Speaker 1: Kyoda and welcome to this episode of Shared Lunch, which
Speaker 1: we're recording from Melbourne. I'm so excited.
Speaker 2: Welcome to my house.
Speaker 3: Sorry, I was meant to be introduced, but I just
Speaker 3: jumped Tridy in there.
Speaker 1: Yeah. Well, and we've joined by Victoria Divine from She's
Speaker 1: on the Money and we're going to be talking all
Speaker 1: things about investing misconceptions and as well about investing in
Speaker 1: the AX, which is the Australian Stock Exchange.
Speaker 4: Investing involves risk you might lose the money you start with.
Speaker 4: We recommend talking to a licensed financial advisor. We also
Speaker 4: recommend reading product disclosure documents before deciding to invest. Everything
Speaker 4: you're about to see and here is current at the
Speaker 4: time of recording.
Speaker 1: Before we get started, I'd like to acknowledge the traditional
Speaker 1: custodians of the land, water and sky where we're coming
Speaker 1: to you from today. There were reundery people of the
Speaker 1: Kulin nation and paying my respects to their elders past,
Speaker 1: present and emerging.
Speaker 2: I'm so excited about this.
Speaker 3: You've come to my house to talk about ourd and
Speaker 3: butter like, how lucky.
Speaker 1: Yeah, thanks for hosting us.
Speaker 2: Oh wait, I'm excited about this.
Speaker 3: I feel like it's going to be a good chat
Speaker 3: but also just a fun chat.
Speaker 5: Yeah.
Speaker 1: Well we both love and visiting, really do we?
Speaker 3: Who would have thought?
Speaker 1: And here we are now we can share that love,
Speaker 1: you know with everyone. You've been in the game, you know,
Speaker 1: in this world now for a.
Speaker 2: While, too long, too long? It's different all.
Speaker 1: What's changed about the investing environment since you trained as
Speaker 1: a financial advisor versus now?
Speaker 3: I feel like so much has changed. In fact, I'm
Speaker 3: probably a little bit guilty of holding on too much
Speaker 3: because the industry is changing so much. I mean, when
Speaker 3: I retired as an advisor, you guys weren't even in Australia.
Speaker 1: Wow, And how long ago would that have been.
Speaker 3: I retired in twenty twenty one officially and stopped doing
Speaker 3: advice back then, handed in my license the year after that.
Speaker 2: And I just feel like it's so much.
Speaker 3: More approachable now, it's so much more accessible. There's also
Speaker 3: a lot more competition in the market, not necessarily from
Speaker 3: different shares, but different platforms. And I feel like there's
Speaker 3: a lot of analysis paralysis from our community about.
Speaker 2: Who do we trust, what do we do, where do
Speaker 2: we go?
Speaker 3: But even the idea and I mean I'm on the
Speaker 3: Shares's podcast, so we're quite clearly fans of Shares's But
Speaker 3: like even just the concept of being able to invest
Speaker 3: with as little as one cent, like be for real,
Speaker 3: that was never something that I was able to talk about.
Speaker 3: And even when I started my investing journey, like you
Speaker 3: would be the same you've come out of, you know,
Speaker 3: actually legitimate big dog investing firms, and we used to
Speaker 3: talk about investments that I could have at the time
Speaker 3: only dreamed of being able to play with or be
Speaker 3: involved in. And I remember talking to clients about minimum
Speaker 3: investment amounts and there was this one fund that I
Speaker 3: was like, oh, that sounds so good, but like the
Speaker 3: minimum investment at the time was like twenty thousand dollars
Speaker 3: and I remember thinking, oh, that's not for me. But
Speaker 3: now I can have access to the same fund, and
Speaker 3: I do now because it was more me going I
Speaker 3: don't even want that. It's not even aligned to my
Speaker 3: strategy anymore, but I want to buy it because historically
Speaker 3: I thought I would never.
Speaker 1: That was strategy right when you're if you can only
Speaker 1: afford one.
Speaker 5: Investment, yeah, And I think that's diversification is different acually,
Speaker 5: like being able to spread, to have a really great
Speaker 5: investment pootfolio, no matter how much you're looking to invest.
Speaker 3: If you told me in like twenty seventeen that I
Speaker 3: listened to a finance podcast, I'd be like, what is
Speaker 3: it like? Market updates from Morning Star? Like I would
Speaker 3: have thought it would have been very technical and for
Speaker 3: industry only because that's what that content was like. And
Speaker 3: now it's this fun topic that everybody can get involved
Speaker 3: in and it empowers us.
Speaker 1: The updates thing is interesting because it's like, you definitely
Speaker 1: know it's like numbers, numbers, numbers, But the thing is
Speaker 1: is it like it's all the exciting stuff that goes
Speaker 1: on behind the numbers that's really interesting as an investor.
Speaker 1: And I talk about that being like, yes, my job's
Speaker 1: and finance, but my job is not my own personal finance.
