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Speaker 1: My name's Tasha Bamblet. I'm a proud First Nations woman

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Speaker 1: and I'm here to acknowledge country t glennyan Ganya Niana,

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Speaker 1: kaka ya ya beIN ah Waka Nian our gay In Mbina,

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Speaker 1: yakarum jar dominyaka Umagahawakawaman damon imlan bomber bang Gadabomba in

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Speaker 1: and now in wakah ghana on yak raum jar Watnadaa. Hello,

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Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.

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Speaker 1: We thank acknowledge and respect the Abiginal people's land that

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Speaker 1: we're gathering on today. Take pleasure in all the land

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Speaker 1: and respect all that you see. She's on the Money

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Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,

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Speaker 1: knowledge and resources for you to thrive.

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Speaker 2: She's on the Money. She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: that lets you in on the financial strategies billionaires swear

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Speaker 3: by without needing a billionaire bank balance.

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Speaker 2: I would like one, though, wouldn't mind it? Actually, you

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Speaker 2: know what, I.

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Speaker 4: Take all of that back. I've said publicly before, and

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Speaker 4: I don't want to be a billionaire.

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Speaker 2: You don't want to be billionaire asolutely not. I wouldn't

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Speaker 2: hate it if it was. I was like, you want

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Speaker 2: to be where you are now, you want to be

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Speaker 2: a billionaire?

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Speaker 4: Would you don't need a billion? Nobody like from if

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Speaker 4: not one person needs a billion dollars.

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Speaker 2: That's very true. VD.

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Speaker 3: Well, today we're actually looking at the investing strategy behind

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Speaker 3: one of the biggest fortunes on the planet, and of

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Speaker 3: course we're going to show you how you can use

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Speaker 3: it to whether you are starting at fifty dollars or

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Speaker 3: fifty thousand dollars.

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Speaker 2: I would like to start fifty thousand dollars.

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Speaker 3: That's not too bad. That's not billionaire status. That's just

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Speaker 3: it's modest. I'm excited and with me is retired financial

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Speaker 3: advisor and expert in all things investing, in all things

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Speaker 3: in general, Victoria Divide.

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Speaker 4: Hello, Beck, I'm so excited and I know that we're

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Speaker 4: going to talk about like a billionaire investing strategy today,

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Speaker 4: but like let's get rich, but like not that rich?

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Speaker 2: Yeah, yeah, yeah, I don't know at what point, like

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Speaker 2: what's the level?

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Speaker 4: Right, There's like people always say, like money can't buy happiness,

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Speaker 4: which I disagree with.

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Speaker 2: Because I think money.

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Speaker 4: Buys freedom, right yeah, and like if you've got freedom,

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Speaker 4: you are healthier, happier, like spiritually, mentally, all of that stuff, right,

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Speaker 4: Like I will not put up with anyone being like

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Speaker 4: money can't buy happiness, You're right, Like there's a cap

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Speaker 4: and a believe from research, it's like eighty two thousand

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Speaker 4: dollars a year is the cap at which if you

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Speaker 4: earn that much, like you're happy. And I mean this

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Speaker 4: is not to say that you're not financially stressed like

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Speaker 4: we are Casey lives right now, like we don't need

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Speaker 4: to go back and forth, but about eighty two thousand

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Speaker 4: dollars apparently is the limit at which any more money

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Speaker 4: doesn't make you any more happy, Like you just stop

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Speaker 4: having an increase in happiness because of your finances.

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Speaker 3: Right, I mean, it's at the very least still take

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Speaker 3: away the crippling anxiety of constantly being brogue or in debt.

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Speaker 2: So I think, yeah, but that's one hundred two tho.

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Speaker 4: But at the same time, on the flip side, I

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Speaker 4: am an ex financial advisor. As you mentioned, I love

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Speaker 4: talking about money, I love investing, and I love talking

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Speaker 4: about you know, this guy is one of the longest

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Speaker 4: running investors and like arguably the most successful investor the

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Speaker 4: share market has ever seen. Like and I'm not being dramatic,

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Speaker 4: here has ever seen like this. One individual has made

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Speaker 4: literally billions of dollars And I've got a lot of

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Speaker 4: conversation like not for now, but like you don't need

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Speaker 4: to continue to hold billions of dot can you imagine

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Speaker 4: the impact you could have? I know, Like, don't get

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Speaker 4: me wrong, we like I want to be rich, Like

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Speaker 4: that's no secret. I'm she's on the money, Beck, Like

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Speaker 4: I want to be financially secure. I want to you know,

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Speaker 4: be able to provide for my children all of that.

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Speaker 4: But at what point should you be giving away your money?

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Speaker 2: Yeh, yeah, I don't know.

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Speaker 4: Different conversation that just makes me very uncomfortable. But the

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Speaker 4: best investor, the not just Australian but the world wide

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Speaker 4: share market has ever seen, is Warren Buffett.

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Speaker 2: Warren Buffer, Warren Buffy but Warren.

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Speaker 4: Buffett, right, yeah, And he is known as being like

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Speaker 4: the pinnacle, Like there are people that follow this man

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Speaker 4: to a teeth. He makes an investing decision, they make

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Speaker 4: an investing decision. And I believe that there is a

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Speaker 4: lot we can learn from him, because as much as

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Speaker 4: I don't necessarily agree with being a billionaire, he's an

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Speaker 4: incredibly smart man. And there are so many people who

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Speaker 4: have been quite critical of him historically, not because he's rich,

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Speaker 4: but because they're like, oh my god, if he'd invested

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Speaker 4: in this business earlier, he would have made even more money.

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Speaker 4: But he's very calculated with his decisions. And I think

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Speaker 4: we can learn a lot from that.

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Speaker 3: Okay, And I was gonna you did kind of answer

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Speaker 3: it for me. I wouldn't to do, like why is

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Speaker 3: it beg deal? Like how do we even know?

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Speaker 2: Like did we just try?

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Speaker 3: Like It's all sounds so confusing to me, because how

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Speaker 3: like I could be a good investor, but no one.

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Speaker 4: But he's not a publicly trading company, so he shares

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Speaker 4: all of this public clear right, so he's investing decisions

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Speaker 4: are news like, So whenever he makes a trade, his

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Speaker 4: company puts out essentially a press release says, Warren's invested

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Speaker 4: in X. And this guy nowadays is not like putting

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Speaker 4: ten dollars on after pay. He's like making big, big,

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Speaker 4: multi million dollar moves. And because he's got a publicly

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Speaker 4: listed company, he legally has to disclose that as well.

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Speaker 4: So everything he does is public knowledge.

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Speaker 2: Okay, that makes sense. I guess.

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Speaker 3: Like the thing is he's kind of like using a

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Speaker 3: lot of money and so probably making a lot of money.

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Speaker 2: But did he start there? He started from scratch and okay,

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Speaker 2: you know, we might get into it.

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Speaker 4: And it's actually funny if you if you want to

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Speaker 4: see humble, google his car and google his house.

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Speaker 2: So he still drives his I believe it's.

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Speaker 4: Like a Toyota Camri because I don't need that, Like

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Speaker 4: why do you need a new car? And he still

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Speaker 4: lives in the family home that he and his wife

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Speaker 4: bought because he's just like, I don't need anything more

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Speaker 4: than that. So I would say relatively well balanced. But

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Speaker 4: he's literally like rich rich, Like he's not just like,

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Speaker 4: oh he's wealthy. He's one of the ten wealthiest people

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Speaker 4: on this planet. And currently, if we do a little Google,

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Speaker 4: he's worth more than one hundred and fifty billion dollars.

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Speaker 3: WHOA, that's like everything he when people say worth, is

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Speaker 3: that like everything you own?

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Speaker 4: Like it's everything he owns. All of his investments includes

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Speaker 4: his car. Yeah, that's one of his askcts.

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Speaker 2: The car. The little Twitter come includes the car. That's

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Speaker 2: so cute, young glad they included that, Yeah, but he didn't.

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Speaker 4: I think a lot of people assume that when you're

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Speaker 4: a big dog investor, you must have come from family wealth.

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Speaker 4: I've actually just finished Sirens on Netflix, which is a

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Speaker 4: fantastic series. Like I binged to the whole thing about

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Speaker 4: like people in upstate New York like doing that very

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Speaker 4: Deen's vibes. Yeah, really rich billionaires living their rich lives anyway,

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Speaker 4: very fun. But a lot of that wealth that you

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Speaker 4: see is often inherited. But he actually built all of

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Speaker 4: his wealth by investing and other businesses since the fifties.

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Speaker 4: Like this guy's old Beck Like he is old, and

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Speaker 4: people are still following this guy who way past retirement

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Speaker 4: age because he just makes such good decisions. In fact,

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Speaker 4: I told you before that he has a publicly listed company.

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Speaker 4: He runs one of the most powerful companies in the

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Speaker 4: world as the chairman and CEO of Berkshire Hathaway, which

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Speaker 4: is actually worth Get this got to be sitting down,

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Speaker 4: it's worth more than a trillion dollars.

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Speaker 2: Okay, well that's unnecessary.

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Speaker 4: That's actually like, that's more than I can actually comprehend.

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Speaker 4: And Berkshire so his company actually owns or invests in

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Speaker 4: companies that you definitely know, so.

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Speaker 2: We can do this too, but maybe not to the

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Speaker 2: extent that he does.

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Speaker 4: But he owns things like Apple and Coca Cola and

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Speaker 4: Amex and the Bank of America and Dairy Queen. He

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Speaker 4: owns Jurisicelle batteries and he also owns tins.

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Speaker 2: Oh, okay, well I have like ten dollars and Apple. Yeah,

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Speaker 2: good job, honey, I did not think about the others.

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Speaker 3: Okay, well, well I really can't wait.

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Speaker 2: Jansen and apparently means means billions. God, he see his

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Speaker 2: potential and everything, doesn't he Dairy Queen? Who would have thought?

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Speaker 3: So? Why has Warren willfour been in the headlines again recently.

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Speaker 4: Because he has come out and said, guys, I'm retiring. Wow,

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Speaker 4: I'm just I'm going to take a step back. I'm

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Speaker 4: going to create a retirement plan. He has been working

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Speaker 4: at Berkshire Hathaway for sixty years or more than six decades,

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Speaker 4: and he's finally confirmed that a guy called Greg Abel

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Speaker 4: is going to be taking over. Because you know how

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Speaker 4: I said, like, oh, he's old old Beck, our friend Warren,

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Speaker 4: he's ninety four.

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Speaker 2: Oh and he's just yeah, and he's just still willing

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Speaker 2: and deal.

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Speaker 4: Then Yeah, like my grandpa made it to ninety four

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Speaker 4: before he passed away, and like he was as sharp

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Speaker 4: as attack.

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Speaker 2: So I have no doubt that this guy is still

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Speaker 2: sharp as attack.

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Speaker 4: But he needs a little bit of like retirement time,

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Speaker 4: a little bit of down time. Maybe time to enjoy

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Speaker 4: thirty is too late, roughly.

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Speaker 2: But enjoy the billions you've made. Yeah, seriously, on a holiday,

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Speaker 2: maybe he could go on a trip to Bali with

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Speaker 2: his sam. It's never too late. It's absolutely never too late.

