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EM Talk: Everything You Need To Know To Buy Your First Share! | Listener Mailbag

HOSTS Alec Renehan & Bryce Leske|5 August, 2017

It’s time to answer all your questions! Over the past few months we’ve had a number of listeners write in asking questions such as “How do I buy a stock?”, “What should I look for in a brokerage platform?”. We answer these plus many more. By the end of this episode you’ll know everything you need to get started! In this episode you will learn: • Tips for saving, and tools to help you • Brokerage platforms – how to find one and what to look for • Three basic ways you can invest in the market • The easiest ways to find a company to invest in Stocks and resources discussed: • Gateway Lifestyle (ASX: GTY) • PM Capital Fund (ASX: PGF) • Australian Agricultural Company (ASX: AAC) • Betashares Australian Equities Bear ETF (ASX: BEAR) • Beta NASDAQ 100 (ASX: NDQ) • Afterpay Touch Group (ASX: APT)


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Bryce: [00:01:28] Equity Mates, welcome, everybody, Episode 15, as always, very excited to be here with my Equity Mate Ren. How are you, buddy? [00:01:37][8.4]

Alec: [00:01:38] G'day Equity Mate. Good to have you back. [00:01:40][2.0]

Bryce: [00:01:41] Yeah, thanks. For those that don't know, I've actually been in Italy for five weeks lapping up the sun, so we managed to get out a couple of episodes before I went away. So Ren's been taking the reins while sipping spritz on the Amalfi. [00:01:59][18.3]

Alec: [00:02:00] Yeah. Yeah, yeah. [00:02:02][1.6]

Bryce: [00:02:03] I appreciate, I appreciate you're excited, but we're back now back into it. And we've got some exciting things coming up. Not only this episode, but we've had a mid year break. Well, I have. And now we're ready to go first. [00:02:19][15.4]

Alec: [00:02:19] I've got a mid-year break from you, just as important. [00:02:22][2.6]

Bryce: [00:02:25] So Episode 15, we thought it would be a good opportunity to answer some questions that we'd been receiving from listeners, a bit of a mailbag situation and recap a few things that we've been talking about in terms of the basic one or ones that we had run towards the start of the series. And we've also taken away good news and we're going to change the format. So I do want to give us an idea of how that's going to look Ren. [00:02:56][31.3]

Alec: [00:02:56] Yeah, so look, as much as I've loved being the Renehan news guru, all good things must come to an end, I guess. Now, look, in all seriousness, we are doing this podcast to learn, as we say in every episode, you know, we're still very early into our investing journey and we're trying to learn. And so rather than us sitting here and sort of telling you guys the news of the week, what we thought we would do is each just bring everyone listening and each other some of the things we've been researching or something that we've learnt in the last week. It might be it would probably be a better way for us to share knowledge with each other. And, you know, it would be a good way for listeners to sort of understand how we go about getting information as well. Yeah, definitely. Well, I mean, hopefully if we suddenly snap back to news in a few weeks, [00:03:53][56.4]

Bryce: [00:03:54] it's because it's beneficial. Well, you [00:03:55][1.3]

Alec: [00:03:55] know, we've had some pretty harsh criticism about it. [00:03:58][2.7]

Bryce: [00:03:59] Yeah, well, then let's kick it straight into it. So what's been your learning for the week or what's what have you found interesting or. [00:04:07][8.5]

Alec: [00:04:08] Yeah, so something that caught my interest last week was the once great retailer Myer. Now everyone's been there, everyone knows about it. If you're an Australian listener, at least Myer hit an all time low in their share price and they're trading at just 77 cents now. And not that piqued my interest. So I used to be part of Coles Myer and then it got bought by private equity, which is basically a holding company with a hell of a lot of cash. And the private equity restructured it and then floated it on the stock exchange. And Myer floated for four dollars ten in 2009. It's been on a bit of a downhill slope since then, and it's now trading at seventy seven cents. And I mean, look, that's not that interesting in and of itself, but I started to think about some of the other some of the other retailers that have had similar event. Everyone heard about Dick Smith last year. It was bought by private equity. It was floated on the stock exchange. And then last year it went bankrupt and entered receivership. And as I did some more research into it, it's not the only retailer companies are trying to force onto the share market in 2011. Rebel sport, they are they tried to float it, but there wasn't enough interest. So they sold it off just privately instead. Recently, we've seen Wesfarmers, the holding company, look to float Officeworks onto the share market. It really seems that we're seeing a trend now of private companies trying to float retailers onto the market. And it's just something that I think I'm definitely going to be wary of and everyone should probably be wary of. You know, everyone's talking about Amazon this, Amazon that. But you can say that all these retailers, people are trying to get them off their books, fly them on the share market, and then they have a pretty shocking run [00:06:00][112.1]

