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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the

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Speaker 2: Order Kerni Whalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it.

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Speaker 3: She's on the Money, She's on the Money.

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Speaker 4: Hello, and welcome to Money, the Podcast for millennials who

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Speaker 4: want financial freedom. My name is Georgia King, and joining

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Speaker 4: me as she does each and every week, is Victoria

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Speaker 4: Divine V.

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Speaker 1: How are we you, lucky duck? I am so good because,

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Speaker 1: to be really honest, we are recording two episodes this week.

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Speaker 1: We just did one, we had a lunch break and

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Speaker 1: now we're doing this one, which I'm really excited about.

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Speaker 1: But I'm really good because we just had a like

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Speaker 1: panco crusted egg plant barn me mouth ordering. If you've

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Speaker 1: never had that you're missing out.

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Speaker 4: You are missing out, So we're feeling energized, is what

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Speaker 4: we're challenging.

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Speaker 1: We are so ready to talk about shares and EBIT

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Speaker 1: ratings and what a PE ratio is. But let's go

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Speaker 1: back to the investment series that we did a couple

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Speaker 1: of months ago. Was ages ago. I feel like it

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Speaker 1: was only two months ago, but I feel like it

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Speaker 1: would have been like six months ago. But in saying that,

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Speaker 1: we do lots of investing contents, so I'm not surprised

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Speaker 1: that I'm confused. But we looked at the difference between

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Speaker 1: different types of investing platforms, and I feel like that

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Speaker 1: would be a really good precursor to today. Right, So if

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Speaker 1: you haven't listened to that episode, I would recommend going

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Speaker 1: back and having a listen to that because I feel

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Speaker 1: like this is the next level. We're not talking about

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Speaker 1: ETFs or managed funds or different product We're actually talking

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Speaker 1: about what it means to assess an individual company. And

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Speaker 1: I get asked this all the time, like how do

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Speaker 1: I look at a share that I'm going to buy?

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Speaker 1: And it's like, okay, well, if you've gotten to the

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Speaker 1: point where you've done your risk profile and you've worked

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Speaker 1: out what you want to invest in, and that investment

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Speaker 1: strategy includes individual shares. How do you pick it?

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Speaker 2: Like?

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Speaker 1: What happens if you log onto shares is and you're

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Speaker 1: trying to pick shares? Like, how do you do that?

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Speaker 1: So that's what this is about today. If you're new

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Speaker 1: to being a shared trader, you might be like WHOA well,

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Speaker 1: hold back, like, this is not my thing. We did

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Speaker 1: do a four part investment series which I would absolutely

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Speaker 1: recommend you go back to. But we're at a point

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Speaker 1: in life, Gee, where the community is saying, vee, we

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Speaker 1: really want to know more about how to individually value

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Speaker 1: stock and value a company, and that's what this episode

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Speaker 1: is all about. Now we're in a bear market, terrifying

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Speaker 1: but also really normal, Like the investment world and the

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Speaker 1: investment markets have cycles, and we're going through them. We've

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Speaker 1: sen this time and time again. Gee, We've been through

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Speaker 1: market corrections, We've been through bear markets, and we've been

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Speaker 1: through recessions before. It's not new. It's just so scary

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Speaker 1: that I think people tend to jump up and down

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Speaker 1: a little bit more than they need to, which puts

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Speaker 1: you in a position where consumers and us like basically

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Speaker 1: people who use the stock market to buy and sell trades,

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Speaker 1: we lose a bit of confidence. So I think now

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Speaker 1: is a really good time to start honing in and

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Speaker 1: focusing on it and going, yeah, you're right. The media

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Speaker 1: is jumping up and down and making us really scared.

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Speaker 1: But is this a bad thing? No, because shares could

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Speaker 1: be on sale, you could get a really good deal.

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Speaker 1: It could be a good time for you to start

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Speaker 1: your investment journey if you haven't before. So today we're

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Speaker 1: talking about tips and tricks that day traders use, not

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Speaker 1: necessarily tips and tricks I want you to necessarily use

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Speaker 1: because you might turn around g and go all right, well, actually,

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Speaker 1: after all that, that sounds like a lot of responsibility.

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Speaker 1: I actually just want to go buy an ETF or

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Speaker 1: I want to go and sign up to six Park

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Speaker 1: and have a robo advice platform because that aligns to

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Speaker 1: my values. But I use these tips every single day

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Speaker 1: when I am picking client portfolios, because I think a

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Speaker 1: good precursor to this is I am not just a

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Speaker 1: financial advisor. I am a direct share financial advisor, which

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Speaker 1: not all financial advisors are. It's not a flex it's

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Speaker 1: just part of your job of what you focus on

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Speaker 1: so my focus with my clients is often about creating

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Speaker 1: comprehensive investment portfolios made up of direct shares that I

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Speaker 1: then manage on their behalf. So a lot of my

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Speaker 1: clients don't have ETFs or managed funds. They actually have

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Speaker 1: direct shares, and we have a platform of maybe eight

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Speaker 1: to twelve different shares at any point in time. And

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Speaker 1: I usually deal with I guess you could say high

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Speaker 1: net wealth individuals, and I say that right here, G

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Speaker 1: not so I can go, hey, G, I work with

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Speaker 1: really rich people, Like, that's not it at all. I

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Speaker 1: say that because did you hear the number I said before?

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Speaker 1: Eight to twelve individual shares. That's what people with a

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Speaker 1: million dollar portfolio have. They're not picking thousands of companies.

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Speaker 1: They're not picking hundreds of companies. They are making sure

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Speaker 1: they have good diversification across the portfolio that makes sense

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Speaker 1: to them. But I don't think it's as comprehensive as

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Speaker 1: people think it's going to be, because I think if

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Speaker 1: I put up a pole, I really should have done this.

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Speaker 1: Maybe we'll do this another time. But if I put

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Speaker 1: up a pole on cheese on the money and said

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Speaker 1: how many different shares do you think someone with a

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Speaker 1: million dollar portfolio would hold. I guarantee you people be

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Speaker 1: like fifty one, one hundred and fifty because that's what

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Speaker 1: they think diversification entails, when it's not actually the case.

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Speaker 1: So I say this because I use these tips and tricks,

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Speaker 1: but I also say this as a hey, you can

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Speaker 1: go and be an individual share trader. These are some

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Speaker 1: tips and tricks that might help you along the way,

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Speaker 1: but it doesn't necessarily mean you'll get instant diversification because

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Speaker 1: to get good diversification you actually have to have a

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Speaker 1: fair bit of money behind it if you're picking. So

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Speaker 1: I think that's enough disclaimery.

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Speaker 4: Stuff's good, that's good.

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Speaker 2: Yeah.

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Speaker 4: I definitely am one of the people that would have

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Speaker 4: said fifty.

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Speaker 1: To eighty because it makes sense, right, because I think

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Speaker 1: if we look at ETFs and managed funds, and when

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Speaker 1: we talk about funds and indexes, I'll say things like, oh, yeah, gee,

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Speaker 1: the S and P three and you'll be like, oh,

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Speaker 1: that makes sense, that's the three hundred top companies. But

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Speaker 1: when you get into the nitty gritty of it, a

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Speaker 1: lot of more high net wealth clients actually have less

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Speaker 1: shares but more of them, And it just depends on

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Speaker 1: what they are, they're usually more blue chip stocks, So

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Speaker 1: we're not talking about buying an after pay here. We're

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Speaker 1: talking about buying one of the big four banks, and

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Speaker 1: they're usually high dividend, so good dividend paying shares that

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Speaker 1: don't have massive amounts of growth. Because if you're at

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Speaker 1: that point where you have a million dollars in an

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Speaker 1: investment portfolio, it's very likely that your tenacity to take

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Speaker 1: on risk is very low because you don't want to

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Speaker 1: lose what you already have. It's about maintaining capital stability

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Speaker 1: and about keeping cash in the bank, even if it

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Speaker 1: means you're not chasing those you know, sexy twenty percent

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Speaker 1: returns that some people are getting. My client's usually like

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Speaker 1: the the AM's five percent, Like that's that's what it is,

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Speaker 1: because we want to stay rich, like we don't want

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Speaker 1: to put that wealth at risk. So yeah, that's where

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Speaker 1: we're at today, and I feel like it could get

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Speaker 1: a little bit complex, and I do apologize, and I'll

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Speaker 1: try my best.

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Speaker 4: As always, we'll explain it, we'll break it down on

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Speaker 4: the complex note fee, there are a lot of acronyms

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Speaker 4: in today's episode. You just said S and P three

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Speaker 4: hundred you said ETF at the top you were like

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Speaker 4: EP trader or something like that, pe ratio. That's what

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Speaker 4: I meant to say, Why so many acronyms, Because.

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Speaker 1: Gee, there's a technical reason and the reason I believe

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Speaker 1: it exists. So we'll start with the reason I believe

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Speaker 1: that exists. And I believe that exists because mediocre, middle

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Speaker 1: aged white men want to make it seem more confusing

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Speaker 1: for young women to get into the investment market. Or

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Speaker 1: did you see the S and P five hundred today

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Speaker 1: It's at one point six percent, which is today great,

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Speaker 1: But like then if I said to you, well, actually

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Speaker 1: that is unnecessary, Like we just don't need this added

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Speaker 1: level of complexity. Let's shorten it. SMP means the Standard

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Speaker 1: and Pause and it's literally just the five hundred top

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Speaker 1: tracking companies in the American market as listed on the

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Speaker 1: US Exchange, and it's just tracking the average EBB and

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Speaker 1: flow of that. And the SMP five hundred is used

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Speaker 1: as a very normal index in our industry of how

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Speaker 1: the market's performing, because like, what are the top five

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Speaker 1: hundred companies doing? Like if it's up one percent, you're like, oh,

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Speaker 1: that's like one percent across five hundred companies. That must

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Speaker 1: mean there's something pretty okay going on in the market.

