1
00:00:00,640 --> 00:00:04,880
Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yor

2
00:00:04,920 --> 00:00:08,600
Speaker 1: the Order Kerni Whaltbury and a waddery woman. And before

3
00:00:08,640 --> 00:00:11,119
Speaker 1: we get started on She's on the Money podcast, I

4
00:00:11,119 --> 00:00:14,280
Speaker 1: would like to acknowledge the traditional custodians of the land

5
00:00:14,360 --> 00:00:17,640
Speaker 1: of which this podcast is recorded on a wondery country,

6
00:00:18,079 --> 00:00:22,200
Speaker 1: acknowledging the elders, the ancestors and the next generation coming

7
00:00:22,280 --> 00:00:26,920
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing

8
00:00:27,040 --> 00:00:30,080
Speaker 1: and the storytelling of you to make a difference for

9
00:00:30,200 --> 00:00:33,040
Speaker 1: today and lasting impact for tomorrow.

10
00:00:33,280 --> 00:00:34,160
Speaker 2: Let's get into it.

11
00:00:34,320 --> 00:00:53,560
Speaker 3: She's on the Money, She's on the Money.

12
00:00:57,120 --> 00:00:59,560
Speaker 4: Hello, and welcome to She's on the Money. The podcast

13
00:00:59,560 --> 00:01:01,920
Speaker 4: at Demas defies the world of finance. You can make

14
00:01:02,040 --> 00:01:06,080
Speaker 4: smart money moves, no finance degree or secret decodering requires.

15
00:01:06,080 --> 00:01:07,840
Speaker 2: I still want a decodering. Yeah, me too.

16
00:01:07,920 --> 00:01:10,920
Speaker 4: Actually, I'm beck sired and as always I'm here to

17
00:01:10,959 --> 00:01:13,759
Speaker 4: ask all the questions you've been too shy to ask

18
00:01:14,000 --> 00:01:15,400
Speaker 4: or don't actually.

19
00:01:15,040 --> 00:01:17,320
Speaker 2: Know how to google. I'm not shy to google things.

20
00:01:17,480 --> 00:01:18,560
Speaker 2: I'm not shy to google things.

21
00:01:18,560 --> 00:01:21,679
Speaker 4: I'm trying to show you my Google history. Of course,

22
00:01:21,800 --> 00:01:23,560
Speaker 4: I'm not shy to look it up, though, I'll look

23
00:01:23,600 --> 00:01:25,600
Speaker 4: it up. But if you got hold of my phone,

24
00:01:26,120 --> 00:01:28,560
Speaker 4: if something really bad happened to me, beck and you

25
00:01:28,640 --> 00:01:31,200
Speaker 4: somehow have a hold of my phone, just wipe.

26
00:01:30,959 --> 00:01:33,640
Speaker 2: It for me. I'm going to look at it.

27
00:01:33,640 --> 00:01:33,840
Speaker 3: First.

28
00:01:33,920 --> 00:01:34,880
Speaker 2: You can look, you can look.

29
00:01:34,880 --> 00:01:36,520
Speaker 4: I trust you to look at and then and then

30
00:01:36,520 --> 00:01:39,840
Speaker 4: I'll like nobody else can see, say for me, how

31
00:01:39,880 --> 00:01:40,360
Speaker 4: to spell?

32
00:01:40,680 --> 00:01:41,640
Speaker 2: What does this mean?

33
00:01:41,720 --> 00:01:41,840
Speaker 3: Like?

34
00:01:41,920 --> 00:01:44,240
Speaker 2: I just it's a lot. I've got how spelled me

35
00:01:44,520 --> 00:01:45,000
Speaker 2: the other day?

36
00:01:45,040 --> 00:01:48,600
Speaker 4: Yet look, I would too, honestly look it, like, how

37
00:01:48,600 --> 00:01:50,240
Speaker 4: do I spell the word that I can't spec?

38
00:01:50,480 --> 00:01:54,200
Speaker 2: You know how I do that? I voice? Yeah, that's

39
00:01:54,200 --> 00:01:56,680
Speaker 2: a good idea. Actually that's voice to text. Thank you.

40
00:01:56,840 --> 00:01:57,360
Speaker 2: It's got me.

41
00:01:57,840 --> 00:02:00,160
Speaker 4: So today we're diving into the world of IPOs. So,

42
00:02:00,400 --> 00:02:03,080
Speaker 4: I know IPOs kind of sounds like financial jargon. I

43
00:02:03,080 --> 00:02:04,000
Speaker 4: actually don't know what it is.

44
00:02:04,040 --> 00:02:05,960
Speaker 2: It is actually financial certainly is.

45
00:02:06,040 --> 00:02:08,240
Speaker 4: But they're actually something you might come across more than

46
00:02:08,240 --> 00:02:10,200
Speaker 4: you think, and understanding them can give you a big

47
00:02:10,280 --> 00:02:13,359
Speaker 4: investing advantage. And also you'll sound more like a finance

48
00:02:13,440 --> 00:02:15,840
Speaker 4: bro if you start talking about IPOs that brunch. It

49
00:02:15,880 --> 00:02:18,440
Speaker 4: does sound pretty cool. So lucky for us, we've got

50
00:02:18,480 --> 00:02:21,280
Speaker 4: Victoria Divine, our financial expert who knows the ins and

51
00:02:21,320 --> 00:02:24,440
Speaker 4: outs of investing. I do hello, thank you for having

52
00:02:24,480 --> 00:02:25,320
Speaker 4: me on my own show.

53
00:02:25,440 --> 00:02:28,240
Speaker 5: Very grateful to be here, but also grateful you're letting

54
00:02:28,320 --> 00:02:31,040
Speaker 5: me talk about IPOs. And I was really glad we're

55
00:02:31,080 --> 00:02:31,800
Speaker 5: talking about it.

56
00:02:32,320 --> 00:02:33,760
Speaker 2: You really just my arm with this.

57
00:02:34,320 --> 00:02:34,519
Speaker 3: Yeah.

58
00:02:34,560 --> 00:02:36,919
Speaker 4: You were like what and I was like, Ah, sit down.

59
00:02:36,960 --> 00:02:38,760
Speaker 4: This is going to be a juicy one, but also

60
00:02:39,440 --> 00:02:42,880
Speaker 4: one that makes us feel smarter at the same time

61
00:02:42,919 --> 00:02:46,160
Speaker 4: as going finance isn't that complicated. I feel like so

62
00:02:46,320 --> 00:02:49,400
Speaker 4: many of these jargon y terms just make us feel overwhelmed,

63
00:02:49,760 --> 00:02:50,600
Speaker 4: and then when you break them.

64
00:02:50,560 --> 00:02:53,359
Speaker 2: Down, you're like, that's not that hard. The finance bros

65
00:02:53,440 --> 00:02:55,639
Speaker 2: be brown baby browing baby brow in.

66
00:02:56,160 --> 00:02:59,520
Speaker 4: So IPOs are actually one of the most common questions

67
00:02:59,560 --> 00:03:01,960
Speaker 4: we have been getting recently from our listeners.

68
00:03:02,040 --> 00:03:04,799
Speaker 2: Yeah. I think it's because lots have been in the media. Yeah,

69
00:03:04,800 --> 00:03:06,760
Speaker 2: to be more like, what is that? Why is it

70
00:03:06,840 --> 00:03:08,359
Speaker 2: in the media? What does that mean?

71
00:03:08,400 --> 00:03:10,440
Speaker 4: And everyone wants to know if there are a chance

72
00:03:10,480 --> 00:03:12,640
Speaker 4: of getting in early on the next big thing, right

73
00:03:13,280 --> 00:03:15,880
Speaker 4: or if it's more of a gamble, And honestly, there's

74
00:03:15,880 --> 00:03:18,360
Speaker 4: a bit of both going on. So today, I'm going

75
00:03:18,360 --> 00:03:21,960
Speaker 4: to break down exactly what IPOs really mean, why companies

76
00:03:22,000 --> 00:03:25,200
Speaker 4: go public, and what investors need to look out for

77
00:03:25,240 --> 00:03:27,320
Speaker 4: when those exciting new shares.

78
00:03:27,040 --> 00:03:29,560
Speaker 2: Hit the market. Okay, okay, I think it's going to

79
00:03:29,560 --> 00:03:32,600
Speaker 2: be really fun. I mean, you're not sold yet, not yet.

80
00:03:32,600 --> 00:03:34,080
Speaker 4: But I actually don't know what it is, and so

81
00:03:34,120 --> 00:03:36,120
Speaker 4: that's I think my first question will be what actually

82
00:03:36,200 --> 00:03:36,640
Speaker 4: doesn't mean?

83
00:03:36,680 --> 00:03:37,520
Speaker 2: Like what is an IPO?

84
00:03:37,680 --> 00:03:41,600
Speaker 4: So an IPO means initial public offering, which sounds really boring,

85
00:03:41,920 --> 00:03:44,760
Speaker 4: but it's essentially like the company's first time on the

86
00:03:44,760 --> 00:03:48,200
Speaker 4: share market. It's when a private business decides, you know what,

87
00:03:48,520 --> 00:03:50,440
Speaker 4: we're a pretty good business and we would like to

88
00:03:50,480 --> 00:03:53,800
Speaker 4: sell shares to the public. And it's often to raise

89
00:03:53,880 --> 00:03:56,400
Speaker 4: money so that they can grow. But it's not just

90
00:03:56,480 --> 00:03:59,680
Speaker 4: like a money move. It changes the whole company's structure

91
00:03:59,800 --> 00:04:01,680
Speaker 4: and their goals because they have a whole heap of

92
00:04:01,760 --> 00:04:04,600
Speaker 4: other responsibilities. So like if I said, oh, Beck, I'm

93
00:04:04,600 --> 00:04:07,320
Speaker 4: going to sell shares in shes on the money. Instead

94
00:04:07,360 --> 00:04:10,040
Speaker 4: of me just being in control, I now have shareholders

95
00:04:10,040 --> 00:04:11,760
Speaker 4: to report to. I'm going to have like a board

96
00:04:11,840 --> 00:04:14,280
Speaker 4: who I have to justify my decisions to. It's not

97
00:04:14,320 --> 00:04:16,960
Speaker 4: a small decision by any stretch for the imagination. But

98
00:04:17,040 --> 00:04:21,039
Speaker 4: essentially IPO is the first time a company deboos on

99
00:04:21,080 --> 00:04:25,360
Speaker 4: the share market. And so that's I'm assuming just based

100
00:04:25,400 --> 00:04:27,440
Speaker 4: off what you've said, it's kind of their decision. So

101
00:04:27,880 --> 00:04:30,920
Speaker 4: why do some companies decide to IPO? Is that the

102
00:04:31,000 --> 00:04:32,920
Speaker 4: right my say? You can say that, yeah, Why does

103
00:04:32,960 --> 00:04:35,520
Speaker 4: some companies decide to list themselves on the share market?

104
00:04:36,080 --> 00:04:40,200
Speaker 2: Why to IPO and why to not IPO? To IPO

105
00:04:40,680 --> 00:04:43,080
Speaker 2: or to not IPO? That is the question, that's the question.

106
00:04:43,240 --> 00:04:45,880
Speaker 4: But companies often decide to go, all right, we're going

107
00:04:45,880 --> 00:04:48,279
Speaker 4: to list on the share market and have an IPO

108
00:04:48,520 --> 00:04:52,120
Speaker 4: to raise really big funds really quickly, especially if they're

109
00:04:52,160 --> 00:04:55,040
Speaker 4: like expanding or the company carries some debt that they

110
00:04:55,040 --> 00:04:55,760
Speaker 4: want to pay off.

111
00:04:55,920 --> 00:04:57,800
Speaker 2: But there's also, I guess the flip side.

112
00:04:58,480 --> 00:05:01,200
Speaker 4: When you go on the share market and when you

113
00:05:01,240 --> 00:05:06,000
Speaker 4: decide to list publicly, companies lose a little bit of control,

114
00:05:06,120 --> 00:05:09,640
Speaker 4: which is why some people are really happy to stay private.

115
00:05:10,000 --> 00:05:12,400
Speaker 4: And it's one of those things where you know, even

116
00:05:12,440 --> 00:05:15,800
Speaker 4: if my business has got absolutely massive, I like not

117
00:05:15,960 --> 00:05:18,360
Speaker 4: having other people tell me what to do. I don't

118
00:05:18,400 --> 00:05:21,560
Speaker 4: want to have to, you know, talk to shareholders and

119
00:05:21,920 --> 00:05:25,039
Speaker 4: justify the decisions I make inside my business, so it's

120
00:05:25,200 --> 00:05:28,240
Speaker 4: not for me, Like going public is a really big shift.

121
00:05:28,279 --> 00:05:31,760
Speaker 4: It means that the company is now accountable to shareholders

122
00:05:31,800 --> 00:05:35,360
Speaker 4: and has to produce finance reports and post them publicly,

123
00:05:35,839 --> 00:05:38,880
Speaker 4: and there's pressure to meet earning expectations, which I guess

124
00:05:38,920 --> 00:05:41,640
Speaker 4: can then change how they're going to internally run the

125
00:05:41,680 --> 00:05:45,000
Speaker 4: business as well, Like no longer can you just make decisions?

126
00:05:45,400 --> 00:05:45,599
Speaker 1: Right?

127
00:05:45,640 --> 00:05:48,880
Speaker 4: Okay, So in my head, I'm thinking a company that

128
00:05:49,200 --> 00:05:51,640
Speaker 4: maybe like a little small business, maybe they're getting big enough,

129
00:05:51,680 --> 00:05:54,440
Speaker 4: they need more money, they need expects maybe they even

130
00:05:54,440 --> 00:05:58,320
Speaker 4: need like publicity to some extent exactly, and then so

131
00:05:58,400 --> 00:05:59,600
Speaker 4: they decide to go Yeah, and.

132
00:05:59,560 --> 00:06:01,119
Speaker 2: I think you think She's on the money.

133
00:06:01,120 --> 00:06:04,039
Speaker 4: As an example of this throughout this episode is going

134
00:06:04,120 --> 00:06:07,720
Speaker 4: to really help, right, So, like, let's pretend that I'm

135
00:06:07,760 --> 00:06:10,960
Speaker 4: thinking about listing. I'm not, but let's pretend I'm thinking

136
00:06:11,000 --> 00:06:14,600
Speaker 4: about listing, And it's because beck I really want She's

137
00:06:14,640 --> 00:06:16,400
Speaker 4: on the Money to grow even bigger than it is.

138
00:06:17,160 --> 00:06:19,919
Speaker 4: And I want to create an app, and like I

139
00:06:19,920 --> 00:06:22,919
Speaker 4: want to She's on the Money app because you know one.

140
00:06:23,080 --> 00:06:24,200
Speaker 2: And we all know this already.

141
00:06:24,240 --> 00:06:26,880
Speaker 4: One doesn't exist in the market, but it costs hundreds

142
00:06:26,880 --> 00:06:29,840
Speaker 4: of thousands of dollars to create an app and keep

143
00:06:29,880 --> 00:06:33,520
Speaker 4: it updated, like it's not for me being completely transparent,

144
00:06:33,560 --> 00:06:35,279
Speaker 4: it's not feasible for me to do that on my own.

145
00:06:35,640 --> 00:06:37,520
Speaker 2: So maybe in order to.

