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Australian Finance Podcast

Equity Mates | Approaching investing with curiosity

27 Sep 2021

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic of the Equity Mates podcast episode?

0.031 - 26.345 Owen

Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls.

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26.786 - 44.868 Owen

Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.

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45.469 - 63.24 Owen

Here's something worth knowing if you've been meaning to make the switch to a better broker. To celebrate their fifth birthday, Perla are offering three free trades a month for five months if you transfer your portfolio across with a minimum of $1,000. For anyone investing regularly, that's meaningful savings on brokerage that can stay invested instead.

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63.721 - 87.21 Owen

Perla is chess-sponsored, built specifically for long-term investors, and now has over $3 billion invested on the platform. If you've been with a platform that doesn't quite fit your strategy anymore, it might be time to take a look. You'll find all of the details at perla.com slash LP slash Rask. That's perla.com slash LP slash Rask. Thanks for tuning in to today's podcast.

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87.19 - 101.928 Owen

Please remember that all of the information in this podcast episode is limited to general information only. That means the information is not specific to you, your needs, goals, or objectives. So you should seek the advice of a licensed and trusted financial professional before acting on the information.

102.348 - 127.531 Owen

And before you acquire or apply for a financial product, please read the PDS or product disclosure statement, which should be available on the issuer's website. Lastly, please keep in mind that past performance is not indicative of future performance. Equity mates, welcome back to the show, fellas.

128.032 - 136.973 Owen

A lot has changed since we had you on the program last time, including, I'm going to hold up to the camera for those that are watching. A book. A book.

138.015 - 164.869 Alec Renehan

A book, yeah. Well, thanks for having us on. You say a lot's changed, but it feels like, you know, we would just keep doing the same thing, going behind the microphone and recording podcasts. I guess that's lockdown brain. But, yeah, it's exciting. The book is out. We wrote it at the end of last year and then went through months and months of editing. So we're pretty excited that it's now out.

164.849 - 165.69 Alec Renehan

Now finally out.

Chapter 2: How did Equity Mates start their investing journey during the pandemic?

523.264 - 536.648 Kate

But yeah, I think just on the topic of the book, like how did you pick what to share and what was most important for someone getting started with investing to start with essentially?

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538.192 - 560.959 Alec Renehan

It's a tough one to figure out because we've learned so much in the journey and you start by saying you want to fit everything in the book and it very quickly becomes too much. So we really just wanted to sort of go step by step and focus on what we thought was important for people getting started. And

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560.939 - 586.967 Alec Renehan

And the great thing is because we've got this equity mates community, we get a lot of questions and we hear what people's biggest challenges are. So we had a pretty good guide in terms of where the barriers were that were stopping people getting started. And we really just focused on that. But we have a bit of a catch-all section at the end, which was lessons we wish we knew when we got started.

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587.007 - 608.864 Alec Renehan

And that really let us just put other stuff in that we thought was important to include in the book. But there was one big debate that Bryce and I had because the most common question we get at Equity Mates is what broker should I sign up with? And for so many people, that decision paralysis at that point in time, there's over 30 options in terms of brokers in Australia.

609.385 - 635.719 Alec Renehan

It's confusing for people that don't understand financial markets and chess sponsorship and individual hints and all that stuff. And a lot of people give up at that point and say, this is too hard. So Bryce wanted to include everything. And when I say everything, I mean everything about brokers. And I thought it was a little bit too much and we should just focus on what people need to know.

635.739 - 655.973 Alec Renehan

So our compromise was the modern day equivalent of a sealed section in the middle of the book. We changed the page color and I let Bryce just write to his heart's content. So when you pick up the book, you'll see a number of gray pages in the middle. That's Bryce's everything you need to know about brokers section.

657.276 - 665.938 Alec Renehan

But other than that, I think we sort of knew where the pain points were and that's really what we wanted to help people with.

666.458 - 685.664 Kate

And that's great. You had that community as a feedback tool to really work out what people needed to know. And I think I personally forgot into a few months ago that brokers were a point that people were getting stuck with because we've just had so many questions in the last few months, especially because there's so many new brokers popping up.

Chapter 3: What challenges do new investors face according to Equity Mates?

1217.662 - 1224.552 Bryce Leske

And I think, as I said, no surprise, a lot of products coming out now have that sort of focus, a lot of the fund managers and

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1224.532 - 1249.915 Bryce Leske

listed products um you know are sort of catering to the demands of the investing world at the moment um yeah so i think it's interesting that people who are first starting as well are starting out saying i want to build a portfolio that is sustainable or has an esg focus right from the get-go which is something that when we started five years ago certainly

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1249.895 - 1272.24 Bryce Leske

wasn't um wasn't as prolific as it is now and um i think it's only going to continue that way and um you know we talk of getting to a point where there won't be such a thing as sustainable investing because all companies are going to have to in some way shape or form um be able to prove that they are you know able to fit under that sort of banner

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1273.452 - 1291.688 Kate

I think it's a great thing that consumers and investors are demanding more from companies and demanding that they actually do better by the community and their culture, their employees, their customers, their environment. So I think, yeah, as you mentioned, it will just become a part of investing rather than this segregated niche.