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Speaker 2: It's not well, it's shocked me.

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Speaker 4: It's massive news because lots of people just assumed that

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Speaker 4: he would never retire because at the end of the day,

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Speaker 4: like you know, he's eighty, and then he's eighty five

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Speaker 4: and then he's ninety, still just pushing on running this company.

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Speaker 4: But now he's ninety four and he's like, actually, probably

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Speaker 4: should put in place some retirement plans.

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Speaker 2: Greg Abel's been waiting.

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Speaker 4: He's just been in the back being like, Hey, is

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Speaker 4: this ever going to be my time to shine?

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Speaker 2: Or am I going to retire before you? What's going on?

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Speaker 4: But it's big, big news because Warren Buffett has been

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Speaker 4: I would say, the face of investing for sixty plus YUS. Yeah,

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Speaker 4: like he has been the guy everyone writes books about.

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Speaker 4: He has been the guy that everyone turns to during

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Speaker 4: economic downturn to be like, what are the big moves

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Speaker 4: Warren's making? What's going on here? If he's trusting this,

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Speaker 4: we trust that. And he's been essentially the biggest influencer

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Speaker 4: in that space, well the OG influencer exactly. And the

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Speaker 4: announcement was made recently at the twenty twenty five Berkshire

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Speaker 4: Hathaway AGM, which this is going to sound so lame.

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Speaker 4: I invest in Berkshire Hathaway because like, one day I'm

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Speaker 4: hoping that as an investor I can go to their AGM.

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Speaker 4: Oh isn't that the lamest thing even at all?

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Speaker 2: Is this?

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Speaker 3: Like this has happened before or you're just like we

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Speaker 3: can go You'll see me.

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Speaker 4: Yeah, yeah, Like imagine being able to go to the anyway,

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Speaker 4: That's just what I'm like. Oh, bucket list items sair

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Speaker 4: And it's actually the first major one without a guy

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Speaker 4: called Charlie Munda there by his side. So this guy,

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Speaker 4: which you probably haven't heard of in the same way

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Speaker 4: that you've heard of Warren. He was the long term

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Speaker 4: business partner and absolutely investing icon in his own right,

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Speaker 4: but he was a business partner of Warren. But unfortunately,

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Speaker 4: Charlie actually passed away in late twenty twenty three, and

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Speaker 4: he and Warren had worked together for more than sixty years.

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Speaker 4: So I wouldn't be surprised if this was one of

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Speaker 4: the reasons that Warren's kind of like, well, if he's

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Speaker 4: not here, you know, it's not as fun, like, you know,

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Speaker 4: two mates more than sixty years making big decisions together

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Speaker 4: is kind of like, I'm kind of out.

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Speaker 2: That's devastating, Yeah, exactly.

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Speaker 4: And people are actually calling it the end of an era,

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Speaker 4: which I kind of feel in my bones as well.

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Speaker 2: I'm like, well, who are we going to follow now?

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Speaker 2: Who's the like big dog in this space?

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Speaker 4: There isn't anyone who has ever been as influential or

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Speaker 4: correct about the markets as Warren Beck. There's also and

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Speaker 4: I feel like I'm just harping on about this, but

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Speaker 4: like this is kind of like this is.

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Speaker 2: My real housewives? Are you in ye element? So I'm

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Speaker 2: just vibing it.

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Speaker 4: There's another big thing that lots of people in the

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Speaker 4: industry are kind of like whispering about. And that's because

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Speaker 4: Berkshire Hathaway. So his company is actually sitting on a

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Speaker 4: lot of cash. So there is one hundred and eighty

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Speaker 4: nine billion dollars worth of cash sitting in that business.

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Speaker 2: Do you mean physical physical cash? Really?

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Speaker 4: Yes, So like if you logged into their you know,

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Speaker 4: online transactions, that's how much cash they're sitting.

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Speaker 2: I see, I see, I see it.

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Speaker 4: So it's just in their bank like probably not in notes,

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Speaker 4: but like see, you know, that's what he's got in

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Speaker 4: the business bank account, which is in addition to all

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Speaker 4: of the investments that that business owns Okay, And essentially

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Speaker 4: Warren's been stockpiling this for years, obviously because you can't

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Speaker 4: just save one hundred and eighty nine billion dollars in

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Speaker 4: a year. But he's been stop piling it for years,

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Speaker 4: and he's been choosing not to make massive moves in

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Speaker 4: what he has been calling.

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Speaker 2: A really overpriced market.

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Speaker 4: And now that Greg is taking over greg Able, I

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Speaker 4: was telling you about him before, everyone's asking, well, what

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Speaker 4: are you going to do?

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Speaker 2: Greg?

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Speaker 4: What are you going to do with all this cash?

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Speaker 4: Like is the business going to be investing more? You're

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Speaker 4: a literal investing company. And you got all this cash,

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Speaker 4: like that doesn't actually make a lot of sense. So

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Speaker 4: between his age and his legacy and the future of

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Speaker 4: literally one of the biggest companies in the world, everyone's watching,

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Speaker 4: or everyone in the investing world, including me, is watching.

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Speaker 4: You're probably like, I still don't care.

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Speaker 2: Be probably and that's cool. That's cool. One.

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Speaker 4: I'll just tell you about it and you can be like, oh,

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Speaker 4: I know that. So next time you're at the pub

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Speaker 4: and people go, oh, do you know what Berkshire Hathaway is,

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Speaker 4: you'd be like, oh my god, yeah, I can't believe

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Speaker 4: he's sitting on one hundred and eighty nine billion dollars.

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Speaker 3: Will in the North and no one know what berkeshear

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Speaker 3: hath the way is. But I appreciate that you've given That's.

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Speaker 2: Okay, that's all right.

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Speaker 4: I will continue to try and say when you give

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Speaker 4: me the information.

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Speaker 2: It's actually quite engaging. I'm trying. I really like it.

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Speaker 4: But essentially it's like our mate Warren Buffett's like final chapter.

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Speaker 4: So literally everyone in the investing world is going to

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Speaker 4: be looking and being like, well, is he going to

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Speaker 4: go out with a bang? Is he going to go quietly? Like,

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Speaker 4: what's he planning on doing sure, especially with so much cash,

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Speaker 4: like he could do so many things.

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Speaker 3: Yeah, I guess, Like it's a shocking amount of money,

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Speaker 3: Like how did he get there? What makes him so

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Speaker 3: good at a missing Like what is he seeing that

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Speaker 3: we don't see?

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Speaker 2: Mate?

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Speaker 4: If I could be, like I always say, and you've

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Speaker 4: heard me say this on the show before, like if

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Speaker 4: I could time the markets, I'd be a very rich woman.

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Speaker 4: And unfortunately nobody can time the markets except.

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Speaker 2: Seemingly like Warren.

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Speaker 4: Yeah, except he doesn't time the markets. Even he says

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Speaker 4: that timing the markets is silly, Like he's come out

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Speaker 4: before and been like that is absolutely ridiculous. But it

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Speaker 4: is a very good question to ask if someone who's

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Speaker 4: worth more than one hundred and fifty billion dollars individually.

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Speaker 4: But because he's not like a super flashy person, he's

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Speaker 4: not gambling in crypto, he's not day trading. He's quite

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Speaker 4: literally the opposite, and he's exactly what she's on the

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Speaker 4: money preachers, I would say that his entire investment strategy

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Speaker 4: is deeply un sexy, Like there's nothing about his strategy

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Speaker 4: that you go, oh, big moves, big dog, Yeah, you go,

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Speaker 4: that's kind of low key really boring but okay. But essentially,

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Speaker 4: even though his investing strategy is I would say, offensively boring,

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Speaker 4: that's the point, Like, the entire point is to be

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Speaker 4: as boring as possible when it comes to investing large

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Speaker 4: amounts of money and even small amounts of money, because

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Speaker 4: he started.

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Speaker 2: All on his own.

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Speaker 4: And I'm going to give you a little bit of

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Speaker 4: a cliffhanger because we're going to go to a break,

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Speaker 4: but we're going to unpack exactly how he built his

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Speaker 4: fortune and exactly how you can use exactly those same

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Speaker 4: strategies even if you've only got fifty bucks to start with,

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Speaker 4: or like Beck, what have you got now, like three

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Speaker 4: hundred dollars in chersias?

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Speaker 3: Yeah, okay, this is going to sound crazy and almost

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Speaker 3: unrelatable to I just don't want to be that's.

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Speaker 2: Not unrelatable girl, If you can do it everyone.

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Speaker 3: Yeah, literally literally, I have like six hundred and eighty

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Speaker 3: sorry what four dollars or something like that.

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Speaker 2: Six hundred and eighty four dollars keep going down, But

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Speaker 2: that's Oksey, it's a little longing consistently investing. Yeah, I'm

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Speaker 2: so proud of you.

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Speaker 4: Thank you.

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Speaker 2: Let's go to a break. And then we can give

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Speaker 2: you all of Warren's advice after this.

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Speaker 3: Okay, everyone, we are back, and Vid left us on

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Speaker 3: a cliffhanger, basically like everything they should do that.

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Speaker 2: You've got more than six hundred bucks in your investing.

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Speaker 4: Platforms, so wild Can we go back like a year

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Speaker 4: or even two years? Yeah?

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Speaker 3: Fully, maybe Beck would be like, what no, no, I

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Speaker 3: still don't have an emergency fund, which I know is

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Speaker 3: not getting this get He wins the race exactly, which

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Speaker 3: is perfect because we're talking that kind of like reminds

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Speaker 3: me of tortoise in the hair, which I would think

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Speaker 3: Warren Buffett is like the tortoise in this situation, like.

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Speaker 2: All of his movies.

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Speaker 4: At ninety four, I feel like he's giving tortoise vibes

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Speaker 4: totally totally because he's.

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Speaker 3: Like, you know, not doing making big moves, risky moves.

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Speaker 3: It sounds like it's just all kind of like boring

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Speaker 3: and whatever. But what can we learn from him.

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Speaker 2: We can learn from his love of compound interest.

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Speaker 3: Ha.

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Speaker 4: So the money that your money makes makes money. And

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Speaker 4: given his ninety four he is one of the greatest

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Speaker 4: living examples of the effect of compound interest. I have

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Speaker 4: spoken about compound interest time and time again. I think

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Speaker 4: it is the sexiest thing in the entire world. Essentially,

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Speaker 4: compound interest is the interest that your money earns making

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Speaker 4: money for you. So your money is making money, and

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Speaker 4: then that money is free money. And Beck, we love

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Speaker 4: free money. Love free money, we love free money. So

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Speaker 4: you earn money, and.

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Speaker 2: Like, I'm just trying to double down, but like.

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Speaker 4: You earn money on the original amount, and the next

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Speaker 4: time that original amount plus the money you earned is invested,

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Speaker 4: and so it just gets bigger and bigger over time.

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Speaker 4: And that might not feel very powerful after one year,

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Speaker 4: but after ten years, your money will have more than doubled.

