Choosing an investing style that’s right for you!

Maddy Guest: [00:00:54] Hello and welcome to another episode of You're in Good Company, a podcast for like minded people who want to make smart investment decisions. I'm Maddie and as always, I'm here with my good friend Sophie. [00:01:05][10.7]

Sophie Dicker: [00:01:06] Hi, Maddie. How are we today? [00:01:07][1.8]

Sophie Dicker: [00:01:09] We're good. You never know what to say to that question. Do I really? Do you actually. Good. [00:01:15][5.9]

Maddy Guest: [00:01:15] Yeah, I'm great. I'm great. Oh,. [00:01:17][1.9]

Sophie Dicker: [00:01:18] OK. There we go. I'm really happy for you. [00:01:20][2.0]

Sophie Dicker: [00:01:22] I'm excited for today's chat. It's just going to be the two of us in four years, but still fun. Before we start today's episode, we'd like to acknowledge and pay respects the wonder people of the nation who are the traditional owners of this land. We pay our deepest respects to the elders past and present and to the next generation who we hope to create a different future for. [00:01:41][18.7]

Maddy Guest: [00:01:41] OK, so before we get into today's episode, I just want to do a quick shout out to all of our community members, because I feel like every episode we sit here and we annoyingly ask everyone to go and like and subscribe to the podcast and leave a review. [00:01:57][15.4]

Sophie Dicker: [00:01:57] Please go subscribe. [00:01:57][0.5]

Maddy Guest: [00:02:00] other day I was checking and there is some of the nicest reviews and it made me feel so nice. But I want to just raise you one in particular. It was the subject line was for my daughters, it was really nice. And he said, That's from Mikage, thank you Mikage. He said, My daughters are now 11 and 13. They have been investing in index ETFs. Amazing. I wish I started when I was 11 and 30 years ago. But he said they are excited about their dividends and learning patience on capital growth. Sometimes I think they are a bit bored by Dad trying to get them excited about it. I can't wait to share this with them. [00:02:39][39.3]

Sophie Dicker: [00:02:40] They'll be so excited when they're like 18 or 21 and he's like, [00:02:42][2.6]

Maddy Guest: [00:02:43] you've got anyway, I just there are lots of really great reviews on this. [00:02:48][4.8]

Maddy Guest: [00:02:48] I thank you very much. And thank you also to everyone who has joined our Facebook group and is posting questions and engaging in discussion topics that it's really awesome. So if you would like to join why I say investing podcast discussion group on Facebook. [00:03:01][13.2]

Sophie Dicker: [00:03:02] Yeah, it's actually been a bit of traction that [00:03:04][1.7]

Sophie Dicker: [00:03:09] OK, so today we are jumping into the topic of investing styles strategy. [00:03:17][7.9]

Maddy Guest: [00:03:18] You said so ominously. Investing styles. Yes. Your investing styles. Yeah. [00:03:25][7.0]

Maddy Guest: [00:03:25] So throughout this episode, we're going to use the terms, style and strategy interchangeably. So that's just a disclosure from the very start. If we use both plaisir and get just one. [00:03:35][9.8]

Sophie Dicker: [00:03:35] But we didn't. [00:03:36][0.6]

Maddy Guest: [00:03:37] Well, yeah, but then if people rated ultra Yonatan's downturn. So Sophi, let's go really basic. What is an investing style slash strategy? [00:03:46][9.4]

Sophie Dicker: [00:03:49] I'm going to go with style. So it's just a set of principles that help each individual investor decide what to invest in. So think of it as your personal investing style. Your style isn't going to be the same as, you know, your best friends or your parents or whoever's, because it's something that will work for you and it's very dependent on your goals, your risk tolerance and your future desire or need for capital. [00:04:15][26.0]

Maddy Guest: [00:04:16] Understanding your investing style is understanding your wife, your investing life. It's really like when you are looking at a potential purchase of an ETF or a stock investing style comes back to why you're looking at purchasing that investment. [00:04:29][13.4]

Sophie Dicker: [00:04:30] Yeah, yeah, 100 percent. And that will make a bit more sense when we jump into it. [00:04:34][4.1]