146
00:06:38,240 --> 00:06:40,920
Speaker 4: Do that and actually create this app that I want

147
00:06:40,960 --> 00:06:42,479
Speaker 4: to that in the back of my mind, I go,

148
00:06:42,600 --> 00:06:44,799
Speaker 4: if I create this app that She's on the Money,

149
00:06:44,920 --> 00:06:47,640
Speaker 4: community will like triple and we'll, you know, gain a

150
00:06:47,640 --> 00:06:51,400
Speaker 4: whole heap more revenue. I'm going to list, which means

151
00:06:51,440 --> 00:06:53,440
Speaker 4: I'm going to do what's called an IPO, which is

152
00:06:53,480 --> 00:06:56,760
Speaker 4: the initial public offering, and that's the first time I'm

153
00:06:56,800 --> 00:06:58,640
Speaker 4: issuing shares. And everyone wants to get in on a

154
00:06:58,640 --> 00:07:00,600
Speaker 4: good thing, Like beck I think you love shees on

155
00:07:00,640 --> 00:07:03,280
Speaker 4: the money, so you might go fire out Brussels sprout,

156
00:07:03,320 --> 00:07:05,240
Speaker 4: I love what VI's up to you. I love She's

157
00:07:05,320 --> 00:07:07,000
Speaker 4: on the money. I would love to get in on

158
00:07:07,040 --> 00:07:10,480
Speaker 4: this because I reckon her shares have been valued expert

159
00:07:10,520 --> 00:07:13,160
Speaker 4: it's worth more. So you go and buy a few

160
00:07:13,240 --> 00:07:15,520
Speaker 4: of the She's on the Money shares, and then you go,

161
00:07:15,840 --> 00:07:18,040
Speaker 4: when she finally does this app that I know she's

162
00:07:18,080 --> 00:07:20,360
Speaker 4: been talking about, my shares are going to be worth

163
00:07:20,440 --> 00:07:22,440
Speaker 4: so much more because I believe in the company. And

164
00:07:22,440 --> 00:07:25,040
Speaker 4: that's often what people want to do when they have

165
00:07:25,080 --> 00:07:27,720
Speaker 4: an initial public offering. They go, oh, that's the first

166
00:07:27,760 --> 00:07:30,400
Speaker 4: time that that company is listing, and irrespective of what

167
00:07:30,440 --> 00:07:33,480
Speaker 4: the company is, you might go, I really believe in

168
00:07:33,520 --> 00:07:36,600
Speaker 4: what they're doing, and I'm hoping that when they're listing,

169
00:07:37,000 --> 00:07:39,400
Speaker 4: that's like the first time price and it's not an

170
00:07:39,440 --> 00:07:42,480
Speaker 4: all time high price like you were assuming that. Often

171
00:07:42,520 --> 00:07:44,760
Speaker 4: when you get involved in an IPO, you get to

172
00:07:44,800 --> 00:07:47,760
Speaker 4: purchase first, but it means that you might be getting

173
00:07:47,800 --> 00:07:51,080
Speaker 4: a really good deal because then the market is ultimately

174
00:07:51,120 --> 00:07:53,440
Speaker 4: going to start seeing what you're seeing in shees on

175
00:07:53,480 --> 00:07:53,880
Speaker 4: the Money?

176
00:07:54,240 --> 00:07:55,160
Speaker 2: Does that make sense? Y?

177
00:07:55,520 --> 00:07:57,720
Speaker 4: Solutally, you and I know She's on the money and

178
00:07:57,840 --> 00:07:59,920
Speaker 4: it's a little bit niche like it's a finance podcast.

179
00:08:00,040 --> 00:08:01,880
Speaker 4: Not many people know about it, so you can see

180
00:08:01,880 --> 00:08:03,760
Speaker 4: the value. But if I went to Joe Blow down

181
00:08:03,800 --> 00:08:05,400
Speaker 4: the street and said, hey, would you buy She's on

182
00:08:05,440 --> 00:08:07,720
Speaker 4: the Money shares, Joe Blow might be like, I don't

183
00:08:07,760 --> 00:08:09,800
Speaker 4: even know who She's on the Money is, and then

184
00:08:09,840 --> 00:08:11,680
Speaker 4: you'd be like, oh, it's Victoria to buyne and then

185
00:08:11,880 --> 00:08:14,560
Speaker 4: they'd be like, I've literally never heard of this person,

186
00:08:14,880 --> 00:08:15,800
Speaker 4: but you should buy shares.

187
00:08:15,840 --> 00:08:16,880
Speaker 2: It's got so much potential.

188
00:08:16,920 --> 00:08:19,000
Speaker 4: He's going to go I don't see the value so

189
00:08:19,120 --> 00:08:21,680
Speaker 4: often an IPO, and I mean it can go one

190
00:08:21,720 --> 00:08:24,960
Speaker 4: of two ways. So an IPO often they'll release shares

191
00:08:25,360 --> 00:08:28,480
Speaker 4: and then over time they increase in value and you've

192
00:08:28,520 --> 00:08:30,360
Speaker 4: got a good deal when you got in at the start,

193
00:08:31,080 --> 00:08:33,839
Speaker 4: or there was a whole heap of market hype and

194
00:08:33,880 --> 00:08:35,480
Speaker 4: you got in at the start and then your share

195
00:08:35,480 --> 00:08:39,040
Speaker 4: price started to drop. So that's why we're talking about

196
00:08:39,040 --> 00:08:40,760
Speaker 4: it kind of being a risk at the same time

197
00:08:40,800 --> 00:08:43,160
Speaker 4: as being a really good opportunity if you know what.

198
00:08:43,080 --> 00:08:43,720
Speaker 2: You're talking about.

199
00:08:43,720 --> 00:08:46,480
Speaker 4: Okay, this actually makes a lot of sense. I just

200
00:08:46,520 --> 00:08:50,480
Speaker 4: I guess I wonder if you're about to go public,

201
00:08:50,600 --> 00:08:52,199
Speaker 4: or if a company's about to go public and you've

202
00:08:52,240 --> 00:08:53,559
Speaker 4: kind of had your r on it, where like what

203
00:08:53,679 --> 00:08:55,960
Speaker 4: do you actually find out? Like where is this information?

204
00:08:56,160 --> 00:08:59,120
Speaker 4: Can you just like google that company and then you

205
00:08:59,200 --> 00:09:01,360
Speaker 4: can you can there will often be a lot of

206
00:09:01,400 --> 00:09:06,320
Speaker 4: like PR releases and media releases. You'll also learn about

207
00:09:06,320 --> 00:09:08,720
Speaker 4: it from the ASEX. So the ASEX is the Australian

208
00:09:08,760 --> 00:09:11,560
Speaker 4: Stock Exchange and their website has a whole heap of

209
00:09:11,600 --> 00:09:14,840
Speaker 4: information like I'm telling you right now, if a company

210
00:09:14,920 --> 00:09:17,200
Speaker 4: is going to go through an IPO process, they are

211
00:09:17,240 --> 00:09:19,200
Speaker 4: jumping up and down and trying to let everybody know

212
00:09:19,280 --> 00:09:21,560
Speaker 4: about it, because everybody wants a good IPO.

213
00:09:21,760 --> 00:09:21,920
Speaker 1: Right.

214
00:09:21,960 --> 00:09:25,080
Speaker 4: It's kind of like a launch party. I see it

215
00:09:25,080 --> 00:09:27,319
Speaker 4: as a launch party, right, Like I want to have

216
00:09:27,360 --> 00:09:30,880
Speaker 4: a launch party for my really fancy business. If no

217
00:09:30,880 --> 00:09:34,200
Speaker 4: one shows up, low key embarrassing, you want to write,

218
00:09:34,840 --> 00:09:39,319
Speaker 4: h yes, yes, we want a Corey Worthington launch. So

219
00:09:39,360 --> 00:09:42,640
Speaker 4: we want everyone to want yellow sunglasses. Yeah, And we

220
00:09:42,679 --> 00:09:45,600
Speaker 4: want everyone to buy because that gives the rest of

221
00:09:45,640 --> 00:09:49,320
Speaker 4: the market confidence because if they haven't seen our company,

222
00:09:49,559 --> 00:09:51,200
Speaker 4: they haven't seen shees on the money, they don't know

223
00:09:51,200 --> 00:09:53,880
Speaker 4: what it's about. And then they see the IPO and

224
00:09:53,920 --> 00:09:56,880
Speaker 4: it's gone hectic. You'd be like, oh my god, maybe

225
00:09:56,880 --> 00:09:59,640
Speaker 4: I'm missing out on something. Because at the end of

226
00:09:59,679 --> 00:10:03,160
Speaker 4: the day, the share market is inherently psychological, right, Like,

227
00:10:03,520 --> 00:10:06,720
Speaker 4: and you and I as investors, we like seeing other.

228
00:10:06,559 --> 00:10:08,760
Speaker 2: People get in on a good thing and then go, oh,

229
00:10:08,760 --> 00:10:10,959
Speaker 2: hold on, what are they doing that looks good?

230
00:10:11,520 --> 00:10:14,720
Speaker 4: So you want to create that sense of fomo with

231
00:10:14,960 --> 00:10:17,240
Speaker 4: an IPO, Like they're going to be jumping up and

232
00:10:17,320 --> 00:10:19,360
Speaker 4: down about it. Yeah, okay, that's good to know. Maybe

233
00:10:19,360 --> 00:10:21,000
Speaker 4: I'll have a browse because I assume that even if

234
00:10:21,000 --> 00:10:23,880
Speaker 4: you're not fully looking at one place, I don't know

235
00:10:23,880 --> 00:10:25,199
Speaker 4: where to start, but I could just kind of have

236
00:10:25,240 --> 00:10:27,880
Speaker 4: a brows and nan see what's absolutely And like your

237
00:10:27,880 --> 00:10:31,560
Speaker 4: favorite companies, if they're planning on launching, they will start

238
00:10:31,679 --> 00:10:34,480
Speaker 4: talking about it and prepping for it because you have

239
00:10:34,559 --> 00:10:37,720
Speaker 4: to change your entire business structure and like the way

240
00:10:37,760 --> 00:10:40,000
Speaker 4: you report things and the things that go on in

241
00:10:40,040 --> 00:10:43,400
Speaker 4: the business. It takes literally like eighteen months to prep

242
00:10:43,400 --> 00:10:46,480
Speaker 4: a business for launch. So they'll be probably whispers at

243
00:10:46,520 --> 00:10:48,880
Speaker 4: the start about it, and then once they have a

244
00:10:48,880 --> 00:10:51,079
Speaker 4: lot of confidence that they have a date and they're ready,

245
00:10:51,200 --> 00:10:51,920
Speaker 4: they'll talk about it.

246
00:10:51,920 --> 00:10:52,840
Speaker 2: It's kind of like a book.

247
00:10:52,640 --> 00:10:56,120
Speaker 4: Launch, Okay, actually sounds like it's actually a bit it's

248
00:10:56,120 --> 00:10:58,680
Speaker 4: a massive process. Like as I said, it can take,

249
00:10:58,880 --> 00:11:01,720
Speaker 4: you know, eighteen months just to prep a company to

250
00:11:01,880 --> 00:11:05,320
Speaker 4: go into their IPO because they're launching. And obviously, if

251
00:11:05,400 --> 00:11:07,280
Speaker 4: you're going to buy a share in my company, beck

252
00:11:07,760 --> 00:11:09,320
Speaker 4: you're going to go, well, I want to make sure

253
00:11:09,320 --> 00:11:11,920
Speaker 4: that you've got everything organized. I'm not going to buy

254
00:11:11,920 --> 00:11:14,480
Speaker 4: a share in your company if you're running a circus.

255
00:11:14,480 --> 00:11:18,440
Speaker 4: Behind the scenes, there's obviously the financial prep, there's going

256
00:11:18,480 --> 00:11:20,880
Speaker 4: to be audits, and then there's a really big I

257
00:11:20,920 --> 00:11:23,800
Speaker 4: get excited about this document. It's called a prospectus. You

258
00:11:23,840 --> 00:11:24,880
Speaker 4: probably don't care about it.

259
00:11:25,760 --> 00:11:26,400
Speaker 2: Prospectus.

260
00:11:26,400 --> 00:11:29,920
Speaker 4: It sounds bougie, right, but it's essentially a really big

261
00:11:29,960 --> 00:11:33,120
Speaker 4: document that outlines everything about the company. It has all

262
00:11:33,160 --> 00:11:35,800
Speaker 4: of the financials, it has all of the risks, all

263
00:11:35,840 --> 00:11:38,400
Speaker 4: of the goals of the launch, what they want to achieve,

264
00:11:38,600 --> 00:11:40,599
Speaker 4: what their company structure looks.

265
00:11:40,360 --> 00:11:42,000
Speaker 2: Like, who works for them.

266
00:11:42,280 --> 00:11:44,920
Speaker 4: And during this process, you can't just do it on

267
00:11:44,920 --> 00:11:48,240
Speaker 4: your own right, so they'll often hire underwriters who are

268
00:11:48,240 --> 00:11:51,120
Speaker 4: going to help set the share price and attract investors,

269
00:11:51,240 --> 00:11:53,360
Speaker 4: because if you ask me while she's on the money's work,

270
00:11:53,360 --> 00:11:57,240
Speaker 4: I'll be like one million dollars, one billion dollars, Like

271
00:11:57,360 --> 00:11:58,439
Speaker 4: I'm going to tell you.

272
00:11:58,559 --> 00:11:59,400
Speaker 2: It's worth heaps.

273
00:11:59,600 --> 00:12:02,439
Speaker 4: But when need to actually hire someone called an underwriter.

274
00:12:03,080 --> 00:12:05,160
Speaker 4: You might not have heard of the term underwriter, but

275
00:12:05,240 --> 00:12:09,880
Speaker 4: an underwriter assesses risk. So insurance companies usually have them,

276
00:12:09,920 --> 00:12:12,240
Speaker 4: and these are the people that if you go through

277
00:12:12,280 --> 00:12:14,839
Speaker 4: the insurance process and say, oh, the I really want

278
00:12:14,840 --> 00:12:18,440
Speaker 4: to get income protection, what will happen is your financial

279
00:12:18,440 --> 00:12:22,120
Speaker 4: advisor will apply to the insurance company, and the underwriters

280
00:12:22,200 --> 00:12:25,720
Speaker 4: will view your application, assess what type of risk you

281
00:12:25,800 --> 00:12:28,600
Speaker 4: have and then put a number on that and go, oh, well,

282
00:12:28,840 --> 00:12:32,600
Speaker 4: you know, Beck loves a vape, so she's probably a

283
00:12:32,600 --> 00:12:35,160
Speaker 4: little bit more of a risk than the average bear.

284
00:12:35,559 --> 00:12:37,440
Speaker 4: So we might add a little bit of a loading,

285
00:12:37,559 --> 00:12:39,440
Speaker 4: which is a little bit more money that you pay

286
00:12:39,480 --> 00:12:41,000
Speaker 4: per month to cover yourself.

287
00:12:41,720 --> 00:12:45,240
Speaker 2: So what happens in the space of shares is.

288
00:12:45,360 --> 00:12:48,440
Speaker 4: An underwriter will look at it, review the company and

289
00:12:48,679 --> 00:12:51,640
Speaker 4: give a suggestion as to what the share price should be,

290
00:12:51,720 --> 00:12:53,560
Speaker 4: like should it be a dollar per share? Should it

291
00:12:53,559 --> 00:12:56,360
Speaker 4: be five hundred dollars per share. You can't just ask

292
00:12:56,400 --> 00:12:58,400
Speaker 4: the company, oh, how much money did you want to

293
00:12:58,440 --> 00:13:00,840
Speaker 4: sell shares for? Like that's not how works. It is

294
00:13:00,920 --> 00:13:04,400
Speaker 4: actually a really long, really extensive process. But when it's

295
00:13:04,440 --> 00:13:06,760
Speaker 4: done correctly, it can really pay off.

296
00:13:07,320 --> 00:13:09,760
Speaker 2: Just it cost a lot of money. Oh yeah, absolutely, Like.

297
00:13:09,760 --> 00:13:11,920
Speaker 4: An order to just doesn't come in and says oh, yeah,

298
00:13:11,960 --> 00:13:13,800
Speaker 4: i'll do you solid and like we'll just do this

299
00:13:13,840 --> 00:13:14,280
Speaker 4: for free.

300
00:13:14,440 --> 00:13:14,640
Speaker 1: Yeah.

301
00:13:14,760 --> 00:13:18,520
Speaker 4: Like underwriters are very very educated, Like they have to

302
00:13:18,520 --> 00:13:21,599
Speaker 4: go through so much university and to be really technical

303
00:13:21,800 --> 00:13:24,960
Speaker 4: They're not just looking at that prospectus document. They're looking at,

304
00:13:25,120 --> 00:13:27,360
Speaker 4: you know, the market. They're looking at what the economic

305
00:13:27,440 --> 00:13:30,240
Speaker 4: circumstances are. They're looking at, you know, the demand for

306
00:13:30,280 --> 00:13:33,040
Speaker 4: the product into the future. They'll do a whole like

307
00:13:33,120 --> 00:13:37,319
Speaker 4: swat analysis. They'll look at your strengths, your weaknesses, your opportunities,

308
00:13:37,360 --> 00:13:39,560
Speaker 4: and your threats. They'll look at all your competitors and

309
00:13:39,640 --> 00:13:43,000
Speaker 4: like try and place you. If that makes sense that

310
00:13:44,240 --> 00:13:47,000
Speaker 4: it's a lot. I would be too fragile for that process.

