Community Spotlight: The beginers guide to buying your first stock | Thanks to Sharesies

Bryce: [00:00:31] Welcome to get started investing in this podcast. We cover all the basics that you need to start your investing journey. Are you joining us for the very first time? Is this the very start of your investing journey? Well, before you dive into this episode with us, our feed is designed to go from the very beginning, so we strongly recommend that you scroll up and started episode one. However, if you are feeling brave and just want to dive in, then of course don't let us stop you here. It gets started investing. We unpack all the jargon and the confusing bits. We hear your investing stories with the goal of making investing less intimidating, and we want to have a good time along the way. My name is Bryce and as always, I'm joined by my equity buddy, Ren. How you going? 

Alec: [00:01:09] I'm very good, Bryce. Great to be back with you. Great to be back for another one of these episodes where we speak to someone at the very start of their investing journey. I feel like we definitely got nostalgic last time after we recorded Days and I'm sure will be nostalgic. 

Bryce: [00:01:29] Yeah, it was an enjoyable conversation last time we had Alana and Maddie join us on the show over the last couple of weeks, and we've got Alana with us today. But before we get, we introduce her. This episode is proudly brought to you by shares these who are helping to create financial empowerment for everyone. And that's what we've really been unpacking over the last couple of weeks. Their vision is to give someone with $5 the same investment opportunities as someone with 5 million. You can choose from over 8000 companies and exchange traded funds on the Australian, US and New Zealand share markets. So I'm sure that we're going to find out how Alana has been tracking over the last couple of weeks with shares is you can buy portions of shares on the shares this platform for just $0.01. So Alana, without further ado, welcome back to the show. 

Alana: [00:02:17] thank you. Good to be back. 

Bryce: [00:02:19] So last time we spoke, we kind of just went through a couple of the questions that you had. And and correct me if I'm wrong, but from what I took from the conversation, you felt like you're now at an age where you really want to get cracking with investing. I think you said something like you want someone just to tell you how how it's all done and that's not going to be us. But you were you were you were looking to just to just get started and you were worried about the security of some of the apps. So we spoke through that. And then I think from memory, we left with you going away to think about next steps and what you were, what you were going to do with the with the shares is up. So let's start at the at the beginning we hung up the call. Did anything eventuate?

Alana: [00:03:02] Yeah. So I jumped on Sharesies. I added some money to my input to my portfolio. And then based on obviously talking to you, I did also invest or monthly also to see what that was about. But I also had a little dabble on putting some money on myself. Okay. On some of them, it was interesting experience. They also one was interesting because what it does is it has your money and it has a schedule and then it does it all for you. So pretty cool in the aspects of it. Sitting there in my portfolio at the moment, these random ones ready to rumble, which are part shows and or full shares and space emails, but I want a full share of a publisher. Full share, like especially I suppose for me it was like 50 bucks. If you give me half a share, like just give me would you give me a full share? 30 bucks. But hey, whatever, whatever. I buy it. Well, I kind of like what was the point in that? But I'm sure that venture in some of my journey of understanding what's the point about half a share or three quarters of a share. So yeah, that was my mindset is like I've got point, I've got a bit there but there. So that was my take on it. But we'll see how that kind of pans out. And then I did on three of my own where one I ended up, so then one I got ten shares off and then the other one I still buy order. So what that means is it's up for a certain amount and it allowed me to I was played around. So what does this mean? Because when you go in and put your own, it allows you to even buy one at that price or put a price on that. You want to receive it I suppose. Yeah. Let's say for it. Yeah. Yeah. So that's why I was playing around with say I did it for like $1.20 less just to say, you know, get off of it and it still stay there. It's still sit it out. All right. Well, you know, it's still sitting there waiting, waiting for me to cancel it. Obviously, you want to go down 124. Yeah. So that was probably where I was just having a dabble would see. And then I think the nice thing of that is actually with the one where I'm dabbling in is by order I could just cancel that and still have no commitment, you know. So if they don't want to come down to my $1.20 less because they're being greedy with the $1.20. I can also do that. I'll take my money elsewhere. 

