Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Wholbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's Money, the podcast for millennials
Speaker 4: who want financial freedom. My name is Georgia King, and
Speaker 4: joining me as she does each and every week, is
Speaker 4: Victoria Divine V.
Speaker 1: How are we you, lucky duck? I am so good because,
Speaker 1: to be really honest, we are recording two episodes this week.
Speaker 1: We just did one, we had a lunch break and
Speaker 1: now we're doing this one, which I'm really excited about.
Speaker 1: But I'm really good because we just had a like
Speaker 1: panco crusted egg plant barn me mouth ordering if you've
Speaker 1: never had that. You're missing out.
Speaker 4: You are missing out. So we're feeling energized, is what
Speaker 4: we're challenging.
Speaker 1: We are so ready to talk about shares and EBIT
Speaker 1: ratings and what a PE ratio is. But let's go
Speaker 1: back to the investment series that we did a couple
Speaker 1: of months ago. Was ages ago. I feel like it
Speaker 1: was only two months ago, but I feel like it
Speaker 1: would have been like six months ago. But in saying that,
Speaker 1: we do lots of investing contents, so I'm not surprised
Speaker 1: that I'm confused. But we looked at the difference between
Speaker 1: different types of investing platforms, and I feel like that
Speaker 1: would be a really good precursor to today. Right, So if
Speaker 1: you haven't listened to that episode, I would recommend going
Speaker 1: back and having a listen to that because I feel
Speaker 1: like this is the next level. We're not talking about
Speaker 1: ETFs or managed funds or different product We're actually talking
Speaker 1: about what it means to assess an individual company. And
Speaker 1: I get asked this all the time, like how do
Speaker 1: I look at a share that I'm going to buy?
Speaker 1: And it's like, okay, well, if you've gotten to the
Speaker 1: point where you've done your risk profile, and you've worked
Speaker 1: out what you want to invest in, and that investment
Speaker 1: strategy includes individual shares. How do you pick it?
Speaker 2: Like?
Speaker 1: What happens if you log onto shares is and you're
Speaker 1: trying to pick shares? Like, how do you do that?
Speaker 1: So that's what this is about today. If you're new
Speaker 1: to being a shared trader, you might be like WHOA well,
Speaker 1: hold back like, this is not my thing. We did
Speaker 1: do a four part investment series which I would absolutely
Speaker 1: recommend you go back to. But we're at a point
Speaker 1: in life, gee, where the community is saying, vee, we
Speaker 1: really want to know more about how to individually value
Speaker 1: stock and value a company, and that's what this episode
Speaker 1: is all about. Now we're in a bear market, terrifying
Speaker 1: but also really normal, Like the investment world and the
Speaker 1: investment markets have cycles and we're going through them. We've
Speaker 1: sen this time and time again. Gee, We've been through
Speaker 1: market corrections, We've been through bear markets, and we've been
Speaker 1: through recessions before. It's not new. It's just so scary
Speaker 1: that I think people tend to jump up and down
Speaker 1: a little bit more than they need to, which puts
Speaker 1: you in a position where consumers and us like Basically,
Speaker 1: people who use the stock market to buy and sell trades,
Speaker 1: we lose a bit of confidence. So I think now
Speaker 1: is a really good time to start honing in and
Speaker 1: focusing on it and going, yeah, you're right. The media
Speaker 1: is jumping up and down and making us really scared.
Speaker 1: But is this a bad thing? No, because shares could
Speaker 1: be on sale, you could get a really good deal.
Speaker 1: It could be a good time for you to start
Speaker 1: your investment journey if you haven't before. So today we're
Speaker 1: talking about tips and tricks that day traders use, not
Speaker 1: necessarily tips and tricks I want you to necessarily use
Speaker 1: because you might turn around g and go all right, well, actually,
Speaker 1: after all that, that sounds like a lot of responsibility.
Speaker 1: I actually just want to go buy an ETF or
Speaker 1: I want to go and sign up to six Park
Speaker 1: and have a robo advice platform because that aligns to
Speaker 1: my values. But I use these tips every single day
Speaker 1: when I am picking client portfolios, because I think a
Speaker 1: good precursor to this is I am not just a
Speaker 1: financial advisor. I am a direct share financial advisor, which
Speaker 1: not all financial advisors are. It's not a flex it's
Speaker 1: just part of your job of what you focus on.
Speaker 1: So my focus with my clients is often about creating
Speaker 1: comprehensive investment portfolios made up of direct shares that I
Speaker 1: then manage on their behalf. So a lot of my
Speaker 1: clients don't have ETFs or managed funds. They actually have
Speaker 1: direct shares, and we have a platform of maybe eight
Speaker 1: to twelve different shares at any point in time. And
Speaker 1: I usually deal with I guess you could say high
Speaker 1: net wealth individuals, and I say that right here, G
Speaker 1: not so I can go, hey, G, I work with
Speaker 1: really rich people, Like, that's not it at all. I
Speaker 1: say that because did you hear the number I said before?
Speaker 1: Eight to twelve individual shares. That's what people with a
Speaker 1: million dollar portfolio have. They're not picking thousands of companies.
Speaker 1: They're not picking hundreds of companies. They are making sure
Speaker 1: they have good diversification across the portfolio that makes sense
Speaker 1: to them. But I don't think it's as comprehensive as
Speaker 1: people think it's going to be, because I think if
Speaker 1: I put up a pole, I really should have done this.
Speaker 1: Maybe we'll do this another time. But if I put
Speaker 1: up a pole on cheese on the money and said,
Speaker 1: how many different shares do you think someone with a
Speaker 1: million dollar portfolio would hold. I guarantee you people be
Speaker 1: like fifty one, one hundred and fifty because that's what
Speaker 1: they think diversification entails, when it's not actually the case.
Speaker 1: So I say this because I use these tips and tricks,
Speaker 1: but I also say this as a hey, you can
Speaker 1: go and be an individual share trader. These are some
Speaker 1: tips and tricks that might help you along the way,
Speaker 1: but it doesn't necessarily mean you'll get instant diversification because
Speaker 1: to get good diversification you actually have to have a
Speaker 1: fair bit of money behind it if you're picking. So
Speaker 1: I think that's enough disclaimery. Stuff's good, that's good.
Speaker 2: Yeah.
Speaker 4: I definitely am one of the people that would have
Speaker 4: said fifty to eighty because it makes sense, right because I.