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1293.572 - 1293.672

Yeah.

1293.989 - 1310.532 Bryce Leske

Although it's challenging at the moment with, you know, a lot of companies will say that they have some form of ESG, put it in the report as a bit of a buzzword. And it's difficult at the moment to really understand what does ESG mean to you? And then how do you apply that in your investing?

1310.572 - 1327.334 Bryce Leske

I don't think there's any, you know, amazing tool out there at the moment that lets you kind of say, this is how I want to invest sustainably. And it'll give you a list of companies that kind of tick all those boxes because, you Sustainable ESG to me is different to ESG to REN is different to ESG to the both of you.

1327.374 - 1341.37 Bryce Leske

So, yeah, I think there's a massive opportunity for someone to come out and really own that sort of process of helping beginners or everyone with their ESG journey. Trademark, we might do that.

1342.631 - 1345.255 Kate

Yeah, I was going to say. Giving away the ideas.

Chapter 4: How has the investment landscape changed for new investors?

2127.998 - 2137.152 Alec Renehan

And for me, that's really what investing is today. It's where's that next exceptional company coming from?

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2138.718 - 2162.818 Kate

That's a very hard thing to find, isn't it? Well, I mean, yeah. That's the name of the game. That's the name of the game. Wonderful. Well, I'd love to hear from both of you if you could go back and talk to your 18-year-old self, and I'm sure you reflected on this a bit while you were writing the book. You could tell yourself one lesson about money and business. What would it be?

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2164.081 - 2164.822 Alec Renehan

buy Amazon.

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2165.323 - 2173.299 Kate

Yep. That's a pretty good one. I don't know how old you guys are. I won't say 10 years. I'd be younger than that.

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2174.722 - 2199.098 Alec Renehan

I think for me, I didn't grow up in a household that, you know, I learned about investing and I came to investing in relatively early. Luckily, I came across Bryce at uni and we started talking about it. But even between the time that I was 18 and the time that I actually started investing, I missed out on like four or five years of compounding growth.

2199.278 - 2221.825 Alec Renehan

And if you put that in a money smart calculator and you look at that time between 18 and 23 and what that could mean when you're 60, it matters. So I think the obvious answer is get started investing early. But I think more generally, I just wish I was more curious when I was 18.

2222.025 - 2244.896 Alec Renehan

And like, you know, now we've created this platform and, you know, Bryce and I can spend our days being curious and just like learning about new companies, learning about different industries. And investing as an exercise forces you to be curious because you're constantly trying to learn new things. And I love that about that. And I kind of just wish I was more curious when I was younger.

2247.485 - 2251.197 Owen

For me. Great answer. I love that. Tough act to follow, Bryce.

2251.658 - 2268.08 Bryce Leske

I know. No, look, for me, I've always been pretty disciplined with money. I was fortunate to grow up in a family where they really sort of instilled the value of money into us and some really good money habits. And we speak about that in a book, you know, getting your money sorted and saving and stuff.

Chapter 5: What strategies do Equity Mates suggest for getting started with investing?

2765.065 - 2776.967 Bryce Leske

And we're really happy with it. Really good. Yeah. Phase one, there's still a few things that we want to switch on and continue to provide value for the audience. But yeah, we're really happy with how it's turned out.

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2776.947 - 2802.887 Owen

um really bringing all of our shows in the community together so yeah check it out if you haven't equity.com yeah and um you know you can find out more about all of the different podcast series that the guys have have got going on um you can filter by episodes and topics that you want you know to listen to so that's really neat too um how about if people wanted to buy the book get started investing where should they go today to grab a copy

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2804.099 - 2826.99 Bryce Leske

Head to Booktopia or Amazon, probably the two best places. We've got plenty of links on our social media. And yeah, you can head there if you're following us on Instagram. But yeah, it's in bookshops. I have seen a few photos come through from not here in Sydney. I haven't been able to get out and see if there are any, but my parents are in Wagga and there is two copies in Wagga on a shelf.

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2827.471 - 2828.632 Bryce Leske

I'd love to see.

2828.672 - 2834.378 Alec Renehan

So if you're one of Bryce's schoolmates from Wagga, go and buy those two copies so they have to reorder.

2834.518 - 2835.739 Bryce Leske

Exactly, exactly.

2836.3 - 2839.603 Alec Renehan

Did your parents move it to prime position so everyone can see?

2840.544 - 2844.808 Bryce Leske

They probably bought both copies, but no, yeah.

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