Sophie Dicker: [00:04:34] Yeah. [00:04:34][0.0]

Maddy Guest: [00:04:36] So today we want to discuss what we consider to be four of the most common investing style slash strategy. I'm going to start saying that now just to try and get us across sort of what the terms mean because they are ones that fly around quite a lot. Yes. [00:04:52][15.9]

Sophie Dicker: [00:04:53] So the first kind of comparison that we have is passive, the active Soemadi. Let's start with the first one. Maybe what's passive investing? [00:05:04][11.6]

Maddy Guest: [00:05:05] Yeah. So passive investing at its core is really just buying and holding for the long term. So the idea is that you're building wealth gradually and the underlying assumption, I guess. Is that the market will have positive returns over the long period, so the idea is that capitalism is going to do its work. We're going to have economic growth over the long term. Companies are going to earn money, make money, grow, and you are going to benefit from the overall economy growing. Do that not make sense? [00:05:35][30.3]

Maddy Guest: [00:05:36] I think it represents capitalism's vigor that [00:05:38][2.5]

Maddy Guest: [00:05:41] capitalism is just like the business world. [00:05:43][2.4]

Maddy Guest: [00:05:44] That's probably not right, but that's how I think of it. Just go with that. [00:05:46][2.8]

Maddy Guest: [00:05:48] So, for example, if you put a thousand dollars in a month into the share market, you will have one point two million dollars after 30 years. And that's based on a seven percent return on average. And the idea is you are to achieve that kind of return. You're investing in sort of really broad ETF. So market indexes. And by that I just mean ASX 200, ATFP, your large American ETF and things like that. [00:06:13][25.1]

Sophie Dicker: [00:06:14] So often passive investing and index investing terms that are quite interchangeable. And that's because a lot of, say, passive investing managers will track index funds. So that's just your average ETF. [00:06:28][14.3]

Maddy Guest: [00:06:29] Yeah. So in the index fund is just the, you know, two hundred the largest 200 companies in Australia is an example of an index fund. Yeah. And that's why it's considered a more hands off approach because you're not trying to pick winners, you're not trying to pick individual stocks. Your goal really is just to get the average market return over a long period of time. [00:06:49][19.2]

Sophie Dicker: [00:06:50] So passive investing, I would say, is more common for, like, the everyday investor, right? [00:06:55][5.1]

Maddy Guest: [00:06:56] Yeah, definitely. It's such a great way to make money if you know you're really busy, if you don't have the time or the interest in really engaging in sort of like finance in the business world and the stock market more generally, it's a great way to just like to invest and not be missing out, but not have to commit Heynckes of time and effort into doing it. [00:07:14][18.0]

Sophie Dicker: [00:07:14] Yeah, actually, that's what our newbie investor said, Chloë, last week when we were speaking to her, she was saying, you know, she works full time, but she obviously wants to get into investing, but she's going to have to research all the time. Yeah, 100 percent. I think this is a good strategy to, like, kind of stick to if you're not that into it, but still want to gain the dollars. [00:07:33][18.6]

Maddy Guest: [00:07:33] Yeah. Which should be everyone. [00:07:35][1.4]

Sophie Dicker: [00:07:36] I don't know. I wouldn't want to gain the dollars. [00:07:37][1.3]

Maddy Guest: [00:07:38] Exactly. OK, so flipping this one around now. So the other one that we discussed there is active. So what is active investing. [00:07:47][9.7]

Sophie Dicker: [00:07:48] Yes. So use of the passive is kind of the hands off approach. Active is more the hands on approach to investing. So this style reflects a little more of like that classic Wall Street or like even Wall Street image. [00:08:01][13.3]

Sophie Dicker: [00:08:02] They're like screaming at each other, not necessarily in your home, doing active investing, screaming at the computer, you know, but [00:08:15][12.5]

Sophie Dicker: [00:08:15] it is a little bit more like hands on, a little bit more time and effort now that I think about it, like people that, you know, do active investing. [00:08:24][9.0]

Sophie Dicker: [00:08:25] I don't know why we would say that. They scream like a lot of analysis. Yes. [00:08:30][5.1]

