundred 596 00:28:41,960 --> 00:28:44,800 Speaker 3: and fifty dollars and ones at five hundred and fifty dollars. 597 00:28:45,120 --> 00:28:47,320 Speaker 3: At that point, we want to kind of rebalance our 598 00:28:47,320 --> 00:28:50,240 Speaker 3: portfolio and go, well, one did better. Should I take 599 00:28:50,320 --> 00:28:53,000 Speaker 3: some of the money off the table and redivide it 600 00:28:53,080 --> 00:28:54,440 Speaker 3: across my portfolio? 601 00:28:54,640 --> 00:28:55,040 Speaker 2: So I e. 602 00:28:55,240 --> 00:28:58,080 Speaker 3: We maybe sell down some of our Australian and put 603 00:28:58,120 --> 00:29:01,920 Speaker 3: it back into the international. Always maintain about fifty percent. 604 00:29:02,000 --> 00:29:05,000 Speaker 3: And this happens across the board. So even if you're 605 00:29:05,040 --> 00:29:08,320 Speaker 3: a direct share investor, you might do that across a 606 00:29:08,400 --> 00:29:11,520 Speaker 3: number of different options, and over time investments are going 607 00:29:11,600 --> 00:29:15,040 Speaker 3: to perform differently, So we need to make sure that 608 00:29:15,480 --> 00:29:18,080 Speaker 3: we kind of sell down something or maybe we the 609 00:29:18,120 --> 00:29:20,240 Speaker 3: next month tip a little bit more money into the 610 00:29:20,280 --> 00:29:23,240 Speaker 3: other one to get it back to that balance. And 611 00:29:23,240 --> 00:29:27,880 Speaker 3: that's where diversification is really really important. But also rebalancing 612 00:29:28,040 --> 00:29:30,920 Speaker 3: is going to mean that that diversification doesn't completely go 613 00:29:31,000 --> 00:29:31,640 Speaker 3: out of whack. 614 00:29:31,920 --> 00:29:36,040 Speaker 1: And so talking about diversification and how does property fit. 615 00:29:36,000 --> 00:29:40,120 Speaker 3: In property is something that is the great Australian dream 616 00:29:40,160 --> 00:29:42,320 Speaker 3: over here, right, I feel like New Zealand's not that 617 00:29:42,400 --> 00:29:46,960 Speaker 3: far yeah, Like we just have different accents but same values, right, 618 00:29:47,040 --> 00:29:49,120 Speaker 3: Like we all want to own our own home, and 619 00:29:49,240 --> 00:29:53,479 Speaker 3: it's getting further and further away from being the reality. 620 00:29:52,960 --> 00:29:53,720 Speaker 2: For most of us. 621 00:29:53,920 --> 00:29:57,400 Speaker 3: That's so important to highlight because they think so many 622 00:29:57,440 --> 00:30:00,400 Speaker 3: of us have our parents or our parents' parents telling 623 00:30:00,520 --> 00:30:02,560 Speaker 3: us like, why haven't you built property yet, Sonia, And 624 00:30:02,600 --> 00:30:05,320 Speaker 3: you're like, because I can't afford it. It's fourteen times 625 00:30:05,400 --> 00:30:07,760 Speaker 3: higher than my salary and when you purchased it was 626 00:30:07,800 --> 00:30:08,560 Speaker 3: four times. 627 00:30:08,960 --> 00:30:11,240 Speaker 2: So it feels further away. 628 00:30:11,520 --> 00:30:16,200 Speaker 3: But property does make up a really good part of 629 00:30:16,200 --> 00:30:19,320 Speaker 3: your portfolio. If that's what you want, now, that doesn't 630 00:30:19,320 --> 00:30:21,720 Speaker 3: necessarily mean you have to go and buy your family home. 631 00:30:22,280 --> 00:30:25,280 Speaker 3: And I've got a bit of a controversial opinion here, 632 00:30:25,320 --> 00:30:27,920 Speaker 3: and that is that your family home is not an investment. 633 00:30:28,360 --> 00:30:30,520 Speaker 3: And I don't believe that the home you live in 634 00:30:30,600 --> 00:30:35,880 Speaker 3: is an investment because in order to benefit from that investment, 635 00:30:35,960 --> 00:30:38,080 Speaker 3: you have to sell it. And most of us, if 636 00:30:38,120 --> 00:30:40,440 Speaker 3: you purchase your family home, Sonia, and you live in it, 637 00:30:40,800 --> 00:30:42,640 Speaker 3: like let's say you bring up a heap of kids 638 00:30:42,680 --> 00:30:45,160 Speaker 3: in it, and then you've retired and we're sitting on 639 00:30:45,200 --> 00:30:47,560 Speaker 3: the front doorstep reflecting on the fact that we have 640 00:30:47,600 --> 00:30:50,440 Speaker 3: two point five perfect children and we're still married in 641 00:30:50,440 --> 00:30:51,480 Speaker 3: our rocking chairs. 