1 00:00:00,040 --> 00:00:03,480 Speaker 1: Today's podcast was made possible by our friends over at COMSEC. 2 00:00:03,600 --> 00:00:07,120 Speaker 2: Already and this this is the daily This is the Daily. 3 00:00:07,200 --> 00:00:09,920 Speaker 3: Ohs oh, now it makes sense. 4 00:00:17,720 --> 00:00:20,400 Speaker 4: Good morning and welcome to the Daily OS. It's Sunday, 5 00:00:20,400 --> 00:00:21,760 Speaker 4: the twenty second of March. 6 00:00:21,840 --> 00:00:24,120 Speaker 3: I'm Zara Seidler, I'm Billy fit Simon's. 7 00:00:24,440 --> 00:00:27,800 Speaker 4: Today we are breaking down everything you were too embarrassed 8 00:00:27,840 --> 00:00:30,600 Speaker 4: to ask about investing in the share market, from. 9 00:00:30,400 --> 00:00:32,920 Speaker 5: What a trade actually is to how you make money 10 00:00:33,000 --> 00:00:34,599 Speaker 5: without a finance degree. 11 00:00:34,800 --> 00:00:38,519 Speaker 4: If the words etf or portfolio make your eyes glaze over, 12 00:00:38,880 --> 00:00:39,920 Speaker 4: this one is for you. 13 00:00:44,640 --> 00:00:44,880 Speaker 5: Now. 14 00:00:44,960 --> 00:00:48,320 Speaker 4: A quick note before we start. This pod is produced 15 00:00:48,400 --> 00:00:52,559 Speaker 4: with insights from com SEC. However, everything that Billy and 16 00:00:52,560 --> 00:00:55,480 Speaker 4: I are going to talk about was researched and written 17 00:00:55,520 --> 00:00:59,680 Speaker 4: by us, and the content remains completely independent and just 18 00:00:59,680 --> 00:01:02,920 Speaker 4: to make sure we are completely above board, the information 19 00:01:03,080 --> 00:01:05,440 Speaker 4: and views expressed in this podcast do not take into 20 00:01:05,440 --> 00:01:09,280 Speaker 4: account your objectives, financial situation, or needs, and is general 21 00:01:09,360 --> 00:01:09,880 Speaker 4: in nature. 22 00:01:10,840 --> 00:01:13,880 Speaker 3: Zara, when I first met you four years ago, five 23 00:01:13,959 --> 00:01:18,000 Speaker 3: years ago, five years ago, two long ago, I remember 24 00:01:18,319 --> 00:01:21,520 Speaker 3: like maybe within the first week of meeting you, that 25 00:01:21,560 --> 00:01:23,479 Speaker 3: you told me that you don't invest yea. 26 00:01:24,000 --> 00:01:26,600 Speaker 5: And the fact that is so nerdy. 27 00:01:26,640 --> 00:01:29,399 Speaker 3: Like the first thing that I like, by the way, 28 00:01:29,600 --> 00:01:32,400 Speaker 3: I don't invest in the share market. And the fact 29 00:01:32,440 --> 00:01:36,800 Speaker 3: that we're sitting here today where you're explaining the share market. 30 00:01:36,600 --> 00:01:37,560 Speaker 5: I'd say that's growth. 31 00:01:37,680 --> 00:01:40,839 Speaker 3: That is growth. That is what we call a journey. Yes, 32 00:01:40,959 --> 00:01:44,440 Speaker 3: and so I want to understand what has happened over 33 00:01:44,560 --> 00:01:46,680 Speaker 3: the past five years. Yeah, I want to learn more 34 00:01:46,680 --> 00:01:47,440 Speaker 3: about your journey. 35 00:01:47,520 --> 00:01:51,360 Speaker 4: Okay, well this feels like therapy. It what happened in 36 00:01:51,400 --> 00:01:54,000 Speaker 4: my journey. To be honest, it was one main thing. 37 00:01:54,120 --> 00:01:56,960 Speaker 4: You're right, I was very scared to invest. I didn't 38 00:01:57,000 --> 00:01:59,200 Speaker 4: understand a lot of the terms. And when I don't 39 00:01:59,240 --> 00:02:01,320 Speaker 4: understand something, I just turn away from it. 40 00:02:01,400 --> 00:02:03,720 Speaker 3: Or you create a business to explain it exactly. 41 00:02:03,960 --> 00:02:05,680 Speaker 5: I like to be able to explain things. 