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Speaker 4: Like your six hundred dollars, Beck, if you did not

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Speaker 4: invest another dollar based on current market returns, nine point

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Speaker 4: four years is what it's going to take to be

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Speaker 4: twelve hundred bucks. WHOA, that's so crazy, isn't that kind

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Speaker 4: of cool?

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Speaker 2: Yeah, that is really cool.

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Speaker 4: So in his autobiography, which obviously I'm quite a fan of, Beck,

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Speaker 4: I wouldn't recommend it, okay unless you're me, ah, I see,

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Speaker 4: just feel like if I made a book recommendation for you,

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Speaker 4: it wouldn't be that one. But in his autobiography, Warren

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Speaker 4: actually explains it as like a snowball rolling down a hill,

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Speaker 4: picking up more and more snow as it gains momentum,

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Speaker 4: until it becomes a massive snowball. And I feel like

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Speaker 4: we can all understand that. And we also learned in

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Speaker 4: that autobiography that he actually, and this is deeply unrelatable,

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Speaker 4: he started investing at eleven years old, and he also

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Speaker 4: said he wished he started sooner.

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Speaker 2: That is, who what where does an eleven year old?

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Speaker 2: You know what? I wouldn't be surprised if he's a

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Speaker 2: neurospicy friend. Yeah, that sounds about right.

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Speaker 4: Some of us like trains, He likes con found interests. Yeah,

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Speaker 4: and from a very young age. I think he has

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Speaker 4: been hyper fixated on this. I see imagine being like, oh,

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Speaker 4: I started investing at eleven.

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Speaker 2: That's wish I'd done it earlier. Like I can't z

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Speaker 2: can't believe I was in.

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Speaker 4: Prep, can't believe I was wasting time doing finger painting.

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Speaker 2: I know that's is it even legal at eleven? As

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Speaker 2: like saying I started driving when I was eleven. I

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Speaker 2: wish I did it earlier, but like, are you even

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Speaker 2: allowed to at that point? How does he have money?

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Speaker 2: Was heney?

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Speaker 4: You'd have a number of questions. But I guess it

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Speaker 4: doesn't mean you had to be a stock prodigy in

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Speaker 4: primary school, yes, to start building wealth, because like, that's good,

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Speaker 4: you're starting now and you're going to be so financially secure.

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Speaker 4: It kind of just highlights the power of starting early

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Speaker 4: and getting in as soon as you can, and that

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Speaker 4: from small things, big things literally can grow. And the

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Speaker 4: more time your money has to grow, the more of

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Speaker 4: it there is going to be. So I guess it's

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Speaker 4: just let's not put so much pressure on ourselves that

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Speaker 4: we are expected to invest at eleven, but let's maybe

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Speaker 4: remember or use it as a little reminder that starting sooner,

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Speaker 4: even with small, tiny amounts, is going to give you

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Speaker 4: a massive head start thanks to compound interest. Okay, I

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Speaker 4: mean he started investing at eleven, beck, Yes, he had

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Speaker 4: his first million dollars by thirty two. Oh okay, okay, okay,

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Speaker 4: So it wasn't like a millionaire by twelve. Yeah, yeah, yeah,

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Speaker 4: which I feel like a lot of people are like,

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Speaker 4: this guy's a prodigy.

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Speaker 2: He was probably like twenty one. No, he was thirty two.

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Speaker 4: I mean that's still deeply unrelatable, especially right now. But yeah,

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Speaker 4: that's like our age, very very cool, And a vast

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Speaker 4: majority of his estimated like one hundred and fifty billion

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Speaker 4: dollars of wealth was actually accumulated after he turned fifty.

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Speaker 4: Oh compound interest though, yeah, okay, this is seventy.

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Speaker 2: Five billion dollars. That's a lot of money.

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Speaker 4: But if he didn't invest another dollar in, just kept

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Speaker 4: letting it tick over another ten years, that becomes one

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Speaker 4: hundred and fifty billion dollars. Why because like the same

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Speaker 4: thing happens. It's like, you know, using your example of

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Speaker 4: your six hundred and it being twelve hundred and ten years,

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Speaker 4: that's so sexy, but like same amount of growth happens

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Speaker 4: on a larger scale. So for him having you know,

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Speaker 4: a couple of billion dollars, that's double.

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Speaker 2: Yeah, isn't that kind of crazy? That is crazy.

435
00:21:00,160 --> 00:21:05,040
Speaker 4: So in America, CNBC, which is like a network over there,

436
00:21:05,160 --> 00:21:08,439
Speaker 4: they did a really interesting comparison between Warren Buffett and

437
00:21:08,480 --> 00:21:11,760
Speaker 4: a guy called Jim Simon's and over his investing life,

438
00:21:11,800 --> 00:21:14,480
Speaker 4: which started, as I said before, when he was just

439
00:21:14,560 --> 00:21:20,400
Speaker 4: eleven and stretched into his literal nineties. Buffet's average returns,

440
00:21:20,440 --> 00:21:23,840
Speaker 4: according to them, was twenty two percent. Well, so like

441
00:21:24,080 --> 00:21:29,280
Speaker 4: literally more than doubling what we use as an expected

442
00:21:29,320 --> 00:21:31,359
Speaker 4: market return every single year.

443
00:21:31,520 --> 00:21:33,879
Speaker 2: Yeah, okay, that's really good.

444
00:21:34,000 --> 00:21:37,240
Speaker 4: But we look at Jim Simon's, who's also often referred

445
00:21:37,240 --> 00:21:40,960
Speaker 4: to as like a ridiculously successful investor, if not one

446
00:21:41,000 --> 00:21:43,520
Speaker 4: of the biggest and best investors in the world as well,

447
00:21:43,680 --> 00:21:45,960
Speaker 4: but lesser known. I think because he's been around for

448
00:21:46,040 --> 00:21:49,679
Speaker 4: less time. Sure, Jim's investment return back every year of

449
00:21:49,680 --> 00:21:52,640
Speaker 4: his life sixty six percent per year.

450
00:21:52,720 --> 00:21:53,560
Speaker 2: How does he do that?

451
00:21:53,640 --> 00:21:53,800
Speaker 4: Well?

452
00:21:53,920 --> 00:21:56,680
Speaker 2: I know that, So do you think's worth more money?

453
00:21:57,920 --> 00:22:02,160
Speaker 3: Well, because maybe it's a true question because twenty percent

454
00:22:02,720 --> 00:22:05,679
Speaker 3: the sixty six percent, obviously, But then he hasn't been

455
00:22:05,760 --> 00:22:07,440
Speaker 3: around very long, exactly.

456
00:22:07,640 --> 00:22:09,879
Speaker 2: I still actually I'm just I'm going to say, Jim, no,

457
00:22:09,960 --> 00:22:10,240
Speaker 2: it's not.

458
00:22:10,359 --> 00:22:10,719
Speaker 3: Jim.

459
00:22:11,720 --> 00:22:14,239
Speaker 4: Worn still runs rings around him because even though, like

460
00:22:14,320 --> 00:22:17,440
Speaker 4: Simon's has had high return, he didn't start investing seriously

461
00:22:17,520 --> 00:22:21,320
Speaker 4: until it was like fifty and Worn has had decades

462
00:22:21,359 --> 00:22:24,320
Speaker 4: of compound interest on your side. She was kind of

463
00:22:24,400 --> 00:22:27,960
Speaker 4: disposed to prove that the best asset isn't actually finding

464
00:22:28,119 --> 00:22:31,280
Speaker 4: super high returns, it's giving your money time to grow time.

465
00:22:31,480 --> 00:22:33,520
Speaker 2: And I find that so exciting.

466
00:22:33,920 --> 00:22:36,000
Speaker 4: But at the same time, it's literally what we preach

467
00:22:36,040 --> 00:22:38,040
Speaker 4: on cheese on the money, Slow and steady wins the race.

468
00:22:38,119 --> 00:22:41,200
Speaker 4: You use the example before Beck of the tortoise and

469
00:22:41,240 --> 00:22:44,160
Speaker 4: the hair, and like we're looking at Jim going, oh

470
00:22:44,200 --> 00:22:48,040
Speaker 4: my god, what a good hair. But like slow and steady,

471
00:22:48,359 --> 00:22:51,640
Speaker 4: he's just essentially hocking cash back there.

472
00:22:51,720 --> 00:22:54,480
Speaker 2: Okay, Well, honestly, a part of me is quite comforted by.

473
00:22:54,359 --> 00:22:56,640
Speaker 4: The fact that it's it's just slow and steady winslow

474
00:22:56,680 --> 00:23:01,679
Speaker 4: and steady. So obviously, starting early, worn this massive edge.

475
00:23:01,760 --> 00:23:05,399
Speaker 4: I need to like what the brick he's investing in

476
00:23:05,440 --> 00:23:07,560
Speaker 4: it at eleven though, Yeah, like what are you picking?

477
00:23:07,800 --> 00:23:08,040
Speaker 2: Right?

478
00:23:08,240 --> 00:23:12,280
Speaker 4: So when he was eleven, he bought three shares in

479
00:23:12,359 --> 00:23:17,879
Speaker 4: a natural gas company that didn't exist anymore called City Services,

480
00:23:19,440 --> 00:23:23,639
Speaker 4: and he paid, according to research, thirty eight dollars per share.

481
00:23:24,240 --> 00:23:27,760
Speaker 4: He watched it drop, he panicked, he sold it it

482
00:23:28,160 --> 00:23:30,720
Speaker 4: forty dollars to make a profit, and then he watched

483
00:23:30,760 --> 00:23:33,240
Speaker 4: it shoot up way higher than he'd sold it for.

484
00:23:33,800 --> 00:23:34,920
Speaker 2: And it's the problem.

485
00:23:35,040 --> 00:23:37,959
Speaker 4: Yeah, that moment really stuck with him, Like he you know,

486
00:23:38,040 --> 00:23:40,760
Speaker 4: talks about it in his memoir and he's like, you know,

487
00:23:40,840 --> 00:23:43,480
Speaker 4: I bought this company and then I watched it drop

488
00:23:43,520 --> 00:23:45,600
Speaker 4: and I freaked out. It's like what we talk about.

489
00:23:45,680 --> 00:23:47,880
Speaker 4: You know, you see the market drop and you kind

490
00:23:47,880 --> 00:23:49,960
Speaker 4: of get that pit in your stomach. Yeah, that's where

491
00:23:50,000 --> 00:23:52,160
Speaker 4: he started to I mean, he did do it at eleven,

492
00:23:52,200 --> 00:23:55,359
Speaker 4: which is unrelatable, but it's a good story nonetheless, but

493
00:23:55,440 --> 00:23:58,240
Speaker 4: that moment really stuck with him, and it taught him

494
00:23:58,240 --> 00:24:01,199
Speaker 4: that trying to time the market and guessing when to

495
00:24:01,280 --> 00:24:03,639
Speaker 4: jump in and when to sell was gamble and that

496
00:24:03,760 --> 00:24:05,800
Speaker 4: was a terrible thing to do. He's like, I'm never

497
00:24:05,840 --> 00:24:08,679
Speaker 4: doing that again. So instead of playing that game, he

498
00:24:09,000 --> 00:24:12,800
Speaker 4: changed his strategy. Again, we're talking about an eleven year old.