Bryce: [00:06:01] as to the listeners that may be tuning in for the first time. When you're saying floating on the share market, that means that they have been transformed from a privately held company to a publicly listed company. Stock Exchange. Yeah, yeah, yeah. Nice. [00:06:17][16.1]

Alec: [00:06:18] All right. Well, what did what did you look at this week? [00:06:21][2.6]

Bryce: [00:06:22] Well, I spent twenty four hours on a flight, so that was [00:06:25][2.9]

Alec: [00:06:26] plenty of time to do some research. [00:06:27][1.0]

Bryce: [00:06:28] Hellish flight two days ago, I think it was. I was browsing the Australian Financial Review and came across a company called Global. Well, it's Evans and Partners is the company, and they have just launched a listed investment company called the Global Disruption Fund. And I always like having a look at these sort of things because it gives me a fresh outlook on what possibilities there are for investments. And it's always interesting to see new sort of listed investment companies come to the market with slightly different strategies or always trying to appeal to a different market or an investor. And these guys have come to the market with a fund that looks at global disruption and companies that are exposed to disruption and innovation. And as a result, you know, we can invest in this disruption fund and get access to these companies much easier than if we were to try and invest in them individually. So I floated, I'm pretty sure. And as we just mentioned, that means the stock market on Tuesday, I think on Monday, Dollars. Sixty five. Yeah. As I said, something that I'm going to keep an eye on. And I always like finding new companies that bring new investment ideas and investment strategies to the market just because it keeps me on my toes and keeps me thinking about what possibilities are out there. So something to keep in mind. And that's one [00:07:59][90.1]

Alec: [00:07:59] I feel like every company wants to call itself disruptive these days or innovative, you know, like it's kind of just the in vogue thing to be. So, yeah, interesting to say where they draw the line in terms of what what counts as real disruption. [00:08:12][13.1]

Bryce: [00:08:13] Well, this is something that I was thinking and I tried to find within that prospectus or you know, these websites often have an investor centre that you can go and have a look at how their portfolios are constructed. But there's actually no indication of how they will be constructing their portfolios and which specific companies. That's just mentioned a broad statement that they will be exposed to companies that benefit from disruption and innovation. So who what what that means, you know, it says disruption has become increasingly prevalent, driven by advancements in technology, et cetera, et cetera. So it's very broad. [00:08:46][33.1]

Alec: [00:08:47] The other thing is when you think about disruptive companies, most of them aren't publicly traded, like if they're only good, it is fundamentally going to be investing in publicly traded companies then, you know. [00:08:59][11.4]

Bryce: [00:08:59] Well, I don't I don't think they are just investing in publicly traded. Right. [00:09:02][3.5]

Alec: [00:09:03] So it's going to be a bit of like a venture capital fund as well. [00:09:05][2.4]

Bryce: [00:09:06] Yeah, yeah. Yeah. [00:09:07][1.0]

Alec: [00:09:07] Interesting. [00:09:07][0.0]

Bryce: [00:09:07] Okay, yeah. That they will be creating a portfolio of both private and public listed companies. Yeah. [00:09:15][8.0]

Alec: [00:09:16] Yeah. Because you think about, you know, like well I mean Uber is still private but. Yeah exactly. Well Airbnb is private as well. Facebook, you know, when it was disruptive it was private. Now it's just a bloody you know, being timeless. I mean. Yeah. So it'll be interesting to say it's definitely one to add to the watch list, I guess. [00:09:36][20.0]

Bryce: [00:09:36] Yeah. Yeah. All right. Well, let's move on and get into our listeners mailbag. I'm pretty excited to get stuck into this one. So the way we will do this, I think Ren is we've got a number of questions that have come in from listeners. And so we are going to spend some time now and just go through each question and answer them as best we can. And as I said, it's probably going to repeat a few things that we have mentioned before in previous episodes. But I think that's going to be of some value to both us and and the listeners. [00:10:08][31.4]