Speaker 1: So you've still got to have interesting. It's still going
Speaker 1: to be interesting to right to want to do it
Speaker 1: one hundred percent day job.
Speaker 2: One hundred percent.
Speaker 3: And I feel like we have learned and I mean,
Speaker 3: I feel like I've been passionate about this for a
Speaker 3: long time, but I feel like the market and everyone
Speaker 3: is catching up with this concept that money is inherently
Speaker 3: psychological and so because of that so many more people
Speaker 3: are connecting in with this finance concept that they've previously
Speaker 3: buried their heads in the sand about because it was
Speaker 3: overwhelming and I'm not good at budgeting and I'm not
Speaker 3: smart enough or good enough or whatnot, and like that's
Speaker 3: actually not true, and that's not the narrative, Like it's
Speaker 3: how you feel, it's your money story and all of
Speaker 3: that stuff that I'm passionate about. But yeah, the world
Speaker 3: has changed, but I think it's for the better. I
Speaker 3: would say when it comes to people taking charge of
Speaker 3: their investment journeys, it's one hundred percent positive.
Speaker 1: So quite a big culture shift then, like happened in
Speaker 1: that time around like more you know, more financial behavior,
Speaker 1: like bringing that in those good kind of habits, accessibility
Speaker 1: becoming more mainstream, just the richness of content now that
Speaker 1: we can all get access to. What about when it
Speaker 1: comes to like investing products and what's available.
Speaker 3: I would have lost my mind, Sonia if even like
Speaker 3: three years ago you'd told me you'd be able to
Speaker 3: buy cryptocurrencies on the ASEX before real like that to
Speaker 3: me is mind blowing. In fact, cryptocurrencies for me was
Speaker 3: something that I discussed with my finance friends because we
Speaker 3: were really nerdy and used to read Reddit threads like
Speaker 3: that was not something that I ever thought would become
Speaker 3: part of the mainstream conversation. And I mean here in Australia,
Speaker 3: cryptocurrencies are not a recognized financial asset, which, to be honest,
Speaker 3: I think we're probably headed that way because for me,
Speaker 3: whilst I've been quite public about not adoring cryptocurrencies because
Speaker 3: I feel like the risk is too much and it
Speaker 3: does blow my mind that so many people are willing
Speaker 3: to go so oh I invest in crypto, but the
Speaker 3: share market is too overwhelming. That's clearly an education piece,
Speaker 3: not necessarily the truth. And I think that when we
Speaker 3: have these conversations about cryptocurrencies, people are confused because they say,
Speaker 3: be like, you don't like crypto, why would you want
Speaker 3: it to be recognized.
Speaker 2: I want it to be recognized, sonya.
Speaker 3: So it's regulated so that if that's your interest, you're
Speaker 3: protected in that space.
Speaker 2: So historically, I used to.
Speaker 3: Work in a space where we were working with ultra
Speaker 3: high net wealth individuals and so I worked in a
Speaker 3: position where I had exposure. I think you could say
Speaker 3: to a lot of self managed super funds. So here
Speaker 3: in Australia, we have what's called a self managed superannuation fund.
Speaker 3: So for us that was always like kind of reserved
Speaker 3: for the really rich, and for me at the time,
Speaker 3: I was envious because of the control that you had
Speaker 3: so people could pick literally any type of asset. Now
Speaker 3: that control we have now and we can invest in
Speaker 3: literally anything we want without having to go down this
Speaker 3: very complicated self managed route. So I don't know, just
Speaker 3: this idea that things are not only more accessible, just
Speaker 3: more fun, and like, how cool is it that we
Speaker 3: have so much control over our own futures and.
Speaker 2: What we set up today.
Speaker 3: It doesn't have to be the same as tomorrow or
Speaker 3: even in fifteen years, but it does count towards future
Speaker 3: us being in the best possible position. I think that's
Speaker 3: like low key.
Speaker 2: Really sexy.
Speaker 1: I agreed. So, now, if we look at the A
Speaker 1: six itself, what are some of the emergent emerging sectors?
Speaker 1: We see like lots of mining, lots of banking, but
Speaker 1: there's also a lot more going on. Can you tell
Speaker 1: us about some other parts of the AX that are.
Speaker 2: So the AX?