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Speaker 1: If it was down ten percent, you'd be like, wow,

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Speaker 1: what's happening in the industry kind of vibes. So I

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Speaker 1: feel like there's a lot of confusing acronyms, and as

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Speaker 1: you know, I try to steer away from them because

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Speaker 1: it's just not necessary, Like I don't need to use

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Speaker 1: an acronym to make myself seem smarter so that you

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Speaker 1: don't feel educated. But it's important for you to be

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Speaker 1: educated and know what these things are and when they're

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Speaker 1: used and how they're used. And ebit is one of

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Speaker 1: those things where I'm like, look, this is just what

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Speaker 1: it's going to be called on a balance sheet. So

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Speaker 1: if you're at a point in your investing journey where

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Speaker 1: you're like, I'm gonna invest in individual shares, cool, You're

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Speaker 1: probably gonna look at an annual report from a company

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Speaker 1: and ebit will be on it. So I need you

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Speaker 1: to know what to look out for. But I also

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Speaker 1: don't want you to think that they exist to make

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Speaker 1: you feel overwhelmed or confused us because how many times

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Speaker 1: I don't know about you, but I was on Tinder

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Speaker 1: before I met Steve and the amount of people that

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Speaker 1: I would meet that would try and be like, oh,

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Speaker 1: I'm an investor. I'm maybe it's more of a reflection

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Speaker 1: of the type of guy. I go, yeah, maybe Steve's

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Speaker 1: not like that. It's okay, bank time. He's a different kind.

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Speaker 1: But like the banker types would always like use complex

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Speaker 1: terminology and I'd be like, do you know what I

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Speaker 1: do as a job?

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Speaker 2: No?

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Speaker 1: Okay, no problems.

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Speaker 4: Yeah. I think it's a signal of a smarter person

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Speaker 4: to use simpler language that's much more accessible. But you

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Speaker 4: always talk about starting a journey of investment when you're

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Speaker 4: ready for it and not being influenced by other factors,

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Speaker 4: not trying to time the market and so on. Why

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Speaker 4: should I value shares before I buy them and not

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Speaker 4: just jump in if I feel like I'm ready or

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Speaker 4: if the prices are down.

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Speaker 1: Because as much as we can't time the market, and

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Speaker 1: we shouldn't be trying to toe the market because again

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Speaker 1: I'd be really really rich, we don't want to be

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Speaker 1: overpaying for shares that are driven by hype. We don't

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Speaker 1: want to be in a situation where you're ready to

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Speaker 1: invest in your like you know what I want to

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Speaker 1: do I want to get some blue chip shares G.

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Speaker 1: And when I say blue chip, blue chip shares are

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Speaker 1: companies that are really well known and highly respected, so

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Speaker 1: it's by customers and the market and business analysts. We're

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Speaker 1: not talking businesses that have just come out of nowhere.

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Speaker 1: We're talking about those tried, true resources. We're talking about

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Speaker 1: the big four banks G. We're talking about you know,

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Speaker 1: things like Macquarie and West Farmers, businesses that have been

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Speaker 1: in the Australian economy for a really long time. They

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Speaker 1: might not be shares that are completely outperforming the market,

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Speaker 1: but they're are tried and true and steady, like Telstra

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Speaker 1: is another blue chip stock. And the reason we say

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Speaker 1: that these are blue chip stocks is one because they

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Speaker 1: are literally just well known companies respected have good businesses

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Speaker 1: behind them. Blue Chip is a term used in the

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Speaker 1: financial services industry as a term that's kind of perceived

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Speaker 1: as being safe havens due to their stability during times

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Speaker 1: like now where you know, the markets might not be

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Speaker 1: doing well. So those fancy tech stocks people are going

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Speaker 1: to sell up. But West Farmers, what do they own?

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Speaker 1: Their own Bunnings and they own Kmart and Target and

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Speaker 1: those are all things that people still need during times

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Speaker 1: of economic downturn, banks, people still need Woolworths, people still

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Speaker 1: need to go to the supermarket. So these are shares

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Speaker 1: that are going to perform. I mean, they might be down,

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Speaker 1: but they're going to still exist because they're basic human

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Speaker 1: needs at the end of the day. So you'll often

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Speaker 1: see a lot more fluctuation in shares, like again, fancy

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Speaker 1: tech stocks, where if people have money and they have

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Speaker 1: a lot of confidence, they're like, oh, I'm buying all

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Speaker 1: these after pay shares where are second the market turns,

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Speaker 1: they're like, oh, better pull back on that, Whereas people

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Speaker 1: are less likely to pull back on a Woolworths share

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Speaker 1: because they're like, oh, pandemic toilet paper sales throw the roof.

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Speaker 1: Does that make sense?

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Speaker 4: Yeah, yeah, gotcha. So would you say it's like the

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Speaker 4: best way to value a company's worth.

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Speaker 1: Toilet paper they sell.

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Speaker 4: No, would it be to compare it to a company

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Speaker 4: that's similar and see how their stock is.

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Speaker 1: Yeah, you absolutely can. And that's why I find it

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Speaker 1: so interesting talking about share prices, because the share prices

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Speaker 1: across the big four banks are quite significantly different. You

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Speaker 1: would assume big four bank right, very similar share price,

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Speaker 1: but that's actually not the case at all. So it's

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Speaker 1: not like comparing apples with apples where you go bank

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Speaker 1: good cheap. They all have different business structures behind them

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Speaker 1: and performance analytics and dividend yields and performance that drives

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Speaker 1: their perception in the market as to what they're worth.

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Speaker 1: So a good example of this is combank shares are

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Speaker 1: really expensive. So today as of recording combank shares and

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Speaker 1: ninety one dollars and sixteen cents per share, you go,

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Speaker 1: all right, no problems. But that is going to be

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Speaker 1: built up of you know, their historical data, how well

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Speaker 1: they've done in the market. It's going to be built

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Speaker 1: up of what their dividend payart is, so how much

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Speaker 1: money you make from owning that share. It's going to

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Speaker 1: be made up of you know, consumer demand and how

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Speaker 1: much somebody wants that share and what their past performance was.

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Speaker 1: So if I then said, well, it's a NAB share

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Speaker 1: worth George, what would you say?

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Speaker 4: You'd assume similar?

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Speaker 1: Right, So a NAB share is twenty seven dollars fifty

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Speaker 1: eight much cheaper exactly. So are we saying that one

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Speaker 1: bank's better than the other?

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Speaker 2: No?

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Speaker 1: Do they both have the government guarantee of two hundred

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Speaker 1: and fifty thousand dollars for everybody. Yes, they do. Do

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Speaker 1: they all have similar business practices at the crux of it,

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Speaker 1: yes and no, But they all have different marketing strategies

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Speaker 1: like banks now are bringing out different after pay options

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Speaker 1: or buy now pay later options. Banks are doing different things.

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Speaker 1: They all are different businesses. So you can't just go

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Speaker 1: bank compared with bank and assume that that's going to

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Speaker 1: be like a good deal, because if you look at it, go,

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Speaker 1: oh my gosh, Well, if combank shares are ninety one dollars,

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Speaker 1: it's a money win to buy NAB shares. Past performance

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Speaker 1: over the last five years for a NAB share is

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Speaker 1: actually down seven point four percent. You go, okay, no problems.

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Speaker 1: Well what does that compare to this ninety one dollar

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Speaker 1: one This one's so much more expensive. Past performance on

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Speaker 1: a combank share If today it is ninety one dollars

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Speaker 1: and nine cents, past performance actually up ten point nine

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Speaker 1: two percent. Oh wow. So you go, all right, this

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Speaker 1: clearly isn't apples with apples. When we start to get

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Speaker 1: into it, and I'm not saying this to confuse you,

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Speaker 1: I just don't want you lumping all banks in with

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Speaker 1: one and going, oh, they must be equal. I've got

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Speaker 1: a bank, because it actually becomes a little bit more

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Speaker 1: finicky than that. And we're having this conversation off air

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Speaker 1: right before we started recording, and we're talking about how

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Speaker 1: Combank shares over the last month have absolutely decreased, like

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Speaker 1: they've gone over the last month down thirteen point five

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Speaker 1: eight percent. And in the investment world, there's a lot

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Speaker 1: of conversation about whether it's worth adding to your portfolio

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Speaker 1: at the moment. So when I go and talk to

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Speaker 1: my stockbrokers, because as a financial advisor, I obviously pulled

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Speaker 1: together a portfolio for my clients, but a lot of

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Speaker 1: that happens because I'm having back and forth conversations with

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Speaker 1: different stockbrokers and different research houses and understanding what that

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Speaker 1: means and how to pull it together. And that seems

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Speaker 1: to be a common topic at the moment. What's going

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Speaker 1: on with Combank? How does that work? Does that mean

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Speaker 1: we should be adding it, should we be selling some

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Speaker 1: of it? What does that mean for clients? So I

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Speaker 1: think it's interesting, Ge when you ask me a very

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Speaker 1: clean question of like, all right, will you do just

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Speaker 1: compare it to a like business that makes sense yeah,

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Speaker 1: but unfortunately it's not as clean car as that.

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Speaker 4: So basic question from me be surprise, surprise, but I

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Speaker 4: think it's probably a good place to start before we

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Speaker 4: get into the thick of things. What's an undervalued share

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Speaker 4: versus an overvalued share?