Speaker 1: Think if we look at ETFs and managed funds, and
Speaker 1: when we talk about funds and indexes, I'll say things like, oh, yeah, gee,
Speaker 1: the S and P three and you'll be like, oh,
Speaker 1: that makes sense, that's the three hundred top companies. But
Speaker 1: when you get into the nitty gritty of it, a
Speaker 1: lot of more high net wealth clients actually have less
Speaker 1: shares but more of them, And it just depends on
Speaker 1: what they are. They're usually more blue chip stocks, so
Speaker 1: we're not talking about buying an after pay here. We're
Speaker 1: talking about buying one of the big four banks, and
Speaker 1: they're usually high dividend, so good dividend paying shares that
Speaker 1: don't have massive amounts of growth. Because if you're at
Speaker 1: that point where you have a million dollars in an
Speaker 1: investment portfolio, it's very likely that your tenacity to take
Speaker 1: on risk is very low because you don't want to
Speaker 1: lose what you already have. It's about maintaining capital stability
Speaker 1: and about keeping cash in the bank, even if it
Speaker 1: means you're not chasing those you know, sexy twenty percent
Speaker 1: returns that some people are getting. My client's usually like
Speaker 1: the the AM's five percent, Like that's that's what it is,
Speaker 1: because we want to stay rich, like we don't want
Speaker 1: to put that wealth at risk. So yeah, that's where
Speaker 1: we're at today, and I feel like it could get
Speaker 1: a little bit complex, and I do apologize, and I'll
Speaker 1: try my best.
Speaker 4: As always, we'll explain it, we'll break it down on
Speaker 4: the complex. Note Fee, there are a lot of acronyms
Speaker 4: in today's episode. You just said S and P three hundred,
Speaker 4: you said ETF at the top you were like EP
Speaker 4: trader or something like that, pe ratio. That's what I
Speaker 4: meant to say, Why so many acronyms, because.
Speaker 1: Gee, there's a technical reason and the reason I believe
Speaker 1: it exists. So we'll start with the reason I believe
Speaker 1: that exists. And I believe that exists because mediocre, middle
Speaker 1: aged white men want to make it seem more confusing
Speaker 1: for young women to get into the investment market. Or
Speaker 1: did you see the S and P five hundred today
Speaker 1: it's at one point six percent, which is today great,
Speaker 1: But like then if I said to you, well, actually
Speaker 1: that is unnecessary, Like we just don't need this added
Speaker 1: level of complexity. Let's shorten it. SMP means the Standard
Speaker 1: and Pause and it's literally just the five hundred top
Speaker 1: tracking companies in the American market as listed on the
Speaker 1: US Exchange, and it's just tracking the average EBB and
Speaker 1: flow of that. And the SMP five hundred is used
Speaker 1: as a very normal index in our industry of how
Speaker 1: the market's performing, because like, what are the top five
Speaker 1: hundred companies doing? Like if it's up one percent, you're like, oh,
Speaker 1: that's like one percent across five hundred companies. That must
Speaker 1: mean there's something pretty okay going on in the market.
Speaker 1: If it was down ten percent, you'd be like, wow,
Speaker 1: what's happening in the industry kind of vibes. So I
Speaker 1: feel like there's a lot of confusing acronyms, and as
Speaker 1: you know, I try to steer away from them because
Speaker 1: it's just not necessary, Like I don't need to use
Speaker 1: an acronym to make myself seem smarter so that you
Speaker 1: don't feel educated. But it's important for you to be
Speaker 1: educated and know what these things are and when they're
Speaker 1: used and how they're used. And ebit is one of
Speaker 1: those things where I'm like, look, this is just what
Speaker 1: it's going to be called on a balance sheet. So
Speaker 1: if you're at a point in your investing journey where
Speaker 1: you're like, I'm gonna invest in individual shares, cool, You're
Speaker 1: probably gonna look at an annual report from a company
Speaker 1: and ebit will be on it. So I need you
Speaker 1: to know what to look out for. But I also
Speaker 1: don't want you to think that they exist to make
Speaker 1: you feel overwhelmed or confused us because how many times
Speaker 1: I don't know about you, but I was on Tinder
Speaker 1: before I met Steve, and the amount of people that
Speaker 1: I would meet that would try and be like, oh,
Speaker 1: I'm an investor, I'm Maybe it's more of a reflection
Speaker 1: of the type of guy. I go, yeah, maybe Steve's
Speaker 1: not like that. It's okay, bank time. He's a different kind.
Speaker 1: But like the banker types would always like use complex
Speaker 1: terminology and I'd be like, do you know what I
Speaker 1: do as a job?
Speaker 2: No?
Speaker 1: Okay, no problems.
Speaker 4: Yeah. I think it's a signal of a smarter person
Speaker 4: to use simpler language that's much more accessible. But you
Speaker 4: always talk about starting a journey of investment when you're
Speaker 4: ready for it and not being influenced by other factors,
Speaker 4: not trying to time the market and so on. Why
Speaker 4: should I value shares before I buy them and not
Speaker 4: just jump in if I feel like I'm ready or
Speaker 4: if the prices are down.
Speaker 1: Because as much as we can't time the market, and
Speaker 1: we shouldn't be trying to toe the market because again
Speaker 1: I'd be really really rich. We don't want to be
Speaker 1: overpaying for shares that are driven by hype. We don't
Speaker 1: want to be in a situation where you're ready to
Speaker 1: invest in your like you know what I want to do.
Speaker 1: I want to get some blue chip shares G. And
Speaker 1: when I say blue chip, blue chip shares are companies
Speaker 1: that are really well known and highly respected, so it's
Speaker 1: by customers and the market and business analysts. We're not
Speaker 1: talking businesses that have just come out of nowhere. We're
Speaker 1: talking about those tried, true resources. We're talking about the
Speaker 1: big four banks G. We're talking about you know, things
Speaker 1: like Macquarie and West Farmers, businesses that have been in
Speaker 1: the Australian economy for a really long time. They might
Speaker 1: not be shares that are completely outperforming the market, but
Speaker 1: they're are tried and true and steady, like Telstra is
Speaker 1: another blue chip stock. And the reason we say that
Speaker 1: these are blue chip stocks is one because they are
Speaker 1: literally just well known companies respected have good businesses behind them.
Speaker 1: Blue Chip is a term used in the financial services
Speaker 1: industry as a term that's kind of perceived as being
Speaker 1: safe havens due to their stability during times like now
Speaker 1: where you know, the markets might not be doing well.
Speaker 1: So those fancy tech stocks people are going to sell up.
Speaker 1: But West Farmers what do they own? Their own Bunnings
Speaker 1: and they own Kmart and Target and those are all
Speaker 1: things that people still need during times of economic downturn. Banks,
Speaker 1: people still need Woolworths, people still need to go to
Speaker 1: the supermarket. So these are shares that are going to perform.