499
00:24:13,560 --> 00:24:17,040
Speaker 4: He started to focus on buying really great companies and

500
00:24:17,080 --> 00:24:19,399
Speaker 4: then just holding onto them for the long term. He

501
00:24:19,480 --> 00:24:20,840
Speaker 4: was like, I'm just going to be a buy and

502
00:24:20,880 --> 00:24:24,200
Speaker 4: hold man. I'm just going to buy good stuff, hold

503
00:24:24,240 --> 00:24:26,720
Speaker 4: it for the long term, hope it, you know, gives

504
00:24:26,720 --> 00:24:30,800
Speaker 4: me good dividends and consistent capital growth. And in his

505
00:24:31,000 --> 00:24:34,840
Speaker 4: nineteen eighty eight Berkshire Hathaway shareholder letter that he sends

506
00:24:34,840 --> 00:24:36,760
Speaker 4: out every year, by the way, that's a letter.

507
00:24:36,920 --> 00:24:38,320
Speaker 2: Wow, do you get that? Yes?

508
00:24:38,359 --> 00:24:42,560
Speaker 4: I do, you do, just as a shareholder. You just

509
00:24:42,640 --> 00:24:44,600
Speaker 4: get the letter. But did you know so you know,

510
00:24:44,680 --> 00:24:46,440
Speaker 4: I said I wanted to go to their AGM. Yeah,

511
00:24:46,480 --> 00:24:48,360
Speaker 4: you actually have to apply to go to their AGM

512
00:24:48,359 --> 00:24:50,320
Speaker 4: because there's so many people like me who would be

513
00:24:50,440 --> 00:24:51,840
Speaker 4: like frothing to go.

514
00:24:52,440 --> 00:24:53,800
Speaker 2: But it's kind of like a ballot.

515
00:24:54,040 --> 00:24:58,639
Speaker 5: You have to like Meredith, Yes I'm doing You're going

516
00:24:58,640 --> 00:25:00,560
Speaker 5: to Meredith, and I'm going to Berkshire Hath the way.

517
00:25:01,200 --> 00:25:04,560
Speaker 2: It's far more unlikely that I'll get in. But that's okay.

518
00:25:04,800 --> 00:25:07,840
Speaker 4: But he said in that letter that our favorite holding

519
00:25:07,920 --> 00:25:09,359
Speaker 4: period is forever.

520
00:25:09,920 --> 00:25:12,400
Speaker 2: Good good, good good from him, right, So like.

521
00:25:12,400 --> 00:25:15,480
Speaker 4: His friend was, if I'm going to invest in something,

522
00:25:16,080 --> 00:25:18,240
Speaker 4: I'm going to do all of the research, all of

523
00:25:18,240 --> 00:25:20,919
Speaker 4: the analysis. I'm gonna buy it, never gonna sell it.

524
00:25:21,240 --> 00:25:22,240
Speaker 2: That's his strategy.

525
00:25:22,359 --> 00:25:25,240
Speaker 3: Okay, okay, okay, will you ever enjoy the fruits of

526
00:25:25,240 --> 00:25:25,800
Speaker 3: your labor?

527
00:25:26,119 --> 00:25:28,480
Speaker 4: I mean maybe once he's ninety four and he's going

528
00:25:28,520 --> 00:25:30,159
Speaker 4: to reach to ninety four. Yeah, maybe he's going to

529
00:25:30,160 --> 00:25:30,720
Speaker 4: the Bahamas.

530
00:25:30,720 --> 00:25:31,600
Speaker 2: We don't know. We don't know.

531
00:25:32,080 --> 00:25:34,320
Speaker 3: So how does he actually like Pickle to invest in

532
00:25:34,520 --> 00:25:36,639
Speaker 3: because he's you know, picking random things like I'll just

533
00:25:36,640 --> 00:25:38,640
Speaker 3: hold this forever. Or is there like a secret formula

534
00:25:38,840 --> 00:25:41,120
Speaker 3: or do you have like billionaire instincts.

535
00:25:41,240 --> 00:25:43,560
Speaker 2: I think he has billionaire instincts actually, and that's the

536
00:25:43,600 --> 00:25:44,440
Speaker 2: end of the podcast.

537
00:25:44,680 --> 00:25:45,040
Speaker 5: That's it.

538
00:25:45,320 --> 00:25:46,880
Speaker 2: Yeah, yeah, well that's.

539
00:25:46,640 --> 00:25:50,240
Speaker 4: He actually once said never invest in businesses you can't understand,

540
00:25:50,680 --> 00:25:52,760
Speaker 4: which I think is really cool. And that's why I'm

541
00:25:52,800 --> 00:25:54,680
Speaker 4: always like, do your own research understand.

542
00:25:54,720 --> 00:25:55,280
Speaker 2: And I know that.

543
00:25:55,680 --> 00:25:57,240
Speaker 4: Do you know what I hate when people say and

544
00:25:57,320 --> 00:25:59,520
Speaker 4: I say, go do your own research back?

545
00:26:00,200 --> 00:26:01,480
Speaker 2: What the hell does that mean? Am I meant to

546
00:26:01,520 --> 00:26:03,000
Speaker 2: google it? Am I meant to look it up?

547
00:26:03,080 --> 00:26:03,359
Speaker 3: Yeah?

548
00:26:03,359 --> 00:26:05,440
Speaker 2: But I want you to go, Okay, if I'm buying.

549
00:26:05,200 --> 00:26:08,040
Speaker 4: Apple, yeah, you kind of know what Apple is, so

550
00:26:08,119 --> 00:26:10,840
Speaker 4: you know it like sells iPhones and laptops and whatnot,

551
00:26:11,040 --> 00:26:14,520
Speaker 4: but like read more information about well why are they

552
00:26:14,600 --> 00:26:17,720
Speaker 4: so impressive? What is their technology? Where are they made

553
00:26:17,840 --> 00:26:20,920
Speaker 4: all of that stuff? You want to deeply understand. If

554
00:26:21,160 --> 00:26:24,399
Speaker 4: Warren can't understand how the business makes money in a

555
00:26:24,440 --> 00:26:27,240
Speaker 4: sentence or two, he will not touch it. It doesn't

556
00:26:27,280 --> 00:26:29,600
Speaker 4: matter how much hype there is, it doesn't matter what's

557
00:26:29,640 --> 00:26:31,680
Speaker 4: going on in the market, it doesn't matter how much

558
00:26:31,760 --> 00:26:34,800
Speaker 4: money people are making. He's like, Eh, that's not worth

559
00:26:34,800 --> 00:26:39,440
Speaker 4: it to me. Like he is arguably a very simple investor.

560
00:26:39,440 --> 00:26:41,600
Speaker 4: He's like, if I don't get it, I'm not investing.

561
00:26:41,840 --> 00:26:44,520
Speaker 4: So instead of chasing the next big thing, like lots

562
00:26:44,560 --> 00:26:46,439
Speaker 4: of verse often want to, because we're like, oh, but

563
00:26:46,480 --> 00:26:48,399
Speaker 4: if I invest in that make it like sixty six

564
00:26:48,480 --> 00:26:52,040
Speaker 4: percent profit. We don't want sixty six percent profit. It

565
00:26:52,080 --> 00:26:55,159
Speaker 4: does sound sexy in the short term, but like that's unsustainable.

566
00:26:55,320 --> 00:26:57,440
Speaker 4: Then you're chasing the next big high and you kind

567
00:26:57,440 --> 00:27:01,040
Speaker 4: of become like a drug addict version of it in stuff, right,

568
00:27:01,119 --> 00:27:03,200
Speaker 4: And that's not cool because we don't want to chase

569
00:27:03,240 --> 00:27:05,760
Speaker 4: the next big high. So instead of you know, chasing

570
00:27:05,800 --> 00:27:08,639
Speaker 4: the next big tech company or getting sucked into stuff.

571
00:27:08,800 --> 00:27:11,960
Speaker 4: You know that he doesn't really fully comprehend like crypto

572
00:27:12,280 --> 00:27:16,000
Speaker 4: or maybe AI, where he's like, I can't fully explain

573
00:27:16,080 --> 00:27:18,800
Speaker 4: this in a sentence or too, and while it sounds impressive,

574
00:27:19,440 --> 00:27:21,720
Speaker 4: like a lot of it eludes me, I'm not that

575
00:27:21,840 --> 00:27:25,719
Speaker 4: into it. He actually sticks with businesses that are super boring. Okay,

576
00:27:25,880 --> 00:27:29,160
Speaker 4: think the companies I was telling you about before, Coca Cola,

577
00:27:29,280 --> 00:27:34,240
Speaker 4: insurance companies, railroads, banks, all of these things that you

578
00:27:34,320 --> 00:27:35,639
Speaker 4: go is a bank sexy?

579
00:27:36,000 --> 00:27:37,840
Speaker 2: No? No, But if you look.

580
00:27:37,720 --> 00:27:40,200
Speaker 4: At you know, for example, here in Australia, I always

581
00:27:40,240 --> 00:27:44,959
Speaker 4: use the example of NAB. They've never not paid their dividends. Yeah,

582
00:27:45,000 --> 00:27:47,960
Speaker 4: like they are always paying their investors. That's low key,

583
00:27:48,119 --> 00:27:49,440
Speaker 4: very sexy.

584
00:27:49,080 --> 00:27:49,680
Speaker 2: Love, very cool.

585
00:27:50,240 --> 00:27:54,280
Speaker 3: So you would say, like if you understand it, then cool,

586
00:27:54,680 --> 00:27:59,639
Speaker 3: But like when is it understandable completely clear? I understand this,

587
00:28:00,000 --> 00:28:02,000
Speaker 3: but it's not worth investing. How does he know it's

588
00:28:02,040 --> 00:28:03,199
Speaker 3: worth investing in it?

589
00:28:03,240 --> 00:28:04,879
Speaker 2: So he has a little bit of a strategy.

590
00:28:05,040 --> 00:28:07,160
Speaker 4: And the next thing he looks at, and he's said

591
00:28:07,160 --> 00:28:10,360
Speaker 4: publicly before, is whether it's a great business.

592
00:28:10,480 --> 00:28:11,720
Speaker 2: He doesn't just want a good business.

593
00:28:11,720 --> 00:28:14,280
Speaker 4: He wants a great business to invest in, not just

594
00:28:14,320 --> 00:28:18,000
Speaker 4: an okay one. And for Warren that means that there's

595
00:28:18,040 --> 00:28:20,639
Speaker 4: a few specific things he's looking at. So the first

596
00:28:20,640 --> 00:28:24,640
Speaker 4: one is it needs to be profitable and consistent. So

597
00:28:24,720 --> 00:28:27,800
Speaker 4: Buffett looks at business as with a really strong track record,

598
00:28:27,880 --> 00:28:31,119
Speaker 4: so like companies that are consistently making money, and not

599
00:28:31,240 --> 00:28:33,720
Speaker 4: ones that are relying on trends or hypes or like

600
00:28:33,760 --> 00:28:36,480
Speaker 4: a lucky quarter or like the La Booboo company.

