The Journey Of A Millennial Getting Into The Markets – Part 3

HOSTS Alec Renehan & Bryce Leske|12 October, 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.

Over three episodes, we track the journey of a millennial, who has never invested before, but knows it’s the right thing to do. We cover the basics, what he can invest in, answer all of his questions, and then watch as he finally pulls the trigger on something more meaningful than a 60-inch 4K computer monitor!

Hopefully by the end of these 3 episodes, you too will be inspired to take your first step into the markets, as we show you how easy it can be, particularly thanks to technology and apps such as CommSec Pocket.

In this episode we check-in on Rohan after he’s made his first investment, to discuss the idea of dollar-cost-averaging, portfolio construction, and to answer all of his questions.

Start small with CommSec Pocket. Download CommSec Pocket in the App Store or Play Store and get started today.

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Have you just started your investing journey? Head over to Get Started Investing – our 12-part series with all the fundamentals you need to feel confident to start your investing journey.

Want more Equity Mates? Subscribe to Equity Mates Investing Podcast, social media channels, Thought Starters mailing list and more here.

If you have any questions, head to Equity Mates Facebook Discussion Group and ask the Equity Mates community.

Bryce: [00:00:57] Welcome to Get Started Investing, a podcast that will give you the confidence you need to start your investing journey. This is for anyone who wants to start investing but isn't really sure where to start. Our aim is to cover all of the basics and to make the markets accessible to you. My name is Bryce and as always I am joined by my equity buddy Ren. How's it going, Bryce? [00:01:16][18.8]

Alec: [00:01:17] I'm very good Bryce very excited for this third part of our three part get started investing with an Equity Mates community member series. Yes. And honestly, it's going so well, I'm worried that I might get replaced. [00:01:29][11.9]

Rohan: [00:01:30] I'm not worried now. [00:01:32][2.4]

Bryce: [00:01:33] You're right, Ren. It has been an enjoyable two episodes. And in this third episode of our series following the journey of a millennial investor, we will be tying off the journey of Rohan, who has joined us, thankfully, for the third and final time here in the studio. Well, maybe not final. Good to have you here. Has the monitor going. [00:01:48][14.9]

Rohan: [00:01:48] Good to be here. The monitor's going really good. It's almost to be really getting a glare off. [00:01:53][4.7]

Alec: [00:01:53] It really is the textbook example of someone who can have his cake and eat it too. He can both buy the monitor and the Apple Watch and also invest in stocks. [00:02:02][9.1]

Bryce: [00:02:03] So Roee has taken a leap of faith through Comsec Pocket entered the market for the very first time, as we said at the start, the final episode where we'll be checking in on your portfolio performance. Even though it's only been a week, [00:02:15][12.3]

Rohan: [00:02:16] it has been about a week. Yes. Yes. [00:02:17][1.2]

Bryce: [00:02:17] And we will be chatting about what is your plan from here and any thoughts perhaps on what you might be buying over the next little while. So let's start at the top. You came in here with the ambition of making paper. [00:02:30][12.8]

Rohan: [00:02:32] I don't actually recall saying that [00:02:34][1.6]

Bryce: [00:02:34] often, but yeah, [00:02:35][0.7]

Alec: [00:02:36] that's been a common refrain from you over the last few years. [00:02:39][2.7]

Bryce: [00:02:40] Remind us where we left off last week. [00:02:41][1.5]

Rohan: [00:02:43] Where did we leave off last week? So I did the investments had [00:02:45][2.7]

Alec: [00:02:45] the world's first double investment live double investment on a podcast? [00:02:50][4.3]

Rohan: [00:02:50] Yes, the double I do recall now. And it was so quick and easy. I think as you guys were doing your outro, I managed to purchase my first two as a recap. I bought the sustainability leaders and the global one hundred nice [00:03:06][15.5]

Alec: [00:03:06] not so awake in. First question, how many times have you checked the app? Since I [00:03:11][4.9]