42 00:02:06,000 --> 00:02:08,720 Speaker 4: So the thing that actually changed it for me was 43 00:02:09,280 --> 00:02:10,520 Speaker 4: I had. 44 00:02:10,360 --> 00:02:13,239 Speaker 5: A girl's night at the end of last year. This is, however, 45 00:02:13,280 --> 00:02:14,560 Speaker 5: great story starts. 46 00:02:14,240 --> 00:02:17,760 Speaker 4: A girls' night and my friend, who does work in finance, 47 00:02:17,840 --> 00:02:20,360 Speaker 4: organize it at her house and she said she wanted 48 00:02:20,440 --> 00:02:23,919 Speaker 4: us to all understand investing in the share market and 49 00:02:24,080 --> 00:02:27,480 Speaker 4: to make it something that we could all talk about together. 50 00:02:27,800 --> 00:02:30,119 Speaker 4: She's very passionate about women talking about finance. 51 00:02:30,240 --> 00:02:32,640 Speaker 3: My friends have done this as well. When you know 52 00:02:33,000 --> 00:02:36,880 Speaker 3: one person gets really into it, they because it's often 53 00:02:36,880 --> 00:02:39,160 Speaker 3: something that I think a lot of Not to make 54 00:02:39,160 --> 00:02:41,320 Speaker 3: this really gendered, but I do think that there is 55 00:02:41,360 --> 00:02:43,000 Speaker 3: truth in the fact that a lot of boys groups 56 00:02:43,040 --> 00:02:47,119 Speaker 3: are talking about the time and it is great when 57 00:02:47,280 --> 00:02:49,240 Speaker 3: you know your girls group gets around and said, we 58 00:02:49,280 --> 00:02:50,560 Speaker 3: want to do this too. We don't want to be 59 00:02:50,639 --> 00:02:51,600 Speaker 3: left out of this conversation. 60 00:02:51,760 --> 00:02:55,799 Speaker 5: Actually come to one of my girls group, I don't 61 00:02:55,840 --> 00:02:56,600 Speaker 5: remember crypto. 62 00:02:57,480 --> 00:02:59,639 Speaker 4: I think, I guess we have done this a number 63 00:02:59,680 --> 00:03:01,840 Speaker 4: of time, but this one really stuck with me. So 64 00:03:01,919 --> 00:03:05,440 Speaker 4: what happened was my friend told all of us to 65 00:03:05,720 --> 00:03:06,760 Speaker 4: set aside. 66 00:03:06,520 --> 00:03:07,280 Speaker 5: An amount of money. 67 00:03:07,280 --> 00:03:09,520 Speaker 4: It was a really small amount of money, and she said, 68 00:03:09,600 --> 00:03:12,040 Speaker 4: we're each going to invest tonight. We're going to download 69 00:03:12,080 --> 00:03:13,960 Speaker 4: an investing app and we're going to invest in a 70 00:03:14,040 --> 00:03:16,480 Speaker 4: company of our choosing. Each of us were doing it 71 00:03:16,520 --> 00:03:20,240 Speaker 4: differently for different companies, and we were going to then 72 00:03:20,440 --> 00:03:22,880 Speaker 4: follow the results. And that was like the live way 73 00:03:22,919 --> 00:03:24,520 Speaker 4: that we were learning how to invest. 74 00:03:24,680 --> 00:03:25,680 Speaker 3: And how's that gone for you? 75 00:03:26,360 --> 00:03:31,080 Speaker 4: Look, I love the media. The media and the stock 76 00:03:31,200 --> 00:03:34,360 Speaker 4: market don't love each other. Oh how much like I 77 00:03:34,400 --> 00:03:37,800 Speaker 4: had friends who invested in like property portfolios and this 78 00:03:38,000 --> 00:03:41,600 Speaker 4: and that. And I'm a true absolutist when it comes 79 00:03:41,600 --> 00:03:45,080 Speaker 4: to media. So I backed the New York Times and look, 80 00:03:45,160 --> 00:03:48,200 Speaker 4: it's a long journey. You're not meant to make a 81 00:03:48,240 --> 00:03:50,840 Speaker 4: buck straight away. You're meant to just sit with it. 82 00:03:50,880 --> 00:03:52,160 Speaker 4: That's the idea behind investing. 