601
00:28:36,600 --> 00:28:37,560
Speaker 2: Ah, La boo boo.

602
00:28:37,720 --> 00:28:40,840
Speaker 4: Right, I don't want to talk about La Boo boos anymore,

603
00:28:40,960 --> 00:28:44,800
Speaker 4: but like that company, right, worth so much money. He's

604
00:28:44,800 --> 00:28:48,200
Speaker 4: made billions out of that, But that doesn't mean it's sustainable,

605
00:28:48,280 --> 00:28:53,680
Speaker 4: because how long until people don't give two flying hbout

606
00:28:53,720 --> 00:28:54,280
Speaker 4: a laboobo?

607
00:28:54,760 --> 00:28:55,560
Speaker 2: But do you know what I mean?

608
00:28:55,800 --> 00:28:58,600
Speaker 4: Yeah, like the La Boo boo is a trend. Yeah, yes,

609
00:28:58,680 --> 00:29:00,680
Speaker 4: he's made billions. If you look at all of the

610
00:29:00,760 --> 00:29:04,400
Speaker 4: investing information about that, that company is skyrocketing.

611
00:29:04,600 --> 00:29:08,239
Speaker 2: That's crazy. Go invest in PopMart. Okay, don't don't go

612
00:29:08,280 --> 00:29:10,280
Speaker 2: invest in PopMart. I do it for like a week.

613
00:29:10,400 --> 00:29:12,120
Speaker 4: But like, when do you get out? How do you

614
00:29:12,200 --> 00:29:14,040
Speaker 4: know when to get out? Are you're going to kick

615
00:29:14,080 --> 00:29:16,120
Speaker 4: yourself if you get in? And then you know, they

616
00:29:16,200 --> 00:29:18,920
Speaker 4: invent the labuobuo two point zero and it triples again?

617
00:29:19,080 --> 00:29:21,440
Speaker 2: Yeah, how do you know when to leave? Never? You

618
00:29:21,520 --> 00:29:22,600
Speaker 2: never leave exactly.

619
00:29:22,640 --> 00:29:26,440
Speaker 4: So Warren's strategy was, like the best investing term is forever. Yeah,

620
00:29:26,480 --> 00:29:28,800
Speaker 4: So are you going to own the labuboo company forever back?

621
00:29:28,840 --> 00:29:30,600
Speaker 2: Yeah? True? Maybe not. Don't want that.

622
00:29:30,720 --> 00:29:32,400
Speaker 4: No, I'm going to go get boring one. I'm going

623
00:29:32,440 --> 00:29:35,000
Speaker 4: to invest in a railroad or a toll way or

624
00:29:35,000 --> 00:29:35,720
Speaker 4: maybe or something that.

625
00:29:35,800 --> 00:29:40,000
Speaker 2: Bank or something like Toyota. Yeah yeah, great, like yeah, okay.

626
00:29:40,440 --> 00:29:43,160
Speaker 4: He wants it to just be profitable and consistent because

627
00:29:43,160 --> 00:29:45,800
Speaker 4: The next thing, he says, it needs to be strong.

628
00:29:46,360 --> 00:29:49,520
Speaker 4: So that means that the business has something really solid

629
00:29:49,520 --> 00:29:52,840
Speaker 4: going for it, like a great brand like Toyota, or

630
00:29:53,520 --> 00:29:57,880
Speaker 4: loyal customers, or maybe products that people have to use

631
00:29:57,920 --> 00:30:01,280
Speaker 4: every single day. Yes, so it's harder to compete with

632
00:30:01,320 --> 00:30:04,680
Speaker 4: businesses that already have a really strong position, like and

633
00:30:04,720 --> 00:30:07,280
Speaker 4: I think of companies like I need to use deotoring

634
00:30:07,360 --> 00:30:10,360
Speaker 4: every day. Back Rex owner, where's that gonna go?

635
00:30:10,520 --> 00:30:12,040
Speaker 2: Yeah? That's the true, do you know what I mean?

636
00:30:12,080 --> 00:30:14,000
Speaker 4: We're not talking and I'm not saying that these are

637
00:30:14,040 --> 00:30:16,480
Speaker 4: like things you should invest in, but we are talking

638
00:30:16,960 --> 00:30:20,360
Speaker 4: every day essentials that you know, people are going to

639
00:30:20,400 --> 00:30:22,880
Speaker 4: buy it, and even if it's not the best thing

640
00:30:22,960 --> 00:30:25,600
Speaker 4: on the market, like so many different things are going

641
00:30:25,680 --> 00:30:27,800
Speaker 4: to come up, it's got such a big brand, people

642
00:30:27,800 --> 00:30:30,000
Speaker 4: are always going to fall back to it, right, Yeah,

643
00:30:30,120 --> 00:30:31,800
Speaker 4: Like you might buy it because you're like, oh, that's

644
00:30:31,800 --> 00:30:34,520
Speaker 4: a good brand and it's on special this week. I'm

645
00:30:34,560 --> 00:30:37,440
Speaker 4: just consistently okay with that brand.

646
00:30:37,560 --> 00:30:37,760
Speaker 2: Right.

647
00:30:38,320 --> 00:30:40,960
Speaker 4: And then so he said it needs to be profitable

648
00:30:40,960 --> 00:30:42,920
Speaker 4: and consistent. The second thing I said, it needs to

649
00:30:42,960 --> 00:30:45,480
Speaker 4: be strong. And then the third thing is it needs

650
00:30:45,520 --> 00:30:48,200
Speaker 4: to be reasonably priced. We don't ever pay for things.

651
00:30:48,520 --> 00:30:49,280
Speaker 2: Absolutely not.

652
00:30:49,320 --> 00:30:53,160
Speaker 4: Warren would never overpay for something, even if he's obsessed

653
00:30:53,160 --> 00:30:54,880
Speaker 4: with a business like he loves it, He's like this

654
00:30:55,200 --> 00:30:59,000
Speaker 4: is so good. He will not overpay for it. He's

655
00:30:59,200 --> 00:31:03,719
Speaker 4: known for crucking companies for ten, twenty thirty years before

656
00:31:03,760 --> 00:31:05,480
Speaker 4: he will invest in it because he's like, that's not

657
00:31:05,560 --> 00:31:08,560
Speaker 4: worth it, that is not worth it. Buffett actually waits

658
00:31:08,560 --> 00:31:10,320
Speaker 4: for the price to come down to a level that

659
00:31:10,360 --> 00:31:12,880
Speaker 4: he thinks he's getting really good value, and then he

660
00:31:12,960 --> 00:31:14,720
Speaker 4: buys and then he holds it forever.

661
00:31:14,920 --> 00:31:17,440
Speaker 3: That's a fantastic point because right now I'd be like,

662
00:31:17,640 --> 00:31:19,320
Speaker 3: I'm going to go invest in Rex soona, I don't

663
00:31:19,360 --> 00:31:20,080
Speaker 3: know what it was before.

664
00:31:20,160 --> 00:31:22,160
Speaker 2: I'm not bothering to check. I'm just going to buy

665
00:31:22,200 --> 00:31:25,840
Speaker 2: it right now. But if you wait, you watch he does,

666
00:31:25,920 --> 00:31:26,560
Speaker 2: and he waits.

667
00:31:26,600 --> 00:31:29,400
Speaker 4: Then he watches, like to a point where I would

668
00:31:29,400 --> 00:31:32,760
Speaker 4: have gotten bored, like I'm not committed like he is.

669
00:31:32,840 --> 00:31:37,240
Speaker 4: And that's why Warren is known as a very good

670
00:31:37,480 --> 00:31:41,640
Speaker 4: value investor. So he's built his entire fortune on what

671
00:31:41,680 --> 00:31:44,240
Speaker 4: people call a very boring stock strategy.

672
00:31:45,280 --> 00:31:47,160
Speaker 2: Boring, boring, boring.

673
00:31:47,960 --> 00:31:50,840
Speaker 4: Wow, this is like he's not chasing shiny things. But

674
00:31:51,160 --> 00:31:53,640
Speaker 4: he's not jumping on whatever trends or la boo boo

675
00:31:54,200 --> 00:31:54,800
Speaker 4: is going on.

676
00:31:55,240 --> 00:31:55,880
Speaker 2: He is not.

677
00:31:56,000 --> 00:31:58,920
Speaker 4: Trading every time the market wobbles. He's just going, all right,

678
00:31:58,960 --> 00:32:02,240
Speaker 4: well we're here, going to stick it out. He's investing

679
00:32:02,280 --> 00:32:05,120
Speaker 4: in companies that are stable, that are predictable, and that

680
00:32:05,160 --> 00:32:12,240
Speaker 4: make money stuff like banks, railroads, food companies, insurance, Coca Cola.

681
00:32:12,600 --> 00:32:15,160
Speaker 2: We're all ordering coke. Oh yeah, you know what I mean.

682
00:32:15,200 --> 00:32:18,720
Speaker 2: We go out of fashion exactly like tried true test it.

683
00:32:18,800 --> 00:32:21,600
Speaker 4: He's not going to sell those shares things that people,

684
00:32:21,680 --> 00:32:23,920
Speaker 4: no matter what's going on in the economy, are going

685
00:32:23,960 --> 00:32:24,720
Speaker 4: to continue to buy.

686
00:32:26,200 --> 00:32:28,520
Speaker 3: It's very company too, that this doesn't like empty light,

687
00:32:28,520 --> 00:32:31,400
Speaker 3: Like it doesn't take an excessive amount of money or

688
00:32:31,440 --> 00:32:34,000
Speaker 3: an excessive amount of Like not to say that he's

689
00:32:34,000 --> 00:32:36,760
Speaker 3: not intelligent, but like you don't need but like that's.

690
00:32:36,600 --> 00:32:37,600
Speaker 2: The killerst thing, right.

691
00:32:37,800 --> 00:32:39,720
Speaker 4: I think when you start talking about, you know, the

692
00:32:39,760 --> 00:32:43,400
Speaker 4: world's best investor, you go, oh, you must be so intelligent.

693
00:32:43,800 --> 00:32:46,640
Speaker 4: Like he clearly is very intelligent. I'm not downplaying that

694
00:32:46,720 --> 00:32:50,200
Speaker 4: at all. But his strategy, it's not you can replicate it.

695
00:32:50,360 --> 00:32:52,800
Speaker 4: The everyday person can replicate it and go okay, cool.

696
00:32:52,840 --> 00:32:54,720
Speaker 4: So instead of getting caught up in trends. Maybe I'm

697
00:32:54,760 --> 00:32:57,400
Speaker 4: just going to buy blue chip stocks. Maybe I'm going

698
00:32:57,480 --> 00:32:58,920
Speaker 4: to go look at a bank. Maybe I'm going to

699
00:32:59,000 --> 00:33:01,400
Speaker 4: go look at things like Coke Cola or Apple, like

700
00:33:01,480 --> 00:33:05,200
Speaker 4: we just know they're not going anywhere. Like I'm a

701
00:33:05,240 --> 00:33:09,600
Speaker 4: consistent girlie. I just want the boring, the standard. I

702
00:33:09,720 --> 00:33:12,960
Speaker 4: just want to be wealthy once I retire. And I

703
00:33:12,960 --> 00:33:16,840
Speaker 4: guess the idea behind value investing, which is not going

704
00:33:16,840 --> 00:33:18,480
Speaker 4: to come as a surprise to you, Beack that I'm

705
00:33:18,480 --> 00:33:20,920
Speaker 4: a value investor because I don't want to be trading

706
00:33:20,960 --> 00:33:21,480
Speaker 4: all the time.