Rohan: [00:03:11] have checked it, I know, like you said, don't check it every day, but I've probably checked it maybe once every couple [00:03:18][6.2]

Alec: [00:03:18] of days. Okay, that's not bad. [00:03:19][1.2]

Bryce: [00:03:20] Have you been following what the market itself is doing [00:03:21][1.7]

Rohan: [00:03:22] loosely, very loosely [00:03:23][0.9]

Alec: [00:03:23] every couple of days? Has it been have you been sweating anxiously as you pull out your phone and wondering where your money's going? [00:03:30][6.8]

Rohan: [00:03:31] No, no. I think my fears have sort of bashed out. All right. I'll do that after this. No, my fears have sort of been eased. But the fact that well, firstly, it's I didn't check in a huge sum. Yeah. And secondly, you know, it's the long term view, blah, blah, blah, all those ones. So, you know, Buffett didn't get rich overnight. Nice. [00:03:51][20.9]

Alec: [00:03:52] You say that very dismissively, but it's good that you've internalised that. [00:03:55][3.4]

Rohan: [00:03:56] Oh, I tell myself that every morning as I'm looking in the mirror, it's a long game. [00:03:59][3.5]

Alec: [00:04:00] Not nice. [00:04:00][0.4]

Bryce: [00:04:01] So my guess would be that your portfolio is probably down given what's happening in the markets over the last few days. Am I correct in saying that [00:04:08][7.0]

Rohan: [00:04:08] you are correct? Yes. Yes. We're going to get into just how far down maybe you [00:04:13][4.5]

Alec: [00:04:13] to show maybe a percentage. [00:04:14][0.8]

Rohan: [00:04:15] Percentage for sure. Yeah, yeah. I'm not going to let everyone know I lost 300000. [00:04:18][2.8]

Bryce: [00:04:21] All right. Percentages. What are you talking? [00:04:22][1.2]

Rohan: [00:04:23] So overall, it's gone down zero point four two percent. Oh no, sorry. No, that's not right. Zero point one seven percent total. Yeah. Total flat total. [00:04:34][11.8]

Bryce: [00:04:35] If you've lost pretty much nothing. [00:04:37][1.8]

Rohan: [00:04:37] Lost pretty much nothing. Yeah. [00:04:38][1.2]

Alec: [00:04:39] So well and that's three hundred thousand dollars now. It must be nice. [00:04:42][3.8]

Rohan: [00:04:44] No no no no no. To break it down further, the sustainability leaders has gone down zero point to one and the global 100 has gone down zero point one five. [00:04:55][10.8]

Bryce: [00:04:56] Right. So really I think nothing to be overly alarmed or concerned about. If you have a look at some of the fluctuations that have happened on the market for some of those stocks individually, I reckon you would find that a lot of them are down a lot more than that. It's just by virtue of having an ETF that it's, I guess, smoothed out those fluctuations somewhat. [00:05:15][18.8]

Rohan: [00:05:15] So probably right. But some of the companies that make up those ETFs I have high hopes for in the coming future. [00:05:22][6.7]

Alec: [00:05:23] Do you want to name and shame them? [00:05:25][1.5]

Rohan: [00:05:25] I don't I wouldn't be shining if I think they're going to do well. They've gone down well, actually. I don't know if those specific companies that I have in mind have gone down. I haven't looked into it in that much detail. I suppose that's something that I will start to do going forward. And maybe you guys have me back in a year's time to see to see how it's performed. [00:05:43][17.8]

Alec: [00:05:43] We'll see how this side goes first. [00:05:46][2.1]

Rohan: [00:05:46] But, yeah, I remain confident that it will go up. At least a little bit. Maybe they're just blind optimism, probably not always. [00:05:54][7.5]

Bryce: [00:05:54] So that's a bit of a recap on how your portfolio is going. You made a good point, though. No real value in checking that and making sort of rash decisions on a long term view. So what does it matter really right now? I think what we want to close this sort of episode with is what are your sort of thoughts and next steps from here and do you have any sort of burning questions about perhaps how are you going to start building that portfolio outside of those two ETFs? Is it going to be something that you're going to put money into consistently every paycheque? Are you going to be looking at a different broker to start buying individual stocks? [00:06:26][31.6]

