EM Portfolio: Yearly Wrap For The Equity Mates Portfolio

HOSTS Alec Renehan & Bryce Leske|14 December, 2020

Meet your hosts

  • Alec Renehan

    Alec developed an interest in investing after realising he was spending all that he was earning. Investing became his form of 'forced saving'. While his first investment, Slater and Gordon (SGH), was a resounding failure, he learnt a lot from that experience. He hopes to share those lessons amongst others through the podcast and help people realise that if he can make money investing, anyone can.
  • Bryce Leske

    Bryce has had an interest in the stock market since his parents encouraged him to save 50c a fortnight from the age of 5. Once he had saved $500 he bought his first stock - BKI - a Listed Investment Company (LIC), and since then hasn't stopped. He hopes that Equity Mates can help make investing understandable and accessible. He loves the Essendon Football Club, and lives in Sydney.

It’s been 6 months since we launched the Equity Mates portfolio, so as we draw closer to the end of 2020 we wanted to review where it’s at.

In this episode, we take a look at the core portfolio, its performance, and review the current ETF structure. We also go through the winners and losers of the satellite portfolio, discuss the Bitcoin position, and what’s to come in 2020.

If you’d like to make a stock pitch for the portfolio in 2021, feel free to hit us up through our social channels, our website or email.


If you want to let Alec or Bryce know what you think of an episode, contact them here


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Bryce Leske: [00:01:28] Welcome to another episode of Equity Mates, a podcast where we follow our journey of investing, we break down the world of investing from beginning to dividend so that you can hopefully make some returns. My name is Bryce and as always, I am joined by my Equity Mates Ren. How's it going, bro? [00:01:43][15.5]

Alec Renehan: [00:01:44] I'm very good, Bryce. We've made it to the last recording week of the year. [00:01:48][4.4]

Bryce Leske: [00:01:49] The last recording week of the year. What a year. It has been 20-20 biggest year in Equity Mates [00:01:54][5.4]

Alec Renehan: [00:01:54] history this year. Biggest, biggest years in most of our lives. I would say. What's going on? It is our final recording week, but it's not the final week of Equity Mates. The show must go on. We're going to be taking a little bit of a break, but we have recorded a summer series. As always. We've done a deep dove on 12 stocks as chosen by you, the Equity Mates audience. We've interviewed some CEOs, but this is the last week where we're going to tie up some loose ends and go on a bit of a break. [00:02:23][29.1]

Bryce Leske: [00:02:24] That's right, Ren. So in terms of loose ends, this episode, we will be looking at all things to do with the hypothetical portfolio, updating where it currently stands and tying off a few bits and pieces. And then on Thursday, we will revisit our bold predictions that we made early in January, as well as the Stock of the Year competition that we have going on, [00:02:46][21.6]

Alec Renehan: [00:02:46] which is just never much of a competition. [00:02:48][1.9]

Bryce Leske: [00:02:50] Let's get stuck in, shall we? Let's do a hypothetical portfolio started at the when did we start these? Maybe six months ago with the idea of building out a core portfolio of ETFs and a satellite portfolio of individual stocks selected by ourselves and the Equity Mates community. We were lucky enough to be joined by three community members, you and Daniel and Ben. All three came in and pitched their stock ideas, which was awesome. So massive shout out to the three of them. We're looking to do more of that in 2021 and really make this much more of a community portfolio. [00:03:26][36.3]

Alec Renehan: [00:03:27] Yeah, and as we always say in these episodes, but it's important to remind ourselves and to remind everyone listening that this is not advice. The reason we're doing this is not that you should just copy this portfolio. But you know, what we've learned over the four years is that you learn so much by doing like, you know, on our get started investing showed the key message was just get started. You know, you can read and you can learn until you're blue in the face, until you're sick of hearing the words stocks or equities. But you learn so much more by actually doing it. And we're trying to, I guess, leave that by putting everything were learning to the test, I guess, or into practice. And this is the result of that. So we always have to remind everyone and remind ourselves that this is not advice and this is not a buy or sell recommendation. This is just us learning as we go and trying to be really practical about it and also an opportunity to talk about some individual stocks and ETFs. [00:04:25][57.7]