83 00:03:52,280 --> 00:03:55,680 Speaker 3: Okay, so you've come on this journey and I'm sure 84 00:03:55,720 --> 00:03:59,040 Speaker 3: when you started you had a lot of questions. And 85 00:03:59,080 --> 00:04:01,760 Speaker 3: I think starting point for a lot of people is 86 00:04:02,080 --> 00:04:06,360 Speaker 3: I think once people start to potentially have disposable income, 87 00:04:06,480 --> 00:04:08,560 Speaker 3: they might be thinking what am I meant to do 88 00:04:08,680 --> 00:04:11,680 Speaker 3: with this? Should I go traveling? Should I put it 89 00:04:11,720 --> 00:04:14,200 Speaker 3: into savings? Or should I invest? And I think that 90 00:04:15,000 --> 00:04:18,640 Speaker 3: difference between saving and investing is something that people do 91 00:04:18,800 --> 00:04:21,480 Speaker 3: start to look at and try to understand what is 92 00:04:21,480 --> 00:04:23,680 Speaker 3: the difference in those two things? Do you want to 93 00:04:23,680 --> 00:04:24,120 Speaker 3: start there? 94 00:04:24,320 --> 00:04:27,159 Speaker 4: Yeah, So the difference between saving and investing cool. So 95 00:04:27,839 --> 00:04:30,320 Speaker 4: they are not the same thing, that's the starting point. 96 00:04:30,360 --> 00:04:34,000 Speaker 4: They're different, and that distinction really matters. So saving is 97 00:04:34,040 --> 00:04:37,320 Speaker 4: putting money aside for the short to long term. I'd 98 00:04:37,320 --> 00:04:40,160 Speaker 4: say it sits in a bank account, it earns a 99 00:04:40,160 --> 00:04:42,359 Speaker 4: modest interest rate, and it's there when you need it. 100 00:04:42,400 --> 00:04:44,919 Speaker 4: So if you need to pull on money, something happens 101 00:04:45,200 --> 00:04:47,599 Speaker 4: your car breaks down and making it personal to you 102 00:04:47,720 --> 00:04:51,360 Speaker 4: because your car has famously been in service for about two. 103 00:04:51,200 --> 00:04:52,720 Speaker 3: Months now, it's insane. 104 00:04:53,000 --> 00:04:55,040 Speaker 4: So when you need it to pay for that, you 105 00:04:55,040 --> 00:04:58,680 Speaker 4: can draw on that money. Investing, though, that's different. So 106 00:04:58,839 --> 00:05:01,640 Speaker 4: investing is putting your money into something like shares, and 107 00:05:01,760 --> 00:05:03,760 Speaker 4: that the idea behind it is that it's going to 108 00:05:03,839 --> 00:05:06,560 Speaker 4: work over a longer period of time with the intention 109 00:05:07,080 --> 00:05:09,360 Speaker 4: of growing that amount of money more significantly. 110 00:05:09,520 --> 00:05:13,000 Speaker 3: And I think one of the biggest miss around investing 111 00:05:13,160 --> 00:05:15,400 Speaker 3: is that you need to start with a lot of money. 112 00:05:15,480 --> 00:05:17,920 Speaker 3: I mean, I just talked about having disposable income, but 113 00:05:18,400 --> 00:05:20,480 Speaker 3: you can literally start with fifty dollars. 114 00:05:20,640 --> 00:05:20,919 Speaker 5: Yeah. 115 00:05:20,960 --> 00:05:23,919 Speaker 4: I think that was probably my biggest barrier to entry 116 00:05:24,040 --> 00:05:26,640 Speaker 4: that I thought that you had to have like thousands 117 00:05:26,640 --> 00:05:28,760 Speaker 4: and thousands of dollars, and as we know, a lot 118 00:05:28,760 --> 00:05:30,800 Speaker 4: of young people don't have that sort of disposed will 119 00:05:30,839 --> 00:05:33,440 Speaker 4: income to be spending. But that's not true. You can 120 00:05:33,520 --> 00:05:37,160 Speaker 4: start with a smaller amount of money. Most investing platforms 121 00:05:37,320 --> 00:05:40,960 Speaker 4: let you start with quite a specifically small amount. You 122 00:05:41,000 --> 00:05:42,919 Speaker 4: also don't need to work in finance I know that 123 00:05:42,960 --> 00:05:45,279 Speaker 4: I spoke about my friend Gabs having