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Speaker 1: So, and this gets confusing because I'm going to talk

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Speaker 1: about intrinsic and extrinsic value here. So an overvalued asset

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Speaker 1: is an investment that's trading for more money than what

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Speaker 1: its intrinsic value is. And an undervalued share is a

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Speaker 1: financial term for referring to a security or any other

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Speaker 1: type of investment that's selling in a market for a

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Speaker 1: price that's presumed to be below the investment's true intrinsic value.

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Speaker 1: So when we talk about intrinsic and extrinsic it's I

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Speaker 1: feel like these words get really complex, really quickly. So essentially,

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Speaker 1: intrinsic value is like the fundamental objective value of that object. Right,

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Speaker 1: So the intrinsic value of a one dollar coin, what

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Speaker 1: is it? G one dollar? So if you paid a

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Speaker 1: dollar ten for a one dollar coin, are you undervaluing

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Speaker 1: it or overvaluing it? Over over over over over. But

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Speaker 1: you're overvaluing it because you're paying more than what that

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Speaker 1: value of that asset is. Same for a two dollar coin, right,

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Speaker 1: So a two dollar coin is worth two dollars. If

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Speaker 1: you want to paid two dollars fifty for that coin

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Speaker 1: to get it in your possession, you've paid more than

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Speaker 1: what it's worth. Because when the market settles down, and

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Speaker 1: maybe I don't know, maybe you're a coin collector and

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Speaker 1: you will want to jump down my throat. But this

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Speaker 1: was a good example. But when the market comes down

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Speaker 1: and there's heaps of two dollars coins out there, it's

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Speaker 1: not going to be worth two dollars fifty anymore. It's

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Speaker 1: going to go back to what it's genuinely worth. Right,

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Speaker 1: So fundamentally base value, it's base value. Fundamentally what is

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Speaker 1: it worth? And fundamentals in the world of investment are

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Speaker 1: really important to understand because they sit under market hype,

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Speaker 1: they sit under what's going on, and that's what investment

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Speaker 1: advisors are looking for. So like I want in a

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Speaker 1: perfect world, right, I want a client to come to

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Speaker 1: me and be like they want to start an investment portfolio.

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Speaker 1: I've got this amount of money and I go shopping

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Speaker 1: for shares and I'm like, oh, my God, all these

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Speaker 1: companies are undervalued because they're Intrinsic value is telling me

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Speaker 1: I should be paying ten dollars a share for this,

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Speaker 1: but they're asking eight dollars a share. This is a

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Speaker 1: money win. So it's one of those things where it's

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Speaker 1: not as confusing so intrinsic value, it's that innate internal

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Speaker 1: value of just what that asset is worth. Does that

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Speaker 1: make sense?

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Speaker 4: It does make sense? And am I right in thinking?

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Speaker 4: This is Warren Buffett's investing strategy. He buys the undervalued shares,

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Speaker 4: who likes the underdog.

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Speaker 1: To contrast that, though, the opposite is called an extrinsic value,

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Speaker 1: So intrinsic internal, extrinsic external yep, and extrinsic value is

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Speaker 1: the difference between the market price of an option and

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Speaker 1: it's premium. So often if we're talking about the extrinsic

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Speaker 1: value of a share, well, that's that two dollar coin

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Speaker 1: that was once touched by Taylor Swift. So therefore you

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Speaker 1: guys are paying two dollars fifty for it. Is that

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Speaker 1: asset actually worth two dollars or is it worth two

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Speaker 1: dollars fifty? Probably two dollars, But you're willing to pay

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Speaker 1: a premium. Take t swift, she touched it.

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Speaker 4: And more people want it, so the price is increased.

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Speaker 1: Does that make sense?

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Speaker 4: Making sense?

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Speaker 1: Extrinsic value is how it's driven by the market, and

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Speaker 1: intrinsic value is its genuine, fundamental base price.

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Speaker 4: So is it always safe, then, to buy an undervalued stock.

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Speaker 4: That sounds like the right way to go.

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Speaker 1: It sounds like a really good way Laaren's doing it.

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Speaker 1: But what makes it undervalued? So how do you actually

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Speaker 1: know that that's a good deal or not. You might go,

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Speaker 1: all right, well, it's a blue chip stock, it's undervalued.

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Speaker 1: Oh what a money win, And then you find out

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Speaker 1: that you didn't know something that you needed to know

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Speaker 1: to make that decision, and you already purchased those shares.

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Speaker 1: For example, you might purchase shares and think it's a

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Speaker 1: great money win, but the market's been really slowing down

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Speaker 1: and you haven't known why. And then later an annual

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Speaker 1: report comes out and that business has not performed as

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Speaker 1: well as you thought it would. So it's intrinsic value

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Speaker 1: is not as much as you actually thought it would be.

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Speaker 1: So it might not actually be undervalued. It's been deemed

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Speaker 1: undervalued because of the research and information that's available about

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Speaker 1: it right now. Same thing happens when we find out

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Speaker 1: a company's done something really cheeky or naughty or abused

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Speaker 1: the situation or made use of something they shouldn't have

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Speaker 1: made use of. When it comes out, they go, well,

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Speaker 1: your intrinsic value is going to go down. Because intrinsic

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Speaker 1: value is made up of things like, you know, the

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Speaker 1: balance sheet and the profit and loss statement and all

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Speaker 1: those financial things, but it's also like brand reputation. Yeah, Like,

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Speaker 1: if you look at Telstra, what's their brand reputation in

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Speaker 1: the industry for service they provide when you compare it

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Speaker 1: to any other phone carrier, right, Like, there's a reason

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Speaker 1: their consumers are willing to pay more for that product.

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Speaker 1: And it's not just about coverage, Like, guys, it's twenty

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Speaker 1: twenty two coverage not that hard to sort out anymore.

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Speaker 1: But people are still willing to pay more for that

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Speaker 1: service because they align it with quality. So intrinsic value

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Speaker 1: is obviously those fundamental things. You've also got to have

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Speaker 1: your hat on the right way and know that it's

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Speaker 1: not just about the financial sometimes, gotcha, that makes sense.

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Speaker 4: It does make sense.

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Speaker 1: The ones would all just be buying Cole's home brand everything,

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Speaker 1: wouldn't we.

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Speaker 4: Yeah, exactly right? So on that, how do you actually

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Speaker 4: analyze the market though, Like, how do you know what's

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Speaker 4: undervalued and what's overvalued?

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Speaker 2: Where?

435
00:20:19,560 --> 00:20:20,440
Speaker 4: Like where do we begin?

436
00:20:20,720 --> 00:20:23,359
Speaker 1: Are you ready? Are you ready? All right? So there's

437
00:20:23,480 --> 00:20:25,960
Speaker 1: two schools of thought on this when it comes down

438
00:20:26,000 --> 00:20:29,680
Speaker 1: to it. There's technical and fundamental analysis And what did

439
00:20:29,720 --> 00:20:34,840
Speaker 1: I teach you before? Fundamental is intrinsically valued nice and

440
00:20:35,359 --> 00:20:39,520
Speaker 1: technical sits more on the extrinsically valued side of things. Ah,

441
00:20:39,880 --> 00:20:43,760
Speaker 1: Investors and financial advisors and traders use both of these

442
00:20:43,800 --> 00:20:46,439
Speaker 1: to research and work out what stock price is. And

443
00:20:46,560 --> 00:20:49,600
Speaker 1: from my perspective as a financial advisor, I think that

444
00:20:49,680 --> 00:20:52,440
Speaker 1: they go hand in hand. But you will meet some

445
00:20:52,600 --> 00:20:56,479
Speaker 1: financial advisors or some investment advisors or some economists that

446
00:20:56,600 --> 00:20:59,080
Speaker 1: only subscribe to one of those schools of thought, and

447
00:20:59,080 --> 00:21:01,720
Speaker 1: they'll be like, we are look at fundamental or we

448
00:21:01,760 --> 00:21:05,520
Speaker 1: only like technical or whatever it is, because sometimes people

449
00:21:05,520 --> 00:21:08,080
Speaker 1: get really caught up in the semantics of it. Go figure,

450
00:21:08,240 --> 00:21:11,040
Speaker 1: So we've got the intrinsic and the extrinsic and it

451
00:21:11,119 --> 00:21:12,919
Speaker 1: kind of goes back to when I was doing my

452
00:21:13,000 --> 00:21:16,080
Speaker 1: psych degree, just way back when I feel like it

453
00:21:16,119 --> 00:21:18,560
Speaker 1: was yesterday, the same time as being told that we've

454
00:21:18,560 --> 00:21:20,280
Speaker 1: got a ten year reunion coming up.

455
00:21:20,359 --> 00:21:20,720
Speaker 4: So what.