Bryce Leske: [00:04:25] For those of you who have just joined the show, welcome. Thank you for joining on the second last episode of the year to remind you guys what we have in our core portfolio. So the idea of this was to build a diversified portfolio of core ETFs. We have exposure to the Australian equities, US equities, Europe, Asia. We have an Australian property and international property, global infrastructure, gold and fixed income. So nine ETFs that [00:04:50][24.7]

Alec Renehan: [00:04:51] do not just take a step back and just explain that concept of core and satellite. [00:04:54][3.9]

Bryce Leske: [00:04:55] So the core portfolio is a portfolio that we are just going to be adding positions to consistently. It's based around ETFs and is built for the long term. The rule around this one, correct me if I'm wrong, Ren was a thousand a month, twenty a month and we were going to be just averaging in to show what it means to just consistently put money away into a basket of ETFs and let them grow over a long period of time. We're taking out the need to pick stocks. We're taking out the need to, I guess, react to market conditions and all that sort of stuff. This is purely to show what it can mean to build a portfolio over a long period. [00:05:33][38.2]

Alec Renehan: [00:05:34] Yeah, I think one thing that we've learned on this journey is that you don't need to be like an expert stock picker and, you know, pick the next Amazon or pick the next Google to do well in the stock market. The market on average since 1900. In Australia, it's about average, about 13 percent. If you just buy and hold and get the market average return over a long period of time, that's all you need to do. And so that's the philosophy that we're embodying in this core portfolio. We're not trying to beat the market. We're just taking what the market gives us. We're sleeping well at night and we're not overthinking it. That really is all you need to do. [00:06:09][34.6]

Bryce Leske: [00:06:10] We will stick to the rules and we will put some money into the portfolio this month. Just dollar cost averaging way in. We're just going to go down the list. We're not going to be choosing, which we think is going to perform better or worse. [00:06:22][12.9]

Alec Renehan: [00:06:23] I'm just going to be the part the. Police for you today. Dollar cost averaging for people who are new to the show, do you want to just give a twenty five words or less explanation, [00:06:31][8.1]

Bryce Leske: [00:06:32] taking the same amount of money and putting it into the same group of stocks at a consistent interval over a determined period of time? So the price in which you go in, that is even better. You said 25 [00:06:44][12.4]

Alec Renehan: [00:06:45] words or less, I guess, to do it in 10 words or less. It's about not trying to time the market, but just having time in the market. [00:06:54][10.0]

Bryce Leske: [00:06:55] Kind of. Yeah, it doesn't actually say anything about the buying habits. If you say. [00:07:00][5.0]

Alec Renehan: [00:07:01] Yeah, yeah. It's just about consistently buying regardless of what the price is. [00:07:04][3.4]

Bryce Leske: [00:07:05] Yeah. At this with the same amount [00:07:06][1.6]

Alec Renehan: [00:07:07] of cash you got. Showed it or not. I don't need to go shopping. Fair enough. So yeah, that's the core portfolio. As Bryce said, what we're putting what are the true that we're putting it into this month. [00:07:17][10.3]

Bryce Leske: [00:07:17] Australian Property and international property. VAP is our Australian property Vanguard, Australian Property Securities, and D.J. is our international property one, which is the Dow Jones Global Real Estate Fund. So I will be throwing a thousand bucks into both of those. [00:07:33][15.8]

Alec Renehan: [00:07:33] Yeah. And really, the rule here is we have a list and we're trying to emulate what we do in our lives and what a lot of everyday investors do, which is they get money from their jobs, they save it, and then they put it in the market. And so every month we are saving a little bit and then we're just going down the list and putting it in whatever's next dollar cost averaging in and then sleeping well at night, not worrying what the market's doing day to day and not trying to beat the market. So that's the core portfolio. Probably not much more needs to be said about it unless you've got anything more. [00:08:04][30.3]

Bryce Leske: [00:08:04] Well, we should probably touch on how it's performed. [00:08:06][1.7]

Alec Renehan: [00:08:07] That's not a bad point. [00:08:07][0.7]

Bryce Leske: [00:08:09] We started in July and since then it's done. Look, you're not going to say no to these returns, Ren. It's pretty much done what you would expect over a longer term return point of view, nine nine point to nine percent is the growth that we've seen in that portfolio across all of the [00:08:26][16.9]

Alec Renehan: [00:08:26] stocks since July, since July. So you annualize that and it's eighteen point six percent that our core portfolio is doing. Warren Buffett level? [00:08:33][7.5]