a finance degree, 124 00:05:45,320 --> 00:05:48,520 Speaker 4: but if anyone seen me on an Xcel spreadsheet, they 125 00:05:48,560 --> 00:05:51,039 Speaker 4: know that I do not have a finance degree. I 126 00:05:51,080 --> 00:05:55,880 Speaker 4: can okay, But the idea is that you don't actually 127 00:05:55,880 --> 00:05:59,160 Speaker 4: need formal training. It's made to be easy to do. 128 00:06:00,040 --> 00:06:01,800 Speaker 4: I guess it's just getting of that first hump of 129 00:06:02,120 --> 00:06:04,880 Speaker 4: answering these questions and figuring it out in your mind, 130 00:06:04,960 --> 00:06:05,960 Speaker 4: like I'm ready to. 131 00:06:05,880 --> 00:06:06,719 Speaker 5: Do this basically. 132 00:06:06,800 --> 00:06:09,680 Speaker 3: Okay. So let's say I have fifty dollars and I 133 00:06:09,720 --> 00:06:12,920 Speaker 3: have decided that I would like to invest that money. Yeah, 134 00:06:13,120 --> 00:06:15,680 Speaker 3: where do I even go to invest that money? 135 00:06:15,880 --> 00:06:17,600 Speaker 5: Yeah? So this is a biggie. 136 00:06:17,680 --> 00:06:20,800 Speaker 4: You can't just walk up to the AX or the 137 00:06:20,839 --> 00:06:24,640 Speaker 4: Australian Securities Exchange and say I want to put money 138 00:06:24,680 --> 00:06:26,320 Speaker 4: into this company. 139 00:06:26,440 --> 00:06:28,080 Speaker 3: You know. That reminds me of the first time I 140 00:06:28,120 --> 00:06:31,039 Speaker 3: decided I wanted to get into coffee. I just literally 141 00:06:31,080 --> 00:06:32,839 Speaker 3: went up to the contown and said I would like 142 00:06:32,880 --> 00:06:35,839 Speaker 3: to order a coffee and they said what coffee? And 143 00:06:35,880 --> 00:06:37,760 Speaker 3: I said, I didn't know they were off. 144 00:06:38,160 --> 00:06:40,839 Speaker 5: Maybe we need to explain that that is so fair. 145 00:06:41,040 --> 00:06:43,440 Speaker 3: I was like fifteen and I wanted to be older 146 00:06:43,480 --> 00:06:45,280 Speaker 3: than I. 147 00:06:44,480 --> 00:06:47,279 Speaker 4: Love that, and that is so true, and it's actually 148 00:06:47,320 --> 00:06:49,480 Speaker 4: a very good comparison. If you're like, I want to 149 00:06:49,520 --> 00:06:52,920 Speaker 4: invest in the share market, yes, in what Yes, So 150 00:06:53,200 --> 00:06:56,120 Speaker 4: you don't go directly to the ASEX. Think of it 151 00:06:56,200 --> 00:06:59,520 Speaker 4: like buying an apartment, So you don't negotiate directly with 152 00:06:59,560 --> 00:07:01,280 Speaker 4: the seller of as an apartment that you want to buy, 153 00:07:01,560 --> 00:07:03,560 Speaker 4: you go through a real estate agent. There is this 154 00:07:03,640 --> 00:07:07,640 Speaker 4: intermediary as it were. So investing platforms basically work the 155 00:07:07,640 --> 00:07:10,480 Speaker 4: same way. They are the middleman or the middle woman 156 00:07:10,880 --> 00:07:15,200 Speaker 4: between you and the share market. Some are built for 157 00:07:15,280 --> 00:07:17,920 Speaker 4: beginners and they keep things really simple for people like me. 158 00:07:18,120 --> 00:07:20,360 Speaker 4: Others are a bit more sophisticated who want to do it, 159 00:07:20,600 --> 00:07:22,920 Speaker 4: you know, more frequently, or if they want to invest 160 00:07:23,000 --> 00:07:24,200 Speaker 4: in international markets. 161 00:07:24,280 --> 00:07:24,760 Speaker 5: So you can. 162 00:07:24,680 --> 00:07:27,720 Speaker 4: Basically choose what works for you based on your level 163 00:07:27,760 --> 00:07:30,480 Speaker 4: of knowledge and also how you want to be investing. 164 00:07:30,760 --> 00:07:33,240 Speaker 3: Zara, I have so many more questions, but first here 165 00:07:33,280 --> 00:07:35,320 Speaker 3: is a quick message from today's sponsor. 