Speaker 1: I mean, they might be down, but they're going to
Speaker 1: still exist because they're basic human needs at the end
Speaker 1: of the day. So you'll often see a lot more
Speaker 1: fluctuation in shares, like again, fancy tech stocks, where if
Speaker 1: people have money and they have a lot of confidence,
Speaker 1: they're like, oh, I'm buying all these after pay shares
Speaker 1: where are second the market turns, they're like, oh, better
Speaker 1: pull back on that, Whereas people are less likely to
Speaker 1: pull back on a Woolworths share because they're like, oh,
Speaker 1: pandemic toilet paper sales throw the roof. Does that make sense? Yeah, yeah, gotcha.
Speaker 4: So would you say it's like the best way to
Speaker 4: value a company's worth.
Speaker 1: Toilet paper they sell.
Speaker 4: No, would it be to compare it to a company
Speaker 4: that's similar and see how their stock is.
Speaker 1: Yeah, you absolutely can. And that's why I find it
Speaker 1: so interesting talking about share prices, because the share prices
Speaker 1: across the big four banks are quite significantly different. You
Speaker 1: would assume big four bank right, very similar share price
Speaker 1: but that's actually not the case at all. So it's
Speaker 1: not like comparing apples with apples where you go bank
Speaker 1: good cheap. They all have different business structures behind them
Speaker 1: and performance analytics and dividend yields and performance that drives
Speaker 1: their perception in the market as to what they're worth.
Speaker 1: So a good example of this is combank shares are
Speaker 1: really expensive. So today as of recording Combank shares and
Speaker 1: ninety one dollars and sixteen cents per share, you go,
Speaker 1: all right, no problems. But that is going to be
Speaker 1: built up of you know, their historical data, how well
Speaker 1: they've done in the market. It's going to be built
Speaker 1: up of what their dividend payart is, so how much
Speaker 1: money you make from owning that share. It's going to
Speaker 1: be made up of you know, consumer demand and how
Speaker 1: much somebody wants that share and what their past performance was.
Speaker 1: So if I then said, well, it's a NAB share
Speaker 1: worth George, what would you say?
Speaker 4: You'd assume similar?
Speaker 1: Right, So a NAB share is twenty seven dollars fifty
Speaker 1: eight much cheaper exactly. So are we saying that one
Speaker 1: bank's better than the other? No? Do they both have
Speaker 1: the government guarantee of two hundred and fifty thousand dollars
Speaker 1: for everybody. Yes, they do. Do they all have similar
Speaker 1: business practices at the crux of it, yes and no,
Speaker 1: But they all have different marketing strategies like banks now
Speaker 1: are bringing out different after pay options or buy now
Speaker 1: pay later options. Banks are doing different things. They all
Speaker 1: are different businesses. So you can't just go bank compared
Speaker 1: with bank and assume that that's going to be like
Speaker 1: a good deal, because if you look at it, go,
Speaker 1: oh my gosh, well, if Combank shares are ninety one dollars,
Speaker 1: it's a money win to buy NAB shares. Past performance
Speaker 1: over the last five years for a NAB share is
Speaker 1: actually down seven point four percent. You go, okay, no problems.
Speaker 1: Well what does that compare to this ninety one dollar
Speaker 1: one This one's so much more expensive. Past performance on
Speaker 1: a combank share. If today it is ninety one dollars
Speaker 1: and nine cents, past performance actually up ten point nine
Speaker 1: two percent. Oh wow. So you go, all right, this
Speaker 1: clearly isn't apples with apples. When we start to get
Speaker 1: into it, and I'm not saying this to confuse you,
Speaker 1: I just don't want you lumping all banks in with
Speaker 1: one and going, oh, they must be equal. I've got
Speaker 1: a bank, because it actually becomes a little bit more
Speaker 1: finicky than that. And we're having this conversation off air
Speaker 1: right before we started recording, and we're talking about how
Speaker 1: Combank shares over the last month have absolutely decreased, like
Speaker 1: they've gone over the last month down thirteen point five
Speaker 1: eight percent. And in the investment world, there's a lot
Speaker 1: of conversation about whether it's worth adding to your portfolio
Speaker 1: at the moment. So when I go and talk to
Speaker 1: my stockbrokers, because as a financial advisor, I obviously pulled
Speaker 1: together a portfolio for my clients, but a lot of
Speaker 1: that happens because I'm having back and forth conversations with
Speaker 1: different stockbrokers and different research houses and understanding what that
Speaker 1: means and how to pull it together. And that seems
Speaker 1: to be a common topic at the moment. What's going
Speaker 1: on with Combank? How does that work? Does that mean
Speaker 1: we should be adding it, should we be selling some
Speaker 1: of it? What does that mean for clients? So I
Speaker 1: think it's interesting, ge when you ask me a very
Speaker 1: clean question of like, all right, will you do just
Speaker 1: compare it to a like business that makes sense, Yeah,
Speaker 1: but unfortunately it's not as clean car as that.
Speaker 4: So basic question from MeV surprise, surprise. But I think
Speaker 4: it's probably a good place to start before we get
Speaker 4: into the thick of things. What's an undervalued share versus
Speaker 4: an overvalued share?
Speaker 1: So, and this gets confusing because I'm going to talk
Speaker 1: about intrinsic and extrinsic value here. So an overvalued asset
Speaker 1: is an investment that's trading for more money than what
Speaker 1: its intrinsic value is. And an undervalued share is a
Speaker 1: financial term for referring to a security or any other
Speaker 1: type of investment that's selling in a market for a
Speaker 1: price that's presumed to be below the investment's true intrinsic value.