Sophie Dicker: [00:08:31] So the goal of active money management is to beat the stock market average return instead of meeting the average return. So passive is kind of meeting that average return. Active is beating the return. And as you mentioned, Mad's passive investing is really about the long term, whereas active is more about kind of gaining from short term fluctuations or volatility, as we've probably called it a hundred times. [00:08:57][25.6]

Maddy Guest: [00:08:58] OK, so what do you actually mean by short term fluctuations or how do people gain from short term volatility? [00:09:05][6.8]

Sophie Dicker: [00:09:06] Yeah, so I'll explain. It was probably a really common term that people talk about, which is day trading. [00:09:11][5.5]

Sophie Dicker: [00:09:12] So day trading, day trading, trading. I don't think we've done. No. Yeah. [00:09:18][5.7]

Sophie Dicker: [00:09:18] And I don't think I would be successful. [00:09:19][1.0]

Sophie Dicker: [00:09:20] No, I don't think I would bet I am too scared. Yeah, well it's pretty risky. [00:09:25][5.5]

Sophie Dicker: [00:09:26] So pretty much it's explained by its name. Day trading, you're buying and selling stocks or also forex, which is like foreign exchange. That's really common buying and selling shares within a single day. And it's kind of about, you know, we were talking last week with the company announcements how we'll see like a quarterly earnings or a company report or whatever else these people will try and predict or they use algorithms or whatever else to kind of predict what's going to happen with that company. And then. [00:09:55][29.2]

Maddy Guest: [00:09:56] Yeah, well, hold on, because the the people who do this professionally might be using algorithms for the people who are sitting at home doing it on their own. They don't have algorithms. So they're trying to just use their knowledge and their research to try and beat the market. [00:10:10][14.3]

Sophie Dicker: [00:10:11] Yeah. So they're using yeah. They're doing all their research and then they're waiting for these company reports or whatever. It is that they think that's going to move the share price, they're waiting for that and then they're hoping that their prediction is right and you can make a whole heap of money if your predictions right. And you can lose a whole heap of money if your predictions are wrong. That's why Maddie is scared [00:10:29][18.8]

Sophie Dicker: [00:10:30] of day trading. You don't have that conviction. [00:10:32][2.0]

Maddy Guest: [00:10:33] Neither do I. [00:10:34][0.5]

Sophie Dicker: [00:10:36] But yeah. So it's just a little bit more active. Active management isn't just like day trading. You can also have, like, actively managed ETFs if you've seen that before and if you're wondering what it is. And Maddie, you actually pitched an active ETF and one of our pitch nights on Instagram. [00:10:51][15.6]

Maddy Guest: [00:10:52] Yes, IISF is an actively managed ETF equity. [00:10:56][4.0]

Sophie Dicker: [00:10:57] So that just means not whoever's behind managing that ETF, they are actually looking at the portfolio of stocks and they're changing the stocks and putting new ones in, depending on, you know, what they think is correct and is a part of their investment philosophy compared to passive ETFs, which are just tracking an index. So you're a 200, for example. [00:11:16][19.0]

Maddy Guest: [00:11:17] Yes. So I guess we can say that passive investing is about time in the market and active investing is about timing the market. Yes. [00:11:26][8.8]

Sophie Dicker: [00:11:26] You said that virtually passive is long term gains. Active is short term fluctuation gains or losses. Yes. [00:11:34][7.6]

Sophie Dicker: [00:11:35] Yes. After all, losses probably strikes on long term. No, actually, other people don't take any advice from that. Right now, we are [00:11:47][11.7]

Maddy Guest: [00:11:47] going to take a quick break for our sponsors, but we will be right back to chat more about investing styles. [00:11:52][5.0]

Sophie Dicker: [00:12:29] So talking about active investing, there are different styles of stock picking that you can pursue when you are actively investing. So we did mention day trading before, but you can still actively invest while also holding like a portfolio of assets, which is just picking companies that you think are interesting and then this kind of two main styles under these active investing. [00:12:50][21.0]