Alec: [00:10:08] Yeah, good opportunity, you know, after our mid-year break to take stock and. Some of the things we've talked about, [00:10:14][6.2]

Bryce: [00:10:16] so question no one has come in from a listener. Alaf, thanks for sending in the question. How much do I need to start investing? [00:10:23][7.5]

Alec: [00:10:25] Yes, it's a good question. If there's an absolute answer and that's 500 dollars you can't buy in portions less than five hundred dollars. Yeah, but look, everyone has their own answer to that. I don't know what your general rule is, Bryce that mine is. I want to invest in at least eight hundred dollar hits. And the reason that is, is I pay eight dollars brokerage with iji shout out to IJA, still hoping for a sponsorship one day. So yeah, eight bucks a trade with IJA and 800 Dollars means that I'm paying one percent in brokerage. It's kinda it's kind of arbitrary when you think about it. But for me it's just the minimum that I. I want to invest because one percent is the maximum I want to pay for my brokerage, [00:11:15][49.9]

Bryce: [00:11:15] and that's a great way of looking at it because I'm very similar. I will often I take consideration in how much I'm paying in brokerage as well. And so, yes, I did start off by investing in five hundred dollar chunks and that's where we'll get to that a bit later on. But when you're paying, you know, potentially about 20 dollars a trade through some of the brokerage platforms, then that as a percentage of your initial investment is quite considerable and it means that your stock actually has to perform better than that percentage for you to actually make a return. So in your situation, Ren is your stock only needs to go up by one percent for your brokerage to become negligible. So, yeah, yeah, it's an interesting way of looking at it. But in terms of directly answering that question of five hundred dollars, from what we know, unless there's a brokerage platform out there that does otherwise, five hundred is the minimum that you need to invest and get your portfolio going. [00:12:16][60.6]

Alec: [00:12:17] Yeah, people are daunted by the five hundred dollar figure. They're like, you know, I'm living paycheque to paycheque. I don't have 500 bucks to throw in a stock that might not even go up in value. I think it's important just to get in good habits about saving a little bit out of every paycheque, putting it aside, getting to that five hundred dollar threshold and just getting in the market. [00:12:38][21.5]

Bryce: [00:12:40] Yeah, I completely agree, Ren. And there's a couple of strategies that we spoke about earlier in terms of savings. And one that I like to try and follow is the three pots rule. You've got a pot for spending, a pot for saving and a popular investing. And and when you get your income in, regardless of how much your you're getting paid, it's a good sort of strategy to try and split your money into three and obviously working out how much you need to survive each week and then making sure that you've putting some away for savings because you never know when you need an emergency, but then also putting some away every time you get paid to go towards your investment portfolio, because then it's not as daunting as trying to find five hundred dollars in one lump sum and you can easily just chip away at the five hundred and before you know you'll have it and you can chuck it into your first investment. So I strongly encourage consistency and patience with your savings to get towards that minimum. Five hundred. [00:13:37][56.9]

Alec: [00:13:37] Yeah, definitely. All right. So the next question comes in from a listener, Pru's, and that is, how do I buy a stock and what are some of the things I should look for in brokerage platforms? [00:13:50][12.3]

Bryce: [00:13:51] Yeah, good question. And this is probably one of the biggest ones that were asked all the time. And it's really, really easy, I think, to buy a stock. We're all very tech savvy these days and we're all online. We all have Internet banking, we've got the apps on our phones. You know, we can access [00:14:10][18.3]

Alec: [00:14:11] our money right or wrong, and telling everyone how easy it is. What what do we actually tell them how to do it? It's really is easy is. [00:14:21][10.2]

Bryce: [00:14:23] Well, you just got to highlight. It's so easy because it's done through it's done through online brokerage platforms. That sounds technical, doesn't it? But. All right. All right. Let's break it down for you, Frank. [00:14:35][11.7]

Alec: [00:14:36] Let's take a step back. You sign up so you there's plenty of different websites where you can buy the shares. We don't have any we don't have any preference yet. Shout out to a potential sponsor. We but yeah. Look, if true. So you choose a platform and we'll go through some of the things we look for in a sec. But you go on to your platform and you log in and then each stock on the share market has a three letter code. You put that in and you say you tell it how much you want to buy. So, you know, a thousand dollars worth of CBA, for example, will buy you a thousand dollars worth of Commonwealth Bank shares. You hit buy and then your your the website that you're using will go into the market and find a seller of those shares and buy you a thousand dollars worth of the stock. So look, yeah, Bryce is right. It is pretty simple in terms of actually the fees that the technical buying and selling of shares. All you need to do is log into the platform and put the three letters in, I guess, and try it. [00:15:43][66.9]