Rohan: [00:06:27] All right, slow down. Like a lot of questions there. [00:06:28][1.7]

Bryce: [00:06:29] Those are the sorts of things that I'm wondering are you thinking about or [00:06:31][2.7]

Rohan: [00:06:32] one of the points that I was thinking of that you just raised of putting more money in is yeah, I was surprised at how easy it was to put money into the app and choose ETFs. So much so that I think I have to be careful not to just keep pumping money in there, especially if I see it performing well, then I'll be tempted to be like, oh, let's drop even more cash in there. [00:06:54][21.8]

Alec: [00:06:54] Knowing how much you pump into Obetz, I think this would be a much better use of your [00:06:58][4.2]

Rohan: [00:06:58] money for you. [00:07:00][2.0]

Bryce: [00:07:02] Interesting point there. What happens if you say it's not going poorly directed? You put money [00:07:06][4.0]

Rohan: [00:07:07] in? Yeah, I still think so. Yeah, yeah. Yeah. Well, obviously, like if something catastrophic happens and we're hit with the next GFC overnight, then no, but yeah, I will continue to put money into it. The second point was, will I start looking at other brokers? Yes, sir. One part of that point is the next step for me. The main next step is getting into investing in individual stocks, which was sort of one of the main issues in the end game. But one of the main points that I wanted to go for come back to that whole, like, you know, investing in what you know and all of that what you think you know, Rodo. And the second point would be like, what are the benefits or drawbacks of using some other brokers? [00:07:46][39.2]

Bryce: [00:07:47] No real drawbacks from using other brokers. I think Ren and I talk about it often for you to sign up to. In most cases, you're not locked in. You just got to find one that works for your investing strategy. [00:07:57][10.3]

Alec: [00:07:59] Yeah, I think so. Really, it's just an access to a broader choice is the main thing that's obviously different costs and different functionalities and different resources and stuff with each broker. It's depends on what your taste is like. If you just want Supercheap and you want to do all your research yourself, there will be one for you. Whereas if you want, you know, a guide through the whole thing, they'll be. [00:08:19][20.6]

Bryce: [00:08:19] Do you want charts or do you want financial data on the companies? All those sorts of things start to play in when you come to choosing a broker, right? [00:08:27][7.9]

Rohan: [00:08:28] I mean, do they present information and in what format do they. [00:08:32][4.0]

Bryce: [00:08:32] How much do they provide additional research from investment banks, for example? Like if you were to pay for a broker that is on the cheaper side, they're less likely to provide all those sort of add ons compared to someone that, you know, you pay that sort of twenty dollars per trade and they'll have supposedly a better offer in terms of additional research. [00:08:52][20.0]

Alec: [00:08:53] And so they give you the offer from Macquarie Bank and the offer from online. Only one like superhero is going to be very different. And you sort of in some ways to get what you pay for in terms of all the extras. Most fundamental thing is that you're accessing the same market. So a lot of people get hung up on this next step, choosing a broker. But really, in a lot of ways, it's six of one, half a dozen of the other. You buy, say, Commonwealth Bank, share whichever broker you buy, where you are in the Commonwealth Bank. [00:09:21][27.8]

Rohan: [00:09:21] OK, next question, kind of dumb as well is a dumb question. So so in the CommSec app, it obviously is broken down into ETF units. If you were to buy like the individual stocks, obviously some stocks like super expensive and you don't want to buy a full one. How does that [00:09:39][18.6]

Alec: [00:09:40] work? It's a good question. The first thing to keep in mind is that the price of a share doesn't necessarily mean it's expensive or cheap in terms of what you're actually buying, because that, you know, it depends on how many shares are in the company and what the whole company is actually worth. But from a purely like actually buying a stock perspective, an Amazon share is like, what, 300 Aussie dollar sorry, three thousand Aussie dollars at the moment. Like, that's expensive to access. Just, you know, for an everyday investor, you're buying, you know, one or two shares at a time sort of thing. [00:10:15][34.8]