Maddy Guest: [00:12:50] Yeah. So before you jump into that, I guess to be a bit more specific around, like passive investing is really like we said about following the index, active is more about stock picking. So we talked about day trading and that's an example in its purest form. But active investing is about picking stocks and it doesn't have to be bought and sold within one day. [00:13:10][19.5]

Sophie Dicker: [00:13:11] It can be still buy and hold. It's just that you've put a bit more effort into. [00:13:14][3.3]

Maddy Guest: [00:13:15] Yeah, well, I guess you have to actively monitor it, right? [00:13:17][2.2]

Sophie Dicker: [00:13:17] Yeah, sure. So two of the most common active investing styles that you'll hear is value and growth. And these are kind of also comparison. Like you can be both of them if you really want to be, because you can buy in to lots of different companies. But usually that's the comparison. You hear someone's a value investor or they're a growth investor. So we might start with value because Mad's I would probably say with all the stocks that you've told me about that you've bought, you're probably more of a value investor. [00:13:46][28.5]

Sophie Dicker: [00:13:46] Yeah, no, definitely more of a yes. Which we're trying to change that. But I have been. That's OK with learning. [00:13:56][9.4]

Sophie Dicker: [00:13:56] So can you please explain value investing? [00:13:59][2.9]

Maddy Guest: [00:14:00] Yes. So value investing involves picking stocks that appear to be trading for less than what's called their intrinsic value. So that basically means that the stock price is considered to be low relative to the company characteristics such as earnings or sales or dividends. So Warren Buffett is really a well known investing style. I don't know. Everyone would know who Warren Buffett is, but if you do not know, then please go and read, what, at least five articles about his life look him up. He's pretty cool. It will make you really want to invest. Yeah, he's yeah. He's done amazing stuff. [00:14:39][38.5]

Sophie Dicker: [00:14:39] He also kind of like invented value investing. Yeah, pretty much. He made it like common. Yes. Yeah. [00:14:45][6.5]

Maddy Guest: [00:14:46] So if you are a value investor, you are essentially to sort of speak really broadly. You're looking for stocks that are underestimated by the stock market. So you're looking to buy a share that's worth one dollar, but you're only buying for fifty cents. [00:15:02][15.5]

Sophie Dicker: [00:15:02] Yeah, right. So in theory, it doesn't really matter how good or bad a company is. The idea is that you're just getting it for cheaper in comparison to the underlying company. [00:15:14][11.6]

Maddy Guest: [00:15:14] Yeah, exactly. So the belief is that you're buying the share on sale or at a discount to make it like shopping. [00:15:21][6.5]

Sophie Dicker: [00:15:22] Right. [00:15:22][0.0]

Maddy Guest: [00:15:23] Let's not compare the stock market to shopping, [00:15:24][1.4]

Sophie Dicker: [00:15:26] but [00:15:26][0.0]

Maddy Guest: [00:15:26] you're buying it at a discount to the profit that they're going to make for years to come. Right. [00:15:31][4.3]

Sophie Dicker: [00:15:31] So for someone like this, this can get a bit difficult because it's not like out Birkerts mentioned this is a value stock or this is a growth stock. Like, you have to work that out. So what is like what kind of what are the characteristics that usually of value stock kind of has? [00:15:45][13.8]

Maddy Guest: [00:15:46] Yes, very good question. So they are typically sort of more mature businesses and they have sort of quite steady growth, right? Yeah. I'm going to go into a metric that is really common for finding value stocks. OK, I'm going to keep it really simple. Yes. Scary. No, it is not so scary, but not scary because they're going to explain them really, really nicely. So pay ratio is a ten that you might have heard before. It's thrown around quite a lot in investing. And it's one of the major sort of metrics that we can look at. And what pay ratio is is it the company's share price compared to its earnings per share? So basically that is just a financial metric. That is an indicator of the company's profitability. And the lower the ratio, the better it is because the more value you're getting for the price that you pay. [00:16:41][54.9]

Sophie Dicker: [00:16:41] So how do we find a company's pay ratio? [00:16:44][2.4]