Bryce Leske: [00:08:35] Well, I mean, we got in a pretty decent time with everything running pretty strongly after the coronavirus market fall. But, yeah, look, you're not going to be turning away from a near 10 per cent return in six months. Of course, not all stocks in the portfolio have performed well. Only a couple are really down, and that is gold and fixed income. Surprisingly, the biggest performer has been our Australian property, surprising to me anyway. But yeah, look, we don't need to go through how all of them have performed. We will try and get this up on the website. But I think the main point to consider is that it's up nine point to nine per cent Ren. [00:09:13][37.1]

Speaker 1: [00:09:13] You are all about getting fit. You've bought the government, you bought the golf membership, you bought the gym membership, and you're on the mind MasterChef. And even in lock down last year, you bought those resistance bands of Instagram that from memory didn't even come. [00:09:27][13.5]

Alec Renehan: [00:09:28] No, look, they didn't come. But all of that effort really was canceled out by the numerous menu log orders that were a real staple of my lockdown experience. [00:09:37][9.5]

Speaker 1: [00:09:38] Well, we've just entered into a new financial year, so I think it's time you get money fit with Virgin Money, our latest sponsor. [00:09:45][7.0]

Alec Renehan: [00:09:46] That's right, Bryce with a high interest savings account bundled with a seriously rewarding everyday transaction account. You can manage your money easily on the go smash your savings goals and be rewarded for it. [00:09:58][11.9]

Speaker 1: [00:09:58] And with the Virgin Money Go transaction account, you can earn rewards on your everyday spending with zero monthly fees. Sounds like just what you need. Ren. [00:10:08][9.3]

Alec Renehan: [00:10:08] Yeah, the FBI twenty one get Ren didn't quite work but if y twenty to get Ren money it might be to go [00:10:17][8.4]

Speaker 1: [00:10:17] back to your own Bayt Virgin. Money terms and conditions and monthly criteria apply. Now let's get back to the show. [00:10:23][5.8]

Alec Renehan: [00:10:25] All right, so that's the core, that's the set and forget the long term investor just taking the market average returns and getting on with our days. We've also got a satellite portfolio now to explain what that is. [00:10:39][13.4]

Bryce Leske: [00:10:39] Satellite portfolio is once you're comfortable with your core portfolio and you've built up a strong sort of stable portfolio that's just ticking away, you can then think about taking some more concentrated positions in stocks that you think are going to sort of outperform. This gives you a bit more freedom and flexibility. Spotify of the world. The Magellan's you know, those companies that you want to back in outside of your ETF. [00:11:05][25.4]

Alec Renehan: [00:11:05] Yeah, yeah. And we've taken the approach 50 50 core and satellite. So the money that we're hypothetically saving every month, we're just splitting down the middle. That doesn't have to be your approach if you want to employ a core and satellite approach, which a lot of the experts that we've spoken to speak about, you know, Elon from Baidu shares is probably the one that comes to mind. He has a real core and satellite approach. You can split your money however you want, nine, 10, 20, 80. I can keep throwing out ratios, but I probably don't need to pay. We'll get it. But yeah, we've done 50 50, so we're splitting our money down the middle. We gone with our stock picking and our listeners stock picking, we should say. [00:11:42][36.8]

Bryce Leske: [00:11:42] Yeah. So to remind everyone what happened here in July, we had a few stock pickers. We also then had the listeners come in and do their stock pictures. And then most recently, we threw a number of stocks in quite quickly, which we really tried. [00:11:56][13.8]

Alec Renehan: [00:11:57] Bryce with a rapid fire. [00:11:58][0.9]

Bryce Leske: [00:11:59] whihc we will address in a second. But our portfolio overall for 2020, as of recording, which is on the 11th of December, is up ten point eight percent. So we've just outperformed the overall market return. Very broad market return. [00:12:14][14.6]

Alec Renehan: [00:12:14] Yeah. So that's good news. Our core is up nine point three, call it, and our satellite is up ten point eight. So in investing, you'll sometimes hear a term alpha and that's like how much a fund manager beats their benchmark. And I guess we've delivered one point five percent alpha in six months, [00:12:35][20.3]

Bryce Leske: [00:12:35] of which we're going to take 20 percent say [00:12:37][1.6]

Alec Renehan: [00:12:38] 20 percent [00:12:38][0.4]