707
00:33:21,520 --> 00:33:22,520
Speaker 2: What's value investing?

708
00:33:22,560 --> 00:33:25,720
Speaker 4: So value investing is really simple. You're looking for businesses

709
00:33:25,920 --> 00:33:28,120
Speaker 4: that are worth more than what they're selling for, and

710
00:33:28,160 --> 00:33:31,760
Speaker 4: you're buying and you're holding forever. It's essentially what Warren's doing.

711
00:33:31,840 --> 00:33:33,680
Speaker 2: Oh yes, yes, okay, I see what you're saying. You

712
00:33:33,760 --> 00:33:35,800
Speaker 2: just want good value, like you've got a good deal

713
00:33:35,800 --> 00:33:36,960
Speaker 2: and then you're going to use it forever.

714
00:33:37,280 --> 00:33:40,720
Speaker 3: Yeah, oh okay, and kind of like put like notification

715
00:33:40,840 --> 00:33:42,360
Speaker 3: on on Chazy's.

716
00:33:42,680 --> 00:33:45,280
Speaker 4: You can you can you can also like track something

717
00:33:45,320 --> 00:33:47,680
Speaker 4: and go, well, I'm happy to buy that share once

718
00:33:47,720 --> 00:33:50,440
Speaker 4: it drops to twenty bucks and you can essentially put

719
00:33:50,440 --> 00:33:52,640
Speaker 4: in a trade that says, once that share drops to

720
00:33:52,680 --> 00:33:55,400
Speaker 4: twenty bucks, automatically buy it for me, so you can

721
00:33:55,480 --> 00:33:57,480
Speaker 4: kind of set and forget your investment strategy.

722
00:33:57,560 --> 00:33:58,240
Speaker 2: That is really good.

723
00:33:58,320 --> 00:34:00,400
Speaker 4: It's kind of like you and I both love thrift,

724
00:34:00,520 --> 00:34:02,560
Speaker 4: like we both love an opshop. It's kind of like

725
00:34:02,640 --> 00:34:05,600
Speaker 4: spotting a five hundred dollars bag at the op shop

726
00:34:05,840 --> 00:34:08,280
Speaker 4: for twenty bucks, and you know it's really high quality

727
00:34:08,440 --> 00:34:10,640
Speaker 4: and you're getting it for way less than it's really worth.

728
00:34:10,800 --> 00:34:11,480
Speaker 2: Yeah, and that.

729
00:34:12,480 --> 00:34:15,319
Speaker 4: Exactly, but like you buy it not to resell it.

730
00:34:15,360 --> 00:34:17,000
Speaker 4: You go, oh my god, Like it's such a good

731
00:34:17,080 --> 00:34:19,040
Speaker 4: quality about I'm going to use this for years, Like

732
00:34:19,560 --> 00:34:21,640
Speaker 4: I feel like I've won the lottery, Like I didn't

733
00:34:21,680 --> 00:34:23,600
Speaker 4: have to spend five hundred bucks, which I never would

734
00:34:23,600 --> 00:34:25,279
Speaker 4: have done. I'm going to spend twenty bucks on this.

735
00:34:25,600 --> 00:34:27,799
Speaker 4: I'm gonna have this when I'm sixty, Like this is

736
00:34:27,840 --> 00:34:31,520
Speaker 4: so good, Like it feels comfortable, but also you feel

737
00:34:31,520 --> 00:34:32,240
Speaker 4: like you've gotten.

738
00:34:32,000 --> 00:34:32,520
Speaker 2: A good deal.

739
00:34:32,640 --> 00:34:36,280
Speaker 4: Right. He essentially does exactly the same thing. He finds

740
00:34:36,320 --> 00:34:40,799
Speaker 4: really undervalued companies, buys them, holds them sometimes forever. It's

741
00:34:40,920 --> 00:34:43,320
Speaker 4: massive newsback. If he sells a company like if he

742
00:34:43,400 --> 00:34:48,520
Speaker 4: sells a company, the stock market goes berserk because that's crazy.

743
00:34:49,120 --> 00:34:51,240
Speaker 3: It'd be so sad if you were like a random

744
00:34:51,239 --> 00:34:52,360
Speaker 3: company that he's been invested.

745
00:34:52,560 --> 00:34:53,560
Speaker 2: H he's just putting in the bin.

746
00:34:53,920 --> 00:34:56,400
Speaker 3: And then everyone else would because I would assume you're

747
00:34:56,440 --> 00:34:59,000
Speaker 3: kind of following his lead exactly. And as you said before,

748
00:34:59,080 --> 00:35:01,960
Speaker 3: like I think the best part about this strategy is

749
00:35:02,840 --> 00:35:05,560
Speaker 3: literally anyone can do it. Like you want to start

750
00:35:05,640 --> 00:35:08,880
Speaker 3: on shares's with a dollar, you can? You got fifty bucks,

751
00:35:09,080 --> 00:35:11,960
Speaker 3: you can. Like this is of you one a massive

752
00:35:12,040 --> 00:35:15,280
Speaker 3: investment strategy that you know you need tens of thousands

753
00:35:15,280 --> 00:35:16,320
Speaker 3: of dollars to start.

754
00:35:16,520 --> 00:35:19,319
Speaker 2: So can you give me an example of when or

755
00:35:19,360 --> 00:35:20,879
Speaker 2: how he knows when to buy?

756
00:35:21,000 --> 00:35:24,080
Speaker 4: Yeah, good question. So let's talk about Coca Cola because

757
00:35:24,120 --> 00:35:27,120
Speaker 4: we're talking about that one. Before he started buying shares

758
00:35:27,160 --> 00:35:31,080
Speaker 4: in Coke in nineteen eighty eight, right after a major

759
00:35:31,160 --> 00:35:34,360
Speaker 4: crash in the market, when everyone else was panicking in selling,

760
00:35:34,400 --> 00:35:36,279
Speaker 4: he was like, oh, this looks like a good time

761
00:35:36,320 --> 00:35:38,719
Speaker 4: to buy. And he saw Coke as kind of like

762
00:35:38,800 --> 00:35:42,319
Speaker 4: a really strong global brand that wasn't going anywhere. He

763
00:35:42,360 --> 00:35:44,160
Speaker 4: said what you said, He was like, everyone's going to

764
00:35:44,239 --> 00:35:48,600
Speaker 4: drink Coke forever. Yeah, like what and he invested get

765
00:35:48,640 --> 00:35:52,560
Speaker 4: this one point three billion dollars USD not Australian USD.

766
00:35:53,239 --> 00:35:57,439
Speaker 4: Then decades later, Berkshire Hathaway still holds that investment. Guess

767
00:35:57,440 --> 00:36:03,520
Speaker 4: how much it's worth. No, twenty five billion dollars and

768
00:36:03,520 --> 00:36:05,960
Speaker 4: that's not even counting all the dividends that have been

769
00:36:05,960 --> 00:36:07,799
Speaker 4: paid to them over that period of time.

770
00:36:07,880 --> 00:36:09,960
Speaker 2: He didn't buy it to flip it. He bought it

771
00:36:10,040 --> 00:36:11,080
Speaker 2: so that he could hold it.

772
00:36:11,239 --> 00:36:14,319
Speaker 4: Literally forever, because he, like you and I, believe in

773
00:36:14,360 --> 00:36:17,560
Speaker 4: the business. Yeah, not a buzz and we're like every

774
00:36:17,600 --> 00:36:22,160
Speaker 4: pub is going to sell Coke. McDonald's sells. Coke's going nowhere.

775
00:36:22,239 --> 00:36:24,160
Speaker 2: You know. Yeah, I don't know if.

776
00:36:24,000 --> 00:36:27,960
Speaker 3: I would ever trusted enough to put one point three billion,

777
00:36:27,960 --> 00:36:28,239
Speaker 3: but he did.

778
00:36:28,280 --> 00:36:31,000
Speaker 4: They don't even have that amount, so it's not actually

779
00:36:31,040 --> 00:36:33,000
Speaker 4: an option for me. But I can see where he's

780
00:36:33,040 --> 00:36:33,520
Speaker 4: going with that.

781
00:36:33,840 --> 00:36:34,560
Speaker 2: That's incredible.

782
00:36:34,600 --> 00:36:36,799
Speaker 3: Well good on him, I actually, I mean, if you

783
00:36:36,880 --> 00:36:39,320
Speaker 3: have it, I would trust that Coca Cola would be

784
00:36:39,360 --> 00:36:42,440
Speaker 3: around forever. So he he kind of like, you know,

785
00:36:42,480 --> 00:36:44,759
Speaker 3: he sees the reliable companies, the strong companies.

786
00:36:45,120 --> 00:36:47,960
Speaker 2: What about companies that like haven't even hit the market.

787
00:36:48,040 --> 00:36:49,839
Speaker 2: Yet like they're just hitting the mark for the first time.

788
00:36:49,920 --> 00:36:52,920
Speaker 4: Yeah, and we've done like a whole episode on IPOs.

789
00:36:52,920 --> 00:36:55,359
Speaker 4: So an IPO is an initial public offering, and that's

790
00:36:55,400 --> 00:36:58,000
Speaker 4: when a company like hits the market for the very

791
00:36:58,000 --> 00:37:00,279
Speaker 4: first time and there's massive hype around it, right because

792
00:37:00,280 --> 00:37:02,000
Speaker 4: like you know, if it's company you and I have

793
00:37:02,120 --> 00:37:04,640
Speaker 4: bought and it's always been private, now it's public, we

794
00:37:04,719 --> 00:37:06,640
Speaker 4: get really excited. We're like, oh my god, like I

795
00:37:06,719 --> 00:37:09,080
Speaker 4: can't believe that, you know, this brand is going to

796
00:37:09,080 --> 00:37:11,239
Speaker 4: be available for us to buyers consumers.

797
00:37:11,320 --> 00:37:11,960
Speaker 2: How exciting.

798
00:37:12,239 --> 00:37:16,320
Speaker 4: But Buffett he's like, Nah, screw IPOs, that's silly. Oh

799
00:37:16,320 --> 00:37:18,879
Speaker 4: he doesn't like them at all. Like he's famously known

800
00:37:18,960 --> 00:37:20,960
Speaker 4: for being like, I am not going to do that.

801
00:37:21,000 --> 00:37:23,279
Speaker 4: In fact, if it hits the market and I'm a

802
00:37:23,280 --> 00:37:26,240
Speaker 4: good investor, I'll just watch how it's going. I'll invest

803
00:37:26,239 --> 00:37:29,560
Speaker 4: in them later. Thanks, though, Well, like he literally doesn't care,

804
00:37:29,719 --> 00:37:34,160
Speaker 4: and he literally just thinks that it's silly to do that,

805
00:37:34,360 --> 00:37:35,759
Speaker 4: Like he's like, I'm not going to take a risk.