166 00:07:38,160 --> 00:07:40,680 Speaker 1: Have you heard of tools like comsec Pocket. If you're 167 00:07:40,720 --> 00:07:43,320 Speaker 1: a combank customer, you can start investing with as little 168 00:07:43,360 --> 00:07:46,520 Speaker 1: as fifty dollars, So investing doesn't have to mean waiting 169 00:07:46,640 --> 00:07:48,120 Speaker 1: until you've saved thousands, and. 170 00:07:48,080 --> 00:07:50,400 Speaker 3: It all sits inside the CommBank app. 171 00:07:50,640 --> 00:07:53,360 Speaker 1: Yep. You can browse, trade and manage all you need, 172 00:07:53,520 --> 00:07:57,400 Speaker 1: including ETFs listed on the ASX directly in the app, 173 00:07:57,400 --> 00:08:00,400 Speaker 1: alongside your everyday banking, so you can see your investments 174 00:08:00,480 --> 00:08:03,200 Speaker 1: next to your savings and spending all in one place. 175 00:08:05,880 --> 00:08:09,800 Speaker 3: Okay, so I have my fifty dollars. The first step 176 00:08:10,000 --> 00:08:12,640 Speaker 3: is for me to choose which platform I want to 177 00:08:12,760 --> 00:08:15,640 Speaker 3: use to invest that fifty dollars in. But we still 178 00:08:15,680 --> 00:08:19,680 Speaker 3: haven't chosen what I am investing in. But before we 179 00:08:19,680 --> 00:08:22,480 Speaker 3: get to that, we first need to understand what an 180 00:08:22,520 --> 00:08:25,480 Speaker 3: actual trade is, because that is what I will be 181 00:08:25,520 --> 00:08:28,080 Speaker 3: doing with that fifty dollars. I'll be making a trade exactly. 182 00:08:28,200 --> 00:08:31,360 Speaker 4: So a trade is the act of buying or selling 183 00:08:31,400 --> 00:08:34,120 Speaker 4: an investment, that's all it is. So you place what's 184 00:08:34,160 --> 00:08:37,320 Speaker 4: called a buy order through your platform, and that's a trade. 185 00:08:37,400 --> 00:08:40,120 Speaker 4: When you eventually sell on the other end, that's also 186 00:08:40,160 --> 00:08:42,640 Speaker 4: a trade. And that process in and of itself is 187 00:08:42,640 --> 00:08:45,520 Speaker 4: pretty straightforward. You search for the company or the fund 188 00:08:45,559 --> 00:08:47,520 Speaker 4: you want to invest in into how much you want 189 00:08:47,559 --> 00:08:50,199 Speaker 4: to put in, and then just confirm or okay or 190 00:08:50,200 --> 00:08:53,160 Speaker 4: whatever it is on the platform you're on your investment 191 00:08:53,200 --> 00:08:56,600 Speaker 4: then sits in what's called your portfolio. I do just 192 00:08:56,720 --> 00:08:59,400 Speaker 4: if anyone from the finance industry is listening to me. 193 00:08:59,679 --> 00:09:02,760 Speaker 4: There's lots of words, lots of jargon like we just 194 00:09:02,760 --> 00:09:05,360 Speaker 4: don't need to use all of that. So basically, it 195 00:09:05,440 --> 00:09:08,480 Speaker 4: sits there in your portfolio, and that's just a summary 196 00:09:08,559 --> 00:09:11,720 Speaker 4: of everything you own that keeps you across everything, and 197 00:09:11,760 --> 00:09:13,680 Speaker 4: then you can just watch it move up and down 198 00:09:13,679 --> 00:09:14,000 Speaker 4: from there. 