Rohan: [00:10:15] So can you you can buy like half a share. [00:10:17][1.7]

Alec: [00:10:17] I was I was going to that. I'll just coming off a brettler length run up. You can buy fractional shares. It's not really common for the ASX, for Australian listed companies at the moment. I think interactive brokers do offer for the ASX, but there will be more coming in the coming years. But for Aussie investors, if you want to buy a fractional share of a US company. So, yeah, Amazon's your apples, your alphabet's, all of that stake offer the ability to buy fractional shares so you can do it. It's pretty new to the market, but. Will become more commonplace in the coming years, I expect. [00:10:52][35.0]

Rohan: [00:10:53] OK, so say for argument's sake, and I know this is the answer is going to vary based on like which brakhage you use and so on and so forth. But if I wanted to buy a thousand dollars worth of shares spread across a couple of different companies, what kind of fees on average would I be looking at? [00:11:10][17.3]

Bryce: [00:11:11] So generally speaking, in Australia, as I said before, a minimum five hundred dollar lots depending on your broker. So that's the first thing to consider. So you'd be splitting that thousand across your two trades, for example. And on average, I mean, taking into consideration what Ren and I pay for our brokerage anywhere between eight and nine point fifty, up to ten dollars, depending if you want to spend over a thousand or not. That's kind of the ballpark and that's for buy and sell. [00:11:38][26.5]

Rohan: [00:11:38] So it's a flat fee as opposed to a percentage of the [00:11:42][3.8]

Bryce: [00:11:42] stock going up to sort of ten thousand dollar chunks. [00:11:45][2.5]

Rohan: [00:11:45] Baby steps. Baby steps. [00:11:46][0.8]

Bryce: [00:11:46] Yeah, at this level, sort of that thousand dollar mark is generally where you find the lower end of the face these days. [00:11:53][6.7]

Alec: [00:11:53] If you're paying more than 20 bucks outright, you need to have a serious reason to do it. [00:11:59][5.5]

Bryce: [00:11:59] One thing to think about is how much is your brokerage as a percentage of your actual trade? So we try to keep your brokerage at less than one percent. And I don't want to go too far into the weeds, but just think about what you're paying to actually get into that stock, because if you pay five percent of your total trade in brokerage, you actually need that stock to go up five percent just to remain even. [00:12:23][24.0]

Rohan: [00:12:23] Yeah, gotcha. [00:12:24][0.4]

Alec: [00:12:24] That's probably enough about individual stocks unless you have any more questions now. [00:12:29][4.7]

Rohan: [00:12:29] That's OK. We'll take them offline. [00:12:30][0.8]

Bryce: [00:12:31] Ren. 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. [00:12:45][14.0]

Alec: [00:12:46] No, look, they didn't come. But all of that effort really was cancelled out by the numerous menu log orders that were a real staple of my lockdown experience. [00:12:55][9.5]

Bryce: [00:12:57] 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. [00:13:04][7.0]

Alec: [00:13:05] 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. [00:13:16][12.0]

Bryce: [00:13:17] 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. [00:13:26][9.3]

Alec: [00:13:26] Yeah, the FBI twenty one get Ren didn't quite work but if y twenty to get Ren money fit might be to go [00:13:35][8.4]

Bryce: [00:13:36] back to your own Bayt Virgin money terms and conditions and monthly criteria apply. Now let's get back to the show. [00:13:42][5.8]

Alec: [00:13:44] The two key concepts that we probably want to touch on in this episode are dollar cost averaging and then portfolio construction, and we probably just want to touch briefly on each of them. So I guess let's start with dollar cost averaging. Are you familiar with that term? [00:13:57][14.0]

Rohan: [00:13:58] I've heard you say at about a million times. I think I get the general gist. Actually, no, I know what it means. But tell me what you think is very good. [00:14:07][8.9]