Bryce Leske: [00:12:39] performance and two percent [00:12:40][1.3]

Alec Renehan: [00:12:41] leave our investors with nothing. So, yeah, that's a good point, though. Like when you look at this and we say, all right, well, we've outperformed our core portfolio by one point five percent, ten point eight compared to nine point three, which is great. There's no fees involved in this. And so if you are looking at a managed fund, you always have to look at it after fees, because once Bryce takes his SWIP out of out of these returns, well, it might not be beating the. [00:13:07][26.3]

Bryce Leske: [00:13:08] Exactly. Exactly. So you can sort of see how that all plays out over the long term. But anyway, Ren look, there are a lot of stocks in here. Just to remind everyone, we've got 16 stocks and the second asset class that we'll touch on in [00:13:20][12.8]

Alec Renehan: [00:13:21] was his favorite asset class. [00:13:22][1.1]

Bryce Leske: [00:13:23] Not all of them have performed well. I think the worst performers are down about 12 percent. Our best performers are up in the 70 percent range. I just want to give a big shout out to our community members who did come on. We had Ben come on in pitch citadel, and that is up 24 percent. They had the takeover offer not soon after he came on and pitched so big shout out there. You came on and pitched D'Adamo Diagnostics. And whilst it hasn't performed as well as the others, we're going to be keeping that in there to see how it plays a [00:13:58][35.3]

Alec Renehan: [00:13:58] long term game. [00:13:59][0.5]

Bryce Leske: [00:13:59] Big, big, long-term play. So massive shout out to you and then we had Daniel come and pitch Vava Leisa, which was the Club Lime gyms in Canberra, among other other other states. [00:14:11][11.7]

Alec Renehan: [00:14:11] Yeah. [00:14:11][0.0]

Bryce Leske: [00:14:12] And this was a pure value play. He did the math and just worked out that based on their number of I guess what they called subscriber's. [00:14:18][7.0]

Alec Renehan: [00:14:21] Tremendous, tremendous. [00:14:21][0.8]

Bryce Leske: [00:14:22] I mean, Taqwa number of gym members and the price they pay that their revenue was going was well above sort of their market cap. And it was just a pure value play. And it is up thirty two percent at the time of recording. So amazing result there. [00:14:38][15.8]

Alec Renehan: [00:14:38] It was the definition of a simple thesis. I think his original email was two paragraphs and he just explained exactly what you said. And it just it was clear, it made sense. And for me it was it's a reminder that you don't need a bloody 60 page investor report talking about, like, the intricacies of how they're going to manage costs and stuff like that. It was simple. It was clear, and so far it's been right. [00:15:02][23.9]

Bryce Leske: [00:15:03] So we bought that on the 13th of October and it's up 30 percent. Yeah, not bad. So well done there, Daniel. Great pic. Please do let us know if you think it's a sell now so we can make adjustments. Be interesting to see Ren if this is a Equity Mates bump stock, but we can try Dollars. But Ren you came on and pitched the. And now, as this is technically an investment committee meeting, yes, it is down twelve point two percent. Yep. I guess many people would think, OK, let your winners run, cut your losses. Are we going to be cutting our losses here? [00:15:38][35.7]

Alec Renehan: [00:15:39] I don't think so. No, I like Magellan for the long term. So Magellan, for people unfamiliar, is a funds management business. They're led by Hamish Douglass, who would be one of the best investors in Australia, if not the best. 100 billion dollars assets under management is what Magellan have. And the way that they make money is they take a face off. That 100 billion dollars is a lot of funds under management. It's it's definitely one of the biggest in Australia, but it's one of the biggest comparatively in the world. So there's an argument to say, are they how much more growth do they have? Like how much bigger can they get? The reason that I want to keep Magellan in the portfolio, happy for you to disagree and happy to have that discussion is of that hundred billion dollars that they manage, they take a fee every year. And the margin on that FAI is great. Like funds management is a great business at scale. I think their margins like their gross margins like 80 percent. So basically a lot of that money they bring in becomes cash that the business can spend. And what Magellan is doing is then they're not paying that money to investors. They're actually finding ways to reinvest it. As the parent company, I listen to a podcast recently where Hamish was interviewed. We should give a shout out to the podcast, Ed Callan's podcast, Scaling Up. And Hamish was talking about how he's using that money and trying to reinvest it. And he's investing, trying to get more than a dollar back. And he spoke about an investment bank that they've just decided to put a lot of money into there. And I'd never heard of it. But you had apparently they're poaching a whole bunch of investment banking talent from around Australia. Yeah. Magellan are basically now using the money that they're making from their funds management business to now invest in other businesses. And so for me, 100 billion dollars under management is a lot of money that might grow. But for me, the really interesting growth story is what Hamish and his team are doing with the money that they're making from their fees and where they're investing that. And for me, that is really going to be the next stage of growth. And that's the story to keep an eye on. [00:17:39][119.8]