199 00:09:14,240 --> 00:09:17,040 Speaker 3: So then how do you choose what you actually want 200 00:09:17,080 --> 00:09:17,800 Speaker 3: to invest in? 201 00:09:18,080 --> 00:09:19,600 Speaker 5: Yeah, well, I don't know, if you take it from me. 202 00:09:19,800 --> 00:09:23,400 Speaker 4: I mean, I think that a good place to start 203 00:09:23,480 --> 00:09:25,880 Speaker 4: is an industry that you do know something about. So 204 00:09:26,040 --> 00:09:28,920 Speaker 4: obviously we know a lot about media. We know about 205 00:09:29,000 --> 00:09:32,679 Speaker 4: some of the external factors that might impact a share 206 00:09:32,720 --> 00:09:36,360 Speaker 4: price if something happens in the news, we know that 207 00:09:36,360 --> 00:09:38,640 Speaker 4: that might affect how, for example, the New York Times 208 00:09:38,760 --> 00:09:41,600 Speaker 4: fares on the stock exchange. And so I do think 209 00:09:41,600 --> 00:09:44,560 Speaker 4: that that's probably a good place to start. But if not, 210 00:09:44,720 --> 00:09:47,280 Speaker 4: just do your own research. Figure out what you are 211 00:09:47,320 --> 00:09:50,360 Speaker 4: interested in and what you think might have some potential 212 00:09:50,440 --> 00:09:51,440 Speaker 4: upside down the road. 213 00:09:51,600 --> 00:09:53,920 Speaker 3: Okay, so let's say I've invested in my fifty dollars 214 00:09:54,040 --> 00:09:56,360 Speaker 3: into a company that I have obviously done a lot 215 00:09:56,360 --> 00:09:59,840 Speaker 3: of research into. My next question once I have invested 216 00:09:59,840 --> 00:10:02,600 Speaker 3: that fifty dollars is how do I make the money? 217 00:10:02,760 --> 00:10:03,040 Speaker 5: Yeah? 218 00:10:03,320 --> 00:10:06,400 Speaker 3: Important because I'm only investing it with the hope that 219 00:10:06,600 --> 00:10:08,079 Speaker 3: I will be making some money. 220 00:10:08,280 --> 00:10:08,760 Speaker 5: Correct. 221 00:10:08,920 --> 00:10:10,760 Speaker 4: So there are two main ways that you can make 222 00:10:10,800 --> 00:10:14,319 Speaker 4: the money. The first is growth. So you buy something 223 00:10:14,320 --> 00:10:16,720 Speaker 4: at one price and the idea is that later you 224 00:10:16,760 --> 00:10:20,080 Speaker 4: sell it at another price and that that price is more, 225 00:10:20,320 --> 00:10:23,880 Speaker 4: and so you make the what's there must be a 226 00:10:23,880 --> 00:10:26,000 Speaker 4: more technical term than the in between. 227 00:10:25,720 --> 00:10:26,160 Speaker 3: The gain. 228 00:10:27,480 --> 00:10:28,880 Speaker 5: I'm so glad we're doing this together. 229 00:10:29,559 --> 00:10:33,040 Speaker 4: That gain is what you derive value from, but it's 230 00:10:33,160 --> 00:10:36,640 Speaker 4: not a guarantee. Investments have good days, they have bad days, 231 00:10:36,679 --> 00:10:38,880 Speaker 4: and the real returns tend to come to people who 232 00:10:38,960 --> 00:10:42,880 Speaker 4: are patient enough to wait out the rough patches. So 233 00:10:43,000 --> 00:10:45,920 Speaker 4: that's the first way. The gain, as we have now 234 00:10:46,200 --> 00:10:46,960 Speaker 4: made clear. 235 00:10:46,880 --> 00:10:50,520 Speaker 3: Which will only happen once you then sell your shares exactly. 236 00:10:50,640 --> 00:10:53,160 Speaker 4: So if it goes up and you do nothing, you 237 00:10:53,200 --> 00:10:56,120 Speaker 4: don't see that money into your bank account or anything 238 00:10:56,120 --> 00:10:58,640 Speaker 4: like that. You need to do something I sell in 239 00:10:58,720 --> 00:11:00,920 Speaker 4: order for that money to be realized. So that's one 240 00:11:00,920 --> 00:11:04,120 Speaker 4: way the second way is income. Some investments pay you 241 00:11:04,200 --> 00:11:07,560 Speaker 4: money along the way. It's called dividends. So think of 242 00:11:07,720 --> 00:11:11,280 Speaker 4: it as your investment is quietly producing something while you 243 00:11:11,400 --> 00:11:15,240 Speaker 4: hold it, and you get paid those dividends. They can 244 00:11:15,280 --> 00:11:17,560 Speaker 4: be small amounts, they can be bigger depending on the 245 00:11:17,600 --> 00:11:21,400 Speaker 4: company or how it's going. Not all investments pay dividends. 