Alec: [00:14:07] Very good. So basically, a lot of people, when they're new to investing and speaking personally, this was definitely me. You think of investing as needing to time the market that you you need to wait until the is like you buy low, sell high. Like, that's that's the model that is drilled into everyone's head about investing. That isn't the best way to grow wealth because timing the market is incredibly difficult. So unless you have the time and the ability and the patience to do it, you can grow wealth just by averaging into the market. And for a lot of people that are working on five jobs, saving a bit of money and looking to put it into a productive use, it's the best way to do it because it fits with your lifestyle. So rather than saving all your money in your bank account and then timing the market and putting it into the stock market at a particular time, just consistently putting money in every month, regardless of how the market is moving, main's, it averages out the price that you're buying up. So let's take an ETF that you're you've bought sustainability leaders. You know, it'll go up some months, ruga down some months. Over the long term, it will average up or historically, you know, the markets have averaged up. And so rather than trying to pick the bottom, if you just put a little bit in every time you save it, it means that you'll sometimes buy high, you'll sometimes buy low. But over the long term, you'll average at sort of the average price. [00:15:29][81.9]

Rohan: [00:15:30] So do I need to do anything to that, or is that just a general principle of you'll come out somewhat ahead [00:15:36][5.9]

Bryce: [00:15:37] if you are just going to put in money once a month when you get paid and you do that every month? For 12 months, that news dollar cost averaging, as long as you're buying the same amount each time in the same store. [00:15:50][12.4]

Rohan: [00:15:50] Oh, I get it. OK, so if you put inside a consistent figure every time over a consistent period of time, then you can expect an even evening out. [00:16:00][10.5]

Bryce: [00:16:01] Yeah, yeah. The tough challenge I think psychologically is to do that when the markets are falling, because that's when you kind of try to play yourself in the markets and go, oh, it's falling. I might just wait a bit to see how this plays out. [00:16:16][14.9]

Rohan: [00:16:16] Well, inversely, does the principle still apply if, say, one month you put in a thousand in the next month you put in two thousand in the month after you put in. Eleven hundred, not [00:16:25][8.9]

Bryce: [00:16:25] really from a theoretical point of view, because you're actually buying more of that when you buy 2000 compared to when you bought one. So the weighting of that purchase is greater. [00:16:37][11.3]

Alec: [00:16:37] I'm a big fan of not letting perfection be the enemy of the good [00:16:40][2.8]

Rohan: [00:16:41] of you guys. [00:16:41][0.3]

Alec: [00:16:42] I don't the time if you have two grand to put in one month because, you know, you didn't buy as much over eight, so you bought a small monitor or whatever. And then the next month you have less because, you know, you needed to buy new tires for your cars or something on it. That's fine. Just put in what whatever you say. But the main principle that I think is really important for everyone's investing lives is consistency is key. And it's not about saving money in your bank account and trying to wait for the next JFC. You're like the perfect time to buy it. It's just consistently putting it in historically has been shown is the best way to do it. [00:17:13][31.8]

Rohan: [00:17:14] Yeah, the stock market is the greatest wealth creation. Hey, come [00:17:21][7.4]

Alec: [00:17:21] on, that's my thing. [00:17:22][0.6]

Bryce: [00:17:23] So that's a pretty simple concept to think about in terms of entering the market. I think worth considering, particularly if you get paid monthly or whatever it is, you get paid in cash [00:17:33][9.8]

Rohan: [00:17:33] or daily cash on hand. [00:17:34][1.2]

Bryce: [00:17:36] And then in turn to close this out, I think constructing your portfolio, there are a thousand ways to do this and a thousand things to think about. My comments would just be to start building a base with what you've got. And I like the idea of you then thinking about having a dabble in more individual stocks. I think if I was to think back to my journey when I first started, I went the other way, pretty much started trying to pick stocks and didn't work out very well. And now consolidating that sort of ETF base. I think if you try and go the other way, then there's a lot of advantage in that. [00:18:06][30.4]