Speaker 3: I don't know, it's pretty special because it's like our
Speaker 3: little island. We are very big in mining, we are
Speaker 3: very big in emerging our industries. Technology is a really
Speaker 3: big one here. Education is something that I think is
Speaker 3: definitely emerging in this space. But also I would say
Speaker 3: that post COVID, people who've really prioritized essentials, So we're
Speaker 3: seeing more people at a younger demographic purchasing things like
Speaker 3: supermarkets and transurban, which is, you know, they run all
Speaker 3: of our roads and toll roads here in Australia, here
Speaker 3: in Victoria and New South Wales and in Australia. And
Speaker 3: I find that we have gone from trying to find
Speaker 3: something new and different and emerging to going, hey, how
Speaker 3: can I find something that helps us beat inflation but
Speaker 3: isn't blowing the lights out because I think our demographic
Speaker 3: and this is like gen Z's and gen x is,
Speaker 3: we're talking about just making sure that future US is
Speaker 3: in the best possible position. When we hear about what's
Speaker 3: going on in the broader international market, we hear, oh,
Speaker 3: there's definitely a recession coming, we are often more protected
Speaker 3: from that, and I think that that's given our investors
Speaker 3: and our community a lot more security knowing that. And
Speaker 3: I also think that there has been a lot more
Speaker 3: pressure put on businesses to be transparent about their ESG policies.
Speaker 3: I really welcome that, like I adore that people are
Speaker 3: being held to what they are saying right Like historically,
Speaker 3: I feel like a lot of businesses spoke or talked
Speaker 3: to the talk, but didn't walk the walk. And now
Speaker 3: people are being held accountable, and like that increase in
Speaker 3: transparency is not just coming from I guess the ASX,
Speaker 3: but platforms like Chase's who are you know deciphering that
Speaker 3: information for people who aren't investing professionals to be able
Speaker 3: to absorb, and they're the ones that are going to
Speaker 3: hold them accountable because while we might be investing tiny
Speaker 3: amounts along the way, we.
Speaker 2: Have a lot of power on mass.
Speaker 3: So I think that's really good for us, but also
Speaker 3: nice to see they're being more responsible.
Speaker 1: It's really that rise of the stakeholder, right.
Speaker 3: I don't think anyone really took that seriously until when
Speaker 3: Game Stop happened. And I feel like when Game Stop
Speaker 3: happened and the rise of the minority investor really showed
Speaker 3: its power, investing companies and organizations had to really go wow,
Speaker 3: Like we didn't think that people with minor investments in
Speaker 3: our business would have that much powered and.
Speaker 1: I think like, yeah, I think people as well, Like
Speaker 1: what it is showing is like there is a lot
Speaker 1: of engagement, and it's a group that should be engaged
Speaker 1: and unlocks.
Speaker 2: A lot of potential when it is engaged.
Speaker 1: Really well, you know, when we started ches Is, there
Speaker 1: was this idea that people weren't engaged, didn't want to
Speaker 1: be engaged. And I think that over time you show
Speaker 1: actually people are people find this really interesting and want.
Speaker 3: To be engaged and like we've been jumping up in
Speaker 3: data out there for a really long time, sonya, and
Speaker 3: finally they're hearing us, and that's really exciting, Like listen
Speaker 3: to us.
Speaker 2: Investing is cool now.
Speaker 1: I think like so much has changed. You're right around
Speaker 1: like the experience and what we expect, and I think
Speaker 1: it is, you know, democratizing access to information. You know,
Speaker 1: that's what you know. Yeah, you're so right. The channels
Speaker 1: are there to be able to do that. So if
Speaker 1: we kind of flip now into say more investing in general,
Speaker 1: what are some common misconceptions about investing?
Speaker 3: So I would say, first thing, you need to be
Speaker 3: wealthy to be able to invest is the number one
Speaker 3: thing that I still see in my community. I feel
Speaker 3: like I'm a broken record, and obviously you guys would
Speaker 3: be the same. But when you're a retail investor, I
Speaker 3: feel like so many people go, oh, I can't start
Speaker 3: investing because I'm not wealthy enough or I don't have
Speaker 3: enough money yet, And I think that it's kind of
Speaker 3: like I've akin to this to like learning on the job.
Speaker 3: So you go to university for years, right, and then
Speaker 3: you finally graduate and you get so annoyed because you
Speaker 3: learned so much more on the job in the first
Speaker 3: three months and you haven't even finished probation yet than
Speaker 3: you did in the whole time you're at university. And
Speaker 3: I think that's investing in a nutshell. You can do
Speaker 3: so much research. You can listen to every podcast, you
Speaker 3: can absorb every single written piece of content, but you're
Speaker 3: going to learn the most when you put yourself into
Speaker 3: the market. For me, that tangible experience where you've got
Speaker 3: some skin in the game is going to teach you
Speaker 3: a lot more than you reading up on how to
Speaker 3: you know, do an in species transfer. So I would
Speaker 3: say not being in a position to invest, because the
Speaker 3: assumption is you need to be contributing massive amounts each
Speaker 3: and every single month or you know you are still
Speaker 3: in debt. That's probably another big one. I see a
Speaker 3: lot of my community asking the question of like, should
Speaker 3: I invest if I'm in debt? And I mean as
Speaker 3: a blanket response, no, At the end of the day,
Speaker 3: you shouldn't be investing significantly if you have a heap
Speaker 3: of personal debt. But when we talk about debt, we
Speaker 3: need to decipher whether it's good debt or bad debt.