Bryce: [00:05:36] So a lot to unpack there. 

Alec: [00:05:38] A lot to unpack there. Let's start with how you navigated the platform, because I know speaking to my speaking to, you know, family who decide they want to start investing, it can be a bit overwhelming just actually getting on the platform and like seeing how it all works. Trying to understand all the different terms. Market order, limit, order, all that stuff. It sounds like you got a good handle on it pretty quickly. And you were just explaining to us what a limit order was. How did you find it when you first jumped on? What was your experience like?

Alana: [00:06:11] It was fine jumping and I kind of took the steps of say they wouldn't be details. So you go on, you can assign details then don't have to put your money details in straight away. You can kind of navigate the top left hand corner is a burger, which like a dropdown menu and it kind of gives you the best wallet. So your two main section sections and then also your own portfolio once you start buying. I found it quite easy to navigate. I was just obviously looking to manage it around going, Oh yeah, yeah. I suppose it's quite overwhelming. No, you can't call it transports health care. I don't have it to begin with. I had no idea what I was looking at. And then I was like, Oh, there's Amazon there and in companies. And then I was okay yet, yet again. But I thought to understand, okay, I've got I've understood the direct costs on that of that bit of each of each share and what the companies were. And that's how I did it. And then I was kind of like, Well, where do I best? I suppose so that's why I went to Auto Invest, because I didn't know where to invest. I don't care about that. So I don't care to look up to see what the likelihood is going to happen to this company, what I look at, blah, blah, blah. I know that's what proper people do with the rest of the journey and wanting to know where they're going to get the biggest return. But I just want to put it in and kind of hit and hope, I suppose.

Bryce: [00:07:33] Oh, I don't think there is anything wrong with the auto invest. Is that going into like an ETF? Is that is that where that's going. 

Alana: [00:07:39] They also invest ASX NYSE. No, no, that's my one. So it's ASX. 

Bryce: [00:07:48] Yeah. Nice. Well, I don't think there's anything you said that the proper people pick stocks, but I think as we discussed a couple of weeks ago, there's absolutely no harm in getting everything into well, there's no harm in having a portfolio that is made up of ETFs as well. You mentioned you had a couple of other stocks in the portfolio. How did you go about choosing those? If you don't mind sharing what you the process you went through. 

Alana: [00:08:16] So while I was gone because I obviously can't say that it's I don't even know what that was for. Okay. But I thought for me, I thought it would ato within the Aviva I just went through with what ones I would be interested or feel that having a positive development. Positive development. So then so for example, I did a bio pharmaceutical company that was focussed on hepatitis and human and like development and so, so I just thought, oh, that's different. And a lot of about yeah, you know, that's a bit different. It's got positive impact to the world. So I'll give that a well and I just bought some shares there and thought, Yeah, that'll do. And then the other one I looked at, which is the one that's pending, which doesn't want to come down $1.20 is the first trust value line dividend index. And I was just looking at that. And then the whole is different. I thought, okay, this seems a bit different to anything else I've got to look at as a devoted fan. So I thought, I'll see how that works. Just kind of spread out a little bit. I suppose you. 

Bryce: [00:09:27] Do know there is a chance that it'll never come down to dollar 20? 

Alana: [00:09:30] Yes, I just what I wanted to test, so I just wanted to test what I assumed to be the case. Who's the point person? It was appropriate as an optional course if it never going to come down anyway. I really like if someone said default. Well thanks for that might really really make my life you know. Yeah I think that's why I was just tested. I was like, well, how far does this go? 

Bryce: [00:09:55] Yeah, yeah. 

Alec: [00:09:56] And so when you said you came across it and it was a bit something, something a bit different, and I actually don't think I've heard of it before. So it is definitely a bit out of left field. How did you come across it? Was it on the app? Was it Googling? 