Rohan: [00:18:07] Yeah, let the experts sort of make the call for you. [00:18:09][2.6]

Bryce: [00:18:09] Yeah, well, there's products available now that take away the the risks of you trying to pick Lukie stocks and sort of hope for the best. And if you can build up what you've got there to sort of, you know, the tens of thousands, then putting a couple of grand on Apple or whatever it may be, is sort of less risky than if you started out by putting all of your money on Apple and then saying, what happens? Does that make sense? Yeah, yeah, [00:18:33][23.4]

Rohan: [00:18:33] yeah, [00:18:33][0.0]

Alec: [00:18:34] yeah. My thing with portfolio construction, if you start with ETFs, is just if you're going to buy ETFs, for example, the global one hundred or even your sustainability ETF, the biggest companies in both of those ETFs, I would guess, and I haven't looked specifically, but I would guess would be the same. Amazon, Apple, Microsoft, Google, I reckon would be probably the four biggest companies in both of those ETFs. And so if you're then going to buy individual stocks, it doesn't really make sense to then go and buy Apple, Microsoft, Amazon and Apple individually as well, because it's like you already own those through the ATF and because they're so big in those ETFs, they're going to drive the performance of the ATF. Yeah. So it feels like you're buying more things, but really everything you own in your portfolio is going to move. Basically, the same is going to be driven by those same companies. I think for me, when you're thinking about portfolio construction, but really just buying, you know, your second, your third, your fourth thing, it's just about not buying the same thing over and over again in a different label or a different way. [00:19:36][62.9]

Rohan: [00:19:37] Here's my sort of thinking as I get deeper into this, because, you know, I'm relatively new to the game. I would think that the majority of my investments would be in ETFs and a small proportion would be in me picking my own stocks if I was to break it down into percentage splits. Having still not done it yet, probably I'm thinking 70, 30. Is that is that a reasonable split or would you be more on the side of caution and go ninety ten like ninety eight years? [00:20:06][29.3]

Alec: [00:20:07] So I think the first thing to say is that there's no golden rule and we don't have like a specific answer that we can give you. Like we can't give you advice on exactly how much money you should put in each buying. [00:20:17][10.6]

Rohan: [00:20:18] You're legally bound not to. Yeah. [00:20:19][1.6]

Alec: [00:20:20] Yeah well yeah. But also like we are experts, like we are just here to sort of share what we've learnt and to facilitate your journey. But I think, you know, a lot of people that write about this sort of talk about 80, 20 or 70, 30. So I don't think that's right. In the range of of a reasonable split [00:20:36][16.6]

Rohan: [00:20:37] personal question, what are your guys splits? [00:20:39][2.1]

Alec: [00:20:40] I would be 60-40 long term holdings and then shorter term investments. And my definition of long term holdings isn't quite just ETFs. And then individual stocks like in my like long term section. I've got some Berkshire Hathaway, for example, Warren Buffett's company. But but that's something that I expect to hold for decades to come. So I sat in the same way that I closed my ASX 200 ETF [00:21:04][24.4]

Bryce: [00:21:05] and I own fourteen point nine two percent individual stocks. [00:21:09][4.3]

Alec: [00:21:10] That's very specific. [00:21:10][0.5]

Bryce: [00:21:11] I do the maths on that. So you're going to want seventy five percent. Eighty five percent is ETFs. Oh, sorry. I've classified listed investments and like the Magellan. Yeah. [00:21:21][10.3]

Alec: [00:21:22] As long term long. [00:21:22][0.8]

Bryce: [00:21:23] Yes. We're not. Long term, but as more of a mixed approach rather than individual stocks. Eighty five [00:21:28][5.8]

Rohan: [00:21:29] fifteen seventy five point two, [00:21:31][1.7]

Bryce: [00:21:31] seventy five point I [00:21:32][1.0]

Alec: [00:21:33] know you said fourteen point nine to [00:21:35][1.8]

Bryce: [00:21:35] fourteen point nine. [00:21:35][0.6]