Speaker 3: Good debt is good debt is helping you create wealth.
Speaker 3: So for me, that's things like your mortgage or a
Speaker 3: loan that you've got for a business, whereas bad debt
Speaker 3: it's consumer debt. It's things where you've spent the money, sonya,
Speaker 3: and you've got literally nothing to show for it except
Speaker 3: some good memories.
Speaker 2: And like, don't get me.
Speaker 3: Wrong, I used to do that. I was the victim
Speaker 3: of a personal loan. But so many people go, well,
Speaker 3: I can't touch an investment until I've paid that debt
Speaker 3: down and that's gonna be another seven years. That doesn't
Speaker 3: mean you can't invest on the side, little bits so
Speaker 3: that you're giving yourself that financial literacy and you're learning
Speaker 3: on the go, and you're feeling empowered because they think
Speaker 3: that when we're paying down debt, often we can crucify
Speaker 3: ourselves the whole time and be like, I'm the worst.
Speaker 3: I can't believe I've gotten myself into this position. But
Speaker 3: if you're doing a little bit of an investment on
Speaker 3: the side, maybe you're doing like ten dollars a month,
Speaker 3: We're not talking like hundreds here, because your debt.
Speaker 2: Should be your priority.
Speaker 3: Like you're proving to yourself you have the capacity to
Speaker 3: save that amount. Let's turn that into a benefit for
Speaker 3: future you instead of going I can't do anything along
Speaker 3: the way.
Speaker 1: And it's true, you do like that experience. Sometimes you
Speaker 1: can only just get there through doing it. I'll say,
Speaker 1: like differently, have picked up some great listens through that.
Speaker 3: You're just gonna learn on the job, right, like it right,
Speaker 3: it's down now, Like we're all just learning and growing.
Speaker 3: And I think that a lot of people outside of
Speaker 3: this investing conversation crucify themselves for being in debt and
Speaker 3: then label themselves as being bad with money or not
Speaker 3: good with money, when in reality, sonya, you just spent
Speaker 3: more than you weren't. That's actually really easy to fix.
Speaker 3: We don't need to talk about our past mistakes and
Speaker 3: crucify ourselves. It's just draw line in the sand and
Speaker 3: be like, did you want to do something different? We
Speaker 3: can like that's completely within your power.
Speaker 2: And I think that's really exciting.
Speaker 1: Yeah, and I like the idea of like really struggle
Speaker 1: with like getting something wrong. It's like there's really no
Speaker 1: right on wrong. You just got to kind of keep
Speaker 1: going through it or it.
Speaker 3: I'm a bit fluffy that way too. I always say
Speaker 3: to my team there are no mistakes. They're either blessings
Speaker 3: or lessons, like it's one or the other.
Speaker 1: So you know, now that people know you can just
Speaker 1: enviss with what you can afford, and it's not about
Speaker 1: necessarily just one thing and you can you know, it's
Speaker 1: about considering a broader your broader picture with money. Like
Speaker 1: we have over eight thousand investments on sheers Ease, and.
Speaker 3: You okay, that's just a little bit of a flex.
Speaker 1: I know that one of the common questions where you're
Speaker 1: asked is what should I invest in?
Speaker 3: I hate that question, Sonya that if beef over you,
Speaker 3: you know, if we.
Speaker 1: Kind of pivot that question into you know, how how
Speaker 1: should people consider that feeling of being overwhelmed when it
Speaker 1: comes to investing.
Speaker 3: I feel like, I feel like it's a really good question,
Speaker 3: like what should I invest in? I'm so glad you
Speaker 3: asked genuinely, because if you're asking what I should invest in,
Speaker 3: like you might be ready to invest, and that's an
Speaker 3: exciting position to be in. But I can't legally tell you, hey, Sonia,
Speaker 3: go buy abcd ETF because it's the best, because that
Speaker 3: would be wildly irresponsible, not only from a licensing perspective,
Speaker 3: but that actually might not be the right fit for you. Like,
Speaker 3: there is no one asset, and I mean, if a
Speaker 3: business creates one asset that meets the criteria of absolutely everybody,
Speaker 3: they're going to make trilli. But that is not what
Speaker 3: the world is like, that's not how markets work. It's
Speaker 3: you need to work that out on your own.
Speaker 2: What are your goals? Why are you investing? Are you
Speaker 2: investing for future?
Speaker 1: You?
Speaker 3: Are you investing because in seven to ten years you
Speaker 3: want to buy a property and you kind of want
Speaker 3: to get a little bit ahead on that goal. Are
Speaker 3: you investing because you've got fomo with your friends, like
Speaker 3: deeply understand why you want to invest? Because that why
Speaker 3: is then going to tell me how? So then the
Speaker 3: next thing you're going to do. I'm going to assume
Speaker 3: you've done.