456
00:21:22,119 --> 00:21:26,640
Speaker 1: But we spoke a lot about qualitative versus quantitative measurement

457
00:21:26,840 --> 00:21:29,600
Speaker 1: and the different ways that you can measure things. So

458
00:21:29,800 --> 00:21:34,080
Speaker 1: qualitative data is like that kind of more fluffier data gee,

459
00:21:34,320 --> 00:21:37,840
Speaker 1: So it's not necessarily a numerical value. Whereas if we

460
00:21:37,960 --> 00:21:42,959
Speaker 1: talked about quantitative quantity, like the number associated with it,

461
00:21:43,000 --> 00:21:44,920
Speaker 1: so it might be, you know, a scale of one

462
00:21:44,960 --> 00:21:47,080
Speaker 1: to five, where do you sit on this? Most people

463
00:21:47,160 --> 00:21:51,720
Speaker 1: were three. It is very fact based, whereas quantitative is like, well,

464
00:21:51,760 --> 00:21:54,080
Speaker 1: how did the podcast make you feel? Or how did

465
00:21:54,080 --> 00:21:56,520
Speaker 1: this business make you feel? And then we collect a

466
00:21:56,560 --> 00:21:58,919
Speaker 1: whole heap of data and we actually just look for

467
00:21:58,960 --> 00:22:02,639
Speaker 1: similarities in it. There's no hard and fast rule or

468
00:22:02,760 --> 00:22:05,280
Speaker 1: number associated with it. So there's like the soft and

469
00:22:05,320 --> 00:22:08,399
Speaker 1: the hard, and from my perspective, we're making a good

470
00:22:08,440 --> 00:22:10,880
Speaker 1: investment decision. We need to take both of these things

471
00:22:10,880 --> 00:22:15,800
Speaker 1: into a consideration. Right, Because I'm quite vocal not online,

472
00:22:15,800 --> 00:22:18,879
Speaker 1: but just quite vocal in my everyday life about you know,

473
00:22:18,960 --> 00:22:21,439
Speaker 1: the importance of ethical fashion. So if we looked at

474
00:22:21,440 --> 00:22:24,920
Speaker 1: a company like Sheen, right, they at their crux of it,

475
00:22:25,119 --> 00:22:28,240
Speaker 1: they probably have really good financials. They probably are blowing

476
00:22:28,240 --> 00:22:30,159
Speaker 1: it out of the water. They are a fast fashion

477
00:22:30,200 --> 00:22:32,600
Speaker 1: brand who have managed to capture a massive part of

478
00:22:32,640 --> 00:22:37,480
Speaker 1: the market. They are churning out shitloads of clothes and content,

479
00:22:37,600 --> 00:22:41,119
Speaker 1: and from their perspective, they're probably doing really well. Then

480
00:22:41,160 --> 00:22:43,320
Speaker 1: you look at the quality of data on that and

481
00:22:43,359 --> 00:22:45,879
Speaker 1: you go, but they're abusing the system. They aren't doing

482
00:22:45,920 --> 00:22:48,240
Speaker 1: the right thing when it comes to child labor, they

483
00:22:48,280 --> 00:22:50,359
Speaker 1: aren't doing the right thing when it comes to you know.

484
00:22:50,560 --> 00:22:51,280
Speaker 4: The environment.

485
00:22:51,359 --> 00:22:51,679
Speaker 3: Yeah.

486
00:22:51,720 --> 00:22:54,280
Speaker 1: So for me to make a good decision as to

487
00:22:54,320 --> 00:22:58,240
Speaker 1: whether Geking on Tour should be buying that as a share,

488
00:22:58,480 --> 00:23:00,439
Speaker 1: I don't want to just look at their fine I

489
00:23:00,480 --> 00:23:02,400
Speaker 1: want to look at the holistic picture. And I think

490
00:23:02,440 --> 00:23:05,720
Speaker 1: that when it comes to looking at shares and putting

491
00:23:05,720 --> 00:23:08,600
Speaker 1: something in your portfolio, I think everybody should be doing that,

492
00:23:08,680 --> 00:23:12,000
Speaker 1: not just because of your values, but because values often

493
00:23:12,080 --> 00:23:15,240
Speaker 1: drive economies, and I think that that should be really

494
00:23:15,280 --> 00:23:18,360
Speaker 1: taken into consideration. But that is my take. You might

495
00:23:18,400 --> 00:23:20,520
Speaker 1: be like, V love Sheen and I'll be like, we're

496
00:23:20,520 --> 00:23:22,359
Speaker 1: probably not friends, But that's.

497
00:23:22,119 --> 00:23:26,840
Speaker 4: Okay, okay in terms of value something on Sheen. No, Yeah,

498
00:23:26,880 --> 00:23:29,600
Speaker 4: for good reasoning or not, you're a nagnata kind of gal.

499
00:23:29,720 --> 00:23:31,879
Speaker 4: I just can't see you buying fast fashion ge King,

500
00:23:32,040 --> 00:23:34,639
Speaker 4: But I mean, I understand why people do, but I

501
00:23:34,640 --> 00:23:37,160
Speaker 4: think it's something that we're really turning away from as

502
00:23:37,200 --> 00:23:39,800
Speaker 4: a society, which is brilliant because it's.

503
00:23:39,640 --> 00:23:42,719
Speaker 1: A huge I agree, and I think that's maybe a

504
00:23:42,720 --> 00:23:45,040
Speaker 1: really good point for me to just drop in there.

505
00:23:45,440 --> 00:23:48,760
Speaker 1: I'm not actually against fast fashion. I think that there

506
00:23:48,880 --> 00:23:51,640
Speaker 1: is a place for it. I'm not actually against fast

507
00:23:51,640 --> 00:23:53,960
Speaker 1: fashion in the way you think that I might be,

508
00:23:53,960 --> 00:23:56,919
Speaker 1: because I think that accessibility is really important, and I

509
00:23:56,920 --> 00:23:59,159
Speaker 1: think that if you're starting to crucify people just for

510
00:23:59,240 --> 00:24:03,199
Speaker 1: buying cheaply, there's something fundamentally wrong with our economy and

511
00:24:03,280 --> 00:24:06,800
Speaker 1: our system and our community. Like some people genuinely need

512
00:24:06,880 --> 00:24:11,400
Speaker 1: access to clothing items that are at a kmart price point,

513
00:24:11,600 --> 00:24:12,960
Speaker 1: like at the end of the day, that is what

514
00:24:13,040 --> 00:24:15,400
Speaker 1: it is. And I think it's really beautiful that there

515
00:24:15,520 --> 00:24:18,119
Speaker 1: is a level of quality there that they can be

516
00:24:18,160 --> 00:24:20,320
Speaker 1: assured of so that they can get wear out of

517
00:24:20,359 --> 00:24:23,240
Speaker 1: clothes if that's you know, that's aligned to their budget.

518
00:24:23,440 --> 00:24:26,919
Speaker 1: What I don't like is the consumerism behind fast fashion,

519
00:24:26,960 --> 00:24:28,639
Speaker 1: where it's like we're that top onees and throw it

520
00:24:28,640 --> 00:24:31,160
Speaker 1: away exactly. That's what we're crucifying when we talk about

521
00:24:31,200 --> 00:24:34,520
Speaker 1: fast fashion, not about companies who are selling cheap clothes.

522
00:24:34,720 --> 00:24:35,360
Speaker 1: Does that make sense?

523
00:24:36,920 --> 00:24:40,040
Speaker 4: Back to finance, So, yes, we've got fundamental analysis speed,

524
00:24:40,119 --> 00:24:42,480
Speaker 4: and we've got technical analysis. Tell me a little bit

525
00:24:42,480 --> 00:24:43,720
Speaker 4: more about technical analysis.

526
00:24:43,760 --> 00:24:45,199
Speaker 1: I know you don't mean that. I know you're just

527
00:24:45,240 --> 00:24:47,520
Speaker 1: like looking at it. Going V mentioned this, I probably

528
00:24:47,560 --> 00:24:49,760
Speaker 1: should follow up because people are interested.

529
00:24:49,400 --> 00:24:50,440
Speaker 4: On behalf of the listeners.

530
00:24:50,520 --> 00:24:53,879
Speaker 1: Thank you, you are so kind. So technical analysis is

531
00:24:53,880 --> 00:24:56,920
Speaker 1: all that like stats and algorithms that analyze the share

532
00:24:56,960 --> 00:25:00,240
Speaker 1: price movement over time to find out the underl lying

533
00:25:00,359 --> 00:25:03,320
Speaker 1: market trends or what we call market sentiment based on

534
00:25:03,359 --> 00:25:05,560
Speaker 1: the number of people that are buying and selling that stock.

535
00:25:05,640 --> 00:25:07,840
Speaker 1: So you know, if it's really popular, it might be

536
00:25:07,920 --> 00:25:10,600
Speaker 1: worth more, not necessarily because the business is doing better,

537
00:25:10,760 --> 00:25:14,320
Speaker 1: but because everybody's talking about after pay. Does that make sense.

538
00:25:14,400 --> 00:25:14,960
Speaker 4: Yeah.

539
00:25:14,960 --> 00:25:18,560
Speaker 1: So analysts then use stock charts to identify patterns which

540
00:25:18,720 --> 00:25:22,000
Speaker 1: maybe will suggest future trends for stocks and shares and

541
00:25:22,000 --> 00:25:26,160
Speaker 1: stuff like that. Also clarify stock and share same thing.

542
00:25:26,359 --> 00:25:29,439
Speaker 1: I use them interchangeably. I much prefer the word share

543
00:25:29,760 --> 00:25:31,960
Speaker 1: only because I feel like it's a little bit more Australian,

544
00:25:32,320 --> 00:25:35,160
Speaker 1: whereas stock feels very stock. Mard Yeah, I just feel

545
00:25:35,200 --> 00:25:38,040
Speaker 1: like it's got like a mansplainy vibe to it. So

546
00:25:38,160 --> 00:25:41,280
Speaker 1: often shy away from it. But the core assumption is

547
00:25:41,320 --> 00:25:45,560
Speaker 1: that all known fundamentals from fundamental analysis are already factored

548
00:25:45,600 --> 00:25:47,960
Speaker 1: into price, and thus there's no need to pay close

549
00:25:47,960 --> 00:25:50,840
Speaker 1: attention to them. I don't particularly subscribe to that, you

550
00:25:50,880 --> 00:25:53,320
Speaker 1: know how I said before, some people will like poopoo

551
00:25:53,400 --> 00:25:55,760
Speaker 1: fundamental and be like it's a waste of time. I

552
00:25:55,800 --> 00:25:57,320
Speaker 1: just don't think it is. I just want to know

553
00:25:57,400 --> 00:25:59,000
Speaker 1: what's going on. I want to know when I'm getting

554
00:25:59,000 --> 00:26:01,159
Speaker 1: a good deal. I want to genuinely be able to

555
00:26:01,200 --> 00:26:03,440
Speaker 1: explain that to my clients as well. I don't want

556
00:26:03,480 --> 00:26:05,639
Speaker 1: to just say I know what I'm talking about, trust me,

557
00:26:05,760 --> 00:26:07,120
Speaker 1: Like it's just it's not enough for.