Alec: [00:21:36] Yeah. Yeah. So eighty five Deep Dive. [00:21:38][1.8]

Rohan: [00:21:38] Eighty five. That's still eighty five. [00:21:43][5.0]

Alec: [00:21:43] But that's very conservative from you. [00:21:46][2.4]

Bryce: [00:21:46] Yeah. Well, as I said recently, I've just taken the approach of I'm just building my long term core portfolio. [00:21:52][6.3]

Alec: [00:21:53] How are you going to live what we talk about on the podcast. [00:21:55][2.0]

Bryce: [00:21:56] And that's what I said I'm doing. Yeah, I'm just building that out consistently. Bang, bang. I've got a couple of rules. When markets do things that I try and execute. What that doesn't include, though, is my cash position. So I don't know if you think about the whole pace in one, but this is stocks only. [00:22:11][15.5]

Alec: [00:22:12] The takeaway from this is everyone has different risk appetites. And so that's a really big driver of what that split should be. But I think personally, the most important thing to drive that split is how much time you can dedicate to it, because the worst thing you could do is say, I want to do like 50/50 and I want to own heaps of individual stocks. And I want to be like, you know, I want to beat the market every year, all that stuff. If you don't have the time to do the research and actually buy good companies that will, you know, outperform if you don't have the time, there's nothing wrong with market average returns and being 100 percent ETFs and just going about your day and doing other things that interest you. And just investing doesn't have to be a hobby. It doesn't have to be an interest. It can just be something that you do to make your money work for you doesn't [00:22:57][45.6]

Rohan: [00:22:58] have to be something. You start a podcast and hopefully we don't lose listeners. [00:23:03][5.2]

Alec: [00:23:04] But yeah, I think, like, you know, if you want to watch six hours of English Premier League highlights a day and you never want to look at how the market's going, that's a perfectly reasonable way to live your life. But just don't have your money earning five percent interest in the bank. [00:23:16][11.6]

Rohan: [00:23:17] Yeah, OK, point taken for taking the long [00:23:20][2.7]

Alec: [00:23:20] and short of it is we can't tell you what to do, but if you reckon thirty percent of your money is what you want to do, then yeah, that's reasonable. [00:23:26][6.2]

Bryce: [00:23:27] I'd also suggest trying to find a way to track it, because if you are going to start doing different portfolios and whatnot across different brokers, you might want a spreadsheet or something that just at least shows you what's going on. [00:23:38][10.7]

Rohan: [00:23:38] Get an excel going, [00:23:39][0.7]

Bryce: [00:23:39] you get an Excel going. Nice role. That kind of wraps up what we wanted to talk about. Any other sort of burning questions that you've got. [00:23:46][7.2]

Alec: [00:23:47] This is the last time we're ever going to talk to you about stocks. So you got any questions you got to ask the now [00:23:52][4.8]

Rohan: [00:23:52] we say, Bernie, it's like I'm staying for dinner. Another thing is, can you explain to me like and explain like I'm five shorting something and I don't want a twenty five. I'll give you a twenty five. [00:24:05][13.0]

Alec: [00:24:06] I'll give you a twenty five wordless answer. Investing that you're doing is long. You're betting the company you go up shorting is the opposite. You make money if the price goes down. [00:24:14][8.4]

Rohan: [00:24:14] Yeah well because I've been watching billions will be [00:24:16][2.1]

Bryce: [00:24:17] very complicated to do as an everyday retail [00:24:20][2.2]

Alec: [00:24:20] investor. Let's put it this way. It's not something you're going to be doing anytime soon. It's not something that I've ever done. I'm pretty confident is not something Bryce has ever done. There's two ways to do it. You are the borrow the stock or you trade options, neither of which we would suggest you even bother thinking about. [00:24:34][14.4]

Rohan: [00:24:35] That's more of an episode thirty seven. Yeah, yeah, yeah. [00:24:38][2.8]