Speaker 2: Your risk profile already.
Speaker 3: Here, I'm assuming that this person is at the stage
Speaker 3: where they've downloaded the Chas's app and then saying far
Speaker 3: out Chazy's has grown a bit. They don't have six
Speaker 3: ETFs anymore, They've got eight thousand options.
Speaker 2: How do I pick?
Speaker 3: The question I would then ask myself is do I
Speaker 3: want to be a direct share investor? Or do I
Speaker 3: want to own an exchange traded fund? Now, both of
Speaker 3: these have their pros and cons. If you're going down
Speaker 3: the route of having direct shares, that's a bit more
Speaker 3: responsibility because you've got to make sure you're well diversified.
Speaker 3: So you can't just go and purchase BHP and be
Speaker 3: done with it, Whereas you're going to get instant diversification
Speaker 3: from choosing an ETF. So we need to make that
Speaker 3: decision of like, Okay, well maybe in the future I
Speaker 3: might have both, so maybe you go, We'll be I'm
Speaker 3: a first time investor, and that diversification thing it feels
Speaker 3: really overwhelming, so maybe I do start with an exchange
Speaker 3: traded fund. Fantastic, We've already wiped out a heap of
Speaker 3: the market and now we're only looking at what exchange
Speaker 3: traded funds you would like to invest in.
Speaker 2: Then we're going to go back to our values. Does
Speaker 2: it need to be.
Speaker 3: An ethical fund? Do you want an ETF with only
Speaker 3: women on the board? Do you just want tried and true,
Speaker 3: something like a Vanguard ETF that you know lots and
Speaker 3: lots of people use. That's going to make you feel
Speaker 3: comfortable for your introduction to investing. What does that look like?
Speaker 3: Are you somebody who just wants an ASX two hundred
Speaker 3: index fund? Where that is that's an index fund that
Speaker 3: basically takes the top two hundred companies in Australia, divides
Speaker 3: your money across all of those, and you get the
Speaker 3: average returns of the market. So I think it's about going, well,
Speaker 3: which route do I want to go down? And then
Speaker 3: once you're there, slowly whittling it down. It's like an
Speaker 3: upside down triangle. We're making sure that we're starting really
Speaker 3: broad and then we're starting really broad. And I promise
Speaker 3: you if you keep doing this process of elimination and
Speaker 3: going No, I do want an ETF. Okay, No, I
Speaker 3: do want to make sure it's an ethical fund. No,
Speaker 3: I do probably want one from the top five companies
Speaker 3: in Australia. You're going to end up back where ches
Speaker 3: is started with six options. In saying that I am
Speaker 3: a victim of going through your app and just having
Speaker 3: a bit of a look around. And I mean, I'm
Speaker 3: not here to sell your app today, but the AI
Speaker 3: tool that's pretty enough. DA Like the fact that you
Speaker 3: can just type in what you're interested in and it's like, hey,
Speaker 3: this might work, slagh like be for real, Like that
Speaker 3: is actually so powerful because right now I can't even
Speaker 3: Google that and get a clear response, whereas I can
Speaker 3: look it up on your app and it will actually
Speaker 3: give me legitimate options that are currently appearing on the ASX.
Speaker 3: I feel like it's a really good educational tool. I
Speaker 3: think people are going to assume that it's a search
Speaker 3: and it will just spit out prout, but it doesn't.
Speaker 1: So then coming back to getting information about your investments,
Speaker 1: what's how should people do due diligence or what's what's
Speaker 1: some ways of don some due diligence?
Speaker 3: And I guess that's dotting all your eyes and crossing
Speaker 3: all your t's to make sure that this is the
Speaker 3: right investment for you. And I guess due diligence goes
Speaker 3: in two parts. There's due diligence. Are they a legitimate company?
Speaker 3: And that's quite easy to check, Like if they are
Speaker 3: on the Shares's app, they're legit because they are listed
Speaker 3: on the Australian Stock Exchange or literally all the other
Speaker 3: stock exchanges you guys have access to. So that's a
Speaker 3: very big tick because it means that they can ply
Speaker 3: with a sick they you know, are the Australian securities
Speaker 3: exchanges looked at them and been like, yeah, okay, that's
Speaker 3: pretty good. But the flip side of due diligence is
Speaker 3: for me, is this right for you? Like I think
Speaker 3: a lot of the time we get caught up in
Speaker 3: not just analysis paralysis over deep diving too much, but
Speaker 3: also fomo Like your due diligence is always going to
Speaker 3: go back to the type of investment strategy you have.
Speaker 3: So are you a buy and hold type of investor?
Speaker 3: Like if you're going to purchase a SHA so on
Speaker 3: your I mean, I don't know why I'm telling you
Speaker 3: this because like you're going to know it better than me,
Speaker 3: But is your plan to purchase the share hold it
Speaker 3: over the long term and benefit from the dividends and
Speaker 3: the ongoing growth of that share, or are you purchasing
Speaker 3: that to kind of like flip it, Like you know
Speaker 3: how people flip houses, They renovate them, they make more
Speaker 3: money in twelve months, they sell it, they move on.