806
00:37:35,800 --> 00:37:37,759
Speaker 4: That's too much of a risk. And for years he's

807
00:37:37,800 --> 00:37:41,040
Speaker 4: pretty much said I avoid them completely entirely, Like I'm

808
00:37:41,080 --> 00:37:43,760
Speaker 4: just not playing that game. Not because IPOs are bad,

809
00:37:44,280 --> 00:37:46,960
Speaker 4: but because he thinks, and I agree with this, they

810
00:37:47,000 --> 00:37:50,120
Speaker 4: are surrounded by so much hype, Like people get so excited.

811
00:37:50,440 --> 00:37:54,320
Speaker 4: There's often inflated pricing and not good long term value

812
00:37:54,320 --> 00:37:56,000
Speaker 4: returned because you don't even know how the company is

813
00:37:56,040 --> 00:37:58,359
Speaker 4: going to do once it goes public. Right, Yeah, that

814
00:37:58,560 --> 00:38:00,960
Speaker 4: is a new iteration of the business. It's been private

815
00:38:00,960 --> 00:38:02,440
Speaker 4: for years, Like is that going to be a good

816
00:38:02,440 --> 00:38:05,520
Speaker 4: thing for the business? Sometimes it's not. And his logic

817
00:38:05,600 --> 00:38:08,240
Speaker 4: is relatively simple there. He says that when a company

818
00:38:08,320 --> 00:38:10,719
Speaker 4: launches an IPO, it's often at a price that is

819
00:38:10,760 --> 00:38:12,400
Speaker 4: best for them, not best for you.

820
00:38:12,680 --> 00:38:14,520
Speaker 2: Oh God, he's good.

821
00:38:14,440 --> 00:38:16,879
Speaker 4: But like that kind of low key makes a lot

822
00:38:16,880 --> 00:38:18,799
Speaker 4: of sense when you put it. That's yeah.

823
00:38:19,120 --> 00:38:20,799
Speaker 2: He's a hard man to intrigue, isn't he.

824
00:38:20,960 --> 00:38:23,000
Speaker 4: Yeah, he's kind of like, Oh, if they're going to

825
00:38:23,040 --> 00:38:26,640
Speaker 4: put their company on like public offering, yeah, it's going

826
00:38:26,719 --> 00:38:27,760
Speaker 4: to be for their benefit.

827
00:38:27,760 --> 00:38:29,799
Speaker 2: Otherwise why would they do it? Yeah? Yeah, you go,

828
00:38:30,000 --> 00:38:32,399
Speaker 2: well that makes sense. Shod If he was.

829
00:38:32,360 --> 00:38:34,920
Speaker 3: In my world, it would be my life's goal to

830
00:38:34,960 --> 00:38:36,000
Speaker 3: make him more impressed.

831
00:38:36,200 --> 00:38:36,480
Speaker 2: Yep.

832
00:38:36,480 --> 00:38:39,200
Speaker 4: It's literally designed according to him, and I agree with this,

833
00:38:39,280 --> 00:38:41,880
Speaker 4: but designed to make the company and its early investors

834
00:38:41,920 --> 00:38:44,800
Speaker 4: the most amount of money possible, not the person jumping

835
00:38:44,800 --> 00:38:45,400
Speaker 4: in on day.

836
00:38:45,280 --> 00:38:48,280
Speaker 2: One and hoping to get rid of and no good.

837
00:38:48,320 --> 00:38:49,680
Speaker 2: This is classic buffet.

838
00:38:49,719 --> 00:38:51,879
Speaker 4: Like he has said before, on a buy when things

839
00:38:51,880 --> 00:38:54,960
Speaker 4: are undervalued, not overhyped. So an IPO for him does

840
00:38:55,040 --> 00:38:57,319
Speaker 4: not make sense. He said, he prefers to, you know,

841
00:38:57,400 --> 00:39:00,160
Speaker 4: wait until the business has proven itself publicly before he

842
00:39:00,239 --> 00:39:03,840
Speaker 4: even considers investing in them. And there's even a quote

843
00:39:04,080 --> 00:39:07,840
Speaker 4: where he said, I don't participate in IPOs. The sellers

844
00:39:08,080 --> 00:39:10,880
Speaker 4: have the knowledge, the buyers have the need. It is

845
00:39:11,000 --> 00:39:14,759
Speaker 4: not a level playing field. He's so good, he's obviously

846
00:39:14,840 --> 00:39:16,960
Speaker 4: he's worth one hundred and fifty billion dollars, so you

847
00:39:17,040 --> 00:39:18,360
Speaker 4: know something about something.

848
00:39:18,640 --> 00:39:19,800
Speaker 2: But while other.

849
00:39:20,040 --> 00:39:22,120
Speaker 4: Investors are out there being like, oh my gosh, I'm

850
00:39:22,160 --> 00:39:24,880
Speaker 4: chasing the next unicorn. I'm going to like evaluate all

851
00:39:24,920 --> 00:39:27,160
Speaker 4: these IPOs, he's just sitting back with a coke and

852
00:39:27,200 --> 00:39:29,520
Speaker 4: he's just like waiting, He's just vibing.

853
00:39:29,880 --> 00:39:33,320
Speaker 2: He gets free cokes. Do you own that much? Surely

854
00:39:33,400 --> 00:39:36,319
Speaker 2: you get sent like slabs a free coke. I'd say so.

855
00:39:36,440 --> 00:39:38,000
Speaker 3: But also I feel like at a certain point, we

856
00:39:38,040 --> 00:39:41,480
Speaker 3: have so much money that like a coke would feel free.

857
00:39:41,640 --> 00:39:44,239
Speaker 2: It would be like, yeah, that's true. A tenth of

858
00:39:44,280 --> 00:39:46,560
Speaker 2: a cent for us, that's true. You know.

859
00:39:46,600 --> 00:39:48,640
Speaker 4: So he's just sitting back, he's holding his coke. He's

860
00:39:48,640 --> 00:39:51,120
Speaker 4: probably in a really comfy armchair, and he's like, maah,

861
00:39:51,239 --> 00:39:52,960
Speaker 4: I'm going to watch and if that company turns out

862
00:39:52,960 --> 00:39:56,200
Speaker 4: to be strong, profitable and fairly priced after the buzz

863
00:39:56,200 --> 00:39:58,360
Speaker 4: Philim dies down, then maybe I'll invest.

864
00:39:58,440 --> 00:40:02,160
Speaker 2: But it's gonna be on my term, so chill, so nonchalant.

865
00:40:02,239 --> 00:40:05,000
Speaker 4: She's like whatever, like, if it's a good company, I'll

866
00:40:05,040 --> 00:40:05,800
Speaker 4: invest later.

867
00:40:06,040 --> 00:40:06,560
Speaker 2: No worries.

868
00:40:06,680 --> 00:40:09,160
Speaker 3: He is so smart, so he invests for a living.

869
00:40:09,239 --> 00:40:11,440
Speaker 3: So he has like all this time, I would assume,

870
00:40:11,480 --> 00:40:13,880
Speaker 3: I mean his career. As his career, he like spends

871
00:40:13,880 --> 00:40:16,680
Speaker 3: time researching individual companies. But like the rest of us,

872
00:40:16,719 --> 00:40:18,680
Speaker 3: we have to do we have to do the same thing.

873
00:40:18,760 --> 00:40:19,399
Speaker 2: Well, like you.

874
00:40:19,280 --> 00:40:22,120
Speaker 4: Could like copy him, yeah okay, yeah. So like even

875
00:40:22,160 --> 00:40:25,040
Speaker 4: though he spends his entire life, literally ninety four years

876
00:40:25,040 --> 00:40:28,480
Speaker 4: of it now, researching individual companies, he's literally the first

877
00:40:28,480 --> 00:40:30,279
Speaker 4: to say that most people don't need to do that.

878
00:40:30,560 --> 00:40:32,600
Speaker 4: Do you know what his advice is, Yeah, he says,

879
00:40:32,640 --> 00:40:35,839
Speaker 4: go buy an index fund. Index fund, like an ETF. Yeah,

880
00:40:35,960 --> 00:40:37,120
Speaker 4: go do what Beck's done.

881
00:40:37,160 --> 00:40:39,400
Speaker 3: Do what I do. And he did say that as

882
00:40:39,560 --> 00:40:41,319
Speaker 3: he did do Like I called him up before and

883
00:40:41,360 --> 00:40:43,200
Speaker 3: he was like, oh have you do you know becksied

884
00:40:43,239 --> 00:40:44,560
Speaker 3: and I was like, oh, yeah, I've heard of her,

885
00:40:44,640 --> 00:40:46,799
Speaker 3: and he said, just invest like her, just copy her.

886
00:40:46,880 --> 00:40:50,640
Speaker 4: But literally he believes in them so much that in

887
00:40:50,719 --> 00:40:53,319
Speaker 4: his will he's left instructions for how his wife should

888
00:40:53,400 --> 00:40:56,560
Speaker 4: invest her inheritance when he passes, and he literally said,

889
00:40:56,719 --> 00:40:59,239
Speaker 4: put ninety percent of the money that you get from

890
00:40:59,280 --> 00:41:01,560
Speaker 4: me when I'm dead into a low cost s and

891
00:41:01,560 --> 00:41:04,120
Speaker 4: P five hundred index fund, and the other ten percent

892
00:41:04,160 --> 00:41:05,520
Speaker 4: into government bonds, full stop.

893
00:41:05,560 --> 00:41:06,080
Speaker 2: End of story.

894
00:41:06,239 --> 00:41:09,600
Speaker 4: Wow, go do that WiFi, because like this is fun

895
00:41:09,600 --> 00:41:12,080
Speaker 4: for me and I get it, but like it is

896
00:41:12,120 --> 00:41:16,040
Speaker 4: actually just not worth spending all your time and money

897
00:41:16,280 --> 00:41:17,799
Speaker 4: and energy researching.

898
00:41:17,840 --> 00:41:18,759
Speaker 2: It doesn't make sense.

899
00:41:18,840 --> 00:41:21,719
Speaker 4: So this guy could literally hand pick any stock on

900
00:41:21,760 --> 00:41:24,360
Speaker 4: the planet and he goes, you know what, you probably

901
00:41:24,400 --> 00:41:27,160
Speaker 4: should just go buy a broad market ETF.

902
00:41:27,800 --> 00:41:30,600
Speaker 2: Go get ye, get a little index fund. Beck like

903
00:41:30,760 --> 00:41:33,439
Speaker 2: track the market. Yeah yeah, yeah, But the man's not wrong.

904
00:41:33,480 --> 00:41:36,040
Speaker 4: And one of the simplest ways to access something like

905
00:41:36,080 --> 00:41:37,440
Speaker 4: that is through an ETF.

906
00:41:37,520 --> 00:41:38,960
Speaker 2: And we know all about these.

907
00:41:39,000 --> 00:41:42,560
Speaker 4: We've done an entire investing series on what an ETF is,

908
00:41:42,840 --> 00:41:44,120
Speaker 4: what is an index fund?