311
00:13:47,040 --> 00:13:49,959
Speaker 4: I love reading the documents, though, Beck it's so I

312
00:13:50,000 --> 00:13:53,160
Speaker 4: don't know, it's like it's pervy because you get all

313
00:13:53,200 --> 00:13:56,120
Speaker 4: the information about a company that's previously been private.

314
00:13:56,880 --> 00:13:59,680
Speaker 2: Like don't you want to Like, I'm so pervy.

315
00:14:00,040 --> 00:14:02,800
Speaker 4: I want to know what other people are earning and

316
00:14:02,880 --> 00:14:05,280
Speaker 4: spending and like what debt do they carry?

317
00:14:05,320 --> 00:14:07,120
Speaker 2: Why did they take on their I need to know.

318
00:14:07,360 --> 00:14:08,199
Speaker 2: Just a bit of light reading.

319
00:14:08,280 --> 00:14:11,000
Speaker 4: Yeah, just grab a prospective and a glass of wine,

320
00:14:11,000 --> 00:14:12,880
Speaker 4: and you got a good Friday night.

321
00:14:13,480 --> 00:14:15,439
Speaker 2: Because I was like heaven or for you and hell

322
00:14:15,520 --> 00:14:15,720
Speaker 2: for me.

323
00:14:15,760 --> 00:14:18,199
Speaker 4: Maybe maybe I'll read it to you, like you can

324
00:14:18,240 --> 00:14:19,960
Speaker 4: sit on the couch with your little soda water and

325
00:14:20,000 --> 00:14:22,240
Speaker 4: I'll be like, get this and you'll be like, I

326
00:14:22,400 --> 00:14:23,040
Speaker 4: don't care.

327
00:14:23,200 --> 00:14:24,360
Speaker 2: Maybe a bedtime story.

328
00:14:24,440 --> 00:14:26,480
Speaker 5: Yeah, maybe we can have Netflix on and I'll read

329
00:14:26,520 --> 00:14:27,280
Speaker 5: it while we watch it.

330
00:14:27,920 --> 00:14:29,920
Speaker 2: Actually that I'm doing the.

331
00:14:29,840 --> 00:14:31,600
Speaker 4: Work so that I can then explain it to you

332
00:14:31,680 --> 00:14:33,040
Speaker 4: and you'll be like I didn't even need to read

333
00:14:33,080 --> 00:14:33,880
Speaker 4: it because you did.

334
00:14:33,720 --> 00:14:36,240
Speaker 2: The hard way exactly. I appreciate that. You're welcome. Don't

335
00:14:36,240 --> 00:14:37,400
Speaker 2: say I don't do anything for you.

336
00:14:38,640 --> 00:14:40,320
Speaker 4: So just in case someone's listening to this and they're like,

337
00:14:40,360 --> 00:14:42,520
Speaker 4: this is a fool proof way to make money fast,

338
00:14:42,760 --> 00:14:44,960
Speaker 4: I'm assuming there's a bit more to it, is that, right?

339
00:14:45,080 --> 00:14:47,040
Speaker 5: Yeah? As I said before, like it could be a

340
00:14:47,080 --> 00:14:49,880
Speaker 5: really really good thing, or it could be a flop.

341
00:14:50,560 --> 00:14:53,600
Speaker 2: Like we've all seen launch parties where it's like, oh,

342
00:14:53,680 --> 00:14:58,520
Speaker 2: that's nice, they're finally launching, and that's terrible, Like you

343
00:14:58,520 --> 00:15:00,720
Speaker 2: know what I mean, Like it's like a launch right,

344
00:15:00,760 --> 00:15:03,240
Speaker 2: And I've said this literally in this episode before, So

345
00:15:03,320 --> 00:15:06,760
Speaker 2: what could happen is like so much hype, so much marketing,

346
00:15:07,040 --> 00:15:10,600
Speaker 2: the cover of the book so incredible.

347
00:15:10,280 --> 00:15:12,120
Speaker 4: And then you get the book and you're like this

348
00:15:12,400 --> 00:15:14,400
Speaker 4: is terribly written, Like this is.

349
00:15:14,400 --> 00:15:17,000
Speaker 2: Just not for me. Like finally the launch party happens,

350
00:15:17,000 --> 00:15:19,720
Speaker 2: you brought the book Beck, you were like this twenty

351
00:15:19,800 --> 00:15:22,040
Speaker 2: nine dollars book worth it? And you're like, I would

352
00:15:22,040 --> 00:15:24,200
Speaker 2: not pay ten dollars for this? What have I done?

353
00:15:24,520 --> 00:15:25,160
Speaker 2: Pictures in here?

354
00:15:25,280 --> 00:15:28,600
Speaker 5: No, there's no pictures, no drawings, Like what is this?

355
00:15:28,720 --> 00:15:30,600
Speaker 5: And there's like more than one hundred pages. Ill.

356
00:15:30,760 --> 00:15:34,160
Speaker 4: No, So just because the company goes public doesn't mean

357
00:15:34,200 --> 00:15:38,240
Speaker 4: it's gonna like skyrocket like you do your initial launch,

358
00:15:38,280 --> 00:15:40,480
Speaker 4: which is the IPO. But then you've got to kind

359
00:15:40,480 --> 00:15:43,600
Speaker 4: of sustain the business. You can't just sell shares for

360
00:15:43,640 --> 00:15:47,480
Speaker 4: an inflated amount and then expect the market to not

361
00:15:47,600 --> 00:15:50,520
Speaker 4: see through that if it's a sham, if that makes sense.

362
00:15:50,800 --> 00:15:55,240
Speaker 4: So in fact, some IPOs flop literally right after they're listed.

363
00:15:55,640 --> 00:15:58,160
Speaker 4: Like any investment, it carries risk, and we need to

364
00:15:58,160 --> 00:16:00,280
Speaker 4: be on top of that risk and kind of weigh

365
00:16:00,280 --> 00:16:02,280
Speaker 4: it up. Right. So, and this goes back to she's

366
00:16:02,280 --> 00:16:04,280
Speaker 4: on the money, and it's not because I think the

367
00:16:04,280 --> 00:16:06,800
Speaker 4: business is good. It's just a good example. You know,

368
00:16:06,960 --> 00:16:09,800
Speaker 4: she's on the money so deeply, right, So, like you know.

369
00:16:09,840 --> 00:16:11,480
Speaker 2: The team, you know how it works.

370
00:16:11,600 --> 00:16:14,600
Speaker 4: You have this prime position, like you're kind of in

371
00:16:14,640 --> 00:16:17,880
Speaker 4: the like the director's box of being like I actually

372
00:16:17,960 --> 00:16:21,040
Speaker 4: know their ethics. I actually know who works for them,

373
00:16:21,080 --> 00:16:24,080
Speaker 4: how they even edit their podcasts. I know, you know

374
00:16:24,360 --> 00:16:26,240
Speaker 4: in the pipeline, like you know what's gone on in

375
00:16:26,280 --> 00:16:28,440
Speaker 4: twenty twenty five and probably twenty twenty.

376
00:16:28,240 --> 00:16:29,640
Speaker 2: Six, Like you've seen a bitstess plan.

377
00:16:29,800 --> 00:16:32,040
Speaker 4: Yeah, so you're like, no, that's pretty solid, Like I'm

378
00:16:32,040 --> 00:16:34,600
Speaker 4: pretty bought into this, Like I know that's pretty good.

379
00:16:34,760 --> 00:16:38,800
Speaker 4: But not everyone has that director's seat right, And sometimes

380
00:16:38,880 --> 00:16:41,880
Speaker 4: companies can put out this shiny version and you might

381
00:16:41,920 --> 00:16:43,760
Speaker 4: feel like you've had a director's seat, but it was

382
00:16:43,800 --> 00:16:47,040
Speaker 4: a really curated version. Another example is kind of like

383
00:16:47,280 --> 00:16:50,760
Speaker 4: brand new restaurant opening night, so excited it's just opened

384
00:16:50,760 --> 00:16:53,800
Speaker 4: in your area. Beck Like, let's imagine pizza shop down

385
00:16:53,840 --> 00:16:56,440
Speaker 4: from your house. You haven't had a restaurant there ever,

386
00:16:56,520 --> 00:16:58,840
Speaker 4: and you're just so stoked that a restaurant is opening

387
00:16:58,880 --> 00:17:02,560
Speaker 4: your house, have cheap wine. You're just like, oh my god,

388
00:17:02,680 --> 00:17:05,399
Speaker 4: this is going to be the perfect date location for

389
00:17:05,480 --> 00:17:06,080
Speaker 4: Jess and I.

390
00:17:06,080 --> 00:17:06,560
Speaker 2: I love it.

391
00:17:06,600 --> 00:17:09,640
Speaker 4: There's long waitlists, so you're like, oh, this is popular.

392
00:17:09,920 --> 00:17:12,560
Speaker 2: Good sign love seeing a buzzing environment.

393
00:17:12,920 --> 00:17:16,600
Speaker 4: You're so excited, but you're not really sure yet, Like

394
00:17:16,640 --> 00:17:19,119
Speaker 4: what if you don't like the menu? Some opening nights,

395
00:17:19,600 --> 00:17:21,960
Speaker 4: there's everyone lighting up around the corner, and then the

396
00:17:22,040 --> 00:17:25,960
Speaker 4: night after they've given everyone food poisoning. Ah, And then

397
00:17:26,240 --> 00:17:28,400
Speaker 4: you went and had a really shitty time. The weight

398
00:17:28,440 --> 00:17:31,040
Speaker 4: stuff were really rude. You know, you were paying forty

399
00:17:31,040 --> 00:17:34,720
Speaker 4: eight bucks for a margarita pizza. You're like, oh, actually

400
00:17:35,000 --> 00:17:37,679
Speaker 4: this was all really good. When I saw them building

401
00:17:37,760 --> 00:17:41,040
Speaker 4: the locations, when they started marketing, I thought this is

402
00:17:41,080 --> 00:17:41,760
Speaker 4: going to be lit.

403
00:17:42,280 --> 00:17:44,800
Speaker 2: I went, I never want to go back there again. Yeah,

404
00:17:44,920 --> 00:17:45,960
Speaker 2: I had a crap time.

405
00:17:46,080 --> 00:17:48,800
Speaker 4: I'd actually prefer to just order Dominoes online and just

406
00:17:48,840 --> 00:17:50,560
Speaker 4: sit at home, do you know what I mean? Like

407
00:17:50,960 --> 00:17:53,719
Speaker 4: that is what could happen. So like some are an

408
00:17:53,720 --> 00:17:56,880
Speaker 4: absolute hit and some are a miss. That might mean

409
00:17:56,960 --> 00:17:58,880
Speaker 4: that the company has to then go back to scratch

410
00:17:59,000 --> 00:18:00,560
Speaker 4: and kind of go, all right, we need to have

411
00:18:00,600 --> 00:18:02,240
Speaker 4: a look at our business model, and maybe they like

412
00:18:02,320 --> 00:18:04,760
Speaker 4: drop the prices of their pizza, fire someome stuff and

413
00:18:04,840 --> 00:18:07,840
Speaker 4: hire some kind ones and the whole situation changes and

414
00:18:07,880 --> 00:18:11,359
Speaker 4: maybe then it becomes your local. But they have to

415
00:18:11,400 --> 00:18:15,919
Speaker 4: prove themselves. You can't just do a fancy IPO and bebougie.

416
00:18:16,119 --> 00:18:17,439
Speaker 2: Yes, does that make sense?

417
00:18:17,960 --> 00:18:20,240
Speaker 4: Totally makes sense. I imagine if you are in that situation.

418
00:18:20,280 --> 00:18:23,840
Speaker 4: It's hard to come back from negatives from exactly and

419
00:18:24,040 --> 00:18:26,719
Speaker 4: if an IPO happens, like if a company has an

420
00:18:26,720 --> 00:18:30,119
Speaker 4: IPO and it flops, deck media love that, yeah, like

421
00:18:30,200 --> 00:18:31,239
Speaker 4: they want to talk about that.

422
00:18:31,280 --> 00:18:32,720
Speaker 2: They want to be like, oh my god, did you.

423
00:18:32,720 --> 00:18:36,679
Speaker 5: See Victoria's company iPod It launched it like sixty bucks

424
00:18:36,680 --> 00:18:39,240
Speaker 5: a share and the next day it was ten dollars

425
00:18:39,320 --> 00:18:43,680
Speaker 5: a share, Like they're gonna slam that because the investment

426
00:18:44,080 --> 00:18:46,600
Speaker 5: news or like the investment news cycle, they love a

427
00:18:46,640 --> 00:18:48,600
Speaker 5: negative story or they love it. Do you want to

428
00:18:48,640 --> 00:18:51,480
Speaker 5: be like, oh, yes, Victoria's launch happened and she sold

429
00:18:51,480 --> 00:18:54,119
Speaker 5: her shares for sixty dollars per share, and look at

430
00:18:54,160 --> 00:18:56,320
Speaker 5: that overnight they are now it's sixty one dollars.

431
00:18:56,359 --> 00:18:58,880
Speaker 4: That is solid and consistent ross. We love to see it,

432
00:18:59,160 --> 00:19:03,359
Speaker 4: no one cares, but if it crashes, you love. Everyone

433
00:19:03,400 --> 00:19:06,679
Speaker 4: wants to watch juicy, Juicy juicy. We need the juice

434
00:19:06,760 --> 00:19:09,240
Speaker 4: and I get it. That's why I exist. I love

435
00:19:09,400 --> 00:19:11,439
Speaker 4: a little bit of drama, but I also need to

436
00:19:11,480 --> 00:19:13,800
Speaker 4: balance it out with reality. And that's why it's so

437
00:19:13,920 --> 00:19:16,280
Speaker 4: important to always kind of have your blinkers on when

438
00:19:16,359 --> 00:19:20,520
Speaker 4: you're making a decision. About investment for yourself, because you

439
00:19:20,640 --> 00:19:22,439
Speaker 4: need to make a decision that's right for you, not

440
00:19:22,480 --> 00:19:25,040
Speaker 4: what the market is saying. Really good example of that

441
00:19:25,359 --> 00:19:28,840
Speaker 4: bitcoin and cryptocurrency. Yeah, so everybody in the market and

442
00:19:28,880 --> 00:19:32,000
Speaker 4: everyone in the media was talking about how incredible bitcoin

443
00:19:32,160 --> 00:19:34,080
Speaker 4: was and how incredible crypto was, and it was the

444
00:19:34,119 --> 00:19:36,800
Speaker 4: next big thing, And people who'd never even invested on

445
00:19:36,840 --> 00:19:39,960
Speaker 4: the share market were going and purchasing crypto assets because

446
00:19:39,960 --> 00:19:42,000
Speaker 4: their friends were. They had a little bit of fomo.

447
00:19:42,960 --> 00:19:45,480
Speaker 4: They thought that everybody else was onto a good thing.

448
00:19:45,520 --> 00:19:48,600
Speaker 4: But what they were hearing was market noise. Yeah, did

449
00:19:48,600 --> 00:19:52,280
Speaker 4: that make the actual asset that they were purchasing more valuable? No,

450
00:19:52,600 --> 00:19:56,840
Speaker 4: The price was actually driven by the demand as opposed

451
00:19:56,880 --> 00:20:00,880
Speaker 4: to the value of the product. So wanting it more

452
00:20:01,119 --> 00:20:03,120
Speaker 4: meant if more people are buying it, the share price

453
00:20:03,160 --> 00:20:07,680
Speaker 4: goes up, and that's really exciting if you can back yourself.

454
00:20:07,880 --> 00:20:10,199
Speaker 4: But then the share price crashes because people go, hold on,

455
00:20:10,320 --> 00:20:13,120
Speaker 4: hold on, I paid eighty bucks a share for X.

456
00:20:13,760 --> 00:20:15,359
Speaker 4: I don't think it's worth it. Oh do you know

457
00:20:15,400 --> 00:20:15,880
Speaker 4: what I'll do.

458
00:20:16,800 --> 00:20:17,760
Speaker 2: I don't think it's worth it.