558
00:26:07,119 --> 00:26:09,399
Speaker 4: Me, okay, perfect, I feel like I grasp what a

559
00:26:09,440 --> 00:26:12,000
Speaker 4: technical analysis is. Thank you so much for me. I

560
00:26:12,040 --> 00:26:14,639
Speaker 4: think we should press pause here, go to a little break,

561
00:26:14,720 --> 00:26:16,639
Speaker 4: and then on the other side we are going to

562
00:26:16,680 --> 00:26:20,040
Speaker 4: dive into exactly how it can value stocks, How to

563
00:26:20,040 --> 00:26:21,040
Speaker 4: make sense of all is that.

564
00:26:20,920 --> 00:26:23,520
Speaker 1: About pe ratios? The pig ratio We're going to talk

565
00:26:23,560 --> 00:26:26,160
Speaker 1: about the price book ratio, which is the PB ratio,

566
00:26:26,200 --> 00:26:28,480
Speaker 1: which is not a PB and jelly sandwich, which is

567
00:26:28,560 --> 00:26:30,040
Speaker 1: kind of disappointing.

568
00:26:29,560 --> 00:26:31,200
Speaker 4: A little bit, but there's so much fun to come.

569
00:26:31,240 --> 00:26:39,080
Speaker 4: Don't go anywhere, guys, All right, straight back into it. VD,

570
00:26:39,680 --> 00:26:41,840
Speaker 4: tell me how on earth do I begin it to

571
00:26:42,000 --> 00:26:44,320
Speaker 4: value a share? Seems overwhelmed, Okay.

572
00:26:44,040 --> 00:26:47,080
Speaker 1: So let's strip it back. There are three different ways

573
00:26:47,119 --> 00:26:50,280
Speaker 1: that you're able to put a value or a relative

574
00:26:50,320 --> 00:26:53,480
Speaker 1: value on a share. So the first is the PE ratio,

575
00:26:53,760 --> 00:26:57,280
Speaker 1: that is the price to earnings ratio, the second is

576
00:26:57,320 --> 00:27:02,200
Speaker 1: the price to earning growth ratio, and then the third

577
00:27:02,359 --> 00:27:05,560
Speaker 1: is the price book ratio. There are going to be,

578
00:27:05,600 --> 00:27:08,280
Speaker 1: if you google it, a million different ways to value

579
00:27:08,320 --> 00:27:11,680
Speaker 1: a share, but in the industry in Australia, these are

580
00:27:11,800 --> 00:27:15,880
Speaker 1: the most common or the top three most common ways

581
00:27:15,880 --> 00:27:18,440
Speaker 1: of valuing a share. Yes, there's more. Do you need

582
00:27:18,480 --> 00:27:20,800
Speaker 1: to know more at this point in your journey? Probably not,

583
00:27:20,960 --> 00:27:23,160
Speaker 1: So we're just going to focus on getting these three right.

584
00:27:23,760 --> 00:27:25,720
Speaker 1: So first things first, I know you are on the

585
00:27:25,840 --> 00:27:27,120
Speaker 1: edge of your seat, Georgia.

586
00:27:26,880 --> 00:27:29,320
Speaker 4: King, price earnings ratio, what is it?

587
00:27:29,440 --> 00:27:30,080
Speaker 1: PE ratio?

588
00:27:30,200 --> 00:27:31,040
Speaker 4: PE ratio?

589
00:27:31,200 --> 00:27:34,640
Speaker 1: So it looks at a company's recent or forecasted so

590
00:27:34,800 --> 00:27:38,239
Speaker 1: recent or predicted earnings per share so against what the

591
00:27:38,280 --> 00:27:40,560
Speaker 1: current market price of the share is, and it has

592
00:27:40,560 --> 00:27:42,679
Speaker 1: a look at that and says, is what we are

593
00:27:42,720 --> 00:27:47,000
Speaker 1: predicting they are worth in the future actually similar to

594
00:27:47,040 --> 00:27:49,280
Speaker 1: the current market priuce of what people are paying for

595
00:27:49,359 --> 00:27:53,200
Speaker 1: this share. And sometimes that'll be really low or sometimes

596
00:27:53,200 --> 00:27:56,160
Speaker 1: that'll be really high. But that ratio gives people a

597
00:27:56,200 --> 00:27:58,760
Speaker 1: really good indicator of whether it's a good deal or not.

598
00:27:59,160 --> 00:28:01,960
Speaker 1: So the earnings per share, or what the industry calls

599
00:28:01,960 --> 00:28:05,600
Speaker 1: that the EPs, is the proportion of the company's profit

600
00:28:05,680 --> 00:28:09,119
Speaker 1: allocated back to each individual share. To figure out a

601
00:28:09,160 --> 00:28:12,560
Speaker 1: company's PE ratio, we need to do some really quick maths.

602
00:28:12,600 --> 00:28:15,159
Speaker 1: We need to look at the company's earnings per share,

603
00:28:15,400 --> 00:28:18,440
Speaker 1: which is really readily available in their annual report or

604
00:28:18,480 --> 00:28:20,960
Speaker 1: their quarterly report, or it's usually on their website. It's

605
00:28:20,960 --> 00:28:23,679
Speaker 1: not a hard number to find. Then you divide the

606
00:28:23,760 --> 00:28:27,560
Speaker 1: current price per share by the earnings per share to

607
00:28:27,640 --> 00:28:31,040
Speaker 1: find your PE ratio. So if a company has a

608
00:28:31,160 --> 00:28:35,760
Speaker 1: quote adjusted EPs figures or earnings per share figures, use

609
00:28:35,800 --> 00:28:37,920
Speaker 1: these instead. Is they going to take into account any

610
00:28:38,120 --> 00:28:40,840
Speaker 1: major expenses that were incurred during that period that might

611
00:28:40,880 --> 00:28:43,800
Speaker 1: affect the EPs. So for example, if they acquired a

612
00:28:43,840 --> 00:28:47,240
Speaker 1: new factory, or they bought something really big or invested

613
00:28:47,280 --> 00:28:50,720
Speaker 1: in a new database or something like that, that's an outlier,

614
00:28:51,080 --> 00:28:52,840
Speaker 1: like that's not a common thing to happen each and

615
00:28:52,880 --> 00:28:55,360
Speaker 1: every single year, so they might have an adjusted figure

616
00:28:55,400 --> 00:28:57,600
Speaker 1: fit used so that you can still value the company

617
00:28:57,600 --> 00:29:00,640
Speaker 1: without absolutely blowing it out of border. So to run

618
00:29:00,680 --> 00:29:02,840
Speaker 1: a quick example for you, if a company currently has

619
00:29:02,840 --> 00:29:05,160
Speaker 1: a share price of one hundred bucks, so close to

620
00:29:05,200 --> 00:29:07,720
Speaker 1: what Combank has, but like imagine if Combank got to

621
00:29:07,760 --> 00:29:10,680
Speaker 1: one hundred, I think my group chat for financial advisors

622
00:29:10,720 --> 00:29:13,760
Speaker 1: would go off. It would be a fleet. Anyway, company

623
00:29:13,800 --> 00:29:15,800
Speaker 1: has a share price of one hundred dollars and an

624
00:29:15,880 --> 00:29:18,880
Speaker 1: earnings per share of ten dollars as stated in its

625
00:29:18,960 --> 00:29:22,320
Speaker 1: latest report. If we use the formula, the company's PEE

626
00:29:22,440 --> 00:29:24,680
Speaker 1: ratio would then be ten. Pretty quick maths.

627
00:29:24,720 --> 00:29:25,560
Speaker 4: Pretty quick maths.

628
00:29:25,680 --> 00:29:28,040
Speaker 1: Feel like it was so confusing, guys. It's podcast will

629
00:29:28,080 --> 00:29:30,080
Speaker 1: do a whole lot of post on this, and it

630
00:29:30,080 --> 00:29:32,000
Speaker 1: will be in the blog post because it's in front

631
00:29:32,000 --> 00:29:33,760
Speaker 1: of me. We've already done the work. We will share

632
00:29:33,800 --> 00:29:36,720
Speaker 1: it with you. But the pe ratio works best when

633
00:29:36,760 --> 00:29:39,920
Speaker 1: comparing apples with apples. So most investors would argue that

634
00:29:39,960 --> 00:29:42,720
Speaker 1: a share price with a lower pe ratio compared to

635
00:29:42,760 --> 00:29:46,360
Speaker 1: its peers is cheaper and could be undervalued. So that's

636
00:29:46,400 --> 00:29:47,760
Speaker 1: a way of having a look at it and going

637
00:29:48,080 --> 00:29:50,760
Speaker 1: what does this mean? How does that work? But see

638
00:29:50,760 --> 00:29:54,040
Speaker 1: how now we're into talking about a price per earning ratio,

639
00:29:54,160 --> 00:29:57,080
Speaker 1: not a price per share George, So before I gave

640
00:29:57,120 --> 00:29:59,440
Speaker 1: you the example and said, wow, twenty seven dollars for

641
00:29:59,440 --> 00:30:01,720
Speaker 1: a NAB share but ninety one for a Combak share,

642
00:30:01,720 --> 00:30:03,880
Speaker 1: and you go, well, that makes no sense. How do

643
00:30:03,920 --> 00:30:06,840
Speaker 1: I pick? But then we introduce something like this price

644
00:30:06,920 --> 00:30:10,080
Speaker 1: to earnings ratio and you go, oh okay. So I

645
00:30:10,080 --> 00:30:12,680
Speaker 1: would just take the share price and what it actually

646
00:30:12,720 --> 00:30:15,200
Speaker 1: paid and I'd get a score. And then the lower

647
00:30:15,240 --> 00:30:18,880
Speaker 1: the score, the quote cheaper it is. So it doesn't

648
00:30:18,920 --> 00:30:22,560
Speaker 1: actually matter that one's twenty seven dollars and one's ninety one.