909
00:41:44,360 --> 00:41:46,640
Speaker 2: How do they work? Like some of them can be

910
00:41:46,719 --> 00:41:47,280
Speaker 2: like the top.

911
00:41:47,160 --> 00:41:49,520
Speaker 4: Two hundred companies in Australia or the top two hundred

912
00:41:49,520 --> 00:41:52,239
Speaker 4: companies in the world, Like you can pick anything, but

913
00:41:52,320 --> 00:41:55,160
Speaker 4: they are well diversified and honestly, they are one of

914
00:41:55,200 --> 00:41:57,400
Speaker 4: the most beginner friendly ways to follow.

915
00:41:57,440 --> 00:41:58,280
Speaker 2: Buffet's logic.

916
00:41:58,520 --> 00:42:02,239
Speaker 4: Yes easy, and he said time and time again that

917
00:42:02,320 --> 00:42:05,880
Speaker 4: most people would actually be better off completely ignoring the headlines.

918
00:42:05,920 --> 00:42:06,600
Speaker 2: Do not read the.

919
00:42:06,600 --> 00:42:08,759
Speaker 4: News, do not look at the stock market app on

920
00:42:08,800 --> 00:42:12,880
Speaker 4: your phone, ignore the hype. Just consistently invest in low

921
00:42:13,120 --> 00:42:15,920
Speaker 4: cost index funds. Just go put your money there, and

922
00:42:16,000 --> 00:42:17,080
Speaker 4: don't talk about investing.

923
00:42:17,120 --> 00:42:17,719
Speaker 2: Don't talk about it.

924
00:42:17,719 --> 00:42:19,840
Speaker 4: Don't talk about it, because it removes all of the

925
00:42:19,880 --> 00:42:22,880
Speaker 4: pressure to pick quote the right stock or the right share,

926
00:42:23,040 --> 00:42:25,480
Speaker 4: and it replaces it with something that actually works, and

927
00:42:25,520 --> 00:42:27,280
Speaker 4: that is time in the market.

928
00:42:27,320 --> 00:42:30,319
Speaker 2: Time time, time, that's literally it. Just wait.

929
00:42:30,719 --> 00:42:33,279
Speaker 4: Just imagine the biggest investor in the world being like,

930
00:42:33,800 --> 00:42:36,600
Speaker 4: don't bother honestly, like, just go buy a index fund.

931
00:42:36,800 --> 00:42:39,800
Speaker 2: Yeah, I mean I'm going to listen to that. Actually

932
00:42:39,920 --> 00:42:40,799
Speaker 2: I actually.

933
00:42:40,480 --> 00:42:43,600
Speaker 4: Do and that's why I just have I've got like

934
00:42:43,640 --> 00:42:47,560
Speaker 4: my satellite investments, but majority of my investing.

935
00:42:47,080 --> 00:42:50,920
Speaker 2: Wealth is just in ETFs. Yeah. Fair, so, I mean

936
00:42:50,960 --> 00:42:52,680
Speaker 2: I've personally taken away from a lot of this. But

937
00:42:52,760 --> 00:42:54,959
Speaker 2: let's boil it all down. What do you want everyone

938
00:42:55,000 --> 00:42:55,960
Speaker 2: to take away from the episode?

939
00:42:56,040 --> 00:42:58,439
Speaker 4: Okay, so if we want to be a big dog

940
00:42:58,520 --> 00:43:01,919
Speaker 4: investor like Warren Buffett, we can take away a few things.

941
00:43:01,960 --> 00:43:05,080
Speaker 4: So start early, Let time do the heavy lifting. No

942
00:43:05,160 --> 00:43:08,320
Speaker 4: such thing as too small of a beginning. So compound

943
00:43:08,320 --> 00:43:11,520
Speaker 4: interest is going to be your best friend. And Buffett's

944
00:43:11,560 --> 00:43:16,560
Speaker 4: whole fortune is basically a love letter to long term

945
00:43:16,600 --> 00:43:20,000
Speaker 4: investing in compound interest. The next is, don't try to

946
00:43:20,000 --> 00:43:24,280
Speaker 4: time the market like he can't. You can't, we can't.

947
00:43:25,000 --> 00:43:26,759
Speaker 4: After trying to do this, he tried to do it

948
00:43:26,800 --> 00:43:29,239
Speaker 4: at eleven and he decided, ah, that's not really for me.

949
00:43:29,640 --> 00:43:31,959
Speaker 4: He never made the same mistake again. And the goal

950
00:43:32,040 --> 00:43:34,239
Speaker 4: is to stay in, not jump in and out of

951
00:43:34,280 --> 00:43:37,040
Speaker 4: the market. Yeah, there's some research out there Beck that

952
00:43:37,120 --> 00:43:40,160
Speaker 4: says if you miss the five best days I think

953
00:43:40,200 --> 00:43:42,799
Speaker 4: it's five best days in the market because you're trying

954
00:43:42,800 --> 00:43:45,400
Speaker 4: to time the market, you will have half the wealth

955
00:43:45,400 --> 00:43:48,640
Speaker 4: that you intended to by retiring. Okay, I have good days.

956
00:43:49,280 --> 00:43:52,319
Speaker 4: You can't time the market. The next is and I

957
00:43:52,360 --> 00:43:55,239
Speaker 4: love this. Just investing what you understand. If you don't

958
00:43:55,320 --> 00:43:58,040
Speaker 4: understand it, you're not buying it. If you can't explain

959
00:43:58,160 --> 00:44:00,960
Speaker 4: how a business just makes money, you should not be

960
00:44:01,000 --> 00:44:03,120
Speaker 4: investing in it. Simplicity is power. Then we're going to

961
00:44:03,160 --> 00:44:06,920
Speaker 4: ignore the hype, he said, not worth it. IPOs absolutely not,

962
00:44:07,160 --> 00:44:09,879
Speaker 4: whether it's crypto or like hot stocks that people are

963
00:44:09,920 --> 00:44:13,080
Speaker 4: talking about. Buffet's not interested, and baby, neither are you.

964
00:44:13,239 --> 00:44:16,360
Speaker 4: He's going to wait until the hype dies down he

965
00:44:16,400 --> 00:44:19,719
Speaker 4: can see the value. He doesn't listen to headlines. And

966
00:44:19,760 --> 00:44:23,040
Speaker 4: then I've got two more points. You don't have to

967
00:44:23,120 --> 00:44:26,480
Speaker 4: pick stocks at all. Just go buy an index fund.

968
00:44:26,680 --> 00:44:30,360
Speaker 4: Easying to him, his number one recommendation for most people

969
00:44:30,680 --> 00:44:34,000
Speaker 4: is a low cost index fund. Set it, forget it,

970
00:44:34,200 --> 00:44:36,720
Speaker 4: let time do the work. I think that's very sexy.

971
00:44:36,800 --> 00:44:41,880
Speaker 4: And the last thing is control your emotions. So investing

972
00:44:41,960 --> 00:44:45,120
Speaker 4: it's not about maths. It's kind of about like mindset

973
00:44:45,560 --> 00:44:47,279
Speaker 4: and being in the right mind frame. Like he's not

974
00:44:47,320 --> 00:44:49,640
Speaker 4: getting caught up in the headlines. He's not thinking about like,

975
00:44:49,640 --> 00:44:51,759
Speaker 4: oh my goodness, what's that company going to do. Like

976
00:44:51,800 --> 00:44:55,040
Speaker 4: if he's invested for the long term, he's in the

977
00:44:55,040 --> 00:44:57,280
Speaker 4: best investors are the ones that are able to stay

978
00:44:57,280 --> 00:44:59,040
Speaker 4: calm when everyone else is panicking.

979
00:44:59,160 --> 00:45:02,319
Speaker 2: Okay, so I think breath work is the Oh yeah,

980
00:45:02,440 --> 00:45:05,680
Speaker 2: I reckon. He does a lot of meditation. He's constantly

981
00:45:06,000 --> 00:45:09,040
Speaker 2: in the moment. Yeah, exactly, get from him exactly, never

982
00:45:09,080 --> 00:45:12,200
Speaker 2: thinking you know, No, he's just a vibe. Yeah, I

983
00:45:12,239 --> 00:45:14,000
Speaker 2: love him. I love him. I'm really checking menia. I

984
00:45:14,000 --> 00:45:14,480
Speaker 2: see what you mean.

985
00:45:14,520 --> 00:45:16,520
Speaker 3: Now, I'd like to go to AGM whatever you said

986
00:45:16,560 --> 00:45:17,239
Speaker 3: before the.

987
00:45:17,160 --> 00:45:19,680
Speaker 4: Berkshire Hathaway ag if you could take me, Yeah, honestly,

988
00:45:19,719 --> 00:45:21,239
Speaker 4: I'd do a whole log on it for you.

989
00:45:21,360 --> 00:45:24,600
Speaker 2: Thank you. So guys, that is all from us today.

990
00:45:24,680 --> 00:45:27,960
Speaker 4: But if you're ready to start your own investing snowball rolling,

991
00:45:28,360 --> 00:45:31,080
Speaker 4: my investing masterclass is made to give you the confidence

992
00:45:31,200 --> 00:45:32,320
Speaker 4: to start investing.

993
00:45:32,360 --> 00:45:34,800
Speaker 2: It's beginner friendly, totally jug and free. I'm going to

994
00:45:34,840 --> 00:45:35,360
Speaker 2: put all.

995
00:45:35,200 --> 00:45:36,840
Speaker 4: Of the details in the show notes because we have

996
00:45:36,840 --> 00:45:40,239
Speaker 4: an intake opening literally right now. And of course don't

997
00:45:40,280 --> 00:45:42,680
Speaker 4: forget to like and subscribe. We've got so much more

998
00:45:42,719 --> 00:45:45,799
Speaker 4: investing content coming away. That's it for today. We're going

999
00:45:45,840 --> 00:45:48,080
Speaker 4: to see you on Friday Guys Bye Bye guys.

1000
00:45:54,239 --> 00:45:56,760
Speaker 5: Did by shared on Cheese on the Money is general

1001
00:45:56,840 --> 00:46:00,680
Speaker 5: in nature and does not consider your individual circumstances. She's

1002
00:46:00,719 --> 00:46:04,200
Speaker 5: on the Money exists purely for educational purposes and should

1003
00:46:04,239 --> 00:46:07,400
Speaker 5: not be relied upon to make an investment or financial decision.

1004
00:46:07,800 --> 00:46:10,239
Speaker 5: If you do choose to buy a financial product, read

1005
00:46:10,280 --> 00:46:13,600
Speaker 5: the PDS TMD and obtain appropriate financial.

1006
00:46:13,160 --> 00:46:14,960
Speaker 2: Advice tailored towards your needs.

1007
00:46:15,320 --> 00:46:19,280
Speaker 5: Victoria Divine and She's on the Money are authorized representatives

1008
00:46:19,320 --> 00:46:23,040
Speaker 5: of money. Sheper Pty Ltd a BN three two one

1009
00:46:23,239 --> 00:46:27,080
Speaker 5: six four nine two seven seven zero eight AFSL four

1010
00:46:27,200 --> 00:46:34,560
Speaker 5: five one two eight nine