Bryce Leske: [00:17:39] Yeah, nice one. No, look, I don't disagree with anything you just said. They're so very happy to keep it ticking away in the portfolio. So that is a no sell decision. [00:17:49][9.7]

Alec Renehan: [00:17:49] Yeah, but given my track record and on the stocks that I talk about on this show, it's a black mark. If I if I like. Well, we'll be talking [00:17:58][8.1]

Bryce Leske: [00:17:58] about the stocks of the year next episode. But Ren give yourself a bit of credit. You also did come on in pitch The New York Times, a story of a revival from the depths of despair to now a company that is taking on the digital, you know, News of the World. And since the pitch on the 13th of November. So less than a month ago. Well, a month ago, yeah. Less than a month ago. It's done surprisingly well. It is up 31 percent. [00:18:25][26.6]

Alec Renehan: [00:18:25] So surprising for you. [00:18:26][1.4]

Bryce Leske: [00:18:27] Surprising to be up 31 percent, 31 percent in a month. Yeah, yeah, yeah. Again, though, is that the Equity Mates bump? We will have to have a look. [00:18:36][9.2]

Alec Renehan: [00:18:37] There was one stock that was pitched this year that didn't make it into the portfolio. Yes. And that was Salesforce. And that was a stock that you pitched an incredible company like let's let's start there. And we were a little bit split purely based on valuation. Yeah, it's an expensive stock because it's so good, really. It continues to deliver great growth because we were split in this investment committee of two. We put it out to the Equity Mates community and the discussion group and we asked them to vote. Should it be included or not. It was a narrow vote. It was very close. It was the US election all over again. Well, actually, that wasn't that narrow in the end. There's just a lot of controversy. So but yeah, it was a close vote and it was a no. Yes. It seems like the Equity Mates community was right. Yes. Down about nine percent from there. How are you feeling about Salesforce? Do you want to repitch it in twenty, twenty one? [00:19:28][51.2]

Bryce Leske: [00:19:28] I'm not sure about re pitching it. I think, you know, they've just gone out and bought SLAPP. [00:19:32][4.1]

Alec Renehan: [00:19:33] Yeah. Yeah. [00:19:33][0.4]

Bryce Leske: [00:19:34] Big acquisition company. Keep an eye on it. Obviously the decision that investing community made was the right one for now, the time at which we pitched it, it had just jumped. I think it had released its best numbers ever and it had jumped sort of thirty one per cent in a matter of days. So that was always our concern. Maybe if we get a bit of a cooling off on it, I will repitch. But look, I'm happy to put that one on the sidelines for now. Yeah, it's [00:19:58][24.5]

Alec Renehan: [00:19:59] worth just putting it into context that it doubled in price from covid. So it was up one hundred percent from covid lows and then it's cooled off a bit from there. Look, I wouldn't be allergic to your pitching. It's a great company. So we'll leave us in suspense for twenty, twenty one. We'll say if you bring it back. [00:20:14][15.6]

Bryce Leske: [00:20:15] The other star performer that was pitched very quickly, Ren was our Spotify last episode where we spoke about putting in a number. Of companies that we thought were, you know, ladies in their field and at the cutting edge of destruction, that sort of thing, Spotify is up 32 percent as well, sitting nicely in our portfolio. [00:20:34][18.6]

Alec Renehan: [00:20:35] Should we address your rapid fire pitches? Yes. I shouldn't say yours because I was involved as well. Yes, there was a bit of feedback. That's not how we should be running this investment committee. How do you respond to those comments? [00:20:49][14.2]

Bryce Leske: [00:20:49] So the idea behind that was that if we're going to do this the way that we would think about everything more broadly, cash is not king for us right now. And we had 16000 sitting in the bank account, absolutely burning a hole in our back pocket to avoid dragging out 16 episodes of one [00:21:07][18.0]