Alana: [00:10:09] No, it was on the app and it was in the and goes through some of their topics. What I got agriculture, energy. I'll just eat here so that I'll just take them all individually. And I was just scrolling as you do, and I saw an apple. None of the other ones are like this. And that's why I jumped in for Give it a whirl. 

Bryce: [00:10:33] Nice. Well, it sounds like you've at least had a good player of the app and put your put some money in the market. How did it feel getting that money in there? Was it like as I don't know. A lot of people sometimes think it's this big, sort of daunting feeling of putting hard earned money in. But now that it's in, like, what? What's how are your emotions? 

Alana: [00:10:52] Oh, it was quite underwhelming experience. You know what? 

Alec: [00:10:56] Underwhelming is good. That's good, right? Yeah. 

Alana: [00:10:59] Oh, yeah. So it's quite underwhelming. It's not it's kind of there my money when I guide so obviously as you do you like oh show me the money show but yeah yeah I know what I'm saying. It I was I was well I spoke to Bryce last week. Was it minus like 7% return or something. I'm now at -3.2%. Five. Right. I'll make it amazing way. 

Alec: [00:11:24] Watch out, Warren Buffett. 

Alana: [00:11:26] If I ever die, you never know.

Bryce: [00:11:31] Well, that's great. I mean, up three and a half percent since we last spoke. And you might be breaking even before before, you know. So what's what's the strategy from here, do you think? Like you've got that auto feature going, which is which is great and you still going to have a play around with some individual staff? Are you looking overseas at ETFs overseas? Like have you thought like what's next from here now that you've, I guess, broken that or had that underwhelming experience of getting money, money in what's what's next?

Alana: [00:12:03] I think, yes, I have got the auto set up and you have choices. You have like high risk on on that on the auto investment, what you invest in the self and all mine are higher risk at the moment. So I think I got a wise higher risk like a lot of thought. Yeah, I'll be like the age I'll just go from roll with it. I might have a double and say, You know, what does the low medium risk consist of? I don't understand in my head why? What's the difference? Why is it any different? I suppose. And it's probably the questions yourselves. 

Bryce: [00:12:38] Yeah, it's generally the types of companies that they would be invested in. So, you know, if you if you're looking for a high risk strategy, you're looking for potentially companies that are early on in their in their sort of business life style life cycle, there's still an unknown element to whether or not they're they're really going to succeed or not, that they might be sort of just beginning to do research and development. And the potential is that these stocks could become something quite large, whereas if you were to go a more conservative strategy or one that is a bit more defensive, you're likely to be invested in companies that are well-established, have been around for years, you know, your Woolworth's, your Commonwealth banks, these huge companies that just keep taking along year on year, you're not going to or you're unlikely to sort of ten times your money being invested in these companies. But you, you know that you can go to bed at night feeling a little bit safer than if you were to go a higher risk strategy with companies that, yes, they might ten times, but there's still that risk that they also might go to zero. So that's one way to think about, you know, the difference between a high and a high risk, an and low risk strategy. It's the types of default, the types of investments that they're making. So if you want to live life on the edge, yeah.

Alana: [00:14:04] That doesn't sound so convincing. You may feel like I went the wrong way. 

Alec: [00:14:07] No, no, no. 

Bryce: [00:14:08] I think. I think one thing. One thing to definitely consider when you're thinking about this is also you're in. Testing time horizon. You know, we are fortunate enough that we are of an age where we still have 30 or 40 years ahead of us. And so, you know, losing a bit of money now is not the same as if it's our parents who are in retirement. And they need to keep every dollar that they've worked for. And it's unlikely that they would take a high risk strategy because losing their money at that age and and and time of their life would be disastrous. Whereas you and I and Ren can afford to take a little bit more risk and build wealth over the longer term.