Bryce: [00:15:44] Yes. So when we're selling platform, you know, all of the major banks have websites that allow you to purchase stocks. And then there's a number of other institutions that also have stocks, stock platforms online. And if you wanted to be super traditional, you can definitely utilise a traditional broker as well. You can call someone up and get get him to buy for you. [00:16:08][23.9]

Alec: [00:16:08] But no, no [00:16:08][0.5]

Bryce: [00:16:09] commissions in the face of just going. I wouldn't even worry about that thought, I'm just highlighting that that is another option. But yeah, how do you buy a stock through a trading platform online? [00:16:19][10.4]

Alec: [00:16:20] Yes, let's not let's not muddy the water with brokers and stuff on brokers are more expensive. Just just go online. And then I guess the second part of the question was, what are some of the things I should look for in brokerage platforms? It's really dealer's choice. I look for the lowest brokerage cost. Other people look for a live market data. So some platforms have more up to date information. Some platforms have the information, 20 minutes delayed. Other people like just trading with the bank that they're with because, you know, then all of your money is in one place and you can look at it all on one app. It's easy to transfer to and from your trading account. So look at yeah, it's really dealer's choice. But I know I look for brokerage cost first and foremost. What about you, Bryce? [00:17:11][51.4]

Bryce: [00:17:12] Yeah. Just quickly, for those that are unaware, brokerage is the fee that you pay per transaction to the provider. It was during the trades for you. So yeah, initially when I first signed up, I was actually swayed more by the usability of Comsec and the information that it had. I found the information for what I wanted was more applicable to me. But then once I became a bit better, a bit better at figuring out the information myself, I switched to Oggi because it's the lowest transaction, the lowest brokerage. And that's probably most important to me, just like you. [00:17:51][38.3]

Alec: [00:17:51] All right, cool. What is the next question? [00:17:53][2.0]

Bryce: [00:17:54] What is best if I have a chunk of money and want to invest but don't know where to start? [00:18:00][5.2]

Alec: [00:18:01] Simple answer starting. Oh, yes. There's an old saying. I actually don't know how old it is. There are two types of trades, those that make you richer and those that make you smarter. And I think, you know, that's definitely been true for me. Definitely. Just jump in in terms of where to jump in. I guess that's that's really what the question I was getting at. There's a bunch of different options. You can if there's a particular company you like or you're interested in, you can directly buy shares in that company. But if you are a little bit unsure and you just want to sort of dip your toe in the water, there are a couple of other options. A really popular one at the moment is index funds. And what that is basically a basket of stocks that make up an index. So, I mean, it's best explained by an example. One index that exists is the ASX 200, and that's just the 200 biggest publicly traded companies in Australia. And if you buy part of the ASX 200 index, you're essentially buying a little bit of all those 200 companies. So that's a really good way of sort of dipping your toe in the water and just saying how it's going, because the biggest 200 companies in Australia generally over the long term grow rather than shrink. [00:19:21][80.1]

Bryce: [00:19:22] Well, the advantage of the index as well is that you're minimising your risk in terms of fluctuation. So if you're investing directly into one company, then you're at the mercy of its fluctuations in full, whereas investing in index, you're less exposed directly to one company as you spread across two hundred and you're given the weighted movement of all of those combined. So it's a good place to start looking. If you're a bit nervous about where to put your money and you didn't necessarily feel confident enough to choose one stock. [00:19:57][34.3]

Alec: [00:19:57] Yeah, definitely. So there's a third option in there. And yeah, that's you know, if you're not confident enough and you don't back yourself in to make the right call in the market, luckily for you, the professionals that do this for a living and you can pack them in instead. Yeah. So what do we mean by that? On the share market, there are these things called listed investment companies and essentially what they are is companies. That sole purpose is to invest in the market. And, you know, it's normally a gun trade or an experienced trader who heads them up and they just use that company to buy and sell other stocks and hopefully make money. And then if you have bought into that listed investment company, then as the company makes money from buying and selling stocks, you will profit as a shareholder of the listed investment company. So essentially what you're doing is betting on people a lot smarter than you and with a lot more experience than you. [00:21:02][64.4]