649
00:30:22,880 --> 00:30:25,120
Speaker 1: We kind of put them on a level playing field,

650
00:30:25,200 --> 00:30:27,480
Speaker 1: and that's the way we do that. Does that make sense?

651
00:30:27,560 --> 00:30:28,160
Speaker 4: Does make sense?

652
00:30:28,280 --> 00:30:30,520
Speaker 1: Makes you go, oh, that's not as overwhelming. I don't

653
00:30:30,520 --> 00:30:33,200
Speaker 1: have to go ones expensive or one's cheap. You go, well,

654
00:30:33,280 --> 00:30:36,160
Speaker 1: what is that twenty seven dollars returning if that's what

655
00:30:36,200 --> 00:30:38,160
Speaker 1: we're paying for a NAB share, or what is that

656
00:30:38,240 --> 00:30:41,280
Speaker 1: ninety one dollars returning for that combat share? Does that

657
00:30:41,280 --> 00:30:43,560
Speaker 1: make sense? I hope I'm making sense. This is really hard.

658
00:30:43,640 --> 00:30:45,400
Speaker 1: But gee, at the end of the day, there's no

659
00:30:45,560 --> 00:30:49,040
Speaker 1: definitive what's quote good ratio when it comes to it,

660
00:30:49,040 --> 00:30:50,800
Speaker 1: I can't be like, hey, a five is good and

661
00:30:50,800 --> 00:30:53,320
Speaker 1: a ten's bad, Like that's not how it works. So

662
00:30:53,400 --> 00:30:55,640
Speaker 1: over the last forty years, that all ordinaries, which you've

663
00:30:55,640 --> 00:30:57,600
Speaker 1: probably heard, like you know when you watch TV or

664
00:30:57,600 --> 00:30:59,200
Speaker 1: when you were younger, you used to watch TV and

665
00:30:59,240 --> 00:31:00,600
Speaker 1: your mom and dad had the new on there, like

666
00:31:00,600 --> 00:31:02,040
Speaker 1: the all lords are up? Who are rah?

667
00:31:02,280 --> 00:31:03,880
Speaker 4: The all odds?

668
00:31:04,000 --> 00:31:06,840
Speaker 1: Yeah, the all odds. That's just an index. It just

669
00:31:06,920 --> 00:31:10,280
Speaker 1: tracks the market. It's like the S and P five hundred.

670
00:31:10,280 --> 00:31:12,320
Speaker 4: Sure, okay, but the Australian.

671
00:31:11,920 --> 00:31:15,280
Speaker 1: Verse, like the Australian version oka tracking shares in Australia

672
00:31:15,320 --> 00:31:17,760
Speaker 1: and seeing what the average price of the share market's

673
00:31:17,800 --> 00:31:20,760
Speaker 1: looking so that they can say, oh my god, all

674
00:31:20,760 --> 00:31:23,120
Speaker 1: the all ords are down, which means the share market

675
00:31:23,120 --> 00:31:26,600
Speaker 1: across the board is a bit down, not oh, nabs

676
00:31:26,680 --> 00:31:30,280
Speaker 1: up and combanks down like nobody. Nobody can conceptualize that

677
00:31:30,360 --> 00:31:33,120
Speaker 1: we need one common measure, and in Australia we use

678
00:31:33,160 --> 00:31:35,880
Speaker 1: the all odds. Okay, but if we look at the

679
00:31:35,920 --> 00:31:38,360
Speaker 1: all odds over the last forty years, it's averaged a

680
00:31:38,400 --> 00:31:41,640
Speaker 1: PE of about fifteen, which is sometimes seen as a

681
00:31:41,680 --> 00:31:45,600
Speaker 1: broad threshold. Is kind of fair value to give you

682
00:31:45,640 --> 00:31:46,480
Speaker 1: a bit of an indicator.

683
00:31:46,720 --> 00:31:48,240
Speaker 4: Very good. I'm going to keep an eye out for

684
00:31:48,280 --> 00:31:49,800
Speaker 4: the all odds with the news is on and.

685
00:31:50,480 --> 00:31:54,440
Speaker 1: I know exactly what that is. Yes, yes, we're educated, queen,

686
00:31:54,560 --> 00:31:55,160
Speaker 1: exactly right.

687
00:31:55,200 --> 00:31:57,440
Speaker 4: Now we have the PEG ratio and the price book

688
00:31:57,520 --> 00:31:59,440
Speaker 4: ratio to get to. So let's start with PEG. Tell

689
00:31:59,440 --> 00:31:59,880
Speaker 4: me about that.

690
00:32:00,080 --> 00:32:03,719
Speaker 1: So the PEG ratio or the price earnings to growth ratio.

691
00:32:03,840 --> 00:32:06,560
Speaker 1: So it's taking that first ratio and building off it.

692
00:32:06,800 --> 00:32:10,120
Speaker 1: So before we had the PE, so the price earnings.

693
00:32:10,480 --> 00:32:13,280
Speaker 1: Now it's the PE to growth, which is comparing its

694
00:32:13,320 --> 00:32:15,840
Speaker 1: price earnings to growth. Does that make sense? I feel

695
00:32:15,840 --> 00:32:18,840
Speaker 1: like it was obvious if you really think about it,

696
00:32:19,000 --> 00:32:20,680
Speaker 1: but no one's going to really think about it. They

697
00:32:20,680 --> 00:32:22,520
Speaker 1: just look at it and go, peg ratio, What the hell?

698
00:32:23,120 --> 00:32:27,080
Speaker 1: So the PEG ratio considers the company's earnings growth, so

699
00:32:27,200 --> 00:32:28,680
Speaker 1: to figure this out. You need to find out the

700
00:32:28,680 --> 00:32:31,600
Speaker 1: company's estimated earnings per share, which we talked about just before,

701
00:32:31,880 --> 00:32:34,120
Speaker 1: which will be in the latest down your report or

702
00:32:34,120 --> 00:32:37,320
Speaker 1: on the website, all really accessible if they are listed company.

703
00:32:37,600 --> 00:32:40,480
Speaker 1: And then to calculate the PEG ratio, you use the

704
00:32:40,520 --> 00:32:43,280
Speaker 1: PE that we just did and you divide by the

705
00:32:43,360 --> 00:32:47,400
Speaker 1: growth in earnings per share or the EPs. So I

706
00:32:47,440 --> 00:32:49,600
Speaker 1: feel like this is getting really complicated, but I know

707
00:32:49,640 --> 00:32:51,280
Speaker 1: you guys are following, and if not, just go back

708
00:32:51,360 --> 00:32:53,080
Speaker 1: listen to it again. I'm lucky for you to have

709
00:32:53,120 --> 00:32:55,560
Speaker 1: to listen to me more and more. But a good

710
00:32:55,600 --> 00:32:57,600
Speaker 1: example of this is let's say the company has an

711
00:32:57,600 --> 00:33:00,400
Speaker 1: EPs of eleven dollars over the next year as stated

712
00:33:00,440 --> 00:33:02,760
Speaker 1: in its report. You go, great, no problems, thank you.

713
00:33:03,400 --> 00:33:05,960
Speaker 1: This is an increase of ten percent on its current

714
00:33:06,000 --> 00:33:08,440
Speaker 1: EPs of ten dollars. Because we're using the same example

715
00:33:08,440 --> 00:33:11,400
Speaker 1: as we had before, so using the PEG formula, So

716
00:33:11,440 --> 00:33:14,080
Speaker 1: the price to earnings growth formula of the PE, so

717
00:33:14,160 --> 00:33:17,080
Speaker 1: the PE was ten as we spoke about before, and

718
00:33:17,120 --> 00:33:20,000
Speaker 1: you divide it by the growth in EPs, which is

719
00:33:20,040 --> 00:33:23,440
Speaker 1: ten percent. We then have a PEG ratio of a one.

720
00:33:23,680 --> 00:33:27,240
Speaker 1: You go, he that makes absolutely no sense, but he

721
00:33:27,440 --> 00:33:30,520
Speaker 1: out here, me out, sit down. Just like a PE ratio,

722
00:33:30,600 --> 00:33:33,440
Speaker 1: the PEG ratio compares peer performance, so it's trying to

723
00:33:33,480 --> 00:33:36,600
Speaker 1: compare apples with apples. Again, there's no set PEG ratio

724
00:33:36,640 --> 00:33:38,640
Speaker 1: that's considered to be like the gold standard, or this

725
00:33:38,840 --> 00:33:41,000
Speaker 1: is like a by signal. If you get a PEG

726
00:33:41,080 --> 00:33:43,240
Speaker 1: ratio of x, like bye bye bye. That's not how

727
00:33:43,280 --> 00:33:45,800
Speaker 1: this works. These are all just ratios that we use,

728
00:33:45,960 --> 00:33:48,080
Speaker 1: We write them down, we take them into consideration of

729
00:33:48,120 --> 00:33:52,480
Speaker 1: our larger piece of research. But fundamentalists, so people who

730
00:33:52,480 --> 00:33:55,680
Speaker 1: are really subscribed to that school of like fundamental analysis,

731
00:33:55,720 --> 00:33:58,600
Speaker 1: they might treat that share with a PEG ratio of

732
00:33:58,680 --> 00:34:01,120
Speaker 1: less than one as an UNDERVAALP share, so they might

733
00:34:01,200 --> 00:34:05,760
Speaker 1: go less than one undervalued over one overvalued one on par.