Speaker 3: Some people purchase shares in order to get that upside.
Speaker 3: That share might not pay any dividends, but they know
Speaker 3: that over time it would increase significantly in value. Like
Speaker 3: that's called value investing. Whereas I'm not a value investor,
Speaker 3: I can't pick it. If I could time the market,
Speaker 3: if I could predict what stocks are going to be doing, well,
Speaker 3: Baba wouldn't be on this podcast. I'd be in the Bahamas,
Speaker 3: like I'd be living my best life. Call me Warren
Speaker 3: Buffett like I would not, And I can't do that.
Speaker 3: So I think we need to work out what our
Speaker 3: investing strategy is to then kind of reverse engineer it
Speaker 3: and go, well, what does due diligence look like for me?
Speaker 3: So for me, due diligence is about making sure it's
Speaker 3: right for you, but then also making sure it's a
Speaker 3: legitimate investment. Here in Australia, same goes for like New
Speaker 3: Zealand and every other stock exchange, but I would literally go, well,
Speaker 3: is this a company that I want to be involved in?
Speaker 1: Say people are ready to live a lot out, they've
Speaker 1: been envesting for a week, while how do people go
Speaker 1: about getting more knowledge or liveling up?
Speaker 3: There is so much free content online. You don't need
Speaker 3: to go to university to learn about this. There is podcasts.
Speaker 3: If you're not an audio learner, you can read books.
Speaker 2: There is a plethora of books on the market.
Speaker 3: If you aren't like that, you can watch this podcast
Speaker 3: on YouTube. You can watch video. You can literally absorb
Speaker 3: so much content, like what community can I join? That
Speaker 3: kind of perpetuates that and keeps it moving so that
Speaker 3: it doesn't become stale or stagnant. Like do you have
Speaker 3: a friend that might be on a similar savings or
Speaker 3: investment journey where you could have like little monthly check
Speaker 3: ins with them. Doesn't have to be your partner to
Speaker 3: do money check ins.
Speaker 1: You know, when you talk about liveling up, you know,
Speaker 1: it's kind of like I think the community angle as
Speaker 1: a way of leveling up, I think was a really
Speaker 1: unique and I think an actually really effective way by
Speaker 1: leveling up.
Speaker 2: Because I'm obsessed with my community.
Speaker 1: But I think it's so true. We know that that's
Speaker 1: actually what helps us in other areas of our life,
Speaker 1: and money is the same. Like the ingredients that go
Speaker 1: into making really good habits and other areas of your
Speaker 1: life are also helps you with money. So love that
Speaker 1: as a liver up.
Speaker 3: But it's true, like, if you're not ready to publicly
Speaker 3: talk about.
Speaker 2: You know, a debt is a massive one.
Speaker 3: People carry a lot of shame around that, and they
Speaker 3: shouldn't because at the end of the day, you didn't
Speaker 3: have the tools and resources that you have today. And
Speaker 3: if you're not ready to talk about that, that's so fine.
Speaker 3: But look how much content and a community you can
Speaker 3: engage in without having to share your personal details.
Speaker 1: The other one is like where you think people think
Speaker 1: you should be better than you are, so you're kind
Speaker 1: of not willing to admit that you're not.
Speaker 3: Kind of Oh, I'm the first finance professional. I promise
Speaker 3: you that will tell you do as I say, not
Speaker 3: as I do. I know a lot of stuff I
Speaker 3: would say, I'm very smart, but come to personal finances,
Speaker 3: could you please not look.
Speaker 1: So we've talked a bit about diversification, yes, what how
Speaker 1: do people make sure they are truly diversified, what does
Speaker 1: it even mean.
Speaker 3: Diversification in its most simple form, I suppose is just
Speaker 3: making sure that you don't have all your eggs in
Speaker 3: one basket. Like that's the most common example, right that
Speaker 3: our industry uses, and it's not it's going to mean
Speaker 3: something different to other people. Like if you are talking
Speaker 3: about diversification and you're a direction share investor. Historically, when
Speaker 3: I was putting together direct share portfolios for people, we
Speaker 3: would have between seven and maybe twelve shares, and like
Speaker 3: twelve felt like a lot in that but every single
Speaker 3: share that they held was in a different industry, and
Speaker 3: we would, you know, hold maybe one that's probably a lie.
Speaker 3: We maybe hold two banks, like one or two banks
Speaker 3: and see what was going on. We'd never hold all
Speaker 3: of them, but we'd make a decision at the time
Speaker 3: of investing as to which bank in that sector was
Speaker 3: performing well enough and was a good investment and wasn't
Speaker 3: overvalued or underperforming or whatnot to put it into their portfolio.