Alec Renehan: [00:21:08] stock a month was really slowing us down. [00:21:10][1.9]

Bryce Leske: [00:21:10] It would be pitching Amazon, pitching Google, pitching Apple, all of which we know both of us would say, let's just get this in the portfolio. I don't need to tell you why I want to have Amazon in the portfolio. You don't need to tell me why you want to have Spotify and Walmart. We both have done the work ourselves. And these are some of the big hitting companies that we thought deserves to be in the portfolio sooner rather than later because we didn't want to have 16000 sitting in cash on in the bank. Yeah. [00:21:38][27.8]

Alec Renehan: [00:21:38] So really the so we hear the feedback, but it's not like we pulled those stocks out of a list of stock tickers. These are companies that we have, I guess we've been obsessed with. Yeah. Over the journey of Equity Mates. We own a number of them personally and they're good companies. [00:21:54][15.5]

Bryce Leske: [00:21:55] The second piece of feedback that we got around this, though, was why would we not have just bought the equivalent of an end AQ, for example, or why wouldn't we have bought the S&P, which probably covers almost all of the stocks that we put in. And I guess the answer for that is this is the satellite portfolio. Yes. A lot of those stocks would be covered in our core. However, I think that we want to have more concentrated exposure to a number of smaller well, to a smaller concentration of stocks so that we can get the returns of those stocks and not the returns of the other 98 stocks that are in the Nasdaq 100 or whatever it may be. [00:22:33][38.2]

Alec Renehan: [00:22:33] Yeah, and that would be a boring episode of Bryce just came and pitched the S&P 500 at the super boring. [00:22:40][7.0]

Bryce Leske: [00:22:41] So to close this out, Ren, there was one stock and one asset class that I kind of snuck in right at the end. [00:22:47][6.3]

Alec Renehan: [00:22:48] So when you talked about on the show the other you just snuck in without telling me. And let me tell you, the Equity Mates Investment Committee will be reviewing the cash control measures over the summer break because this all sneaking into the portfolio situation is not in line with our investment guidelines. [00:23:07][19.9]

Bryce Leske: [00:23:08] Right off field behavior is questionable. But I'm hoping I'm hoping the coach lets it slide. [00:23:14][5.4]

Alec Renehan: [00:23:14] Look, the stock that you snuck in, which we will reveal in a second, has been a star performer. And so the coach is willing to look the other way, this one, but he doesn't want to see it happen again. It's bad for team morale more than anything. [00:23:31][16.2]

Bryce Leske: [00:23:31] In the defense. I am sure that I did mention this quickly. Yeah. And I think to be fair, I said that I would come to the next hypothetical portfolio with a write up on why it should be included. [00:23:45][14.0]

Alec Renehan: [00:23:46] OK, have you brought one? [00:23:47][0.9]

Bryce Leske: [00:23:47] No, because I feel I've snuck it in and anyway, the share price has done reasonably well. So I'm talking about Palantir Technologies, which from memory I did mention and you were a bit iffy about it. So I said, look, I'll come with a pitch. I haven't come with a pitch, but I was desperate to get it into the portfolio because I just thought it's a good time to get it in. And luckily we did because it's up seventy one percent. [00:24:14][27.0]

Alec Renehan: [00:24:15] That's the pitch. [00:24:15][0.4]

Bryce Leske: [00:24:16] That's the pitch. Seventy one percent since the 13th of November. So it's sitting in nicely. I'm happy to keep that in there, but I will also make sure that next year I come and let everyone know what it's all about. [00:24:27][11.5]

Alec Renehan: [00:24:28] Yeah, I think look, Palantir is a for people who are unfamiliar, it's like Dota, not Dollars. It's like it helps with the data analysis. It helps companies visualize their data in new and novel ways and helps them make sense of these massive data streams they've done work with the U.S. military on, like identifying IEDs that were embedded in special forces and stuff in Iraq and Afghanistan. They've done work with the CIA. They've just got a big contract with the FDA in the US and other big government department. They've done work with police departments. They are now trying to sell their technology to private companies. It is a really compelling story. It's a really interesting company. There are some questions about the company and you know, what its technology is enabling it to do, especially with like the CIA and police departments. My reservation was more around how scalable that technology was. They pitch themselves as a software business, but there are a. It's out that it's not scalable in the same way software is, it requires, you know, bespoke solutions for every new contract. However, it seems like the market are not concerned with that in the market. A loving talent here and you've done well to get it in, [00:25:39][71.0]