Bryce: [00:21:02] Yeah, another good way of reducing your risk as well. So in terms of where you're going to find these directors listed investment companies. Exchange traded funds or the index, they're all going to be on the platforms that we mentioned previously and there's going to be a list of them and you can just scroll through and and start doing some research on them. So once you set up your trading account, then you can start having a look at those three options. And each option requires a different amount of effort and involvement from you. Obviously, direct shares will require a bit more understanding and and whatnot compared to an index, but they both have advantages and disadvantages. So, yeah, in answer to the question, chunk of money, where do I start? You've either got your direct shares listed investment or ETF. [00:21:54][51.2]

Alec: [00:21:55] And I think the important thing as well is, you know, it's not an either or. You know, if you if you chunk of money is big enough to hedge your bets, put some money in a couple of different indexes, some listed investment companies, you know, you can even even do things. This is getting a bit off topic, but you can do other things. You can look at bonds and stuff like that. You can also find them on the share market. You can invest in like gold and stuff. So, you know, if you chunk of money is big enough, you really can spread it out. But the main the main things that you want to buy as a beginner investor. Yeah, the three that we sort of touched on. [00:22:33][37.9]

Bryce: [00:22:34] And this sort of flows into the next question, which is from Flyn, I don't know enough about funds or the index to invest, so it seems easier to invest in an individual company. What are your thoughts on this one? Ren. [00:22:48][13.7]

Alec: [00:22:48] Yeah, well, look, it it makes sense. I know your first investment was a listed investment company, but for most people, if you're not interested in the market, you're going to hear about companies. Still, everyone knows that Google and Facebook and in Australia, all the banks and the miners and stuff, everyone knows they exist. But if you're not interested in the market, it's unlikely, you know, about indexes and listed investment companies and stuff like that. So that's fair enough question. And definitely something that I experienced starting off. And I mean, you know, my first few investments were all companies for exactly that reason. It's what I do. It's what I heard about. It's what I thought investing was. And I guess the main thing is, well, I mean, the first thing is lucky you found our podcast [00:23:35][46.8]

Bryce: [00:23:36] and [00:23:36][0.0]

Alec: [00:23:38] hopefully we've been of some value just with that look, investing in individual company, there's nothing wrong with that. The only thing is there's a little bit more risk involved. So if you're willing to take on that risk and you like a company or you think it will grow, then by all means, don't don't be worried out of investing in that individual company. But, you know, if you're new to the market and you're a little bit unsure, there are other options out there. And those options, you know, that we talked about earlier, they're a little bit less risky because with a listed investment company, you know, it's an experienced person managing the money. So there's a little less risk there. And then with an index, because it's a basket of different stocks, you know, if one stock goes bad, it's sort of balanced out by a number of other stocks that aren't doing as poorly. So it's just about risk. But, you know, at the end of the day, as I said earlier, there are two types of trades, those that make you smarter and those that make you rich. So if you invest in an individual company and you lose a bit of money, just know why and don't make that mistake again. So you know, Flyn, in answer to your question, if it seems easier for you to invest in an individual company, if that's what you want to do, do it. But at the end of the day, it's just as easy to invest in anything because you just do it through the website Broka that you signed up to. [00:25:06][87.3]

Bryce: [00:25:06] So I get stuck in. [00:25:07][0.7]

Alec: [00:25:07] Yeah. And as we always say, just just on just it's always better to start. [00:25:12][4.5]

Alec: [00:27:06] And look, that brings us to our fifth and final question of our inaugural Equity Mates listener mailbag I lost. And this question comes in from Harriott. So thanks for your question. And that question is, where do you guys find your information and how do you find out about companies? [00:27:25][19.3]

Bryce: [00:27:26] Yeah, great question. And one that we get asked a lot as well. And this sort of comes from well, this is sort of why we tried to start our new segment as well, because [00:27:36][10.2]

Alec: [00:27:38] we got a lot news anymore. It's what have I learnt now? [00:27:40][2.6]