Speaker 3: So diversification in that aspect is something that you have
Speaker 3: to manage ongoing, whereas diversification can be instant, Like in
Speaker 3: that situation, these people that I was putting portfolios together,
Speaker 3: for they were paying a lot of money to have
Speaker 3: me manage those portfolios on a monthly basis, and I
Speaker 3: mean every three months, I'd go in and make adjustment
Speaker 3: and you know, take some profit off some and put
Speaker 3: it back into another one, because you know, you wanted
Speaker 3: to make sure that you always were consistent and met
Speaker 3: their risk profile as well. But on the flip side,
Speaker 3: we talk about instant diversification inside an ETF, and that's
Speaker 3: because you've got a portfolio manager or a fund manager
Speaker 3: making sure that everything inside that asset that you're purchasing
Speaker 3: is okay and looked after. But essentially it's making sure
Speaker 3: that if one industry is not doing so well, another is.
Speaker 3: Like if you've got twelve different investments and over that
Speaker 3: twelve one is actually down like thirty percent, that's terrifying.
Speaker 3: Like if you said to me, hey, Ve, would you
Speaker 3: be comfortable with your portfolio being down thirty percent? Be like,
Speaker 3: absolutely not, sonya not willing to.
Speaker 2: Take the risk.
Speaker 3: But last year, if I look at my share portfolio,
Speaker 3: there was an asset in my portfolio that returned negative
Speaker 3: thirty two percent.
Speaker 2: It made me feel sick.
Speaker 3: But if I look at my portfolio as a whole
Speaker 3: because everything.
Speaker 2: Else kind of held it up.
Speaker 3: My portfolio returned about fourteen and a half percent, which
Speaker 3: is very sexy, but that means that I wasn't all
Speaker 3: in on one asset. So if one's doing really well,
Speaker 3: something else is usually just slugging along. But that's the
Speaker 3: beauty of diversification. My personal wealth and my wealth creation
Speaker 3: journey was not impacted by the performance of that one share.
Speaker 3: So we need to make sure that not all our
Speaker 3: eggs are in one basket, because if you trip over,
Speaker 3: you've broken all your eggs.
Speaker 1: And so, once you have built this investment portfolio and
Speaker 1: it's taking along, it's not just you know, sit and
Speaker 1: forget forever.
Speaker 2: Oh that's annoying.
Speaker 1: So you know, how do people you know, how should
Speaker 1: people be checking in on their portfolio once it's running?
Speaker 1: And as well, you know, how should people stay informed
Speaker 1: about the things that are in the airport.
Speaker 3: You've got the big questions today. I appreciate it. So
Speaker 3: going back a little bit, this diversification is really important
Speaker 3: for you, understand. So if you're a direct share investor
Speaker 3: versus like an ETF investor, or even let's pretend you
Speaker 3: have two ETFs, You've got an International ETF and you've
Speaker 3: got an Australian ETF and maybe because of your risk profile,
Speaker 3: which is essential for you to understand. And if you
Speaker 3: don't understand your risk profile, there is so much content
Speaker 3: on your website about it, like there are blogs. Do
Speaker 3: you know how often I'm using your resources because I'm
Speaker 3: too lazy to create my own that I send to
Speaker 3: the sheese on the mining community when they dm us,
Speaker 3: I'm like, oh, actually, shares this did a really good
Speaker 3: blog on this. So it's really important to remember your
Speaker 3: risk profile. So your risk profile, I was explaining it
Speaker 3: earlier today to somebody. It's kind of like a pie
Speaker 3: and you cut up your pie in different amounts and
Speaker 3: some people say, I'm not that hungry, Victoria, I only
Speaker 3: want a little bit of pie, or someone will be like,
Speaker 3: I am ravenous, I need the whole thing. And that's
Speaker 3: where your portfolio is going to differ from one person
Speaker 3: to another. So if you're like a conservative person, you
Speaker 3: probably asked for a small amount of pie and not
Speaker 3: all of your assets are investor in the share market,
Speaker 3: whereas if you are like me and pie is on
Speaker 3: the table, like, most of my assets are in the
Speaker 3: share market, So if most of my assets are in
Speaker 3: the share market, and I know that of my portfolio,
Speaker 3: let's say ninety five percent of my money is inside
Speaker 3: the share market. Of that money, I would have then
Speaker 3: broken it up. I would have then gone okay. So
Speaker 3: some of it needs to be exposed to the Australian
Speaker 3: share market and some of it needs to be exposed
Speaker 3: to the international market. And let's pretend I've spent five
Speaker 3: hundred dollars on an Australian ETF and five hundred dollars
Speaker 3: on an international you cannot expect them to perform identically
Speaker 3: over twelve months. So in twelve months time, we go
Speaker 3: back and check, and let's pretend ones at seven hundred
Speaker 3: and fifty dollars and ones at five hundred and fifty dollars.