Maddy Guest: [00:16:45] Yes. So you can get this information from the companies on annual reports. But even Azia, my favorite way to find out is download the app Yahoo! Finance. Yeah. And you can literally type in any company and it just tells you the payout ratio. Yeah, it's pretty [00:16:59][14.7]

Sophie Dicker: [00:17:00] they're pretty easy to find. Yeah. I mean, I'm pretty sure you could just Google. [00:17:02][2.3]

Maddy Guest: [00:17:03] Exactly. So we talked about the lower the ratio the better. But probably the most important thing is that we're comparing to the companies industry competitors. Yeah. So because what is a low number. Well the idea is that let's take supermarkets, for example, that if you're looking at investing into Woolworths, you will look at the Woolworths pay ratio compared to Coles compared to Aldi. And get an idea of where it sits in comparison to its industry and whether it's low in comparison to the other companies in the industry. [00:17:34][31.7]

Sophie Dicker: [00:17:35] Yeah, I think that's a really important point because you like you have no idea what a low number is like. What does that even mean? It's just got to compare because, like, the numbers will be very different depending on the market, the industry, etc.. [00:17:46][10.7]

Maddy Guest: [00:17:47] Yeah. So a couple of examples of value companies. Just to give some context, we've got the big four banks. We've got CSL, Telstra, and like I said, supermarkets. [00:17:55][8.9]

Sophie Dicker: [00:17:57] Nice. [00:17:57][0.0]

Maddy Guest: [00:17:58] All right. So given I am apparently the value investor of the two of us, and that would make you the growth investor or the more sexy investor, then you say, [00:18:09][10.7]

Sophie Dicker: [00:18:09] please don't say sexy and look me in the eye like that, [00:18:11][2.0]

Sophie Dicker: [00:18:12] please. So what what is growth investing? [00:18:16][4.3]

Maddy Guest: [00:18:18] Yeah. [00:18:18][0.0]

Sophie Dicker: [00:18:18] OK, so growth investing is investing in companies that are expected to grow at higher rates than other companies in the industry or sector. So often when you speak about growth investing, you're speaking about smaller or younger companies. Yes, mainly because they have a lot more potential for faster growth compared to like companies that are already well established and have a bit of a slower growth. Right. I guess people would consider growth investing a little bit more exciting or like, you know, usually buzzing, like talking about stocks that are like buzzing in the media, etc.. [00:18:53][34.9]

Maddy Guest: [00:18:54] Yeah, it's a sexy investing, [00:18:54][0.9]

Sophie Dicker: [00:18:55] the cool stuff you look at again. [00:18:57][1.5]

Sophie Dicker: [00:18:59] But obviously, the higher the return is, the higher the risk. So there is more risk definitely in growth investing. This is because with growth investing, unlike value investing, you don't care so much about the price you're actually paying. So going back to something like the pay ratio, growth, stocks are likely to have a much higher pay ratio because you're expecting that the company will grow into that price that you're willing to pay. [00:19:22][23.1]

Maddy Guest: [00:19:23] So because you're paying a premium, because you're paying a really high price for the stock that you're getting, if you're wrong, you can lose quite a bit of money. [00:19:32][9.2]

Sophie Dicker: [00:19:32] Yes, quite a bit. [00:19:34][1.6]

Maddy Guest: [00:19:35] OK, so how about like we looked at with value investing, how do we find a growth stock? [00:19:42][7.0]

Sophie Dicker: [00:19:43] Yeah, so I think the main metrics that you can look at for this one and sorry that it's metrics again, [00:19:49][6.2]

Maddy Guest: [00:19:49] but no, I think it's good. Yeah, it's good. Hopefully it's just simple. Yeah. [00:19:53][4.2]

Sophie Dicker: [00:19:54] So you look at the sales or the earnings growth rates and I guess like another rule of thumb, but looking at them, if they're in the double digits so you can just Google like average industry growth. Right. And then also then compare that to what the company's growth rate is. [00:20:12][17.7]

Maddy Guest: [00:20:13] Yes. Can we just clarify for a second, because you mentioned sales and earnings there. What what's the difference? [00:20:20][7.1]