Speaker 1: So when we talk about intrinsic and extrinsic it's I
Speaker 1: feel like these words get really complex, really quickly. So essentially,
Speaker 1: intrinsic value is like the fundamental objective value of that object. Right,
Speaker 1: So the intrinsic value of a one dollar coin, what
Speaker 1: is it? G one dollar? So if you paid a
Speaker 1: dollar ten for a one dollar coin, are you undervaluing
Speaker 1: it or overvaluing it? Over over over over over, But
Speaker 1: you're overvaluing it because you're paying more than what that
Speaker 1: value of that asset is. Same for a two dollar coin, right,
Speaker 1: So a two dollar coin is worth two dollars. If
Speaker 1: you want to paid two dollars fifty for that coin
Speaker 1: to get it in your possession, you've paid more than
Speaker 1: what it's worth. Because when the market settles down, and
Speaker 1: maybe I don't know, maybe you're a coin collector and
Speaker 1: you will want to jump down my throat. But this
Speaker 1: was a good example. But when the market comes down
Speaker 1: and there's heaps of two dollars coins out there, it's
Speaker 1: not going to be worth two dollars fifty anymore. It's
Speaker 1: going to go back to what it's genuinely worth. Right,
Speaker 1: So fundamentally base value, it's base value. Fundamentally what is
Speaker 1: it worth? And fundamentals in the world of investment are
Speaker 1: really important to understand because they sit under market hype,
Speaker 1: they sit under what's going on, and that's what investment
Speaker 1: advisors are looking for. So, like I want in a
Speaker 1: perfect world, right, I want a client to come to
Speaker 1: me and be like they want to start an investment portfolio.
Speaker 1: I've got this amount of money, and I go shopping
Speaker 1: for shares and I'm like, oh my god, all these
Speaker 1: companies are undervalued because they're intrinsic value is telling me
Speaker 1: I should be paying ten dollars a share for this,
Speaker 1: but they're asking eight dollars a share. This is a
Speaker 1: money win. So it's one of those things where it's
Speaker 1: not as confusing so intrinsic value, it's that innate internal
Speaker 1: value of just what that asset is worth. Does that
Speaker 1: make sense?
Speaker 4: It does make sense? And am I right in thinking?
Speaker 4: This is Warren Buffett's investing strategy. He buys the undervalued shares,
Speaker 4: who likes the underdog.
Speaker 1: To contrast that, though, the opposite is called an extrinsic value,
Speaker 1: So intrinsic internal, extrinsic external yep, and extrinsic value is
Speaker 1: the difference between the market price of an option and
Speaker 1: it's premium. So often if we're talking about the extrinsic
Speaker 1: value of a share, well, that's that two dollar coin
Speaker 1: that was once touched by Taylor Swift. So therefore you
Speaker 1: guys are paying two dollars fifty for it. Is that
Speaker 1: asset actually worth two dollars or is it worth two
Speaker 1: dollars fifty? Probably two dollars, But you're willing to pay
Speaker 1: a premium. Take t swift, she touched it, and more
Speaker 1: people want it, so the price is increased. Does that
Speaker 1: make sense? Making sense? Extrinsic value is how it's driven
Speaker 1: by the market, and intrinsic value is its genuine, fundamental
Speaker 1: base price.
Speaker 4: So is it always safe, then, to buy an undervalued stock.
Speaker 4: That sounds like the right.
Speaker 1: Way to go. It sounds like a really good way
Speaker 1: Laaren's doing it. But what makes it undervalued? So how
Speaker 1: do you actually know that that's a good deal or not.
Speaker 1: You might go, all right, well, it's a blue chip stock,
Speaker 1: it's undervalued. Oh, what a money win, and then you
Speaker 1: find out that you didn't know something that you needed
Speaker 1: to know to make that decision, and you already purchased
Speaker 1: those shares. For example, you might purchase shares and think
Speaker 1: it's a great money win, but the market's been really
Speaker 1: slowing down and you haven't known why. And then later
Speaker 1: an annual report comes out and that business has not
Speaker 1: performed as well as you thought it would. So it's
Speaker 1: intrinsic value is not as much as you actually thought
Speaker 1: it would be. So it might not actually be undervalued.
Speaker 1: It's been deemed undervalued because of the research and information
Speaker 1: that's available about it right now. Same thing happens when
Speaker 1: we find out a company's done something really cheeky or
Speaker 1: naughty or abused the situation or made use of something
Speaker 1: they shouldn't have made use of. When it comes out,
Speaker 1: they go, well, your intrinsic value is going to go down.
Speaker 1: Because intrinsic value is made up of things like, you know,
Speaker 1: the balance sheet and the profit and loss statement and
Speaker 1: all those financial things, but it's also like brand reputation. Yeah, Like,
Speaker 1: if you look at Telstra, what's their brand reputation in
Speaker 1: the industry for service they provide when you compare it
Speaker 1: to any other phone carrier, right, Like, there's a reason
Speaker 1: their consumers are willing to pay more for that product.
Speaker 1: And it's not just about coverage, Like, guys, it's twenty
Speaker 1: twenty two coverage not that hard to sort out anymore.
Speaker 1: But people are still willing to pay more for that
Speaker 1: service because they align it with quality. So intrinsic value
Speaker 1: is obviously those fundamental things. You've also got to have
Speaker 1: your hat on the right way and know that it's
Speaker 1: not just about the financial sometimes, gotcha, that makes sense.
Speaker 4: It does make sense.
Speaker 1: The ones would all just be buying Cole's home brand everything,
Speaker 1: wouldn't we Yeah, exactly right?
Speaker 4: So on that, how do you actually analyze the market though, Like,
Speaker 4: how do you know what's undervalued and what's overvalued?
Speaker 2: Where?
Speaker 4: Like where do we begin?
Speaker 1: Are you ready? Are you ready? All right? So there's
Speaker 1: two schools of thought on this when it comes down
Speaker 1: to it. There's technical and fundamental analysis and what did
Speaker 1: I teach you before? Fundamental is intrinsically valued nice and
Speaker 1: technical sits more on the extrinsically valued side of things. Ah,
Speaker 1: investors and financial advisors and traders use both of these
Speaker 1: to research and work out what stock price is. And
Speaker 1: from my perspective as a financial advisor, I think that
Speaker 1: they go hand in hand. But you will meet some
Speaker 1: financial advisors or some investment advisors or some economists that
Speaker 1: only subscribe to one of those schools of thought, and
Speaker 1: they'll be like, we are look at fundamental or we
Speaker 1: only like technical or whatever it is, because sometimes people
Speaker 1: get really caught up in the semantics of it. Go figure,
Speaker 1: so we've got the intrinsic and the extrinsic and it
Speaker 1: kind of goes back to when I was doing my
Speaker 1: psych degree just way back when I feel like it
Speaker 1: was yesterday, the same time as being told that we've
Speaker 1: got a ten year reunion coming up. So what. But
Speaker 1: we spoke a lot about qualitative versus quantitative measurement and
Speaker 1: the different ways that you can measure things. So qualitative
Speaker 1: data is like that kind of more fluffier data gee.