459
00:20:17,800 --> 00:20:19,920
Speaker 4: So I'm going to sell my share at eighty bucks

460
00:20:19,920 --> 00:20:21,639
Speaker 4: today because I just want to cut my losses, like

461
00:20:21,680 --> 00:20:24,719
Speaker 4: I want my money back. And so the market starts

462
00:20:24,760 --> 00:20:28,479
Speaker 4: to see these shares selling, and your share price starts

463
00:20:28,520 --> 00:20:30,960
Speaker 4: to drop because there's not as much demand for it.

464
00:20:31,000 --> 00:20:32,840
Speaker 4: And then you see your share price dropping and you go,

465
00:20:32,880 --> 00:20:35,000
Speaker 4: oh my god, like I bought in at eighty dollars too,

466
00:20:35,160 --> 00:20:37,479
Speaker 4: Now it's worth seventy Should I just cut my losses

467
00:20:37,480 --> 00:20:40,119
Speaker 4: and sell right now? And because you didn't have a

468
00:20:40,200 --> 00:20:43,320
Speaker 4: commitment to that product, because you didn't have a commitment

469
00:20:43,359 --> 00:20:45,520
Speaker 4: to that share and fully understand it, you're like, oh,

470
00:20:45,560 --> 00:20:47,879
Speaker 4: I just want to cut my losses, you know, whereas

471
00:20:48,160 --> 00:20:50,119
Speaker 4: it might be a really great opportunity, but if a

472
00:20:50,119 --> 00:20:52,119
Speaker 4: lot of people are selling down, you might want to

473
00:20:52,119 --> 00:20:53,880
Speaker 4: get on that train too. So we need to put

474
00:20:53,920 --> 00:20:56,399
Speaker 4: blinkers on and not look at what other people are doing, yeah,

475
00:20:56,440 --> 00:20:59,719
Speaker 4: and look at what works for you. So I guess

476
00:21:00,119 --> 00:21:02,679
Speaker 4: this entire model means you need to have your head

477
00:21:02,760 --> 00:21:05,399
Speaker 4: screwed on properly. You can't just get excited because it's

478
00:21:05,440 --> 00:21:07,760
Speaker 4: an IPO and it's super shiny, and they're obviously going.

479
00:21:07,680 --> 00:21:09,159
Speaker 2: To get a whole heap of market press.

480
00:21:09,200 --> 00:21:12,720
Speaker 4: They're obviously like the Today Show wants to interview them like,

481
00:21:12,800 --> 00:21:14,520
Speaker 4: you know, it might be a skincare company and they've

482
00:21:14,520 --> 00:21:17,400
Speaker 4: just done this incredible you know, skincare range and they're

483
00:21:17,440 --> 00:21:20,359
Speaker 4: finally taking it public. That's good news story. So you

484
00:21:20,400 --> 00:21:22,560
Speaker 4: see it and you get in on the hype. But

485
00:21:22,800 --> 00:21:25,879
Speaker 4: I guess you need to understand that the hype is

486
00:21:25,960 --> 00:21:28,639
Speaker 4: just hype and you need to analyze it yourself to

487
00:21:28,640 --> 00:21:30,879
Speaker 4: make sure it's a good decision so that it doesn't

488
00:21:30,960 --> 00:21:33,840
Speaker 4: end up being a bad money loss. You know, yes,

489
00:21:34,000 --> 00:21:35,879
Speaker 4: So after the break, we're going to go to a

490
00:21:35,960 --> 00:21:38,040
Speaker 4: quick breakback because I've been talking about IPOs and I

491
00:21:38,160 --> 00:21:40,000
Speaker 4: need to come down a little bit. I'm going to

492
00:21:40,000 --> 00:21:42,879
Speaker 4: give you the inside scoop on spotting the real opportunities

493
00:21:43,160 --> 00:21:45,960
Speaker 4: and what's just smoking mirrors because I've told you to

494
00:21:45,960 --> 00:21:48,840
Speaker 4: look out for it, but how how do I see?

495
00:21:49,119 --> 00:21:51,080
Speaker 2: How do I see? So stick around you don't want

496
00:21:51,080 --> 00:21:56,959
Speaker 2: to miss this. Welcome back everyone.

497
00:21:57,000 --> 00:21:59,240
Speaker 4: Before the break, you promise us all the hot tips

498
00:21:59,240 --> 00:22:00,760
Speaker 4: for investing in IPOs.

499
00:22:00,760 --> 00:22:02,960
Speaker 2: So where should we start? Do you get it now? Though?

500
00:22:03,280 --> 00:22:06,040
Speaker 4: Like before we go, like IPOs, do they feel as

501
00:22:06,119 --> 00:22:08,399
Speaker 4: overwhelming as they did at the start of the episode,

502
00:22:08,400 --> 00:22:10,159
Speaker 4: because you're like, I don't know what an IPO and

503
00:22:10,200 --> 00:22:11,320
Speaker 4: I'm like, I am glad you are here.

504
00:22:11,359 --> 00:22:12,440
Speaker 2: Then yeah, totally.

505
00:22:12,520 --> 00:22:15,520
Speaker 4: And I just like when you see the abbreviation of anything,

506
00:22:15,600 --> 00:22:17,280
Speaker 4: it's like that is scary.

507
00:22:17,320 --> 00:22:19,560
Speaker 2: I don't want to know. Yeah, but it really is

508
00:22:19,600 --> 00:22:20,119
Speaker 2: making sense.

509
00:22:20,200 --> 00:22:23,000
Speaker 4: But also like it's just the first time a share

510
00:22:23,119 --> 00:22:25,879
Speaker 4: is available on the market. Yeah, and I think a

511
00:22:25,880 --> 00:22:29,240
Speaker 4: lot of people again the finance bros be browing. Investing

512
00:22:29,280 --> 00:22:32,720
Speaker 4: in IPOs is my passion. Okay, suit down, bru. They

513
00:22:32,760 --> 00:22:35,720
Speaker 4: got me, good, they got you. But like, also that's

514
00:22:35,720 --> 00:22:37,080
Speaker 4: why we don't like finance bros.

515
00:22:37,119 --> 00:22:39,240
Speaker 2: That's true. So let's go back to basics.

516
00:22:39,400 --> 00:22:42,439
Speaker 4: I want you to understand the business model. If it

517
00:22:42,560 --> 00:22:46,000
Speaker 4: comes to you know, understanding I guess whether you should

518
00:22:46,040 --> 00:22:48,840
Speaker 4: invest in a company's IPO or not. We really want

519
00:22:48,880 --> 00:22:50,280
Speaker 4: to just like strip it back and have a look

520
00:22:50,320 --> 00:22:53,520
Speaker 4: at the business model. How does the company make money,

521
00:22:54,240 --> 00:22:55,119
Speaker 4: what does it sell?

522
00:22:55,480 --> 00:22:56,359
Speaker 2: What does the.

523
00:22:56,240 --> 00:22:59,800
Speaker 4: Company actually do, whether it's in a growth industry or not.

524
00:23:00,000 --> 00:23:03,159
Speaker 4: I want to understand a solid business model is going

525
00:23:03,240 --> 00:23:06,320
Speaker 4: to have long term potential as opposed to something clearly

526
00:23:06,359 --> 00:23:09,720
Speaker 4: short term. And to me, that's essential before considering an

527
00:23:09,760 --> 00:23:13,359
Speaker 4: IPO investment. Why beck, Because I am not the type

528
00:23:13,400 --> 00:23:16,560
Speaker 4: of person who buys like penny stocks. I'm not the

529
00:23:16,600 --> 00:23:19,040
Speaker 4: type of person who is in it to get rich quick.

530
00:23:19,200 --> 00:23:22,080
Speaker 4: That is not my game. I'm a long term investor.

531
00:23:22,359 --> 00:23:25,000
Speaker 4: So if you've got a short term business model, how's

532
00:23:25,000 --> 00:23:27,560
Speaker 4: that going to fit into your long term portfolio? Like,

533
00:23:27,600 --> 00:23:29,920
Speaker 4: how are you going to hold that for ten plus years?

534
00:23:30,280 --> 00:23:33,480
Speaker 4: Like if you wouldn't hold a share for more than

535
00:23:33,560 --> 00:23:37,440
Speaker 4: ten years, Beck, you should not hold it for ten minutes. Well,

536
00:23:37,600 --> 00:23:40,119
Speaker 4: but like you shouldn't. You shouldn't because why are we

537
00:23:40,200 --> 00:23:42,399
Speaker 4: buying it? Because if you're buying it for a short

538
00:23:42,440 --> 00:23:45,879
Speaker 4: period of time, you are probably just buying it because

539
00:23:45,880 --> 00:23:48,240
Speaker 4: of market hype. You're probably buying it because you see

540
00:23:48,280 --> 00:23:50,880
Speaker 4: a little opportunity to get rich quick. That's not who

541
00:23:50,880 --> 00:23:52,840
Speaker 4: we are, that's not what we do. We are long

542
00:23:52,960 --> 00:23:56,320
Speaker 4: term investors because that is the safest way to invest.

543
00:23:56,400 --> 00:23:58,520
Speaker 4: And we know and I'm probably getting a little bit

544
00:23:58,520 --> 00:24:00,199
Speaker 4: off track here, but we know that if if you

545
00:24:00,240 --> 00:24:05,520
Speaker 4: took any thirty year period in the Australian stock market history, Beck,

546
00:24:05,920 --> 00:24:09,280
Speaker 4: and anyone who has invested for that period has not

547
00:24:09,359 --> 00:24:13,640
Speaker 4: lost money. Well invested for a shorter period like ten years. Yeah,

548
00:24:13,640 --> 00:24:15,920
Speaker 4: the markets go up and down, like you can sell

549
00:24:15,920 --> 00:24:18,480
Speaker 4: out and lose some money. But if you stretch it

550
00:24:18,520 --> 00:24:22,160
Speaker 4: out and go to thirty years, nobody in the Australian

551
00:24:22,200 --> 00:24:25,199
Speaker 4: share market has lost money over a thirty year period.

552
00:24:25,320 --> 00:24:27,880
Speaker 2: Woll But isn't that really cool to think? Okay? Cool?

553
00:24:27,920 --> 00:24:29,640
Speaker 4: If I zoom out and we always say went intown,

554
00:24:29,720 --> 00:24:31,480
Speaker 4: zoom ount, but zoom out and look at the bigger

555
00:24:31,520 --> 00:24:35,280
Speaker 4: picture and IPO is shiny. It's really exciting. I love it,

556
00:24:35,320 --> 00:24:37,159
Speaker 4: and I get so in aviod like I am going

557
00:24:37,240 --> 00:24:39,800
Speaker 4: to read that prospectus. I get it, but like I'm

558
00:24:39,840 --> 00:24:42,240
Speaker 4: reading it because I think and I'm hoping that I'll

559
00:24:42,240 --> 00:24:45,000
Speaker 4: get into a good thing at the start and be

560
00:24:45,119 --> 00:24:48,199
Speaker 4: able to ride the wave for a ten year plus

561
00:24:48,200 --> 00:24:50,560
Speaker 4: period of time. I'm not trying to ride the wave

562
00:24:50,640 --> 00:24:52,760
Speaker 4: for five minutes because it launched and then I'm going

563
00:24:52,800 --> 00:24:53,680
Speaker 4: to sell my shares.

564
00:24:54,480 --> 00:24:55,800
Speaker 2: That's not who I am.

565
00:24:56,240 --> 00:24:59,560
Speaker 4: Back to the prospectus, though, I can't talk about this enough.

566
00:25:00,119 --> 00:25:02,080
Speaker 4: It's going to sound really unsexy, and I don't think

567
00:25:02,080 --> 00:25:03,600
Speaker 4: I sold you on it before I told you could

568
00:25:03,600 --> 00:25:06,440
Speaker 4: watch Netflix. But it's really important if you're actually going

569
00:25:06,440 --> 00:25:11,000
Speaker 4: to make the investment to read the prospectus. Okay, that document.

570
00:25:11,200 --> 00:25:15,520
Speaker 4: It's going to reveal, usually in quite simple terms, financials,

571
00:25:15,640 --> 00:25:18,240
Speaker 4: the business risk, what their future plans are going to

572
00:25:18,280 --> 00:25:20,840
Speaker 4: look like. What I would be doing is spending some

573
00:25:21,040 --> 00:25:24,040
Speaker 4: time here to understand exactly why you're buying into it

574
00:25:24,520 --> 00:25:27,479
Speaker 4: and questioning yourself the entire time being, like, am I

575
00:25:27,560 --> 00:25:30,159
Speaker 4: just buying into this ipeo because it sounds shiny? Am

576
00:25:30,160 --> 00:25:33,120
Speaker 4: I buying into it because another podcast talked about it?

577
00:25:33,320 --> 00:25:36,120
Speaker 4: Am I buying into it because my friend at brunch said,

578
00:25:36,119 --> 00:25:38,359
Speaker 4: oh my gosh, there's this really cool IPO going on,

579
00:25:38,400 --> 00:25:41,959
Speaker 4: and I'm interested too. You need to understand exactly what

580
00:25:41,960 --> 00:25:45,080
Speaker 4: you're buying into and any risks that might actually not

581
00:25:45,200 --> 00:25:46,600
Speaker 4: be immediately obvious.

582
00:25:46,840 --> 00:25:49,720
Speaker 2: Okay, we're going to critically think about this, and now

583
00:25:49,720 --> 00:25:52,600
Speaker 2: I just have a quick question. You were allowed many questions.

584
00:25:52,720 --> 00:25:54,919
Speaker 2: They do not have to be quick, Thank you. I

585
00:25:54,920 --> 00:25:58,240
Speaker 2: don't know. I'm so obsessed with the actual logistics of this.

586
00:25:58,320 --> 00:26:01,000
Speaker 4: But the prospectus is of publicly else Yes, and it's

587
00:26:01,080 --> 00:26:03,280
Speaker 4: on would you find ax or on the website of

588
00:26:03,320 --> 00:26:04,360
Speaker 4: the bony both.

589
00:26:04,359 --> 00:26:06,840
Speaker 5: We're going to spam it everywhere because we want everybody

590
00:26:07,000 --> 00:26:09,680
Speaker 5: to read our perspectives and think this company is lit.

591
00:26:09,800 --> 00:26:12,879
Speaker 5: I'm gonna invest, So like the ax is going to

592
00:26:12,920 --> 00:26:15,600
Speaker 5: list their prospectives, but also the company is going to

593
00:26:15,640 --> 00:26:16,960
Speaker 5: be like, hey, did you see this?

594
00:26:17,160 --> 00:26:19,080
Speaker 2: Did you see my respective? They're going to put it

595
00:26:19,160 --> 00:26:19,840
Speaker 2: on their website.

596
00:26:20,280 --> 00:26:23,080
Speaker 4: Like this isn't a gate keeping kind of document where

597
00:26:23,080 --> 00:26:25,040
Speaker 4: they're like, oh, I hope no one reads this. Like

598
00:26:25,400 --> 00:26:27,800
Speaker 4: they're pushing their best foot forward in this document. It's

599
00:26:27,880 --> 00:26:29,919
Speaker 4: kind of like it's kind of like a pitch. Ye,

600
00:26:30,280 --> 00:26:32,399
Speaker 4: Like it's not a pitch, but like it's kind of

601
00:26:32,440 --> 00:26:35,240
Speaker 4: like them saying, hey, here's why we're listing. Because if

602
00:26:35,280 --> 00:26:37,120
Speaker 4: you're listening for no good reason, why are you doing that?

603
00:26:37,200 --> 00:26:40,160
Speaker 2: You're not going to make money? And can anyone read

604
00:26:40,200 --> 00:26:42,000
Speaker 2: this or just have to be translated by.

605
00:26:41,880 --> 00:26:44,560
Speaker 4: Like no, no, no, no, anyone will be able to

606
00:26:44,560 --> 00:26:48,040
Speaker 4: read it. I mean you might not fully comprehend the

607
00:26:48,119 --> 00:26:49,879
Speaker 4: balance sheets in it, and you might be like, oh,

608
00:26:49,960 --> 00:26:52,520
Speaker 4: I don't really understand what this means. That's why you

609
00:26:52,520 --> 00:26:54,879
Speaker 4: should have done my investing masterclass, because I would have

610
00:26:54,960 --> 00:26:57,560
Speaker 4: taught you exactly how to read a business P and

611
00:26:57,720 --> 00:26:59,800
Speaker 4: L and you know, a cash flow statement and all

612
00:26:59,800 --> 00:27:02,240
Speaker 4: of that. But that's okay, but you're going to have

613
00:27:02,240 --> 00:27:05,119
Speaker 4: a look at it and there will be usually summaries

614
00:27:05,160 --> 00:27:05,639
Speaker 4: of what.