Sophie Dicker: [00:20:20] Yeah, so sales is the company's top line. So it's how much the income, the company's earnings. If you think of just like a basic example, like your local coffee shop, the sales is what they're getting from the coffee payments. Yes. And the earnings is the company's bottom line. So it's income after all the expenses that have been deducted. So it's the coffee cups that are being sold and then minus the rent and the coffee beans and the cups and whatever else. Yes. Earnings is after all those expenses. OK, so both are as important for growth analysis. [00:20:53][32.5]

Maddy Guest: [00:20:54] Yes. And I guess we want to note for all of these metrics that we've talked about as well, that it can be really good to understand, just for your own sort of perspective what they've been historically, what they are now and what they are projected to be into the future. So we can get all this information online, which is great. [00:21:12][17.8]

Sophie Dicker: [00:21:12] Yes. And if you're just looking at one company, like I know this sounds a bit scary trying to find all this information, but it's so simple to access. [00:21:18][5.9]

Maddy Guest: [00:21:18] Yes. Especially on resources like Yahoo! Finance. Yeah. [00:21:21][2.3]

Sophie Dicker: [00:21:21] You just Google company name and then sales or earnings. Earnings. Right. Whatever. It's it's really it's really not that hard to find. There's also one other metric that you can look at for growth, and that's ROIC, which is return on equity and that measures the productivity of a company. So given the money that the company has, what's its return that it's making? So a company that grows well into the future is one that can take the money that it's making and invest it back into the business in really productive ways. [00:21:51][29.7]

Maddy Guest: [00:21:51] Yeah, and again, I think it's really important that we look at this in the context of similar companies in the industry so we can pay our way to its competitors or the other companies that are similar to it. But a general guide for a company that is growing really well can be in a way of greater than 15 per cent as a really general guide. But again, I think it's important to say that we want to take all of these metrics sort of with a grain of salt. Yeah, they're just a starting point for us to sort of start analyzing the companies. Yeah. [00:22:24][32.5]

Sophie Dicker: [00:22:25] So that is growth investing, if you're thinking of. Like wanting to understand the companies after pay or buy now, pay later kind of companies see things like zero. A lot of technology companies and a lot of what I've been looking at lately, medical companies, you a lot of small medical companies coming through that are trying to make a statement. [00:22:43][18.0]

Maddy Guest: [00:22:44] Yeah. So I think it's probably fair to say that growth investing is the most time intensive investing style of the ones that we've discussed today. Like following a growth strategy means you're trying to find stocks that are going to outperform the market. So, you know, when we think about it, we have their professionals doing this every day and they have algorithms that help them to find those companies and to know when to buy and sell them. So I think it's just good to remember, like, not not at all saying don't do it, because we're going to chat about a bit later on what we do, what we do. But I think it's just good to remember who you are competing against just to keep things real. [00:23:22][37.5]

Sophie Dicker: [00:23:22] The books. [00:23:22][0.1]

Sophie Dicker: [00:23:26] So to finish off today, we are going to go to a question from one of our community members. [00:23:30][4.1]

Maddy Guest: [00:23:31] Thank you, community members. [00:23:32][1.0]

Sophie Dicker: [00:23:32] I love when people message us. Do you have to pick one strategy? [00:23:37][5.0]

Sophie Dicker: [00:23:39] Hmm. Indeed. [00:23:42][2.3]

Maddy Guest: [00:23:43] I guess the straight answer is or the quick answer is no. Yeah, you can pick as many strategies as you like. Maybe we should answer this in the context of our own, like what we do. [00:23:54][11.0]

Sophie Dicker: [00:23:54] Yeah, I think that's a good idea. It makes a bit more sense. [00:23:56][1.7]

Maddy Guest: [00:23:56] OK, so I personally, I invest about 60 percent of my portfolio with a passive strategy. So I buy and hold ETFs that follow market indexes. So I have ETFs, follow Australia, US, Asia, Europe and gold of gold, gold. And then with the other 40 per cent, I pursue a bit more of an active strategy. So this works maybe because I'm quite young, I'm putting in money that I don't need to access anytime soon. And I find all of this stuff really interesting. So I really enjoy spending time researching and keeping my head across the news and monitoring how things are going. [00:24:37][41.0]