Speaker 3: At that point, we want to kind of rebalance our
Speaker 3: portfolio and go, well, one did better. Should I take
Speaker 3: some of the money off the table and redivide it
Speaker 3: across my portfolio?
Speaker 2: So I e.
Speaker 3: We maybe sell down some of our Australian and put
Speaker 3: it back into the international. Always maintain about fifty percent.
Speaker 3: And this happens across the board. So even if you're
Speaker 3: a direct share investor, you might do that across a
Speaker 3: number of different options, and over time investments are going
Speaker 3: to perform differently, So we need to make sure that
Speaker 3: we kind of sell down something or maybe we the
Speaker 3: next month tip a little bit more money into the
Speaker 3: other one to get it back to that balance. And
Speaker 3: that's where diversification is really really important. But also rebalancing
Speaker 3: is going to mean that that diversification doesn't completely go
Speaker 3: out of whack.
Speaker 1: And so talking about diversification and how does property fit.
Speaker 3: In property is something that is the great Australian dream
Speaker 3: over here, right, I feel like New Zealand's not that
Speaker 3: far yeah, Like we just have different accents but same values, right,
Speaker 3: Like we all want to own our own home, and
Speaker 3: it's getting further and further away from being the reality.
Speaker 2: For most of us.
Speaker 3: That's so important to highlight because they think so many
Speaker 3: of us have our parents or our parents' parents telling
Speaker 3: us like, why haven't you built property yet, Sonia, And
Speaker 3: you're like, because I can't afford it. It's fourteen times
Speaker 3: higher than my salary and when you purchased it was
Speaker 3: four times.
Speaker 2: So it feels further away.
Speaker 3: But property does make up a really good part of
Speaker 3: your portfolio. If that's what you want, now, that doesn't
Speaker 3: necessarily mean you have to go and buy your family home.
Speaker 3: And I've got a bit of a controversial opinion here,
Speaker 3: and that is that your family home is not an investment.
Speaker 3: And I don't believe that the home you live in
Speaker 3: is an investment because in order to benefit from that investment,
Speaker 3: you have to sell it. And most of us, if
Speaker 3: you purchase your family home, Sonia, and you live in it,
Speaker 3: like let's say you bring up a heap of kids
Speaker 3: in it, and then you've retired and we're sitting on
Speaker 3: the front doorstep reflecting on the fact that we have
Speaker 3: two point five perfect children and we're still married in
Speaker 3: our rocking chairs.
Speaker 2: I don't want for.
Speaker 3: You to be able to officially retire, for you to
Speaker 3: have to get rid of that asset that holds so
Speaker 3: many memories. Whereas if you have an investment property, that's
Speaker 3: a different story. Like, even when it comes to picking
Speaker 3: investment property, we are picking it based on returns and
Speaker 3: location and potential growth. We're not picking it based on
Speaker 3: love and how much you really like that like and
Speaker 3: how much you really like that clawful bath tub, right, Like,
Speaker 3: there are different values at play, but I think it's
Speaker 3: also important to highlight that in the share market you
Speaker 3: can invest inside property, or you can have exposure to
Speaker 3: property in the share market through an ARIIT. So a
Speaker 3: real estate investment trust is an asset a bit like
Speaker 3: an ETF where they purchase read where where they purchase
Speaker 3: real estate, and then the returns of that ARIIT which
Speaker 3: you purchase just the same as an ETF, are from property.
Speaker 3: So if you're not ready to purchase your first home,
Speaker 3: or you just love the idea of property and you're
Speaker 3: really passionate about it, and you go, well v I
Speaker 3: like shares like a love property like I'd love to
Speaker 3: have that, you can have it as a part of
Speaker 3: your portfolio without having to be a landlord and pay
Speaker 3: for the hot water us when it breaks.
Speaker 1: We've gone all over the place today, covered so much
Speaker 1: great stuff.
Speaker 2: I feel like we've.
Speaker 3: Been everywhere we've been around the investment world.
Speaker 2: It's been a lot of fun.
Speaker 1: Oh thanks Hets for joining us. So before we go
Speaker 1: and wrap up today, it'd be great. We talked about
Speaker 1: that AI search tool. If you want to go give
Speaker 1: it a go. You can do that on the Sharesies platform.
Speaker 1: Just log in, go to your where your investments are,
Speaker 1: and you can go to investment portfolio AI search and
Speaker 1: search whatever you want in your own words, have a
Speaker 1: play around and see what comes back. Thanks again, Victoria
Speaker 1: for joining.
Speaker 2: Us, Thank you for having me sharing your.
Speaker 1: Epic insights about the A six and also about just
Speaker 1: investing in general. You can watch this on Shared Lunch
Speaker 1: on YouTube, or follow on your favorite podcast app. Catch
Speaker 1: you next time and have a great week.
Speaker 3: See you