Speaker 1: So it's not necessarily a numerical value. Whereas if we
Speaker 1: talked about quantitative quantity, like the number associated with it,
Speaker 1: so it might be, you know, a scale of one
Speaker 1: to five, where do you sit on this? Most people
Speaker 1: were three. It is very fact based, whereas quantitative is like, well,
Speaker 1: how did the podcast make you feel? Or how did
Speaker 1: this business make you feel? And then we collect a
Speaker 1: whole heap of data and we actually just look for
Speaker 1: similarities in it. There's no hard and fast rule or
Speaker 1: number associated with it. So there's like the soft and
Speaker 1: the hard, and from my perspective, we're making a good
Speaker 1: investment decision. We need to take both of these things
Speaker 1: into a consideration, right, Because I'm quite vocal not online,
Speaker 1: but just quite vocal in my everyday life about you know,
Speaker 1: the importance of ethical fashion. So if we looked at
Speaker 1: a company like Sheen right. They at their crux of it,
Speaker 1: they probably have really good financials. They probably are blowing
Speaker 1: it out of the water. They are a fast fashion
Speaker 1: brand who have managed to capture a massive part of
Speaker 1: the market. They are churning out shitloads of clothes and content,
Speaker 1: and from their perspective, they're probably doing really well. Then
Speaker 1: you look at the quality of data on that and
Speaker 1: you go, but they're abusing the system. They aren't doing
Speaker 1: the right thing when it comes to child labor, they
Speaker 1: aren't doing the right thing when it comes to you know,
Speaker 1: the environment.
Speaker 3: Yeah.
Speaker 1: So for me to make a good decision as to
Speaker 1: whether Geking on Tour should be buying that as a share,
Speaker 1: I don't want to just look at their finance. I
Speaker 1: want to look at the holistic picture. And I think
Speaker 1: that when it comes to looking at shares and putting
Speaker 1: something in your portfolio, I think everybody should be doing that,
Speaker 1: not just because of your values, but because values often
Speaker 1: drive economies, and I think that that should be really
Speaker 1: taken into consideration. But that is my take. You might
Speaker 1: be like, V love Sheen, and I'll be like, we're
Speaker 1: probably not friends, but that's okay, okay.
Speaker 4: In terms of value, something on sheen.
Speaker 1: No, yeah, for good reasonly not. You're a nagnata kind
Speaker 1: of gal. I just can't see you buying fast fashion
Speaker 1: ge King.
Speaker 4: But I mean, I understand why people do, but I
Speaker 4: think it's something that we're really turning away from as
Speaker 4: a society, which is brilliant because it's.
Speaker 1: A huge I agree, and I think that's maybe a
Speaker 1: really good point for me to just drop in there.
Speaker 1: I'm not actually against fast fashion. I think that there
Speaker 1: is a place for it. I'm not actually against fast
Speaker 1: fashion in the way you think that I might be,
Speaker 1: because I think that accessibility is really important, and I
Speaker 1: think that if you're starting to crucify people just for
Speaker 1: buying cheaply, there's something fundamentally wrong with our economy and
Speaker 1: our system and our community. Like some people genuinely need
Speaker 1: access to clothing items that are at a kmart price point,
Speaker 1: like at the end of the day, that is what
Speaker 1: it is, and I think it's really beautiful that there
Speaker 1: is a level of quality there that they can be
Speaker 1: assured of so that they can get wear out of
Speaker 1: clothes if that's you know, that's aligned to their budget.
Speaker 1: What I don't like is the consumerism behind fast fashion,
Speaker 1: where it's like we're that top onees and throw it
Speaker 1: away exactly. That's what we're crucifying when we talk about
Speaker 1: fast fashion, not about companies who are selling cheap clothes.
Speaker 1: Does that make sense?
Speaker 4: Back to finance, So, yes, we've got fundamental analysis speed,
Speaker 4: and we've got technical analysis. Tell me a little bit
Speaker 4: more about technical analysis.
Speaker 1: I know you don't mean that. I know you're just
Speaker 1: like looking at it. Going V mentioned this, I probably
Speaker 1: should follow up because people are interested.
Speaker 4: On behalf of the listeners.
Speaker 1: Thank you, you are so kind. So technical analysis is
Speaker 1: all that like stats and algorithms that analyze the share
Speaker 1: price movement over time to find out the underl lying
Speaker 1: market trends or what we call market sentiment based on
Speaker 1: the number of people that are buying and selling that stock.
Speaker 1: So you know, if it's really popular, it might be
Speaker 1: worth more, not necessarily because the business is doing better,
Speaker 1: but because everybody's talking about after pay. Does that make sense. Yeah.
Speaker 1: So analysts then use stock charts to identify patterns which
Speaker 1: maybe will suggest future trends for stocks and shares and
Speaker 1: stuff like that. Also clarify stock and share same thing.
Speaker 1: I use them interchangeably. I much prefer the word share
Speaker 1: only because I feel like it's a little bit more Australian,
Speaker 1: whereas stock feels very stock.
Speaker 4: Mard.
Speaker 1: Yeah, I just feel like it's got like a mansplainy
Speaker 1: vibe to it. So often shy away from it. But
Speaker 1: the core assumption is that all known fundamentals from fundamental
Speaker 1: analysis are already factored into price, and thus there's no
Speaker 1: need to pay close attention to them. I don't particularly
Speaker 1: subscribe to that, you know how I said before, Some
Speaker 1: people will like poopoo fundamental and be like it's a
Speaker 1: waste of time. I just don't think it is. I
Speaker 1: just want to know what's going on. I want to
Speaker 1: know when I'm getting a good deal. I want to
Speaker 1: genuinely be able to explain that to my clients as well.
Speaker 1: I don't want to just say I know what I'm
Speaker 1: talking about, trust me, Like it's just it's not enough for.
Speaker 4: Me, okay, perfect, I feel like I grasp what a
Speaker 4: technical analysis is. Thank you so much for me. I
Speaker 4: think we should press pause here, go to a little break,
Speaker 4: and then on the other side we are going to
Speaker 4: dive into exactly how it can value stocks, how to
Speaker 4: make sense of all?
Speaker 1: Is that about pe ratios? The pig ratio. We're going
Speaker 1: to talk about the price book ratio, which is the
Speaker 1: PB ratio, which is not a PB and jelly sandwich,
Speaker 1: which is kind of disappointing.
Speaker 4: A little bit, but there's so much fun to come.
Speaker 4: Don't go anywhere, guys, All right, straight back into it.
Speaker 1: VD.
Speaker 4: Tell me how on earth do I begin it to
Speaker 4: value a share? Seems overwhelmed, Okay.