734
00:34:06,240 --> 00:34:06,960
Speaker 1: Does that make sense?

735
00:34:07,000 --> 00:34:07,240
Speaker 4: It does.

736
00:34:07,400 --> 00:34:09,560
Speaker 1: So, it doesn't necessarily mean it absolutely is or it

737
00:34:09,600 --> 00:34:10,560
Speaker 1: absolutely isn't that.

738
00:34:10,600 --> 00:34:12,880
Speaker 4: It's an indicator indicata.

739
00:34:12,920 --> 00:34:13,839
Speaker 1: We have a little look at it.

740
00:34:14,200 --> 00:34:15,839
Speaker 4: The I really thought peg was going to be more

741
00:34:15,840 --> 00:34:17,200
Speaker 4: fun than that. I'm not gonna lie to you.

742
00:34:17,320 --> 00:34:18,439
Speaker 1: Really you have more fun.

743
00:34:19,800 --> 00:34:22,920
Speaker 4: It took me back to your eleven maths anyway, let's

744
00:34:22,960 --> 00:34:23,279
Speaker 4: move on.

745
00:34:23,320 --> 00:34:25,319
Speaker 1: That's what you were doing in your eleven maths.

746
00:34:25,960 --> 00:34:29,280
Speaker 4: Let's move on to the final method of valuing a stock,

747
00:34:29,520 --> 00:34:31,839
Speaker 4: the price book ratio. Tell me all about it in

748
00:34:32,000 --> 00:34:33,040
Speaker 4: twenty seconds or less.

749
00:34:33,120 --> 00:34:35,520
Speaker 1: PB ratio. I always think of peanut butter and jelly.

750
00:34:35,560 --> 00:34:37,520
Speaker 1: I don't know why. I'm not even American. I don't

751
00:34:37,520 --> 00:34:39,440
Speaker 1: even eat peanut butter and jelly. Sandwich has had them

752
00:34:39,440 --> 00:34:43,680
Speaker 1: one time? Terrible. Why would you mix those two things together?

753
00:34:44,200 --> 00:34:47,520
Speaker 1: But I really do like the price book ratio. So

754
00:34:48,000 --> 00:34:49,840
Speaker 1: the price book ratio gives us a little bit of

755
00:34:49,840 --> 00:34:53,600
Speaker 1: a snapshot of company's value according to the book value

756
00:34:53,600 --> 00:34:55,799
Speaker 1: of assets on its balance sheet. So it kind of

757
00:34:55,800 --> 00:34:58,440
Speaker 1: makes sense, like price book, what's on its book? Let's

758
00:34:58,440 --> 00:35:02,000
Speaker 1: have a look a little, right, I'm going to put

759
00:35:02,040 --> 00:35:04,400
Speaker 1: myself in the bin. We really do need that break.

760
00:35:04,480 --> 00:35:07,480
Speaker 1: But a price book ratio is calculated by dividing the

761
00:35:07,600 --> 00:35:11,400
Speaker 1: current share price by the stocks book value divided by

762
00:35:11,440 --> 00:35:13,680
Speaker 1: the number of shares that have been issued. So the

763
00:35:13,760 --> 00:35:16,399
Speaker 1: book value is worked out from the balance sheet as

764
00:35:16,440 --> 00:35:20,399
Speaker 1: the total assets minus the total liabilities, and so liabilities

765
00:35:20,440 --> 00:35:23,000
Speaker 1: is costs. So you take what they own and then

766
00:35:23,120 --> 00:35:25,800
Speaker 1: minus what they owe or what they have in costs,

767
00:35:25,880 --> 00:35:28,560
Speaker 1: and then you get that number. So the balance sheet

768
00:35:28,600 --> 00:35:30,839
Speaker 1: with these figures is super easy to locate if you're

769
00:35:30,880 --> 00:35:32,920
Speaker 1: looking for it. It will be on the company's website,

770
00:35:32,920 --> 00:35:34,960
Speaker 1: it will be in their annual report. It's a very

771
00:35:35,040 --> 00:35:37,440
Speaker 1: large part of the report. They are legally not allowed

772
00:35:37,440 --> 00:35:40,200
Speaker 1: to skip on. So to give you an example of that,

773
00:35:40,239 --> 00:35:42,799
Speaker 1: because we love an example in this community, let's take

774
00:35:42,800 --> 00:35:46,280
Speaker 1: an example of a company's market price being currently two dollars,

775
00:35:46,640 --> 00:35:49,080
Speaker 1: and they have fifty million shares in the market, all

776
00:35:49,120 --> 00:35:53,000
Speaker 1: issued out. They're all bought right, So the total assets

777
00:35:53,160 --> 00:35:56,319
Speaker 1: are eighty million dollars. I'd love this business. I'm glad

778
00:35:56,360 --> 00:35:59,759
Speaker 1: we did this example. So the total assets in this

779
00:35:59,760 --> 00:36:03,320
Speaker 1: business at eighty million dollars, and then the total liabilities

780
00:36:03,400 --> 00:36:06,840
Speaker 1: in this business are twenty million dollars. That then equals

781
00:36:06,840 --> 00:36:10,680
Speaker 1: a total book value of sixty million dollars. So the

782
00:36:10,719 --> 00:36:14,359
Speaker 1: price book ratio is two dollars divided by the eighty

783
00:36:14,440 --> 00:36:17,520
Speaker 1: minus twenty million dollars, rich is sixty divided by fifty

784
00:36:17,600 --> 00:36:20,640
Speaker 1: million dollars, which equals one point seven. And I know

785
00:36:20,719 --> 00:36:23,080
Speaker 1: you didn't follow that, so you've just got to trust

786
00:36:23,160 --> 00:36:27,759
Speaker 1: me that the PB ratio is one point seven. But basically,

787
00:36:28,000 --> 00:36:31,560
Speaker 1: the closer the PB ratio is to one or below

788
00:36:32,120 --> 00:36:35,200
Speaker 1: the greater the perceived value of the stock, and the

789
00:36:35,239 --> 00:36:38,600
Speaker 1: PB or the price book ratio is used more often

790
00:36:38,760 --> 00:36:41,960
Speaker 1: for more mature companies, so like it's for the older

791
00:36:42,040 --> 00:36:46,040
Speaker 1: hens in the share market that don't have as much growth,

792
00:36:46,360 --> 00:36:48,960
Speaker 1: so they say it's for limited growth. But at the

793
00:36:48,960 --> 00:36:51,319
Speaker 1: same time, I feel like, you look at a bank, right,

794
00:36:51,360 --> 00:36:54,120
Speaker 1: They're not going to triple in value overnight, But are

795
00:36:54,120 --> 00:36:57,160
Speaker 1: they a good, solid, steady steed that's maybe going to

796
00:36:57,239 --> 00:36:59,480
Speaker 1: win the race. Maybe that's where we would look at

797
00:36:59,520 --> 00:37:02,319
Speaker 1: a price ratio. You wouldn't really look at a price

798
00:37:02,360 --> 00:37:05,239
Speaker 1: book ratio again for a company like after Pay. I

799
00:37:05,360 --> 00:37:07,920
Speaker 1: used this example a lot, and I've really needed to

800
00:37:08,000 --> 00:37:09,919
Speaker 1: check myself recently on it. It's not because I don't

801
00:37:09,960 --> 00:37:12,480
Speaker 1: like after pay, which I don't for the community, but

802
00:37:12,680 --> 00:37:16,479
Speaker 1: it's because the community so recently had been talking about

803
00:37:16,480 --> 00:37:19,080
Speaker 1: buying and selling after pay shares and it was so topical,

804
00:37:19,120 --> 00:37:22,359
Speaker 1: and I feel like it's a trendy share that people buy.

805
00:37:22,400 --> 00:37:24,399
Speaker 1: So people were buying Tesla, or they're buying after pay,

806
00:37:24,480 --> 00:37:28,000
Speaker 1: or they're buying Apple or whatever. But my example of

807
00:37:28,040 --> 00:37:30,720
Speaker 1: after pay is used a fair bit because it's pbe

808
00:37:30,880 --> 00:37:34,400
Speaker 1: ratio wouldn't be indicative of what it is like after

809
00:37:34,480 --> 00:37:38,239
Speaker 1: pay is such an interesting company where you go commercially

810
00:37:38,360 --> 00:37:40,520
Speaker 1: that makes a lot of sense. Is it putting the

811
00:37:40,520 --> 00:37:44,080
Speaker 1: community in the best possible position. Absolutely not. But when

812
00:37:44,160 --> 00:37:46,919
Speaker 1: you look at it's PB ratios, is it actually turning

813
00:37:46,960 --> 00:37:47,360
Speaker 1: a profit?

814
00:37:47,640 --> 00:37:47,839
Speaker 3: No?

815
00:37:47,960 --> 00:37:50,120
Speaker 1: But people are still buying into it and still loving it.

816
00:37:50,160 --> 00:37:53,000
Speaker 1: So I really like using it as an example because

817
00:37:53,000 --> 00:37:55,080
Speaker 1: of the hype that was surrounded it. Right, you know,

818
00:37:55,120 --> 00:37:56,640
Speaker 1: we should go to a break because I think you

819
00:37:56,640 --> 00:37:59,040
Speaker 1: guys are so sick of that. But to summarize that

820
00:37:59,200 --> 00:38:02,280
Speaker 1: was my PE ratio, my PEG ratio, and my price

821
00:38:02,280 --> 00:38:05,279
Speaker 1: book ratio explained, there'll be blong on it.