Bryce: [00:27:41] No regional news section. This is why we tried to originally go with that news section, because we actually get a lot of our investing ideas from just what's going on out in the world and and then trying to relate that back to how it's going to affect a company or an industry or what it's going to mean going forward in the future for companies and industries. So. Firstly, for a beginner, I think it's important to just think about your experience that you have in terms of your job or where your parents work or where your siblings work or, you know, look at some of the favourite brands that you like wearing and then start to think about the companies that are involved in in, you know, say, for example, you are wearing Nike or you work in a shoe shop and you can understand what some of the favourite brands that are being purchased. And and these are sort of ways that you can start to think about companies to invest in. A good example is my house. Nitromethane actually works for DHL and which is a logistics company, and although it is an international company, you can still invest in it. But I asked him if he was to invest, what would be the first thing he would invest in? And he immediately said DHL. And I asked him why. And he said, well, that was just primarily because he works at DHL. He has an understanding of where DHL sits in terms of its competition. You know, it's a strong player in the market. He he understands that they have solid growth, et cetera, et cetera. So that would be his first pick. And, you know, he doesn't invest at all, but he still has an understanding based on his experience, based on his job. And that would be how he would start to look at investing. So that's one way that you can find a company to invest in. [00:29:37][115.6]

Alec: [00:29:37] What are your thoughts, Ren? Yeah, look, I think personal experience is great. I also, you know, just jump on AFR, Australian Financial Review's website. You know, there's a bunch of free sort of newsletters and stuff out there that have information. Equity Mates dot com always has some great articles that you can read. But honestly, the way that I find companies in particular, rather than just general information, it is literally just going down a rabbit hole, you know, jumping on Google. Starting off, you know, you might hear about something and in the news and that might trigger a thought. So, for example, on us, on Facebook and I are a vice news article came up about a robot that could lay bricks and was going to automate everyone's job, automate away everyone's job. I don't know what the verb is that they're looking at. Essentially, it was a robot inside your job. Yeah, yeah, yeah. Essentially, there's a robot in the U.S. that could lay bricks faster than humans could. And I mean, the implications of that are pretty obvious. So that got me thinking and not thinking about investment more just out of curiosity. Just started going down like a Google rabbit hole about robots like Brick Lane robots. And right before I knew there was there's an Australian company that is doing the same thing, reckons I can do it better than this American company I wrote about in flyest news now. And I didn't invest in the company. I don't think I will. But look, that's just sort of an example of where you get information from any source. If it interests you, you find companies in the most unlikely places. So my my biggest advice about finding information is just stay really curious about the world. Yeah. Investing is this this great pastime and profession where you can just stay fascinated about what's going on in the world and. Yeah, what's coming in the future. And you can just read and learn as much as you can and opportunities will come in the most unlikely of places. So, you know, it would be great if we could just say read X, Y and Z and you'll have all the information, you know, to make a million bucks by the time you're 30. But if there was a super easy formula like that, well, first of all, we wouldn't be doing the podcast and telling you all about it. But secondly, everyone would be doing it. So there's no easy answer. But just stay intellectually curious and opportunities on top of it will strike. Yeah. [00:32:35][177.7]

Bryce: [00:32:36] Yeah, not so well, yeah. That brings us to the end of questions. And if you want to refer back, we go into a lot of them in more detail in a number of our early episodes. You'll find them by six, one by one, and also jump onto our website because we've got links to all of them there as well and a bit of a write up about age. So, as I said, a lot more detail. And if you're interested in any of those, yeah, head back into our classroom and check it out and we'll finish with a quick wrap up of our hypothetical portfolio, Ren. This is something that we started right back at the very well at the birth of Equity Mates. We decided to step aside. We felt that it would be important to give an example of what it can look like if you're consistently chipping away at the stock market. And we also wanted to put some of the strategies into place that we have been discussing and test of ideas and see how. We can go, so I guess the main thing to point out here is that we're not claiming to be expert stock pickers or anything like that. We've have just chosen stocks along the way that we have either found interesting or that we've deemed going to be important in their industry going into the future. We've also tested some of our exchange traded funds that we've been talking about, and we've looked into some listed investment companies as well. So we've really got a great spectrum of stocks and it's been interesting to see how they perform and in the current market. And we've also got some in there that we think will perform if the market starts to drop. So if you want to go through some of them Ren. [00:34:27][111.5]

Alec: [00:34:27] And so I think if people want to read about them all, we've got write ups on our website about. Yeah. How we found them and why we chose them. But yeah, look, I think your point is a good one about how we're just trying to show the different options that are available. So we've picked some individual stocks. We've got Gateway Lifestyle Group, which is an aged care and real estate company. Yeah, we've got Australian Agricultural Company, which is a beef producer. We've got Afterpay touch group, as it's called now, which is an online payments company. So they're the three companies we've chosen and then we've got. [00:35:09][42.1]