Speaker 1: So let's strip it back. There are three different ways
Speaker 1: that you're able to put a value or a relative
Speaker 1: value on a share. So the first is the PE ratio,
Speaker 1: that is the price to earnings ratio, the second is
Speaker 1: the price to earning growth ratio, and then the third
Speaker 1: is the price book ratio. There are going to be,
Speaker 1: if you google it, a million different ways to value
Speaker 1: a share, but in the industry in Australia, these are
Speaker 1: the most common or the top three most common ways
Speaker 1: of valuing a share. Yes, there's more. Do you need
Speaker 1: to know more at this point in your journey? Probably not,
Speaker 1: So we're just going to focus on getting these three right.
Speaker 1: So first things first, I know you are on the
Speaker 1: edge of your seat, Georgia.
Speaker 4: King, Price earnings ratio, what is it?
Speaker 1: PE ratio?
Speaker 2: PE?
Speaker 1: Ratio. So it looks at a company's recent or forecasted
Speaker 1: so recent or predicted earnings per share so against what
Speaker 1: the current market price of the share is, and it
Speaker 1: has a look at that and says, is what we
Speaker 1: are predicting they are worth in the future actually similar
Speaker 1: to the current market priuce of what people are paying
Speaker 1: for this share. And sometimes that'll be really low or
Speaker 1: sometimes that'll be really high, but that ratio gives people
Speaker 1: a really good indicator of whether it's a good deal
Speaker 1: or not. So the earnings per share, or what the
Speaker 1: industry calls the EPs, is the proportion of the company's
Speaker 1: profit allocated back to each individual share. To figure out
Speaker 1: a company's PE ratio, we need to do some really
Speaker 1: quick maths. We need to look at the company's earnings
Speaker 1: per share, which is really readily available in their annual
Speaker 1: report or their quarterly report, or it's usually on their website.
Speaker 1: It's not a hard number to find. Then you divide
Speaker 1: the current price per share by the earnings per share
Speaker 1: to find your PE ratio. So if a company has
Speaker 1: a quote adjusted EPs figures or earnings per share figures,
Speaker 1: use these instead. Is they going to take into account
Speaker 1: any major expenses that were incurred during that period that
Speaker 1: might affect the EPs. So for example, if they acquired
Speaker 1: a new factory, or they bought something really big or
Speaker 1: invested in a new database or something like that, that's
Speaker 1: an outlier, like that's not a common thing to happen
Speaker 1: each and every single year, so they might have an
Speaker 1: adjusted figure fit used so that you can still value
Speaker 1: the company without absolutely blowing it out of border. So
Speaker 1: to run a quick example for you, if a company
Speaker 1: currently has a share price of one hundred bucks, so
Speaker 1: close to what Combank has, but like imagine if Combank
Speaker 1: got to one hundred, I think my group chat for
Speaker 1: financial advisors would go off. It would be a fleet. Anyway,
Speaker 1: company has a share price of one hundred dollars and
Speaker 1: an earnings per share of ten dollars as stated in
Speaker 1: its latest report. If we use the formula, the company's
Speaker 1: pee ratio would then be ten. Pretty quick maths.
Speaker 4: Pretty quick maths.
Speaker 1: Feel like it was so confusing, guys. It's podcast will
Speaker 1: do a whole lot of post on this, and it
Speaker 1: will be in the blog post because it's in front
Speaker 1: of me. We've already done the work. We will share
Speaker 1: it with you. But the pe ratio works best when
Speaker 1: comparing apples with apples, So most investors would argue that
Speaker 1: a share price with a lower PE ratio compared to
Speaker 1: its peers is cheaper and could be undervalued. So that's
Speaker 1: a way of having a look at it and going
Speaker 1: what does this mean? How does that work? But see
Speaker 1: how now we're into talking about a price per earning ratio,
Speaker 1: not a price per share George. So before I gave
Speaker 1: you the example and said, wow, twenty seven dollars for
Speaker 1: a NAB share but ninety one for a Combak share,
Speaker 1: and you go, well, that makes no sense. How do
Speaker 1: I pick? But then we introduce something like this price
Speaker 1: to earnings ratio and you go, oh, okay. So I
Speaker 1: would just take the share price and what it actually
Speaker 1: paid and I'd get a score. And then the lower
Speaker 1: the score, the quote cheaper it is. So it doesn't
Speaker 1: actually matter that one's twenty seven dollars and one's ninety one.
Speaker 1: We kind of put them on a level playing field,
Speaker 1: and that's the way we do that. Does that make sense?
Speaker 1: Does make sense? Makes you go, oh, that's not as overwhelming.
Speaker 1: I don't have to go ones expensive or one's cheap.
Speaker 1: You go, well, what is that twenty seven dollars returning
Speaker 1: if that's what we're paying for a NAB share, or
Speaker 1: what is that ninety one dollars returning for that combat share?
Speaker 1: Does that make sense? I hope I'm making sense. This
Speaker 1: is really hard. But gee, at the end of the day,
Speaker 1: there's no definitive what's quote good ratio when it comes
Speaker 1: to it, I can't be like, hey, a five is
Speaker 1: good and a ten's bad, Like that's not how it works.
Speaker 1: So over the last forty years, that all ordinaries, which
Speaker 1: you've probably heard, like you know when you watch TV
Speaker 1: or when you were younger, you used to watch TV
Speaker 1: and your mom and dad had the new on there,
Speaker 1: like the all lords are up? Who are rah? The
Speaker 1: all odds? Yeah, the all odds. That's just an index.
Speaker 1: It just tracks the market. It's like the S and
Speaker 1: P five hundred.
Speaker 4: Sure, okay, but the Australian.
Speaker 1: Verse, like the Australian version okay, tracking shares in Australia
Speaker 1: and seeing what the average price of the share market's
Speaker 1: looking so that they can say, oh my god, all
Speaker 1: the all ords are down, which means the share market
Speaker 1: across the board is a bit down, not oh nabs
Speaker 1: up and combanks down like nobody. Nobody can conceptualize that
Speaker 1: we need one common measure, and in Australia we use
Speaker 1: the all odds. Okay, but if we look at the
Speaker 1: all odds over the last forty years, it's averaged a
Speaker 1: PE of about fifteen, which is sometimes seen as a
Speaker 1: broad threshold. Is kind of fair value to give you
Speaker 1: a bit of an indicator. Very good.
Speaker 4: I'm going to keep an eye out for the all
Speaker 4: odds with the news is on and.
Speaker 1: I know exactly what that is. Yes, yes, we're educated, queen,
Speaker 1: exactly right.
Speaker 4: Now we have the PEG ratio and the price book
Speaker 4: ratio to get to, so let's start with PEG. Tell
Speaker 4: me about that.