822
00:38:05,360 --> 00:38:08,680
Speaker 4: Okay, So I feel like I'm getting met a price

823
00:38:08,680 --> 00:38:11,880
Speaker 4: book ratio. I get it, PEG, I get it. You

824
00:38:11,920 --> 00:38:14,680
Speaker 4: get paid price earnings, I get it. I get it all.

825
00:38:14,920 --> 00:38:17,480
Speaker 1: Do you actually no? But I will re.

826
00:38:17,520 --> 00:38:20,600
Speaker 4: Listen to this episode and I'm sure I will get there.

827
00:38:20,719 --> 00:38:23,640
Speaker 1: I feel like these things feel really overwhelming when you

828
00:38:23,680 --> 00:38:26,439
Speaker 1: first hear them, and you're like, holy moly. But then

829
00:38:26,680 --> 00:38:29,120
Speaker 1: after a few times and a few miles over, you're like, yea,

830
00:38:29,120 --> 00:38:30,480
Speaker 1: all right, I can't get my head around that. I

831
00:38:30,480 --> 00:38:32,439
Speaker 1: don't expect anyone to get that. On the first time,

832
00:38:32,560 --> 00:38:34,759
Speaker 1: because I remember evening in an accounting class when I was

833
00:38:34,840 --> 00:38:36,760
Speaker 1: learning this for the very first time, I was like, cool,

834
00:38:36,880 --> 00:38:39,160
Speaker 1: I'm never going to get there. But now I'm like, okay,

835
00:38:39,200 --> 00:38:41,000
Speaker 1: these three things make a lot of sense. And I'm

836
00:38:41,000 --> 00:38:43,400
Speaker 1: actually quite a visual learner, so I need to see

837
00:38:43,400 --> 00:38:45,879
Speaker 1: how it plays out and see what does this mean

838
00:38:45,920 --> 00:38:47,759
Speaker 1: and where does this plug in and what does that

839
00:38:47,840 --> 00:38:50,440
Speaker 1: look like? And for me, that's how I learned. But

840
00:38:50,440 --> 00:38:52,960
Speaker 1: we all learn really differently, and I think that the

841
00:38:53,000 --> 00:38:55,160
Speaker 1: main thing here is that nobody is going to pick

842
00:38:55,160 --> 00:38:57,520
Speaker 1: that up after me explaining it to you once, especially

843
00:38:57,520 --> 00:38:59,680
Speaker 1: when you can't contextualize it. So it's once you start

844
00:38:59,680 --> 00:39:01,640
Speaker 1: you're in investment journey and you start looking at it

845
00:39:01,680 --> 00:39:03,759
Speaker 1: and you go, oh, this makes sense, like this is

846
00:39:03,800 --> 00:39:06,880
Speaker 1: where this goes. That's when you start to comprehend it properly.

847
00:39:06,920 --> 00:39:09,640
Speaker 4: Amazing. So, for people who have really vibed with this

848
00:39:09,719 --> 00:39:12,880
Speaker 4: chat v and they're feeling confident and ready to invest,

849
00:39:13,120 --> 00:39:16,080
Speaker 4: which platforms would you suggest they use to get cracking?

850
00:39:16,400 --> 00:39:19,360
Speaker 1: Look, I can't recommend specific platforms because that would be

851
00:39:19,400 --> 00:39:22,239
Speaker 1: wildly inappropriate of me. But our community has a number

852
00:39:22,280 --> 00:39:24,560
Speaker 1: of different platforms that they love. Obviously, you guys are

853
00:39:24,600 --> 00:39:27,759
Speaker 1: obsessed with shares's which is really nice. Say are classified,

854
00:39:27,800 --> 00:39:30,719
Speaker 1: I guess as a mid level DIY platform, so you

855
00:39:30,760 --> 00:39:33,359
Speaker 1: can go on and buy shares. But the thing that

856
00:39:33,400 --> 00:39:35,400
Speaker 1: you guys seem to really like about them is that

857
00:39:35,440 --> 00:39:38,080
Speaker 1: you can buy portions of shares. So if you thought, hey,

858
00:39:38,239 --> 00:39:40,120
Speaker 1: be I really want to own combat, but I don't

859
00:39:40,120 --> 00:39:42,120
Speaker 1: have ninety one dollars to do that, you can actually

860
00:39:42,200 --> 00:39:45,080
Speaker 1: purchase a portion of that share instead of the whole deal,

861
00:39:45,200 --> 00:39:47,520
Speaker 1: which I think is really nice to get exposure to

862
00:39:47,560 --> 00:39:50,400
Speaker 1: an asset that you might really love. Not recommending that

863
00:39:50,440 --> 00:39:53,319
Speaker 1: share at all. That was just an example. They have

864
00:39:53,400 --> 00:39:56,160
Speaker 1: access as well to a number of different platforms other

865
00:39:56,200 --> 00:39:59,319
Speaker 1: platforms in the industry. I mean, our community has been

866
00:39:59,360 --> 00:40:02,600
Speaker 1: talking a lot recently about self Wealth and Superhero. Obviously

867
00:40:02,600 --> 00:40:06,719
Speaker 1: those are more direct. When we talk about investing platforms,

868
00:40:06,800 --> 00:40:10,239
Speaker 1: we're not talking about platforms like Rays or Spaceship or

869
00:40:10,280 --> 00:40:13,320
Speaker 1: even six Park, which is a robo advice platform, because

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00:40:13,360 --> 00:40:16,279
Speaker 1: none of those enabled you to invest directly. So if

871
00:40:16,280 --> 00:40:18,600
Speaker 1: you were looking to invest directly, what you'd be looking

872
00:40:18,640 --> 00:40:21,360
Speaker 1: for is a DIY platform, And the things I'd be

873
00:40:21,400 --> 00:40:24,719
Speaker 1: taking into consideration is just really, is this aligned to

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00:40:24,760 --> 00:40:27,000
Speaker 1: my values is this aligned to how much I want

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00:40:27,040 --> 00:40:29,319
Speaker 1: to pay for a platform, And you can find all

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00:40:29,320 --> 00:40:32,400
Speaker 1: of that information out on those websites for those companies.

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Speaker 1: But at the end of the day, completely up to

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Speaker 1: you what you pick, just as long as they are legit,

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Speaker 1: my friends incredible.

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Speaker 4: Remember as well, as we flagged at the top of

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Speaker 4: the episode, guys, we have done many an episode on investing,

882
00:40:44,520 --> 00:40:47,080
Speaker 4: so have a scroll back and you'll find everything from

883
00:40:47,120 --> 00:40:50,440
Speaker 4: what micro investing is, to how to use entry level platforms,

884
00:40:50,480 --> 00:40:53,760
Speaker 4: so on and so forth. That's a really good place to start.

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Speaker 4: We are going to wrap today's episode here. We were

886
00:40:56,640 --> 00:41:02,279
Speaker 4: going to talk about e bits and ebitday, so we

887
00:41:02,400 --> 00:41:05,160
Speaker 4: are actually now going to make that a completely new episode,

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00:41:05,239 --> 00:41:07,120
Speaker 4: So keep an eye on your feed for that one.

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00:41:07,120 --> 00:41:08,600
Speaker 4: It will go dropping not too far a well.

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Speaker 1: George is decided after recording this episode and only half

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00:41:11,880 --> 00:41:13,920
Speaker 1: of the episode, that she's like, nah, mate, this is

892
00:41:14,000 --> 00:41:17,040
Speaker 1: too much. It's Victoria divine. You are canceled and you

893
00:41:17,080 --> 00:41:19,880
Speaker 1: are dense. So you guys, just get the ratios in

894
00:41:19,920 --> 00:41:22,120
Speaker 1: the first one and we will extend it out over

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00:41:22,160 --> 00:41:24,920
Speaker 1: a few other episodes. Because I feel like that's you're right, George,

896
00:41:24,960 --> 00:41:27,040
Speaker 1: I feel not for today. Yeah, but it's easier to

897
00:41:27,120 --> 00:41:29,920
Speaker 1: absorb in smaller bits. And to be honest, the feedback

898
00:41:29,960 --> 00:41:32,280
Speaker 1: I've heard from people who are listening to the investing

899
00:41:32,320 --> 00:41:34,200
Speaker 1: episodes is that they listen to it a couple of

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00:41:34,280 --> 00:41:36,759
Speaker 1: times just for it to really sink in. So I

901
00:41:36,760 --> 00:41:40,800
Speaker 1: feel like that's a good idea. Yeah, geniuses, that's boring,

902
00:41:40,840 --> 00:41:43,080
Speaker 1: but important stuff. Get it done, Liz, do you talk

903
00:41:43,120 --> 00:41:44,960
Speaker 1: about investment, Yes, exactly.

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Speaker 4: The advisor shared on She's on the Money is general

905
00:41:47,960 --> 00:41:51,440
Speaker 4: in nature and does not consider your individual circumstances. She's

906
00:41:51,440 --> 00:41:54,720
Speaker 4: on the Money exists purely for educational purposes and should

907
00:41:54,719 --> 00:41:57,760
Speaker 4: not be relied upon to make an investment or financial decision.

908
00:41:58,200 --> 00:42:00,920
Speaker 4: And we promised Victoria Divine and She's on the Money

909
00:42:00,960 --> 00:42:05,880
Speaker 4: are authorized representatives of Infocused Securities Australia Proprietary Limited ABN

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00:42:06,000 --> 00:42:08,399
Speaker 4: four seven zero nine seven seven nine seven zero four

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00:42:08,480 --> 00:42:11,160
Speaker 4: nine a FOSL two three six five two three. We

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00:42:11,200 --> 00:42:12,919
Speaker 4: will see you on Friday, guys soon.

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Speaker 1: Guys by