Sophie Dicker: [00:24:38] So under active strategy, what are you buying into? Value stocks, growth stocks? I know we said you're a bit more of a value investor. Doesn't mean that you haven't been buying any stocks. [00:24:46][8.4]

Maddy Guest: [00:24:47] Yes, I do pursue mostly value investments because I don't really have the time to actually just try and outperform the market and like the the professionals, because I do find investing so interesting. And I have I do have a really small amount of money put aside for a couple of investments that would probably be considered growth that I've researched and sort of continue to follow and monitor. But that's really money that I guess sort of play money in the market. And it's money that I put in because I find it really interesting and I want to monitor it and see how it goes [00:25:20][33.3]

Sophie Dicker: [00:25:21] for learning as well. It really teaches you a lot. And you can just put a little bit towards like stocks that you don't really understand or not understand. But like that, you have to do a little bit. [00:25:30][9.8]

Maddy Guest: [00:25:30] Morisot research for exactly that. So what's your what is your portfolio look like? Do you follow one of these in particular? Do you have a combination? Yeah, I'd [00:25:39][8.7]

Sophie Dicker: [00:25:39] probably say definitely more passive. I have a combination as well. I'm actually growing my a combination to be a bit more like yours because I do have probably more of an active portfolio at the minute. It doesn't mean that I'm looking at it every day and researching every day. It's just that I've bought more individual stocks than I've bought ETFs. I just started out the other way around, but I'm kind of moving towards making it a bit more passive. But within my active portfolio, my active portion of the portfolio, I am buying into both value and growth stocks. I think I've always been really attracted to the growth stocks because it's often around by new technologies and like health care and their personal interests of mine. So that's why I've aligned with that way. But as I've reassessed my goals over the past six months about what I actually want to be doing with my investing, I'm definitely moving more towards a passive, slow growth kind of portfolio because, yeah, I've got enough in my growth area [00:26:41][61.4]

Sophie Dicker: [00:26:42] to say [00:26:42][0.1]

Maddy Guest: [00:26:42] that. But I think that's the coolest thing about investing. That is like you obviously you want to align it to your risk profile and your goals. But, you know, we have the ability to invest in things that we're interested in. And that's the cool thing, is because you can put your money where your interests lie, where your interests lie, and then it makes it really easy to keep track of and monitor and research because you're genuinely interested about it. [00:27:06][24.4]

Sophie Dicker: [00:27:06] I think that's it. Literally, I bought into things because I'm like, this is so fun writing about. Yes. And then I'm like, oh, this is risky. [00:27:12][5.2]

Sophie Dicker: [00:27:13] That's okay. Oh. And I might lose my money. Doing OK so far. [00:27:17][4.1]

Maddy Guest: [00:27:18] Nice. Well, let's round out the episode there because hopefully that was a good outline with a bit of detail and a bit of context of how you can actually apply this yourself. Yes. [00:27:29][10.8]

Sophie Dicker: [00:27:29] If you have any questions still about this and you want to know more, if you want to understand a bit more how it kind of applies to you, then definitely jump in the Facebook group and ask the question. People are really giving their context and their perspectives, which is great. Otherwise, we also welcome DM's on Instagram emails in our bio on Instagram. If you want to contact us, [00:27:50][20.8]

Maddy Guest: [00:27:51] we are so excited. I'm going to plug next week's episode because it's one that has been, I think, much requested across the community pretty much since we started, and that is sustainable investing. We have lined up an amazing guest to come on and chat all things sustainable investing. So make sure you tune in next week to listen to that one. [00:28:10][19.4]

Sophie Dicker: [00:28:11] And even though we said at the beginning, we'll say it at the end again, subscribe write us a review. We really appreciate all your feedback. [00:28:20][8.6]

Maddy Guest: [00:28:20] And we want to take it full on board and make it better for you. Yeah. And what you. Want to hear? [00:28:25][5.1]

Sophie Dicker: [00:28:29] Thank you so much for joining us and we'll see you next week. See you right here. Wherever you're standing right now, the first thing I know [00:28:29][0.0]

[1504.0]