Bryce: [00:35:10] So just to jump in there, Ren sorry. So that goes back to the first investment strategy we talked about previously, which is direct stocks. [00:35:17][6.9]

Alec: [00:35:18] Yeah, exactly. Yeah. Yeah. And then we've got one listed investment company there and that's PM Capital Global Opportunities Fund. Now just for everyone you know, we were talking about these listed investment companies being run by professionals. Paying capital is Paul Moore. And Paul Moore is a well respected and very experienced investor. So rather than us trying to pick some stocks, we thought we would take the day off and take the responsibility. Yeah. And then last but not least, we have two ETFs now. One follows the Nasdaq. Now, if you don't know what that is, jump on Episode 12, no episode 13 of Equity Mates, the Tik-tok. You're one of our best, I think. Yeah. And we talk about the Nasdaq and what it means. So that's one ETF. And then the other one is it follows the Australian share market, but it follows it inversely. So when the Australian share market goes up, this one goes down. So we actually make money from this if the Australian share market goes down. Now, the reason we did that was because there's a lot of concern at the moment about the markets being pretty high and maybe there's going to be a little bit of a correction coming. So we just thought we would throw that in there to give ourselves a little bit of protection in case anything went down. But yeah, look, so we've got three companies to ETFs and one listed investment company so far. Yeah, yeah. We've got a little bit of variety in there. Something for everyone. [00:36:58][100.6]

Bryce: [00:36:59] Hmm. And just for those that have jumped in for the first time, we usually throw in a thousand dollars each time we do a stock of the week. And that includes our brokerage as well, which is eight dollars for one one percent. Oh, well, less than one percent. [00:37:15][16.0]

Alec: [00:37:16] And it's it's actually worked out, even though we call it Client Stock of the Week, we've actually bought we've bought one every month from February. So it really should be called Stock of the Month. And, you know, that's that's a thousand dollars a month that we've put into the market in this hypothetical fund. [00:37:34][18.4]

Bryce: [00:37:35] Yeah. Yeah. So I hope that we've been able to demonstrate through this fund that with consistency and patience and also, you know, a thousand dollars a month, it doesn't have to be that it could be five hundred dollars a month or whatever. But we've already developed a portfolio now that's sitting at a value of about six thousand dollars. So I mean, it's easier said than done in some circumstances. But yeah, the case, patience and consistency. And also, just once you've got money in that, just leave it in there, let it sit. So we are fortunately up three point nine four percent. But anything could happen. And, you know, we're not proclaiming to be the professors of the stocks at all, but it's good to say that we are in the red somewhat. [00:38:22][47.4]

Alec: [00:38:23] Yeah. And just to be clear, like we're not this is an advice. This isn't like go and buy these stocks because most of these stocks we don't own in real life, all this is is just to sort of illustrate some of the different things that are out. For us to do the write ups to explain, like why how we found out about them, why we chosen, just take this is like a learning exercise more and don't don't take it as advice No. [00:38:52][28.4]

Bryce: [00:38:52] One, 100 percent. This is just for us to practise what we've been learning, essentially. Yeah, definitely. So, yeah. So that's that's should be a nice little rap for Episode 15. As as I have said throughout this episode, all of this can be found in much more detail on our website and on previous episodes that we've done. Episode 15 being this one, most of our basic one or ones were done earlier in the piece. But I also encourage you strongly to listen to a lot of the interviews that we've done, because all of the guys that we interviewed talk about these in different ways, a lot of different strategies and an investment advice in terms of ways that you can look at the market and find stocks and information. So there's a lot of valued value to be gained in going back over and listening to them. If you have already done so or definitely listening to them for the first time. If you haven't, we have a great time recording them. So we hope you guys can get involved in listening to them as well. [00:39:55][62.7]

Alec: [00:39:56] All right, well, on that note, thanks for listening, if you want to be involved in the next mailbag, send your questions in until next time. [00:40:04][8.3]

Speaker 6: [00:40:07] Equity Mates in the people appearing in this programme may have positions in the company's pension. This is general advice for me. Please speak to a financial professional to understand how they pertain to your individual situation. [00:40:07][0.0]

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More About

Meet your hosts

  • Alec Renehan

    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 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.

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