Speaker 1: So the PEG ratio or the price earnings to growth ratio,
Speaker 1: So it's taking that first ratio and building off it.
Speaker 1: So before we had the PE, so the price earnings.
Speaker 1: Now it's the PE to growth, which is comparing its
Speaker 1: price earnings to growth. Does that make sense? I feel
Speaker 1: like it was obvious if you really think about it,
Speaker 1: but no one's going to really think about it. They
Speaker 1: just look at it and go, peg ratio, What the hell?
Speaker 1: So the PEG ratio considers the company's earnings growth. So
Speaker 1: to figure this out, you need to find out the
Speaker 1: company's estimated earnings per share, which we talked about just before,
Speaker 1: which will be in the latest down your report or
Speaker 1: on the website, all really accessible if they are listed company.
Speaker 1: And then to calculate the PEG ratio, you use the
Speaker 1: PE that we just did and you divide by the
Speaker 1: growth in earnings per share or the EPs. So I
Speaker 1: feel like this is getting really complicated, but I know
Speaker 1: you guys are following, and if not, just go back
Speaker 1: listen to it again. I'm lucky for you to have
Speaker 1: to listen to me more and more. But a good
Speaker 1: example of this is let's say the company has an
Speaker 1: EPs of eleven dollars over the next year as stated
Speaker 1: in its report. You go great, no problems, thank you.
Speaker 1: This is an increase of ten percent on its current
Speaker 1: EPs of ten dollars. Because we're using the same example
Speaker 1: as we had before, so using the PEG formula. So
Speaker 1: the price to earnings growth formula of the PE, so
Speaker 1: the PE was ten as we spoke about before, and
Speaker 1: you divide it by the growth in EPs, which is
Speaker 1: ten percent. We then have a PEG ratio of a one.
Speaker 1: You go, he that makes absolutely no sense. But he
Speaker 1: out here, me out, sit down. Just like a PE ratio,
Speaker 1: the PEG ratio compares peer performance, so it's trying to
Speaker 1: compare apples with apples. Again, there's no set PEG ratio
Speaker 1: that's considered to be like the gold standard, or this
Speaker 1: is like a by signal. If you get a PEG
Speaker 1: ratio of x, like bye bye bye. That's not how
Speaker 1: this works. These are all just ratios that we use,
Speaker 1: We write them down, we take them into consideration of
Speaker 1: our larger piece of research. But fundamentalists, so people who
Speaker 1: are really subscribed to that school of like fundamental analysis,
Speaker 1: they might treat that share with a PEG ratio of
Speaker 1: less than one as an UNDERVAALP share, so they might
Speaker 1: go less than one undervalued over one overvalued one on par.
Speaker 1: Does that make sense? It does, So it doesn't necessarily
Speaker 1: mean it absolutely is or it absolutely isn't that.
Speaker 4: It's an indicator indicata.
Speaker 1: We have a little look at it.
Speaker 4: The I really thought PEG was going to be more
Speaker 4: fun than that. I'm not gonna lie to you.
Speaker 1: Really you have more fun.
Speaker 4: It took me back to your eleven maths.
Speaker 1: Anyway, let's move on. That's what you were doing in
Speaker 1: your eleven maths.
Speaker 4: Let's move on to the final method of valuing a stock,
Speaker 4: the price book ratio. Tell me all about it in
Speaker 4: twenty seconds or less.
Speaker 1: PB ratio. I always think of peanut butter and jelly.
Speaker 1: I don't know why. I'm not even American. I don't
Speaker 1: even eat peanut butter and jelly. Sandwich has had them
Speaker 1: one time? Terrible. Why would you mix those two things together?
Speaker 1: But I really do like the price book ratio. So
Speaker 1: the price book ratio gives us a little bit of
Speaker 1: a snapshot of company's value according to the book value
Speaker 1: of assets on its balance sheet. So it kind of
Speaker 1: makes sense, like price book, what's on its book? Let's
Speaker 1: have a look a little right, I'm going to put
Speaker 1: myself in the bin. We really do need that break.
Speaker 1: But a price book ratio is calculated by dividing the
Speaker 1: current share price by the stocks book value divided by
Speaker 1: the number of shares that have been issued. So the
Speaker 1: book value is worked out from the balance sheet as
Speaker 1: the total assets minus the total liabilities, and so liabilities
Speaker 1: is costs. So you take what they own and then
Speaker 1: minus what they owe or what they have in costs,
Speaker 1: and then you get that number. So The balance sheet
Speaker 1: with these figures is super easy to locate if you're
Speaker 1: looking for it. It will be on the company's website,
Speaker 1: it will be in their annual report. It's a very
Speaker 1: large part of the report they are legally not allowed
Speaker 1: to skip on. So to give you an example of that,
Speaker 1: because we love an example in this community, let's take
Speaker 1: an example of a company's market price being currently two dollars,
Speaker 1: and they have fifty million shares in the market, all
Speaker 1: issued out. They're all bought right, So the total assets
Speaker 1: are eighty million dollars. I'd love this business. I'm glad
Speaker 1: we did this example. So the total assets in this
Speaker 1: business at eighty million dollars, and then the total liabilities
Speaker 1: in this business are twenty million dollars. That then equals
Speaker 1: a total book value of sixty million dollars. So the
Speaker 1: price book ratio is two dollars divided by the eighty
Speaker 1: minus twenty million dollars, rich is sixty divided by fifty
Speaker 1: million dollars, which equals one point seven. And I know
Speaker 1: you didn't follow that, so you've just got to trust
Speaker 1: me that the PB ratio is one point seven. But
Speaker 1: basically the closer the PB ratio is to one or
Speaker 1: below the greater the perceived value of the stock, and
Speaker 1: the PB or the price book ratio is used more
Speaker 1: often for more mature companies, so like it's for the
Speaker 1: older hens in the share market that don't have as
Speaker 1: much growth, so they say it's for limited growth. But
Speaker 1: at the same time, I feel like, you look at
Speaker 1: a bank, right, They're not going to triple in value overnight,
Speaker 1: But are they a good, solid, steady steed that's maybe
Speaker 1: going to win the race. Maybe that's where we would
Speaker 1: look at a price ratio. You wouldn't really look at
Speaker 1: a price book ratio again for a company like after Pay.