246 00:11:21,480 --> 00:11:24,680 Speaker 4: It does really depend on the specific company. So again 247 00:11:24,720 --> 00:11:27,200 Speaker 4: this goes back to look at who you want to 248 00:11:27,240 --> 00:11:30,760 Speaker 4: invest in and whether you are ready to get into 249 00:11:30,760 --> 00:11:33,080 Speaker 4: a long term, committed relationship with that company. 250 00:11:33,760 --> 00:11:37,440 Speaker 3: And so far we've only spoken about investing in terms 251 00:11:37,480 --> 00:11:42,400 Speaker 3: of investing in an individual company, but in recent years 252 00:11:42,480 --> 00:11:45,880 Speaker 3: there's been a surge in something called ETFs, which is 253 00:11:45,960 --> 00:11:49,760 Speaker 3: if you don't want to invest in a singular company, 254 00:11:49,800 --> 00:11:50,920 Speaker 3: I guess if you don't want to put all of 255 00:11:50,920 --> 00:11:51,920 Speaker 3: your eggs in one basket. 256 00:11:51,960 --> 00:11:53,319 Speaker 4: I don't know if there's a question coming at the 257 00:11:53,400 --> 00:11:55,600 Speaker 4: end of this, but if there is, I want to 258 00:11:55,640 --> 00:12:00,320 Speaker 4: throw it back to you because you famously did a 259 00:12:00,400 --> 00:12:02,840 Speaker 4: video explaining ETFs, and I think that you can explain 260 00:12:02,840 --> 00:12:04,040 Speaker 4: what they are much better than I can. 261 00:12:04,200 --> 00:12:08,200 Speaker 3: It was a it was a leading statement from me. 262 00:12:08,440 --> 00:12:09,640 Speaker 5: Yes, it was hoping that. 263 00:12:11,559 --> 00:12:14,559 Speaker 3: So basically, how I think of ETF is you're right. 264 00:12:14,640 --> 00:12:16,760 Speaker 3: We did a video on this and we used an 265 00:12:16,840 --> 00:12:20,200 Speaker 3: analogy that I think really helps. So if you think 266 00:12:20,200 --> 00:12:22,040 Speaker 3: about salad right. 267 00:12:22,160 --> 00:12:25,520 Speaker 5: Not what I think about often no wrong audience, but yes, 268 00:12:25,559 --> 00:12:25,800 Speaker 5: go on. 269 00:12:26,080 --> 00:12:30,360 Speaker 3: So you can either buy individual ingredients for a salad 270 00:12:30,880 --> 00:12:33,040 Speaker 3: or you can buy a pre made salad. And so 271 00:12:33,240 --> 00:12:35,959 Speaker 3: when it comes to investing, if you think about buying 272 00:12:36,080 --> 00:12:40,400 Speaker 3: individual ingredients for a salad, that's like buying shares into 273 00:12:40,400 --> 00:12:44,319 Speaker 3: individual companies, which would then make up your portfolio if 274 00:12:44,360 --> 00:12:47,520 Speaker 3: you decide to invest in more than one individual company, 275 00:12:47,760 --> 00:12:50,600 Speaker 3: or you could have a salad of just carrots and 276 00:12:50,640 --> 00:12:53,520 Speaker 3: that would just be the one company. On the other side, 277 00:12:53,559 --> 00:12:56,360 Speaker 3: you can have a pre made salad, which is where 278 00:12:56,600 --> 00:12:59,720 Speaker 3: when you buy it, it has lots of different ingredients 279 00:12:59,800 --> 00:13:02,760 Speaker 3: or put all together and that is now yours. And 280 00:13:02,800 --> 00:13:06,240 Speaker 3: that's like ets where you are buying into something which 281 00:13:06,280 --> 00:13:09,280 Speaker 3: has a whole bunch of different companies. Usually you would 282 00:13:09,320 --> 00:13:12,679 Speaker 3: select it to be in a particular industry. For example, Zara, 283 00:13:12,760 --> 00:13:15,280 Speaker 3: you have said that you're interested in media. So if 284 00:13:15,320 --> 00:13:18,000 Speaker 3: you wanted to buy an ETF into the media industry, 285 00:13:18,080 --> 00:13:22,000 Speaker 3: that would be something like the top twenty media companies 286 00:13:22,000 --> 00:13:25,600 Speaker 3: that you could buy a share into and it's pre 287 00:13:25,679 --> 00:13:27,559 Speaker 3: made like that. Yeah, I don't know if I explained 288 00:13:27,640 --> 00:13:30,800 Speaker 3: that very well, but yes, that is my ETF analogy. 