615
00:27:05,560 --> 00:27:08,680
Speaker 2: Each of those things mean, Like, oh, great, this cash.

616
00:27:08,440 --> 00:27:11,720
Speaker 4: Flow statement shows that this business has been functioning with

617
00:27:12,040 --> 00:27:14,439
Speaker 4: positive cash flow for the last four years or whatever

618
00:27:14,520 --> 00:27:18,200
Speaker 4: it means. So I can going to outline it whether

619
00:27:18,320 --> 00:27:23,400
Speaker 4: it outlines all of the risks maybe like sometimes, maybe, yes,

620
00:27:23,480 --> 00:27:25,880
Speaker 4: sometimes or maybe no. That's where you have to put

621
00:27:25,880 --> 00:27:28,119
Speaker 4: your like critical analysis hat on and go hold on,

622
00:27:28,160 --> 00:27:29,680
Speaker 4: Like let's zoom out. Let's say it's like a skin

623
00:27:29,720 --> 00:27:31,440
Speaker 4: care brand. You need to zoom out and be like, oh,

624
00:27:31,560 --> 00:27:34,440
Speaker 4: is this an oversight traded market? Like how well can

625
00:27:34,480 --> 00:27:37,480
Speaker 4: a skin care company do in this market? Like what

626
00:27:37,640 --> 00:27:40,479
Speaker 4: do all my friends and family do? Like you're thinking

627
00:27:40,520 --> 00:27:42,720
Speaker 4: about it from a lens that you know the company's

628
00:27:42,760 --> 00:27:43,560
Speaker 4: not going to write about.

629
00:27:44,240 --> 00:27:47,679
Speaker 2: I see very cheeky, isn't it? Well, cheeky bed Like

630
00:27:48,119 --> 00:27:51,359
Speaker 2: that's the game. Yeah, that's the name of the game. Okay,

631
00:27:51,359 --> 00:27:54,640
Speaker 2: So I've read the prospectus and I know what I'm doing. Yep,

632
00:27:54,960 --> 00:27:57,960
Speaker 2: How do I now know that the price that's been

633
00:27:58,119 --> 00:27:59,760
Speaker 2: set is a good price?

634
00:28:00,040 --> 00:28:02,440
Speaker 4: It's a hard question to answer, but picture this right,

635
00:28:02,520 --> 00:28:04,640
Speaker 4: maybe like you're shopping for a bag beck, So you're

636
00:28:04,680 --> 00:28:06,120
Speaker 4: like in the market and you're like, a really want

637
00:28:06,119 --> 00:28:08,000
Speaker 4: a nice backpack, like I want it to fit this

638
00:28:08,119 --> 00:28:10,479
Speaker 4: and that, right, But then you start looking into it

639
00:28:10,680 --> 00:28:14,720
Speaker 4: and there's one on TikTok and it's probably the same quality,

640
00:28:14,760 --> 00:28:18,920
Speaker 4: but every single TikToker that you follow is currently using

641
00:28:18,960 --> 00:28:21,360
Speaker 4: this bag, and like you start to feel influenced by

642
00:28:21,359 --> 00:28:24,000
Speaker 4: them and decide, I think I want that one. But

643
00:28:24,800 --> 00:28:27,720
Speaker 4: it's pricier than the others. And it's pricier than the

644
00:28:27,760 --> 00:28:30,360
Speaker 4: others because of the hype behind it, right, Like it's

645
00:28:30,400 --> 00:28:32,880
Speaker 4: been like driven up, not because there's a better quality bag,

646
00:28:32,960 --> 00:28:35,160
Speaker 4: not because it's actually even better, but like you've seen

647
00:28:35,200 --> 00:28:37,600
Speaker 4: it everywhere, all your favorite influencers have it, Like the

648
00:28:37,720 --> 00:28:41,360
Speaker 4: hype is there. IBOs can kind of be the same way,

649
00:28:41,440 --> 00:28:42,840
Speaker 4: you know how I was talking about the pizza shop,

650
00:28:42,880 --> 00:28:45,040
Speaker 4: Like everyone's really excited about it, like you're driving up

651
00:28:45,080 --> 00:28:46,920
Speaker 4: the hype. Then you get there and you're like, wait,

652
00:28:46,960 --> 00:28:49,000
Speaker 4: this isn't Like now I'm inside the shop, it's not

653
00:28:49,040 --> 00:28:54,400
Speaker 4: actually that good companies sometimes set a high price because

654
00:28:54,400 --> 00:28:56,800
Speaker 4: of the buzz that's been generated. Right back to our

655
00:28:56,840 --> 00:28:59,440
Speaker 4: pizza shop, Like you got inside the shop and the

656
00:28:59,480 --> 00:29:01,520
Speaker 4: pizzas astronomically expensive.

657
00:29:01,840 --> 00:29:05,120
Speaker 2: You like, hold up, like the buzz was.

658
00:29:05,080 --> 00:29:07,920
Speaker 4: There and I had hoped for a different price, but

659
00:29:08,400 --> 00:29:10,560
Speaker 4: the company that owns the pizza shop was like, oh

660
00:29:10,640 --> 00:29:12,600
Speaker 4: my god, there are so many people interested in our

661
00:29:12,680 --> 00:29:15,440
Speaker 4: pizza shop. We can charge more for the pizzas. That's

662
00:29:15,480 --> 00:29:18,440
Speaker 4: why they said their price really high. You were pissed

663
00:29:18,440 --> 00:29:20,400
Speaker 4: off about it, but the company saw that as an

664
00:29:20,440 --> 00:29:23,720
Speaker 4: opportunity because there was so much buzz, and they assumed

665
00:29:23,760 --> 00:29:27,680
Speaker 4: that because the demand was there, they could absolutely charge more.

666
00:29:28,120 --> 00:29:30,280
Speaker 4: But that doesn't mean forty eight dollars for a margarita

667
00:29:30,280 --> 00:29:33,320
Speaker 4: pizza's worth it. Like that doesn't mean that it is

668
00:29:33,400 --> 00:29:36,800
Speaker 4: worth it to the consumer. Just because everyone's talking about

669
00:29:36,840 --> 00:29:38,440
Speaker 4: it and there's buzz on the street about the new

670
00:29:38,440 --> 00:29:41,160
Speaker 4: pizza shop, it doesn't mean that you're getting good value,

671
00:29:41,200 --> 00:29:43,640
Speaker 4: and it doesn't mean that you should be investing in

672
00:29:43,680 --> 00:29:46,280
Speaker 4: it right because you could have spent half the price

673
00:29:46,320 --> 00:29:48,960
Speaker 4: and gotten a Domino's version and been really happy with it.

674
00:29:49,440 --> 00:29:51,360
Speaker 4: To see if you're now we're going to get a

675
00:29:51,360 --> 00:29:53,880
Speaker 4: little bit technical, So if you're listening to this, honestly,

676
00:29:53,920 --> 00:29:56,440
Speaker 4: you might want to listen back to this a couple

677
00:29:56,520 --> 00:29:59,920
Speaker 4: of times. And this is not because I'm being super technical.

678
00:30:00,200 --> 00:30:02,240
Speaker 4: It's just because, like we're going to talk about ratios,

679
00:30:02,280 --> 00:30:04,880
Speaker 4: and sometimes that texts a little bit like see not

680
00:30:04,960 --> 00:30:05,840
Speaker 4: in a contents anyway.

681
00:30:05,840 --> 00:30:06,360
Speaker 2: Absolutely not.

682
00:30:06,600 --> 00:30:09,479
Speaker 4: But if you've never talked about this, why would you

683
00:30:09,560 --> 00:30:11,680
Speaker 4: be like, Oh, yes, Victoria, the price to earnings ratio

684
00:30:11,800 --> 00:30:15,560
Speaker 4: absolutely makes sense in this situation. But to see if

685
00:30:15,560 --> 00:30:18,160
Speaker 4: you're paying I guess the hype tax, you're going to

686
00:30:18,280 --> 00:30:22,440
Speaker 4: check the IPO's price to earnings ratio okay, or it's

687
00:30:22,600 --> 00:30:26,560
Speaker 4: price to sales ratio compared to similar companies in the

688
00:30:26,600 --> 00:30:29,720
Speaker 4: same industry. So what I want to say before I

689
00:30:29,760 --> 00:30:33,360
Speaker 4: explain the PE ratio is that you wouldn't use it

690
00:30:33,400 --> 00:30:37,000
Speaker 4: in isolation, beck like it's one factor, but you would

691
00:30:37,040 --> 00:30:40,720
Speaker 4: make sure that you have additional context around the business

692
00:30:40,720 --> 00:30:43,680
Speaker 4: before relying on the PE ratio. And when I say

693
00:30:43,680 --> 00:30:46,560
Speaker 4: additional context, like you understand the market, you know what

694
00:30:46,600 --> 00:30:49,440
Speaker 4: the pizza shop's about, Like you're not just looking at

695
00:30:49,440 --> 00:30:52,880
Speaker 4: a number and going, oh, PE ratio of x okay

696
00:30:52,920 --> 00:30:55,240
Speaker 4: in or out, Like that's not how it works, because

697
00:30:55,240 --> 00:30:57,480
Speaker 4: you might go, oh, PE ratio is down, but this

698
00:30:57,640 --> 00:31:00,960
Speaker 4: makes sense because there's this much to or that doesn't

699
00:31:01,000 --> 00:31:03,719
Speaker 4: make sense because you know it just doesn't right. So

700
00:31:04,120 --> 00:31:07,280
Speaker 4: even though you should always use a PE ratio, with

701
00:31:07,320 --> 00:31:11,400
Speaker 4: additional context. I guess here are some common situations I've

702
00:31:11,440 --> 00:31:13,800
Speaker 4: like written down of like what a high PE or

703
00:31:13,840 --> 00:31:16,960
Speaker 4: a low PE means. So a high PE ratio means

704
00:31:17,040 --> 00:31:20,800
Speaker 4: that the ratio is actually higher than similar shares in

705
00:31:21,080 --> 00:31:24,400
Speaker 4: its industry, not across the board, not across the entire market,

706
00:31:24,440 --> 00:31:27,800
Speaker 4: but in its industry. And this means that investors actually

707
00:31:27,880 --> 00:31:30,480
Speaker 4: might believe that the stock's earnings will increase. They're like, oh,

708
00:31:30,480 --> 00:31:31,960
Speaker 4: this is a pretty good share, Like I want to

709
00:31:32,000 --> 00:31:34,640
Speaker 4: get in on this, so they're paying a bit more.

710
00:31:35,160 --> 00:31:38,360
Speaker 4: And this also means on the flip side, that the

711
00:31:38,400 --> 00:31:41,680
Speaker 4: stock might actually be overvalued, like you might actually be

712
00:31:41,760 --> 00:31:42,800
Speaker 4: paying too much for it.

713
00:31:42,880 --> 00:31:43,360
Speaker 2: I see.

714
00:31:43,520 --> 00:31:46,240
Speaker 4: On the flip side, if you get a low PE ratio,

715
00:31:46,720 --> 00:31:50,040
Speaker 4: that's where the ratio is lower than similar shares in

716
00:31:50,120 --> 00:31:53,480
Speaker 4: the same industry, it might mean that the investors believe

717
00:31:53,520 --> 00:31:55,400
Speaker 4: that the stock earning is going to decrease, like they

718
00:31:55,400 --> 00:31:57,920
Speaker 4: don't really trust it. They're like, oh, whatever, Like this

719
00:31:58,040 --> 00:31:59,960
Speaker 4: isn't like a good pizza shop. I'm not that into

720
00:32:00,000 --> 00:32:03,440
Speaker 4: tested in buying stock. But on the flip side, it

721
00:32:03,480 --> 00:32:05,760
Speaker 4: could also mean that the stock is undervalued and it's

722
00:32:05,800 --> 00:32:10,040
Speaker 4: a really good opportunity for you, so PE ratio like,

723
00:32:10,080 --> 00:32:13,680
Speaker 4: it's a formula of essentially taking the share price. So

724
00:32:13,720 --> 00:32:16,080
Speaker 4: the price that they've listed at, let's pretend it's like

725
00:32:16,120 --> 00:32:19,040
Speaker 4: sixty dollars. They're like, oh, share price is sixty dollars.

726
00:32:19,080 --> 00:32:21,800
Speaker 4: So you take the share price of sixty dollars and

727
00:32:21,800 --> 00:32:24,800
Speaker 4: then divide it by how much money you would earn

728
00:32:25,000 --> 00:32:28,840
Speaker 4: per share. So the E is the earnings per share,

729
00:32:29,040 --> 00:32:32,200
Speaker 4: so the company is profit divided by the number of

730
00:32:32,480 --> 00:32:37,760
Speaker 4: shares that exist. So it's basically saying that you would

731
00:32:38,080 --> 00:32:39,840
Speaker 4: how much money you're you going to make from the share,

732
00:32:39,960 --> 00:32:41,960
Speaker 4: Like if they have a dividend that they would pay out,

733
00:32:42,000 --> 00:32:44,959
Speaker 4: what is that and those figures you won't have to

734
00:32:45,000 --> 00:32:48,400
Speaker 4: calculate your earnings per share because that will be public knowledge.

735
00:32:48,440 --> 00:32:50,840
Speaker 4: So you just take the stock price and divide it

736
00:32:50,840 --> 00:32:52,840
Speaker 4: by the earnings per share and that will give you

737
00:32:52,880 --> 00:32:54,200
Speaker 4: a PE ratio.

738
00:32:54,640 --> 00:32:58,960
Speaker 2: Okay, now give me five years to absorb that.

739
00:32:59,080 --> 00:33:01,000
Speaker 4: I told you I want to listen to it a

740
00:33:01,000 --> 00:33:03,840
Speaker 4: couple of times, and it's not because I'm, you know,

741
00:33:03,960 --> 00:33:07,920
Speaker 4: being smart or using terms that are complex. It's just

742
00:33:07,960 --> 00:33:10,080
Speaker 4: because it's a topic that we've never talked about before,

743
00:33:10,400 --> 00:33:13,360
Speaker 4: and it's really important to understand that this is a

744
00:33:13,400 --> 00:33:17,240
Speaker 4: really solid ratio in this industry, and if you can

745
00:33:17,280 --> 00:33:19,880
Speaker 4: wrap your head around it, like it's essentially I'm saying, Beck,

746
00:33:20,040 --> 00:33:22,400
Speaker 4: I need you to find two numbers and do a

747
00:33:22,400 --> 00:33:25,480
Speaker 4: little calculation, which is, take number A and divide it

748
00:33:25,520 --> 00:33:28,720
Speaker 4: by number B, and that will give you a price

749
00:33:28,760 --> 00:33:31,520
Speaker 4: to earnings ratio which will help you, not make the

750
00:33:31,560 --> 00:33:34,480
Speaker 4: decision for you, but it will help you make a decision.

751
00:33:34,720 --> 00:33:36,719
Speaker 4: And I guess to give you some sense of what

752
00:33:36,760 --> 00:33:38,640
Speaker 4: the average for the market is because you're like, well,

753
00:33:38,640 --> 00:33:39,880
Speaker 4: what happens when I get a number?

754
00:33:40,480 --> 00:33:42,800
Speaker 2: Like what's high? Is it a billion?

755
00:33:43,160 --> 00:33:46,360
Speaker 4: What's low? Is it negative billion? Like what does that mean?

756
00:33:47,160 --> 00:33:50,719
Speaker 4: So many value investors would say, okay, the like twenty

757
00:33:50,760 --> 00:33:54,800
Speaker 4: to twenty five is a average p ratio. If it's low,

758
00:33:55,000 --> 00:33:57,440
Speaker 4: it's low. If it's high, it's high. And you would

759
00:33:57,480 --> 00:33:59,960
Speaker 4: go from there. These are things and like back to you,

760
00:34:00,000 --> 00:34:01,640
Speaker 4: you know how we're talking At the start, you're like, oh,

761
00:34:01,720 --> 00:34:04,840
Speaker 4: you can google things, like you could literally google what

762
00:34:05,000 --> 00:34:07,400
Speaker 4: is a good price to earnings ratio for the food

763
00:34:07,440 --> 00:34:08,440
Speaker 4: and beverage industry?

764
00:34:08,880 --> 00:34:09,799
Speaker 2: Like I can go from there.