Alec: [00:14:46] You don't have to do it. Don't put all your eggs in one basket. You know, you can take a little bit of risk with some of your money and you can be ultra safe with some of your money and you can keep some of your money in cash. And, you know, you can take a 30 year mortgage and spend the rest of your life paying it off as well. Like you can diversify across like a bunch of different assets. And that means, you know, you don't have to go all in on one level of risk. And yeah, the, you know, like crypto is just a whole another basket of risk that we're not even talking about, which is more risky than anything we're talking about here. So you don't have to, you don't have to just commit to one. You can double and a bit of everything.

Alana: [00:15:25] Yeah, yeah, that's awesome. 

Bryce: [00:15:26] But I think the fact that you're in a is, is the main thing. I think this is a great example of what happens when you do just put money in. You kind of just figure things out as you go. A lot of people get caught up on needing and feeling like they need to know everything before they get started. You didn't know what a limit order was before you got started, and you've just figured it out by nature of putting a dollar 20 discount on it.

Alec: [00:15:50] Yeah, yeah, yeah. 

Alana: [00:15:54] That's over 20. You can go can pay for a lot of things. 

Bryce: [00:15:58] And I think that's my biggest takeaway from this is that like it's just a great example of getting in and figuring it out as you go. Yeah. 

Alec: [00:16:07] And it's definitely like talking against our own interests here, but it's a lot easier to learn what a limit order is by actually just getting into an app and playing around with it than listening to Bryce. And I try and explain, you know, the market matches buyers and sellers when they agree on a certain price and you can put your own price in. It's just so much easier once you once you're in there. So I guess the question is, you know, you're use figuring out, yeah, you've made some investments, you've set up auto invest, you're taking a a number of steps. What's sort of the next steps you want to take or what are some questions that you might have at this stage? 

Alana: [00:16:45] At the moment, I'd like I don't have a lot. I think it needs to do some magic in the App Store. And I have a word I want. I want I may use I would like to see say myself like not a negative. So be kind of cool to see that's probably my next avenue is let's watch this grow and and obviously keep adding to it but hopefully see see that growth when it gets out of negative be a lot of mini celebration. Oh once I've done that it might be I come back to what the all time best I'll be investing in like two companies on my own a month and then to like and then do the auto event and then I might come back around and go, okay, where's my big lump sum? You know where I say big of where my big about where do I want to invest and probably do want to feel more comfortable with over the next couple of months? Where do I want to put a bit of money into, you know. 

Bryce: [00:17:46] Where are you going to put that fat. Well these bonus. 

Alana: [00:17:50] That's I've that's got on a holiday as well. 

Bryce: [00:17:54] Well that that's too good so I think that's a great place to leave it alone. I do want to just say thank you so much for sharing your journey so openly with us over the last couple of weeks. I know so many people in the get started investing community have resonated with where you're currently at and the questions that you're asking. So many of the community have very similar questions, so it's been awesome to see you get into the markets and yeah, really excited to see how this goes and obviously thanks to shares as well for the support for this episode. So we might leave it there unless you got anything you want to close out with. 

Alec: [00:18:34] Ren Nah, just really congratulations for getting started. It's the hardest step to take and for so many people, it's a step that they don't take. And you did it and you did it in a couple of weeks. 

Bryce: [00:18:46] I'd say it's time to print some money.

Alec: [00:18:50] Well, actually, you. 

Alana: [00:18:51] Know, I've been pretty much you. 

Alec: [00:18:54] We should say you had already got started. You were in crypto.

Bryce: [00:18:57] So right now, the hardest. 

Alana: [00:19:00] Of all. 

Alec: [00:19:01] Yeah, yeah, yeah. 

Alana: [00:19:02] Oh, yes. That's just sitting there. It's all good. Yeah. Thanks, guys. Appreciate that. Yes, I'll catch up soon. 

Bryce: [00:19:11] Awesome. Sounds great. And I would just like to. Say again thank you to shares these who are helping to create financial empowerment for everyone. Head to the shares his website to find out more information. Shares is abc.com dot edu, but Ren will pick it up next week. 

Alec: [00:19:25] Sounds good.