Bryce: [00:24:38] Are ETFs that are set up to short the market. So if you have a thesis that over the next year the market is likely to be lower than where it is now, you can buy ETFs that actually do that short position for you. So when the stocks go up, it'll go down vice versa. Sorry, when the stocks go. No, you said yeah. Yeah, but that's something that you will come across. I guess if you're interested in it and want to do the research, they're easily available. But just buyer beware. [00:25:06][27.8]

Alec: [00:25:06] Let me put it this way. Bryce for years on this podcast was incredibly bearish then that he thought the market was going to go down and it didn't and it finally did. But you're fighting history if you're making a short bet on the whole market, because over time it averages up because the world gets more productive, companies become more innovative, smart people do smart things and make money doing it. So honestly, you can live a long and happy life and you can make a lot of money in the markets. Never having to worry about shorting anything [00:25:37][30.7]

Rohan: [00:25:38] good to know. Thought might be one of those ones where I've got to, like, read into it separately. [00:25:41][3.7]

Alec: [00:25:42] You would definitely have to read into it before you do that. [00:25:44][2.2]

Bryce: [00:25:46] I think that's a pretty good wrap. It's been an enjoyable three episodes. Thank you for volunteering your time. I know that there was a bit of reluctance at the start, but I think the fact that you're in up and running and looking forward to sort of seeing how it pans out over the next millennia [00:26:00][14.3]

Rohan: [00:26:01] and also I'm sorry. [00:26:03][1.2]

Bryce: [00:26:03] And if if your portfolio starts beating mine, there's going to be some serious issues. But look, congrats. You're in. You got your share certificate in the mail. [00:26:12][8.1]

Rohan: [00:26:12] I did. I did. Yes, yes. [00:26:14][1.6]

Alec: [00:26:15] To our Instagram or Facebook to say a proud right holding his certificate up certified. Make sure you give it all. Make sure you give it a like and then maybe give. [00:26:23][8.7]

Rohan: [00:26:24] Facebook still serious privacy settings. [00:26:27][3.5]

Bryce: [00:26:28] Is he surprisingly is still single and ready to up to the first episode? I'm shocked. I was shocked. But anyway, looking forward to seeing how your journey pans out from me, bro. And thank you for coming on. Congrats on starting the journey with Comsec Pocket. [00:26:44][16.3]

Rohan: [00:26:45] Yeah. Thanks, guys. Thanks for the encouragement. [00:26:46][1.2]

Alec: [00:26:48] That's a great way to end. Let's just get [00:26:50][1.4]

Bryce: [00:26:51] you to like Roee can start small with Comsec pocket. You can download Comsec Pocket in the App Store or play store and get started today. So we'll leave it there. Hopefully over the last three episodes we've been able to, I guess, highlight how easy it is to take your first steps without needing to think about getting to in the detail with research and understanding too much about stocks and getting worried about what brokers to choose and all of those sort of barriers that people often face released. Always done this in less than a matter of a couple of weeks. And as you can tell, there's a lot to learn. But as we've said on the show, Ren, it's all about taking the first step. [00:27:26][35.0]

Alec: [00:27:26] Yeah. And, you know, everyone's circumstances are different. Not everyone is Roee, no matter how much he tells us that he is the everyman. So, you know, jump on to the Comsec Pocket website and read the pads and make sure that product is right for you. If it's not right for you, there's a lot of other ways to get started. And for us, the main thing is getting started. [00:27:45][19.1]

Bryce: [00:27:46] That's it, Get Started Investing feed. [00:27:47][1.4]

Speaker 4: [00:27:49] Thanks for listening to Get Started Investing feed, a production of Equity Mates media. Please remember that everything you hear in Get Started Investing feed is general advice. Only the content has been prepared without knowing your personal objectives, specific financial circumstances or goals. The host of Get Started Investing feed may maintain positions in the companies discussed before considering any investment. Please read the product [00:28:11][21.5]

Unidentified: [00:28:11] disclosure statement and consider speaking to a licenced financial. [00:28:11][0.0]

[1535.6]

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