289 00:13:31,040 --> 00:13:33,120 Speaker 4: It makes sense to me. I think that that is 290 00:13:33,280 --> 00:13:34,520 Speaker 4: a perfect analogy for it. 291 00:13:34,760 --> 00:13:38,480 Speaker 3: And so then I guess the last question is how 292 00:13:38,559 --> 00:13:42,120 Speaker 3: often should you be checking your investments? 293 00:13:42,640 --> 00:13:46,200 Speaker 4: Look, it's completely up to you, but if you are 294 00:13:46,440 --> 00:13:50,720 Speaker 4: investing long term, then checking every single minute of every 295 00:13:50,760 --> 00:13:54,040 Speaker 4: single day might stress you out. So perhaps that's not 296 00:13:54,200 --> 00:13:57,520 Speaker 4: what is best for you, but perhaps it is. Share 297 00:13:57,559 --> 00:14:00,959 Speaker 4: prices move constantly, you know, there are dips that go 298 00:14:01,080 --> 00:14:04,959 Speaker 4: either way. The game is about patience here, and anyone 299 00:14:04,960 --> 00:14:07,880 Speaker 4: who knows me will be laughing listening to me talk 300 00:14:07,920 --> 00:14:10,440 Speaker 4: about patients because it's not my strong suit. But I 301 00:14:10,480 --> 00:14:12,480 Speaker 4: do think that this is a good practice to get 302 00:14:12,480 --> 00:14:14,720 Speaker 4: into and it's a good way to test your patients 303 00:14:14,760 --> 00:14:17,560 Speaker 4: because if you are investing long term, you are you 304 00:14:17,679 --> 00:14:20,280 Speaker 4: have to be patient. It's kind of no alternative. And 305 00:14:20,320 --> 00:14:22,520 Speaker 4: I think that's actually the most important thing I took 306 00:14:22,560 --> 00:14:25,320 Speaker 4: away from that night with the girls that the biggest 307 00:14:25,320 --> 00:14:28,320 Speaker 4: barrier for most people isn't money, and it isn't knowledge. 308 00:14:28,320 --> 00:14:31,120 Speaker 4: It's actually just getting started. So hopefully we have gone 309 00:14:31,160 --> 00:14:33,080 Speaker 4: some of the way. It's breaking down those barriers and 310 00:14:33,280 --> 00:14:35,880 Speaker 4: explaining everything you need to know about investing in the 311 00:14:35,880 --> 00:14:36,480 Speaker 4: share market. 312 00:14:36,600 --> 00:14:38,840 Speaker 3: Well, it's been a pleasure to see your growth over 313 00:14:38,840 --> 00:14:42,880 Speaker 3: the past five years. That is all for today's deep dive. 314 00:14:42,920 --> 00:14:45,800 Speaker 3: We'll be back tomorrow morning with another deep dive, but 315 00:14:45,880 --> 00:14:48,280 Speaker 3: until then, we hope you have a lovely Sunday. 316 00:14:52,440 --> 00:14:54,720 Speaker 2: My name is Lily Madden and I'm a proud Arunda 317 00:14:54,960 --> 00:14:59,080 Speaker 2: bunge lung Kalkutin woman from Gadigal Country. The Daily oz 318 00:14:59,160 --> 00:15:01,960 Speaker 2: acknowledges that this podcast is recorded on the lands of 319 00:15:01,960 --> 00:15:05,280 Speaker 2: the Gadigal people and pays respect to all Aboriginal and 320 00:15:05,320 --> 00:15:08,360 Speaker 2: Torres right island and nations. We pay our respects to 321 00:15:08,440 --> 00:15:11,320 Speaker 2: the first peoples of these countries, both past and present. 322 00:15:14,320 --> 00:15:17,240 Speaker 3: Before we go, here is a quick message from today's sponsor, 323 00:15:17,360 --> 00:15:20,200 Speaker 3: comm SEC. 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