765
00:34:09,800 --> 00:34:11,560
Speaker 4: If we're talking about the pizza shop, right, you could

766
00:34:11,600 --> 00:34:14,160
Speaker 4: be like well, I've calculated the pe ratio, but I

767
00:34:14,200 --> 00:34:15,359
Speaker 4: don't know how to use it.

768
00:34:15,840 --> 00:34:16,040
Speaker 2: Now.

769
00:34:16,080 --> 00:34:18,600
Speaker 4: You could look at the actual industry and then you

770
00:34:18,640 --> 00:34:20,440
Speaker 4: could go and look at, like, you know, the pizza

771
00:34:20,480 --> 00:34:23,120
Speaker 4: shop down the road, and go, well, what is their

772
00:34:23,239 --> 00:34:25,640
Speaker 4: pea ratio because they do a boom in trade, Like

773
00:34:25,760 --> 00:34:28,560
Speaker 4: is that an overvalued stock? Is it undervalued? Is it

774
00:34:28,600 --> 00:34:31,440
Speaker 4: like on market? Like should I be paying more for

775
00:34:31,520 --> 00:34:35,040
Speaker 4: this ipo or for this first time that the brand

776
00:34:35,120 --> 00:34:39,280
Speaker 4: new pizza shop is offering pizza. Should I be buying

777
00:34:39,280 --> 00:34:40,799
Speaker 4: in with them? Or am I going to look over

778
00:34:40,840 --> 00:34:42,800
Speaker 4: it to this other pizza shop? Because if you found

779
00:34:42,840 --> 00:34:45,040
Speaker 4: that they had like a peer ratio of ten, which

780
00:34:45,080 --> 00:34:47,319
Speaker 4: is a low PEE ratio, you might be like, well,

781
00:34:47,400 --> 00:34:51,440
Speaker 4: is that because the pizza industry is undervaluing a company

782
00:34:51,440 --> 00:34:53,520
Speaker 4: that's been around for a long time, or is this

783
00:34:53,600 --> 00:34:57,279
Speaker 4: an opportunity there or if it's overvalued, is that like

784
00:34:57,320 --> 00:34:59,680
Speaker 4: the most popular pizza shop in town? Does everybody want

785
00:34:59,680 --> 00:35:02,600
Speaker 4: to be in with that? Or is it overvalued or

786
00:35:02,680 --> 00:35:05,359
Speaker 4: is it actually just a really good investment. So we

787
00:35:05,440 --> 00:35:08,439
Speaker 4: want to not just take that number and go, oh, yep,

788
00:35:08,520 --> 00:35:11,160
Speaker 4: it was twenty, so that's good. We want to kind

789
00:35:11,200 --> 00:35:14,200
Speaker 4: of contextualize it once we have it. Okay, Okay, does

790
00:35:14,239 --> 00:35:15,960
Speaker 4: that make sense? It makes a lot of sense, but

791
00:35:16,000 --> 00:35:17,960
Speaker 4: I just want to quickly double check with you. So

792
00:35:17,960 --> 00:35:20,759
Speaker 4: the way to get that number is to find the

793
00:35:20,880 --> 00:35:24,200
Speaker 4: profit of the company and divide that by the number

794
00:35:24,239 --> 00:35:25,560
Speaker 4: of shares available.

795
00:35:25,760 --> 00:35:27,680
Speaker 2: Not no, No, you're going.

796
00:35:27,440 --> 00:35:29,839
Speaker 4: To take how much they are going to sell their

797
00:35:29,880 --> 00:35:33,600
Speaker 4: share for. Okay, that's a very easy number to find.

798
00:35:33,680 --> 00:35:36,239
Speaker 4: So you're going to take their share price and then

799
00:35:36,280 --> 00:35:40,040
Speaker 4: divide it by the earnings per share, which is how

800
00:35:40,120 --> 00:35:42,600
Speaker 4: much you would make from owning that share.

801
00:35:42,719 --> 00:35:43,120
Speaker 2: Okay.

802
00:35:43,160 --> 00:35:46,799
Speaker 4: And that's available on that's all available online, and it

803
00:35:46,880 --> 00:35:49,920
Speaker 4: should be in the prospectives. If it's not in the prospectus,

804
00:35:49,960 --> 00:35:53,319
Speaker 4: you would be able to find that information via the ASX.

805
00:35:53,600 --> 00:35:57,520
Speaker 2: Great, thank you. And so price to earnings and now

806
00:35:57,600 --> 00:35:58,839
Speaker 2: price to sales.

807
00:35:58,560 --> 00:36:01,879
Speaker 4: Is different, okay. So price to sales ratios is nice.

808
00:36:01,920 --> 00:36:03,799
Speaker 4: So we've got like price to earning, so we're like,

809
00:36:04,120 --> 00:36:05,160
Speaker 4: what are they charging?

810
00:36:05,200 --> 00:36:06,480
Speaker 2: What's the pe ratio?

811
00:36:06,680 --> 00:36:09,120
Speaker 4: Now we need to look at price to sales and

812
00:36:09,160 --> 00:36:12,640
Speaker 4: a price to sales ratio I think is quite important

813
00:36:12,680 --> 00:36:14,799
Speaker 4: and I always use the two of them when I'm

814
00:36:14,840 --> 00:36:16,640
Speaker 4: looking at a stock, Like I would never use one

815
00:36:16,680 --> 00:36:17,320
Speaker 4: in isolation.

816
00:36:17,440 --> 00:36:18,600
Speaker 2: I always do the two.

817
00:36:18,920 --> 00:36:22,320
Speaker 4: But a price to sales ratio is essentially a valuation

818
00:36:22,560 --> 00:36:26,760
Speaker 4: ratio that compares a company's like share price to its income,

819
00:36:27,360 --> 00:36:27,799
Speaker 4: So like.

820
00:36:27,800 --> 00:36:29,360
Speaker 2: Are they actually making enough money?

821
00:36:29,440 --> 00:36:32,000
Speaker 4: Like not just what they're paying you, which we look

822
00:36:32,040 --> 00:36:33,759
Speaker 4: at in the price to earnings, but like how much

823
00:36:33,840 --> 00:36:36,040
Speaker 4: revenue is coming into this business?

824
00:36:36,360 --> 00:36:37,520
Speaker 2: And it's usually an.

825
00:36:37,400 --> 00:36:41,080
Speaker 4: Indicator of the value that the financial markets or like

826
00:36:41,239 --> 00:36:44,160
Speaker 4: the investing market as a whole, has placed on each

827
00:36:44,280 --> 00:36:47,960
Speaker 4: dollar of a company's sales or revenue. So I guess

828
00:36:48,120 --> 00:36:50,480
Speaker 4: TLDR because like I don't want to like dive too

829
00:36:50,520 --> 00:36:52,480
Speaker 4: deep into it, but we can do a whole ratios

830
00:36:52,520 --> 00:36:55,920
Speaker 4: podcast at some point. But the price to sales ratio

831
00:36:56,400 --> 00:36:59,160
Speaker 4: shows how much investors are willing to pay per stock. Okay,

832
00:36:59,239 --> 00:37:01,960
Speaker 4: like how much they will to pay per dollar of

833
00:37:02,040 --> 00:37:03,480
Speaker 4: sales for a stock.

834
00:37:03,800 --> 00:37:04,520
Speaker 2: If that makes sense.

835
00:37:04,560 --> 00:37:06,640
Speaker 4: So like, if they're doing like a million dollars worth

836
00:37:06,640 --> 00:37:09,640
Speaker 4: of trade, that will translate directly to like a dollar

837
00:37:09,680 --> 00:37:13,120
Speaker 4: for a dollar share price valuation, if that makes sense.

838
00:37:13,120 --> 00:37:15,799
Speaker 2: So the PS ratio PS I love you.

839
00:37:16,200 --> 00:37:19,560
Speaker 4: But PS ratio is calculated by dividing the stock price

840
00:37:20,280 --> 00:37:24,960
Speaker 4: by the underlying companies sales per share, which again will

841
00:37:25,000 --> 00:37:26,680
Speaker 4: be accessible. You don't need to do all of these

842
00:37:26,719 --> 00:37:29,640
Speaker 4: calculations in the background to then get this calculation. This

843
00:37:30,000 --> 00:37:32,120
Speaker 4: information is available, but you do have to kind of

844
00:37:32,120 --> 00:37:32,640
Speaker 4: plug it in.

845
00:37:33,000 --> 00:37:34,319
Speaker 2: And do you know what you can do?

846
00:37:34,520 --> 00:37:39,040
Speaker 4: You can google price to sales ratio calculator on one

847
00:37:39,040 --> 00:37:40,560
Speaker 4: will come up and you can just plug it in

848
00:37:40,600 --> 00:37:42,200
Speaker 4: and it will do it for you so that you

849
00:37:42,400 --> 00:37:45,240
Speaker 4: know that it's correct. Okay, right, Like lots of investing

850
00:37:45,280 --> 00:37:48,040
Speaker 4: platforms have this for free. But back to what I

851
00:37:48,080 --> 00:37:51,320
Speaker 4: was saying before, because we compared the low PE ratio

852
00:37:51,400 --> 00:37:54,440
Speaker 4: to a high PE ratio, a low price to sales

853
00:37:54,560 --> 00:37:58,799
Speaker 4: ratio could imply that, like, shares are currently being undervalued,

854
00:37:59,280 --> 00:38:01,040
Speaker 4: and so like that. Why you know how I said,

855
00:38:01,080 --> 00:38:03,600
Speaker 4: I always do the two together. Obviously, if the PE

856
00:38:03,880 --> 00:38:06,640
Speaker 4: ratio and the price to earnings ratio is saying, oh,

857
00:38:06,680 --> 00:38:09,080
Speaker 4: this stock's undervalued, but then my price to sales ratio

858
00:38:09,120 --> 00:38:12,319
Speaker 4: is saying it's overvalued, we need to do some more research, beck.

859
00:38:12,880 --> 00:38:15,040
Speaker 4: We kind of want them to make sense together. So

860
00:38:15,080 --> 00:38:18,120
Speaker 4: a low ratio BECK could essentially imply that the share

861
00:38:18,200 --> 00:38:20,920
Speaker 4: is undervalued and it might be a goodbye. While a

862
00:38:21,040 --> 00:38:24,200
Speaker 4: ratio that's higher than average. It could actually show you

863
00:38:24,239 --> 00:38:26,759
Speaker 4: that the stock is currently being overvalued, and then we're

864
00:38:26,760 --> 00:38:29,160
Speaker 4: going to look at it again in context. We never

865
00:38:29,360 --> 00:38:32,440
Speaker 4: just look at these ratios on their own. One of

866
00:38:32,480 --> 00:38:35,960
Speaker 4: the downsides to having a PS ratio or a price

867
00:38:36,040 --> 00:38:39,560
Speaker 4: to sales ratio is that it doesn't take into account

868
00:38:39,840 --> 00:38:42,600
Speaker 4: whether the company makes any earnings or whether it will

869
00:38:42,600 --> 00:38:46,440
Speaker 4: ever make any earnings as a whole. It depends on

870
00:38:46,560 --> 00:38:48,200
Speaker 4: how you're doing it. And I mean, at the end

871
00:38:48,239 --> 00:38:50,520
Speaker 4: of the day, to PS ratio is a key tool

872
00:38:50,560 --> 00:38:54,000
Speaker 4: that analysts use when it comes to valuation. Like it's

873
00:38:54,080 --> 00:38:57,760
Speaker 4: kind of like the bread and butter in the investment market,

874
00:38:57,960 --> 00:39:00,760
Speaker 4: and I think it just it makes sense that you

875
00:39:01,160 --> 00:39:03,719
Speaker 4: get to understand that. Whether you do that or not

876
00:39:04,080 --> 00:39:05,759
Speaker 4: completely up to you. But my job is to give

877
00:39:05,760 --> 00:39:07,759
Speaker 4: you all the tools and resources so that you could

878
00:39:07,760 --> 00:39:10,200
Speaker 4: like quickly calculate something and be like, oh, that kind

879
00:39:10,200 --> 00:39:11,959
Speaker 4: of makes sense to me, and it makes you feel

880
00:39:11,960 --> 00:39:13,239
Speaker 4: empowered making decisions.

881
00:39:13,320 --> 00:39:14,080
Speaker 2: Yeah, totally.

882
00:39:14,800 --> 00:39:18,160
Speaker 4: That felt extremely complex to me, but hopefully that but

883
00:39:18,280 --> 00:39:20,400
Speaker 4: if we sat down and did it a couple of times,

884
00:39:20,400 --> 00:39:22,520
Speaker 4: Like the price to earnings ratio is just taking two

885
00:39:22,560 --> 00:39:25,319
Speaker 4: numbers dividing them by that totally ave reages twenty to

886
00:39:25,360 --> 00:39:27,880
Speaker 4: twenty five, and then you've got a price to sales ratio,

887
00:39:28,000 --> 00:39:30,560
Speaker 4: and that's going to tell you what a share is

888
00:39:30,640 --> 00:39:33,359
Speaker 4: trading at per dollar. Like, and they make sense when

889
00:39:33,360 --> 00:39:35,720
Speaker 4: we start to really break them down again, the bros

890
00:39:35,760 --> 00:39:38,759
Speaker 4: have browed too hard and made us think that it

891
00:39:38,840 --> 00:39:41,759
Speaker 4: is really complex, but their jobs they're just still a

892
00:39:41,800 --> 00:39:42,440
Speaker 4: little boys.

893
00:39:42,520 --> 00:39:46,520
Speaker 2: Well that's very true. It's always can do it exactly.

894
00:39:46,640 --> 00:39:49,920
Speaker 4: We're on the same pay we have the same algorithm.

895
00:39:49,920 --> 00:39:54,160
Speaker 4: It we do it seems okay. So beyond the numbers,

896
00:39:54,400 --> 00:39:56,160
Speaker 4: is there anything else you look at to get a

897
00:39:56,200 --> 00:39:58,560
Speaker 4: read on, like the company? What clues are they feel

898
00:39:58,960 --> 00:39:59,919
Speaker 4: in my portfolio?

899
00:40:00,200 --> 00:40:01,680
Speaker 2: Cute? They got to look cute.

900
00:40:01,760 --> 00:40:04,640
Speaker 4: They've got to look cute, Like I don't want to yea, yeah,

901
00:40:04,680 --> 00:40:06,840
Speaker 4: if I'm gonna like buy into a stock, like and

902
00:40:06,880 --> 00:40:09,960
Speaker 4: you've got ugly logo, absolutely not no, So I think,

903
00:40:10,360 --> 00:40:15,120
Speaker 4: obviously beyond the aesthetics, which absolutely play no role in this,

904
00:40:15,520 --> 00:40:18,320
Speaker 4: I'm going to look at their leadership team. Okay, creepy

905
00:40:18,360 --> 00:40:21,160
Speaker 4: little store cart and you should be too, right, So, like,

906
00:40:21,239 --> 00:40:23,440
Speaker 4: I want to look at their leadership team and what

907
00:40:23,480 --> 00:40:26,000
Speaker 4: their track record is. You can go down an absolute

908
00:40:26,080 --> 00:40:28,759
Speaker 4: rabbit hole. But what you're going to do is have

909
00:40:28,800 --> 00:40:29,479
Speaker 4: a look at like.

910
00:40:29,560 --> 00:40:33,480
Speaker 2: Who's the CEO? Who has that CEO led? Before you

911
00:40:33,480 --> 00:40:33,879
Speaker 2: can look.

912
00:40:33,800 --> 00:40:35,640
Speaker 4: At their LinkedIn? Do you know how many people I

913
00:40:35,640 --> 00:40:37,880
Speaker 4: look at on LinkedIn? Like, I have no shame. You

914
00:40:37,920 --> 00:40:41,080
Speaker 4: know how it sometimes tells you who has seen your profile? Yeah,

915
00:40:41,160 --> 00:40:45,080
Speaker 4: there will be six million CEOs, six million market analysts

916
00:40:45,120 --> 00:40:47,280
Speaker 4: who all have Victoria Devine has looked at your profile,

917
00:40:47,280 --> 00:40:49,560
Speaker 4: and they'll be like, why I'm judging your business?

918
00:40:49,640 --> 00:40:51,480
Speaker 2: Yeah, I'm here. I have no shame.