Speaker 1: I used this example a lot, and I've really needed
Speaker 1: to check myself recently on it. It's not because I
Speaker 1: don't like after pay, which I don't for the community,
Speaker 1: but it's because the community so recently had been talking
Speaker 1: about buying and selling after pay shares and it was
Speaker 1: so topical, and I feel like it's a trendy share
Speaker 1: that people buy. So people were buying Tesla, or they're
Speaker 1: buying after pay, or they're buying Apple or whatever. But
Speaker 1: my example of after pay is used a fair bit
Speaker 1: because it's pebe ratio wouldn't be indicative of what it
Speaker 1: is like after pay is such an interesting company where
Speaker 1: you go commercially that makes a lot of sense. Is
Speaker 1: it putting the community in the best possible position? Absolutely not.
Speaker 1: But when you look at it's PB ratios, is it
Speaker 1: actually turning a profit?
Speaker 3: No?
Speaker 1: But people are still buying into it and still loving it.
Speaker 1: So I really like using it as an example because
Speaker 1: of the hype that was surrounded it. Right, you know,
Speaker 1: we should go to a break because I think you
Speaker 1: guys are so sick of that. But to summarize, that
Speaker 1: was my PE ratio, my PEG ratio, and my price
Speaker 1: book ratio explained, there'll be blong on it.
Speaker 4: Okay, So I feel like I'm getting met a price
Speaker 4: book ratio. I get it, PEG, I get it. You
Speaker 4: get paid price earnings, I get it.
Speaker 1: I get it all. Do you actually no?
Speaker 4: But I will re listen to this episode and I'm
Speaker 4: sure I will get there.
Speaker 1: I feel like these things feel really overwhelming when you
Speaker 1: first hear them, and you're like, holy moly. But then
Speaker 1: after a few times and a few miles over, you're like, YEA,
Speaker 1: all right, I can't get my head around that. I
Speaker 1: don't expect anyone to get that on the first time,
Speaker 1: because I remember evening in an accounting class when I was
Speaker 1: learning this for the very first time, I was like, cool,
Speaker 1: I'm never going to get there. But now I'm like, Okay,
Speaker 1: these three things make a lot of sense. And I'm
Speaker 1: actually quite a visual learner, so I need to see
Speaker 1: how it plays out and see what does this mean
Speaker 1: and where does this plug in and what does that
Speaker 1: look like? And for me, that's how I learned. But
Speaker 1: we all learn really differently, and I think that the
Speaker 1: main thing here is that nobody is going to pick
Speaker 1: that up after me explaining it to you once, especially
Speaker 1: when you can't contextualize it. So it's once you start
Speaker 1: you're in investment journey and you start looking at it
Speaker 1: and you go, oh, this makes sense, like this is
Speaker 1: where this goes. That's when you start to comprehend it properly. Amazing.
Speaker 4: So, for people who have really vibed with this chat
Speaker 4: V and they're feeling confident and ready to invest, which
Speaker 4: platforms would you suggest they use to get cracking?
Speaker 1: Look, I can't recommend specific platforms because that would be
Speaker 1: wildly inappropriate of me. But our community has a number
Speaker 1: of different platforms that they love. Obviously, you guys are
Speaker 1: obsessed with shares's, which is really nice. Say are classified,
Speaker 1: I guess as a mid level DIY platform, so you
Speaker 1: can go on and buy shares. But the thing that
Speaker 1: you guys seem to really like about them is that
Speaker 1: you can buy portions of shares. So if you thought, hey,
Speaker 1: be I really want to own combat, but I don't
Speaker 1: have ninety one dollars to do that, you can actually
Speaker 1: purchase a portion of that share instead of the whole deal,
Speaker 1: which I think is really nice to get exposure to
Speaker 1: an asset that you might really love. Not recommending that
Speaker 1: share at all, That was just an example. They have
Speaker 1: access as well to a number of different platforms other
Speaker 1: platforms in the industry. I mean, our community has been
Speaker 1: talking a lot recently about Self Wealth and Superhero. Obviously
Speaker 1: those are more direct. When we talk about investing platforms,
Speaker 1: we're not talking about platforms like Rays or Spaceship or
Speaker 1: even six Park, which is a robo advice platform, because
Speaker 1: none of those enabled you to invest directly. So if
Speaker 1: you were looking to invest directly, what you'd be looking
Speaker 1: for is a DIY platform, and the things I'd be
Speaker 1: taking into consideration is just really, is this aligned to
Speaker 1: my values? Is this aligned to how much I want
Speaker 1: to pay for a platform? And you can find all
Speaker 1: of that information out on those websites for those companies,
Speaker 1: but at the end of the day, completely up to
Speaker 1: you what you pick, just as long as they are legit,
Speaker 1: my friends incredible.
Speaker 4: Remember, as well, as we flagged at the top of
Speaker 4: the episode, guys, we have done many an episode on investing,
Speaker 4: so have a scroll back and you'll find everything from
Speaker 4: what micro investing is, to how to use entry level platforms,
Speaker 4: so on and so forth. That's a really good place to start.
Speaker 4: We are going to wrap today's episode here. We were
Speaker 4: going to talk about e bits and ebitday, so we
Speaker 4: are actually now going to make that a completely new episode,
Speaker 4: So keep an eye on your feed for that one.
Speaker 1: It will go dropping not too far a well, George
Speaker 1: is decided after recording this episode and only half of
Speaker 1: the episode, that she's like, nah, mate, this is too much.
Speaker 1: It's Victoria divine. You are canceled and you are dense.
Speaker 1: So you guys, just get the ratios in the first
Speaker 1: one and we will extend it out over a few
Speaker 1: other episodes. Because I feel like that's You're right, George.
Speaker 1: I feel not sad today. Yeah, but it's easier to
Speaker 1: absorb in smaller bits and to be honest, the feedback
Speaker 1: I've heard from people who are listening to the investing
Speaker 1: episodes is that they listen to it a couple of
Speaker 1: times just for it to really sink in. So I
Speaker 1: feel like that's a good idea. Yeah, geniuses, that's so.
Speaker 4: I know, boring but important stuff.
Speaker 1: Get it done, Liz. Do you talk about investment, Yes, exactly.
Speaker 4: The advisor shared on She's on the Money is general
Speaker 4: in nature and does not consider your individual circumstances. She's
Speaker 4: on the Money exists purely for educational purposes and should
Speaker 4: not be relied upon to make an investment or financial decision.
Speaker 4: And we promised Victoria Divine and She's on the Money
Speaker 4: are authorized representatives of Infocused Securities Australia Proprietary Limited ABN
Speaker 4: four seven zero nine seven seven nine seven zero four
Speaker 4: nine a FOSL two three six five two three. We
Speaker 4: will see you on Friday, guys.
Speaker 1: Soon, guys