642 00:30:51,760 --> 00:30:52,800 Speaker 2: I don't want for. 643 00:30:52,840 --> 00:30:55,320 Speaker 3: You to be able to officially retire, for you to 644 00:30:55,320 --> 00:30:57,040 Speaker 3: have to get rid of that asset that holds so 645 00:30:57,080 --> 00:31:01,880 Speaker 3: many memories. Whereas if you have an investment property, that's 646 00:31:01,880 --> 00:31:04,120 Speaker 3: a different story. Like, even when it comes to picking 647 00:31:04,200 --> 00:31:07,800 Speaker 3: investment property, we are picking it based on returns and 648 00:31:07,960 --> 00:31:10,880 Speaker 3: location and potential growth. We're not picking it based on 649 00:31:10,920 --> 00:31:14,440 Speaker 3: love and how much you really like that like and 650 00:31:14,480 --> 00:31:17,040 Speaker 3: how much you really like that clawful bath tub, right, Like, 651 00:31:17,640 --> 00:31:20,200 Speaker 3: there are different values at play, but I think it's 652 00:31:20,200 --> 00:31:24,400 Speaker 3: also important to highlight that in the share market you 653 00:31:24,480 --> 00:31:27,720 Speaker 3: can invest inside property, or you can have exposure to 654 00:31:27,760 --> 00:31:30,400 Speaker 3: property in the share market through an ARIIT. So a 655 00:31:30,400 --> 00:31:34,120 Speaker 3: real estate investment trust is an asset a bit like 656 00:31:34,160 --> 00:31:37,960 Speaker 3: an ETF where they purchase read where where they purchase 657 00:31:38,000 --> 00:31:41,240 Speaker 3: real estate, and then the returns of that ARIIT which 658 00:31:41,280 --> 00:31:44,200 Speaker 3: you purchase just the same as an ETF, are from property. 659 00:31:44,400 --> 00:31:47,000 Speaker 3: So if you're not ready to purchase your first home, 660 00:31:47,160 --> 00:31:49,320 Speaker 3: or you just love the idea of property and you're 661 00:31:49,320 --> 00:31:51,360 Speaker 3: really passionate about it, and you go, well v I 662 00:31:51,480 --> 00:31:53,880 Speaker 3: like shares like a love property like I'd love to 663 00:31:53,920 --> 00:31:55,680 Speaker 3: have that, you can have it as a part of 664 00:31:55,720 --> 00:31:59,280 Speaker 3: your portfolio without having to be a landlord and pay 665 00:31:59,320 --> 00:32:00,880 Speaker 3: for the hot water us when it breaks. 666 00:32:01,040 --> 00:32:04,160 Speaker 1: We've gone all over the place today, covered so much 667 00:32:04,240 --> 00:32:04,920 Speaker 1: great stuff. 668 00:32:05,080 --> 00:32:05,960 Speaker 2: I feel like we've. 669 00:32:05,800 --> 00:32:08,440 Speaker 3: Been everywhere we've been around the investment world. 670 00:32:09,200 --> 00:32:10,240 Speaker 2: It's been a lot of fun. 671 00:32:10,480 --> 00:32:13,880 Speaker 1: Oh thanks Hets for joining us. So before we go 672 00:32:13,960 --> 00:32:16,760 Speaker 1: and wrap up today, it'd be great. We talked about 673 00:32:16,760 --> 00:32:19,120 Speaker 1: that AI search tool. If you want to go give 674 00:32:19,160 --> 00:32:21,920 Speaker 1: it a go. You can do that on the Sharesies platform. 675 00:32:22,320 --> 00:32:27,040 Speaker 1: Just log in, go to your where your investments are, 676 00:32:27,320 --> 00:32:30,320 Speaker 1: and you can go to investment portfolio AI search and 677 00:32:30,360 --> 00:32:33,200 Speaker 1: search whatever you want in your own words, have a 678 00:32:33,240 --> 00:32:37,200 Speaker 1: play around and see what comes back. Thanks again, Victoria 679 00:32:37,280 --> 00:32:37,960 Speaker 1: for joining. 680 00:32:37,800 --> 00:32:39,960 Speaker 2: Us, Thank you for having me sharing your. 681 00:32:39,920 --> 00:32:43,440 Speaker 1: Epic insights about the A six and also about just 682 00:32:43,560 --> 00:32:47,600 Speaker 1: investing in general. You can watch this on Shared Lunch 683 00:32:47,600 --> 00:32:50,800 Speaker 1: on YouTube, or follow on your favorite podcast app. Catch 684 00:32:50,840 --> 00:32:52,480 Speaker 1: you next time and have a great week. 685 00:32:52,640 --> 00:33:01,000 Speaker 3: See you