919
00:40:51,760 --> 00:40:54,239
Speaker 4: But you're going to look at the track record of

920
00:40:54,280 --> 00:40:58,320
Speaker 4: a company because if they have a strong record of success,

921
00:40:58,880 --> 00:41:01,480
Speaker 4: they might be more likely to steer the new company

922
00:41:01,520 --> 00:41:04,400
Speaker 4: that they're working for in a profitable direction. Sure, and

923
00:41:04,480 --> 00:41:07,439
Speaker 4: I've done this before, right, Like I was not sure

924
00:41:07,480 --> 00:41:10,279
Speaker 4: about it ETF that had just launched market. I didn't

925
00:41:10,320 --> 00:41:13,320
Speaker 4: get in on ipo because like, sometimes I'm just a

926
00:41:13,360 --> 00:41:16,120
Speaker 4: little bit conservative, like IPOs are fund I've gotten in

927
00:41:16,160 --> 00:41:18,920
Speaker 4: on IPOs before, that makes sense. But sometimes I just

928
00:41:19,040 --> 00:41:21,279
Speaker 4: like to watch and I like to wait, and I

929
00:41:21,400 --> 00:41:23,120
Speaker 4: like to see that it does what it says it's

930
00:41:23,120 --> 00:41:24,680
Speaker 4: going to do, and if it means like hey, a

931
00:41:24,760 --> 00:41:27,200
Speaker 4: tiny bit more for that stock, my plan is to

932
00:41:27,280 --> 00:41:30,320
Speaker 4: hold it for a really long time. So with that intention,

933
00:41:30,480 --> 00:41:34,200
Speaker 4: my money should double anyway, right, So, like whether I

934
00:41:34,320 --> 00:41:36,239
Speaker 4: saved a little bit or not, Like, that's not my

935
00:41:36,320 --> 00:41:38,960
Speaker 4: problem to me. That's an investment in making sure that

936
00:41:39,000 --> 00:41:41,640
Speaker 4: I'm making the right decisions for me and my portfolio.

937
00:41:42,120 --> 00:41:45,720
Speaker 4: But there was an ETF so an exchange traded fund

938
00:41:45,800 --> 00:41:48,360
Speaker 4: yeah that I was like, Oh, this kind of looks interesting.

939
00:41:48,440 --> 00:41:50,359
Speaker 4: It was by a good company, but they'd never done

940
00:41:50,360 --> 00:41:54,120
Speaker 4: this segment before. And so I looked at the fund manager,

941
00:41:54,239 --> 00:41:56,239
Speaker 4: and then I went on his LinkedIn and saw where

942
00:41:56,280 --> 00:41:58,160
Speaker 4: he used to work. And then I went on his

943
00:41:58,239 --> 00:42:00,880
Speaker 4: old company's page and I looked at what ETFs he

944
00:42:00,960 --> 00:42:03,160
Speaker 4: used to manage there and how that worked, and saw

945
00:42:03,200 --> 00:42:04,960
Speaker 4: that he did a really good job and then handed

946
00:42:05,040 --> 00:42:07,160
Speaker 4: over the reins to somebody to go into bigger and

947
00:42:07,200 --> 00:42:09,800
Speaker 4: better things. And I'm thinking, oh, this guy knows this industry.

948
00:42:09,880 --> 00:42:13,280
Speaker 4: Because it was one of the first ethical like portfolios

949
00:42:13,360 --> 00:42:15,480
Speaker 4: that this company had done. And I was like, how

950
00:42:15,480 --> 00:42:19,040
Speaker 4: do they know how to construct an ethical portfolio? Because like,

951
00:42:19,440 --> 00:42:21,839
Speaker 4: as much as you might think that's quite simple, it's

952
00:42:21,840 --> 00:42:24,319
Speaker 4: actually quite complicated to make sure that not only are

953
00:42:24,360 --> 00:42:28,160
Speaker 4: the businesses in that portfolio ethical, but also they perform,

954
00:42:28,280 --> 00:42:30,279
Speaker 4: because like, I'm not going to buy an ETF that's

955
00:42:30,320 --> 00:42:33,680
Speaker 4: ethical and then be happy losing money, Like I want

956
00:42:33,680 --> 00:42:36,080
Speaker 4: my investments to create wealth for me, right, So I

957
00:42:36,200 --> 00:42:38,920
Speaker 4: did the biggest deep dive this poor guy's LinkedIn, his

958
00:42:39,080 --> 00:42:42,720
Speaker 4: old assistance LinkedIn got looked at like everyone who managed

959
00:42:42,760 --> 00:42:45,560
Speaker 4: him on his manager, I was a super creepy stalker.

960
00:42:45,960 --> 00:42:49,000
Speaker 4: And I regret nothing because that gave me a lot

961
00:42:49,200 --> 00:42:52,719
Speaker 4: of validation that that was probably an investment that I

962
00:42:52,760 --> 00:42:55,640
Speaker 4: wanted to get involved in. So like, if the leadership

963
00:42:55,640 --> 00:42:56,600
Speaker 4: team is new, you.

964
00:42:56,640 --> 00:42:57,640
Speaker 2: Can have a look at that.

965
00:42:57,760 --> 00:43:00,640
Speaker 4: But also I want to know had I I've gone

966
00:43:00,719 --> 00:43:03,239
Speaker 4: and done this research beck and found that this guy

967
00:43:03,280 --> 00:43:06,320
Speaker 4: had never actually constructed an ETF before, he'd never picked

968
00:43:06,360 --> 00:43:09,719
Speaker 4: shares out. Why would he know that? Why would he

969
00:43:09,800 --> 00:43:13,520
Speaker 4: have any experience in ethical investing? Like that would have

970
00:43:13,560 --> 00:43:15,640
Speaker 4: been a red flag to me that they had just

971
00:43:15,719 --> 00:43:19,640
Speaker 4: done I guess a tokenistic portfolio that I wasn't probably

972
00:43:19,680 --> 00:43:21,839
Speaker 4: interested in. But what I found was like he had

973
00:43:21,840 --> 00:43:25,080
Speaker 4: a background in ethical investing, he had put together ETFs before,

974
00:43:25,160 --> 00:43:30,080
Speaker 4: he'd actually spoken at international conferences on constructing ethical portfolios,

975
00:43:30,080 --> 00:43:32,640
Speaker 4: And I was like this guy, Like, I back that.

976
00:43:33,040 --> 00:43:35,360
Speaker 4: So we want to find good things. Yeah, right, Like

977
00:43:35,520 --> 00:43:38,520
Speaker 4: it's kind of like you work for a radio station, beck, Yeah,

978
00:43:38,600 --> 00:43:42,120
Speaker 4: So new guy comes into the office, You're like, oh,

979
00:43:42,160 --> 00:43:45,279
Speaker 4: what does he do? Like, Oh, he's coming pretty top dog.

980
00:43:45,400 --> 00:43:47,080
Speaker 4: You go on his LinkedIn, you see that he's worked

981
00:43:47,080 --> 00:43:49,040
Speaker 4: at other radio stations and he's kind of worked his way.

982
00:43:49,040 --> 00:43:49,680
Speaker 2: I'd be like, Oh, this.

983
00:43:49,640 --> 00:43:51,960
Speaker 4: Guy's got some good experience. You can't wait for him

984
00:43:51,960 --> 00:43:54,560
Speaker 4: to join the team. That's what we're doing, but with

985
00:43:54,640 --> 00:43:58,879
Speaker 4: our shares. Okay, that's super creepy, stalker. We don't mind

986
00:43:58,880 --> 00:44:01,040
Speaker 4: if people see that we've been on their LinkedIn, Right,

987
00:44:01,120 --> 00:44:01,760
Speaker 4: you don't mind.

988
00:44:02,000 --> 00:44:02,280
Speaker 2: Yeah.

989
00:44:02,320 --> 00:44:04,080
Speaker 4: The next thing you want to do is check for

990
00:44:04,280 --> 00:44:08,799
Speaker 4: insider selling. Okay, So insider activity can I think be

991
00:44:09,000 --> 00:44:13,280
Speaker 4: quite telling if founders or like early investors are starting

992
00:44:13,280 --> 00:44:17,320
Speaker 4: to sell really large portions of shares at the initial

993
00:44:17,360 --> 00:44:20,719
Speaker 4: public offering. To me, that might signal doubt about the

994
00:44:20,719 --> 00:44:24,040
Speaker 4: company's future performance. Like why is the CEO selling all

995
00:44:24,080 --> 00:44:25,200
Speaker 4: of their shares.

996
00:44:24,840 --> 00:44:27,080
Speaker 2: Once it got listed? Why they scared?

997
00:44:27,360 --> 00:44:31,120
Speaker 4: Because often in a company like a company might issue

998
00:44:31,120 --> 00:44:34,319
Speaker 4: shares to their existing employees. Yeah, so I might go, oh,

999
00:44:34,400 --> 00:44:36,000
Speaker 4: beg you've worked for shares on the money. I'm going

1000
00:44:36,040 --> 00:44:37,799
Speaker 4: to give you a few shares as like you know,

1001
00:44:37,880 --> 00:44:39,560
Speaker 4: part of your remuneration package.

1002
00:44:39,560 --> 00:44:40,360
Speaker 2: And you go, sweet.

1003
00:44:40,440 --> 00:44:43,080
Speaker 4: They but then we go we're going to go to market, Beck,

1004
00:44:43,160 --> 00:44:45,120
Speaker 4: and you're like, thank god, I've got time to get out,

1005
00:44:45,360 --> 00:44:47,440
Speaker 4: but I'm going to sell my shares the second it

1006
00:44:47,440 --> 00:44:50,680
Speaker 4: gets listed to some unknowing other person.

1007
00:44:50,960 --> 00:44:52,120
Speaker 2: Yeah, okay, but.

1008
00:44:52,280 --> 00:44:54,799
Speaker 4: If they're holding onto their shares, or even if the

1009
00:44:55,120 --> 00:44:57,640
Speaker 4: CEO is buying more shares, that could be a really

1010
00:44:57,719 --> 00:44:59,920
Speaker 4: positive sign that it's a good company and the CEA

1011
00:45:00,239 --> 00:45:03,440
Speaker 4: is like, I really believe in this. Yeah, okay, that's

1012
00:45:03,600 --> 00:45:04,959
Speaker 4: doing some creepy stocker things.

1013
00:45:05,000 --> 00:45:06,360
Speaker 2: Again. Yes, I love that.

1014
00:45:06,520 --> 00:45:10,600
Speaker 4: It's market research. If it is publicly accessible information.

1015
00:45:10,200 --> 00:45:14,759
Speaker 2: Beck, it's research research. It's research. I'm great, my great.

1016
00:45:14,880 --> 00:45:16,560
Speaker 4: The other thing I've got a whole list here I

1017
00:45:16,600 --> 00:45:18,200
Speaker 4: do apologize is so we're going to have a look

1018
00:45:18,239 --> 00:45:22,480
Speaker 4: at the company's industry trends and their growth potential. So

1019
00:45:22,520 --> 00:45:25,960
Speaker 4: like investing in IPOs in industries with like really strong

1020
00:45:26,080 --> 00:45:30,600
Speaker 4: long term growth potential, like maybe like renewable energy or

1021
00:45:30,680 --> 00:45:34,879
Speaker 4: like tech can be advantageous. So we're probably gonna want

1022
00:45:34,880 --> 00:45:37,520
Speaker 4: to and this is maybe just personal advice avoid IPOs

1023
00:45:37,560 --> 00:45:42,200
Speaker 4: in sectors that have been stagnant or like overly trend dependent,

1024
00:45:42,440 --> 00:45:45,760
Speaker 4: as they might actually not have sustainable long term returns.

1025
00:45:46,200 --> 00:45:48,240
Speaker 4: Like I don't want to get in on something that's

1026
00:45:48,280 --> 00:45:51,319
Speaker 4: like it's a bit done. Yeah, so I guess a

1027
00:45:51,360 --> 00:45:53,400
Speaker 4: good example of this, Like I'm just gonna say, like

1028
00:45:53,400 --> 00:45:56,400
Speaker 4: a Stanley cup, right, so like last year on TikTok,

1029
00:45:56,640 --> 00:45:59,239
Speaker 4: last even eighteen months on TikTok, every man in his

1030
00:45:59,320 --> 00:46:03,200
Speaker 4: dog has their like Stanley drink cup, Right, so I

1031
00:46:03,280 --> 00:46:05,879
Speaker 4: would say that that trend might be a bit done.

1032
00:46:06,040 --> 00:46:08,640
Speaker 4: I don't know what the long term growth potential of

1033
00:46:08,719 --> 00:46:11,160
Speaker 4: a you know, a new drink bottle company might be.

1034
00:46:11,760 --> 00:46:13,440
Speaker 2: I'm a little bit you know, wary.

1035
00:46:13,480 --> 00:46:16,239
Speaker 4: They're not exactly you know, a tech company or renewable

1036
00:46:16,360 --> 00:46:19,239
Speaker 4: energy that's going to positively contribute to our society for

1037
00:46:19,280 --> 00:46:22,440
Speaker 4: a long period of time. Like maybe and I'm not

1038
00:46:22,480 --> 00:46:24,960
Speaker 4: saying that Stanley Cup's had its day. It's like absolutely

1039
00:46:25,000 --> 00:46:27,040
Speaker 4: still a thing, but like maybe a new drink bottle

1040
00:46:27,080 --> 00:46:29,319
Speaker 4: company that's coming in to be their competitor. You're kind

1041
00:46:29,320 --> 00:46:31,520
Speaker 4: of like, oh, but people have already done that, Like

1042
00:46:31,920 --> 00:46:33,560
Speaker 4: do I want to be buying that, like I can

1043
00:46:33,560 --> 00:46:35,960
Speaker 4: go get a fake Stanley cup tomorrow from kmart. This

1044
00:46:36,120 --> 00:46:38,799
Speaker 4: isn't new technology, This isn't something that I think is

1045
00:46:38,840 --> 00:46:41,480
Speaker 4: going to be sustainable in the long term. Right And

1046
00:46:41,640 --> 00:46:44,480
Speaker 4: obviously we're not talking about Stanley specifically here because they

1047
00:46:44,520 --> 00:46:47,360
Speaker 4: have market share at the moment. It's a new company

1048
00:46:47,400 --> 00:46:49,440
Speaker 4: coming in and you're like, oh, they're iboing, Like oh,

1049
00:46:49,480 --> 00:46:51,680
Speaker 4: I love the Stanley drink cups. That makes sense. But

1050
00:46:51,800 --> 00:46:55,160
Speaker 4: like if Kmart's doing them, is it done now? Like

1051
00:46:55,200 --> 00:47:00,040
Speaker 4: it's the trend over? Like I want sustainable long term returns,

1052
00:47:00,080 --> 00:47:03,359
Speaker 4: and then reputation. Reputation is really important, And I mean

1053
00:47:03,480 --> 00:47:07,960
Speaker 4: I have been on the slam multi level marketing companies

1054
00:47:07,960 --> 00:47:10,759
Speaker 4: for a really long time bandwagon and I'm just going

1055
00:47:10,840 --> 00:47:13,160
Speaker 4: to continue to talk about it. But if you're not

1056
00:47:13,480 --> 00:47:19,160
Speaker 4: googling a company name and the word scam or controversy

1057
00:47:19,280 --> 00:47:21,399
Speaker 4: or cork case, like what are you doing?

1058
00:47:21,800 --> 00:47:21,960
Speaker 1: Oh?

1059
00:47:22,200 --> 00:47:26,520
Speaker 5: This information is public knowledge, Beck, Like you can google,

1060
00:47:26,960 --> 00:47:32,520
Speaker 5: for example, money scam. You could google money, cork case,

1061
00:47:32,680 --> 00:47:35,640
Speaker 5: and so much information would come up to me. If

1062
00:47:35,680 --> 00:47:37,360
Speaker 5: I was then going to invest in that company, that

1063
00:47:37,400 --> 00:47:39,399
Speaker 5: might be a red flag that they have so many

1064
00:47:39,400 --> 00:47:41,880
Speaker 5: court cases against them, Right, is that free to do,

1065
00:47:42,160 --> 00:47:44,359
Speaker 5: yes back to it is simple.

1066
00:47:44,040 --> 00:47:46,320
Speaker 4: To google, but you just need to know what to google.