Bryce Leske: [00:25:40] snuck it in. So we'll see how it plays out. And Ren, the other one that we did throw in just towards the end of the episode was Bitcoin. Yes. Small position. Well, yeah, relatively small, just ticking away, up eight percent. So looking forward to seeing how that goes in 2021. [00:25:55][15.5]

Alec Renehan: [00:25:56] Well, you definitely the biggest Bitcoin bowl on this show. And yes, I'm intrigued by the Bitcoin story. I think we've said this before on the show. But one of our favorite investing podcasts, the two hosts have really been split on the Bitcoin issue to the point where they've now actually split the show. We can make a promise to the Equity Mates community that we will not let Bryce fall deep down that rabbit hole and it will not split the show into a Bitcoin episode and a non Bitcoin episode. You have my word, but it is going to be an interesting one to watch in twenty twenty one. It's close to all time highs. It hit all time highs in some currencies. But yeah, it's back. [00:26:35][38.3]

Bryce Leske: [00:26:35] It is coming back. Yes. Ren. I think really the take out is nine and a half percent on the core, ten percent on the satellite. It's been a pretty crazy year on markets. They are just firing at the moment. Fed's pouring in money vaccine coming. We've had the US election. Who knows what twenty, twenty one is going to bring, but we're going to hopefully show that by plugging away with our core portfolio and then having a bit of fun with our satellite and getting the community involved. We'll see how it all plays out next year. [00:27:05][29.6]

Alec Renehan: [00:27:05] Yeah, yeah. And just to close it out, if people have been listening from the beginning of the journey, we first did this hypothetical portfolio in twenty seventeen and then we stopped it for a while and we brought it back due to popular demand in twenty twenty. I think the second stock you ever pitched was off to pay at that time. Off to pay was what around like two point fifty. Yeah it's up about three thousand six hundred percent since you pitched it in twenty seventeen. So what I'm hoping to see I'm sure what the Equity Mates community are hoping to say is that Bryce is able to come and pitch another three thousand six hundred percent stock in a few years. So yes, we wait. [00:27:43][37.9]

Bryce Leske: [00:27:45] I'll give you my guarantee. [00:27:46][0.8]

Alec Renehan: [00:27:47] Oh wow. Okay, okay. [00:27:48][1.2]

Bryce Leske: [00:27:50] Now I look right time, right place with that one Ren. And very fortunate that we do have that on paper. [00:27:55][5.8]

Alec Renehan: [00:27:56] Very fortunate. Very fortunate. It really makes up for a lot of the other stocks you talked about on this show. [00:28:02][6.0]

Bryce Leske: [00:28:03] OK, it's not all about getting them all right. It's about the process and the journey. So we will close it out there. And this will keep ticking away over summer. Very excited to bring this back in 2021. A reminder, though, that we're going to be putting a lot of things in place to make it easier for our community to give us stock tips to come on the show. We really want to make this much more of a community portfolio than it has been. As I said, massive shout out to the three that did. Come on. But please feel free to send your pictures through and we will endeavor to get you on the show in 2021 to really build this out. Even if it's just an investing theme or an idea, it doesn't have to be a stock pitch particularly. We want to hear about it and we can help you guys chat through it. [00:28:44][40.9]

Alec Renehan: [00:28:44] So what I also want to start hearing is the contrary. In cases like this, if we've pitched a stock and someone thinks we're wrong, or I guess if a listener pitches a stock, but especially if Bryce and I pitch a stock and you reckon we are idiots, we want to hear that. We want you to come on the show and tell us why we're wrong. [00:29:01][17.2]

Bryce Leske: [00:29:02] Yeah, we may not air that episode if we do that and we want to hear about it. Now, look, Ren, it's been fun portfolio. Let's see if the Santa rally kicks in. Yeah, certainly looks like it is across some of the sectors. And we'll pick this up in twenty, twenty one. [00:29:17][15.3]

Alec Renehan: [00:29:17] Well, we have an episode on Thursday, but we will pick up the hypothetical portfolio. Yes. [00:29:22][4.5]

Bryce Leske: [00:29:26] Nice one ren. [00:29:26][0.0]


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