1067
00:47:46,760 --> 00:47:49,440
Speaker 4: So when we're looking for reputation, obviously that's not just

1068
00:47:49,480 --> 00:47:52,959
Speaker 4: googling like you know, keywords and scam whatnot. Like that's

1069
00:47:53,040 --> 00:47:55,080
Speaker 4: just me being a little bit spicy, but like we're

1070
00:47:55,080 --> 00:47:57,040
Speaker 4: gonna have a look at like media coverage, like what

1071
00:47:57,080 --> 00:47:58,000
Speaker 4: coverage have they gotten?

1072
00:47:58,040 --> 00:47:59,680
Speaker 2: Has it been positive? Has it been negative?

1073
00:48:00,160 --> 00:48:05,200
Speaker 4: Usually now in you know, twenty twenty four, there's reviews everywhere.

1074
00:48:05,600 --> 00:48:08,040
Speaker 4: Having a look at the company's reviews, Like what do

1075
00:48:08,120 --> 00:48:10,480
Speaker 4: their Google reviews say. We're going to also look on

1076
00:48:10,520 --> 00:48:13,680
Speaker 4: their Instagram and their social media because often people will

1077
00:48:13,719 --> 00:48:17,160
Speaker 4: take to Facebook or take to Instagram to vent like

1078
00:48:17,239 --> 00:48:19,880
Speaker 4: what are the comments sections saying what are their tagged posts?

1079
00:48:19,880 --> 00:48:21,520
Speaker 4: We're not looking at what the company is put out

1080
00:48:21,520 --> 00:48:23,960
Speaker 4: on their pretty little grid. We're looking at what have

1081
00:48:24,000 --> 00:48:26,960
Speaker 4: they been tagged in? What hashtags are being used? Like,

1082
00:48:27,040 --> 00:48:28,960
Speaker 4: Cause if it's like a pizza company, right, you're going

1083
00:48:29,000 --> 00:48:31,480
Speaker 4: to go to their Instagram. They're gonna have beautiful pictures

1084
00:48:31,480 --> 00:48:34,040
Speaker 4: of the Margarita pizza. They're gonna have beautiful pictures of

1085
00:48:34,120 --> 00:48:36,960
Speaker 4: this happy team, and then you're going to go to tagged,

1086
00:48:37,160 --> 00:48:39,040
Speaker 4: and there might be a post from Beck being like,

1087
00:48:39,040 --> 00:48:40,920
Speaker 4: look at this cockroach in my pizza?

1088
00:48:41,040 --> 00:48:41,200
Speaker 1: Right?

1089
00:48:41,239 --> 00:48:41,879
Speaker 2: Do you know what I mean?

1090
00:48:41,920 --> 00:48:43,879
Speaker 4: You're like, Oh, that's not what you said you were.

1091
00:48:44,280 --> 00:48:47,000
Speaker 4: So we're going to look at the brand reputation. In

1092
00:48:47,120 --> 00:48:51,240
Speaker 4: a perfect world, you'll also be able to understand employee satisfactions,

1093
00:48:51,239 --> 00:48:55,319
Speaker 4: So websites like glassdoor can really help you understand if

1094
00:48:55,360 --> 00:49:00,400
Speaker 4: the team is there. Also, again publicly accessible information, but

1095
00:49:00,440 --> 00:49:03,560
Speaker 4: we are going a little bit creepys talker. How long

1096
00:49:03,600 --> 00:49:06,319
Speaker 4: have their employees been there? LinkedIn will tell you that

1097
00:49:06,440 --> 00:49:09,040
Speaker 4: if you go to the company's LinkedIn page, Yes, say

1098
00:49:09,040 --> 00:49:11,319
Speaker 4: an average tenure, it's less than a year.

1099
00:49:11,360 --> 00:49:11,960
Speaker 2: What's going on?

1100
00:49:12,040 --> 00:49:12,239
Speaker 4: Yeah?

1101
00:49:12,239 --> 00:49:12,520
Speaker 2: What's that?

1102
00:49:12,560 --> 00:49:16,520
Speaker 4: Why is everyone leaving after twelve months? What's the average

1103
00:49:16,560 --> 00:49:19,879
Speaker 4: tenure of their leadership team? Specifically, like do they get

1104
00:49:19,880 --> 00:49:21,600
Speaker 4: a new CEO every eighteen months?

1105
00:49:21,600 --> 00:49:21,680
Speaker 5: Like?

1106
00:49:21,760 --> 00:49:23,560
Speaker 2: What's going on here? Red flag?

1107
00:49:23,960 --> 00:49:27,760
Speaker 4: And then understanding their company's culture and their core values.

1108
00:49:28,400 --> 00:49:31,440
Speaker 4: Is the company run by people who are also associated

1109
00:49:31,480 --> 00:49:32,000
Speaker 4: with a cult?

1110
00:49:32,360 --> 00:49:35,640
Speaker 2: Good thing? To figure out if it is. I'd probably

1111
00:49:35,680 --> 00:49:39,960
Speaker 2: be concerned. I would be I'd be asking some questions.

1112
00:49:40,040 --> 00:49:42,160
Speaker 2: I would be asking some questions and being like, is

1113
00:49:42,200 --> 00:49:42,759
Speaker 2: this for me?

1114
00:49:43,160 --> 00:49:46,400
Speaker 4: Rolemably not, and then we're obviously going to have a

1115
00:49:46,400 --> 00:49:49,680
Speaker 4: look at the market condition. So this isn't specifically for

1116
00:49:49,760 --> 00:49:53,720
Speaker 4: your industry or your specific share, but like IPOs tend

1117
00:49:53,880 --> 00:49:58,120
Speaker 4: to perform better in stable or bullish market. So remember

1118
00:49:58,480 --> 00:50:00,360
Speaker 4: back to like when I say bullish, do you know

1119
00:50:00,360 --> 00:50:01,160
Speaker 4: what bullish means?

1120
00:50:01,280 --> 00:50:03,280
Speaker 2: Bullish? I can't remember.

1121
00:50:03,480 --> 00:50:06,640
Speaker 5: It's aggressive, like going up, like the red flag is

1122
00:50:06,719 --> 00:50:09,520
Speaker 5: like flying, and the bull is running for the red flag.

1123
00:50:09,560 --> 00:50:12,000
Speaker 5: And the market's are like doing really well, and a

1124
00:50:12,040 --> 00:50:13,280
Speaker 5: bear bears.

1125
00:50:12,920 --> 00:50:15,479
Speaker 2: Like to hibernate. They like to have a little nap

1126
00:50:15,520 --> 00:50:16,920
Speaker 2: and they're not doing much work.

1127
00:50:17,040 --> 00:50:20,319
Speaker 4: So a bull market is where it's doing really well

1128
00:50:20,360 --> 00:50:22,759
Speaker 4: and it's growing. In a bear market, it's gone into

1129
00:50:22,800 --> 00:50:25,359
Speaker 4: a little bit of hibernation. It's just chilling, like it's

1130
00:50:25,360 --> 00:50:27,760
Speaker 4: probably going to come back because you know it ebbs

1131
00:50:27,800 --> 00:50:31,920
Speaker 4: and flows. But in a bullish market, obviously an IPO

1132
00:50:32,000 --> 00:50:34,319
Speaker 4: is going to go better because the market sentiment and

1133
00:50:34,400 --> 00:50:37,680
Speaker 4: people are ready to buy. Whereas in like a period

1134
00:50:37,760 --> 00:50:40,120
Speaker 4: of lull or hibernation, if I said do you want

1135
00:50:40,120 --> 00:50:43,000
Speaker 4: to buy aniwchhe You're like no, I might just continue napping,

1136
00:50:43,120 --> 00:50:45,799
Speaker 4: like I'm not that interested, Like I'm seeing everybody else,

1137
00:50:45,840 --> 00:50:48,240
Speaker 4: you know, not buying, so I'm not going to buy

1138
00:50:48,440 --> 00:50:52,320
Speaker 4: does that make sense? And then in a volatile market,

1139
00:50:52,440 --> 00:50:56,120
Speaker 4: So in a bear market, new stocks they can experience

1140
00:50:56,320 --> 00:50:59,279
Speaker 4: I guess really dramatic like price rings. They might like

1141
00:50:59,360 --> 00:51:01,239
Speaker 4: launch it a really high price and then go down,

1142
00:51:01,280 --> 00:51:03,640
Speaker 4: but that might not actually be reflective of their value.

1143
00:51:03,760 --> 00:51:07,359
Speaker 4: So I would weigh what the current market conditions are? Okay,

1144
00:51:07,480 --> 00:51:10,160
Speaker 4: go what kind of market are we in? But also

1145
00:51:10,880 --> 00:51:14,120
Speaker 4: if you are a company and you are considering ipoing

1146
00:51:14,160 --> 00:51:16,560
Speaker 4: and going onto the share market, and you're like, let's

1147
00:51:16,560 --> 00:51:18,360
Speaker 4: do this during economic downturn?

1148
00:51:18,960 --> 00:51:19,640
Speaker 2: What are you doing?

1149
00:51:20,280 --> 00:51:23,799
Speaker 4: That's like a really dumb decision. You're selling yourself into

1150
00:51:23,840 --> 00:51:27,080
Speaker 4: a period of time where people aren't that confident in investing,

1151
00:51:27,360 --> 00:51:29,040
Speaker 4: let alone investing in new things.

1152
00:51:29,120 --> 00:51:30,680
Speaker 2: Right, you want to do it in a bulls market? Yeah,

1153
00:51:30,719 --> 00:51:32,600
Speaker 2: So I'd be like, why are you doing it in

1154
00:51:32,640 --> 00:51:34,920
Speaker 2: a bear market? To you, potato? And how do we

1155
00:51:34,960 --> 00:51:36,600
Speaker 2: find out if it's a bull or bear? Right now?

1156
00:51:36,640 --> 00:51:39,040
Speaker 4: So you can just google it, like what's the Australian

1157
00:51:39,120 --> 00:51:41,480
Speaker 4: share market up to at the moment? I do a

1158
00:51:41,520 --> 00:51:44,239
Speaker 4: lot of obviously investing content you can ask me. I'll

1159
00:51:44,280 --> 00:51:46,640
Speaker 4: talk about it, but yeah, I feel like I've yapped

1160
00:51:46,640 --> 00:51:48,719
Speaker 4: on and on and on about this, so h I

1161
00:51:48,760 --> 00:51:52,239
Speaker 4: think the question on everyone slips remains. Will Shees on

1162
00:51:52,280 --> 00:51:56,040
Speaker 4: the Money ever be the next IPO? Absolutely not, absolutely not,

1163
00:51:56,560 --> 00:51:59,480
Speaker 4: Like I know that you might want us to IPO

1164
00:51:59,600 --> 00:52:01,480
Speaker 4: and it would be really fancy, And I feel like

1165
00:52:02,320 --> 00:52:04,520
Speaker 4: this is not like a mean thing to say, but

1166
00:52:04,600 --> 00:52:07,240
Speaker 4: I feel like sometimes if you are a business owner,

1167
00:52:07,880 --> 00:52:11,719
Speaker 4: ipoing and selling shares can be quite ego driven. Sure,

1168
00:52:11,800 --> 00:52:14,200
Speaker 4: like you're like, I'm list it, like okay, cool, Like

1169
00:52:14,239 --> 00:52:16,960
Speaker 4: no one gets like literally like I don't think you're

1170
00:52:17,000 --> 00:52:20,120
Speaker 4: cooler because you have a company that iPod. I just

1171
00:52:20,239 --> 00:52:25,279
Speaker 4: don't like the idea that I would be responsible for shareholders.

1172
00:52:25,480 --> 00:52:27,960
Speaker 2: Yeah, Like I like that the buck stops with.

1173
00:52:27,880 --> 00:52:30,560
Speaker 4: Me and I make the decisions because, like, let's be honest,

1174
00:52:30,560 --> 00:52:32,160
Speaker 4: a lot of the decisions that I make in my

1175
00:52:32,239 --> 00:52:34,520
Speaker 4: business a company would be like, oh, I'm sorry, Like

1176
00:52:34,560 --> 00:52:37,839
Speaker 4: you could increase shareholder profit by not sending your team

1177
00:52:37,920 --> 00:52:41,560
Speaker 4: members on international conference trips. And on the flip side,

1178
00:52:41,600 --> 00:52:44,640
Speaker 4: I'm like, oh, I love that I can have a

1179
00:52:44,680 --> 00:52:48,719
Speaker 4: business that gets to invest in the growth of my team, like,

1180
00:52:48,920 --> 00:52:52,200
Speaker 4: and that's not like the values that I hold Sometimes

1181
00:52:52,239 --> 00:52:54,640
Speaker 4: don't align with high shareholder return.

1182
00:52:54,880 --> 00:52:58,000
Speaker 2: Right, Okay, does that make sense? Yeah, and you're allowed.

1183
00:52:58,160 --> 00:52:59,520
Speaker 2: I could do what I want. You can do what

1184
00:52:59,600 --> 00:53:02,240
Speaker 2: you want the free world, including right now. I reckon,

1185
00:53:02,280 --> 00:53:04,000
Speaker 2: let's go do what we want. Let's have a coffee.

1186
00:53:04,080 --> 00:53:07,000
Speaker 4: There's diet coke in the frigid work now, Oh my god,

1187
00:53:06,800 --> 00:53:07,680
Speaker 4: I know.

1188
00:53:07,840 --> 00:53:09,759
Speaker 2: Josh hooks us up. So we've got to go get

1189
00:53:09,760 --> 00:53:10,239
Speaker 2: one of those.

1190
00:53:10,280 --> 00:53:13,839
Speaker 4: But I think before I leave you, obviously with investment,

1191
00:53:14,200 --> 00:53:16,600
Speaker 4: all investments carry risk, we know that. But with the

1192
00:53:16,680 --> 00:53:20,239
Speaker 4: right research, I think you can pick investments that fit

1193
00:53:20,320 --> 00:53:23,040
Speaker 4: your goals and what you want to achieve, not just

1194
00:53:23,120 --> 00:53:26,200
Speaker 4: the investments that everybody's talking about. Great call, We're going

1195
00:53:26,239 --> 00:53:28,840
Speaker 4: to go get a little cheeky diet coke. But if

1196
00:53:28,880 --> 00:53:30,200
Speaker 4: you've just met us, and this is one of the

1197
00:53:30,239 --> 00:53:33,080
Speaker 4: first episodes you've listened to, please hit subscribe and join

1198
00:53:33,160 --> 00:53:34,880
Speaker 4: us each week as we kind of help you to

1199
00:53:34,920 --> 00:53:37,719
Speaker 4: get closer to financial freedom. And also we're trying to

1200
00:53:37,719 --> 00:53:39,880
Speaker 4: make finance fun. And if you want to share that

1201
00:53:39,920 --> 00:53:42,560
Speaker 4: money confidence with your friends, please don't keep it to yourself.

1202
00:53:42,600 --> 00:53:45,319
Speaker 4: We want a bigger, better community. The more people who

1203
00:53:45,320 --> 00:53:46,480
Speaker 4: are financially free.

1204
00:53:46,280 --> 00:53:47,520
Speaker 2: The better beck I love that.

1205
00:53:47,520 --> 00:53:49,640
Speaker 4: It's so true V Die coke time, but I got's

1206
00:53:49,680 --> 00:53:53,800
Speaker 4: go by.

1207
00:53:56,560 --> 00:53:59,200
Speaker 5: The advice shared on Cheese on the Money is generally

1208
00:53:59,360 --> 00:54:03,160
Speaker 5: nature and does not consider your individual circumstances. She's on

1209
00:54:03,200 --> 00:54:06,680
Speaker 5: the Money exists purely for educational purposes and should not

1210
00:54:06,760 --> 00:54:09,720
Speaker 5: be relied upon to make an investment or financial decision.

1211
00:54:10,120 --> 00:54:12,440
Speaker 2: If you do choose to buy a financial.

1212
00:54:11,920 --> 00:54:15,920
Speaker 5: Product, read the PDS TMD and obtain appropriate financial.

1213
00:54:15,520 --> 00:54:17,320
Speaker 2: Advice tailored towards your needs.

1214
00:54:17,680 --> 00:54:21,600
Speaker 5: Victoria Divine and She's on the Money are authorized representatives

1215
00:54:21,640 --> 00:54:25,359
Speaker 5: of money. Sheper Pty Ltd a BN three two one

1216
00:54:25,560 --> 00:54:29,440
Speaker 5: six four nine two seven seven zero eight AFSL four

1217
00:54:29,560 --> 00:54:36,880
Speaker 5: five one two eight nine