Latest / The Curve / RTC17: How to master the stock markets like Buffett: a beginners guide.

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RTC17: How to master the stock markets like Buffett: a beginners guide. · The Curve

• 0:00
  Welcome to Season 2 of Raising the Curve, a conversation for women who want to
• 0:06
  learn more about money, their money. For the future they want to have. The pursuit
• 0:11
  for financial confidence and increasing your wealth should be a simple one. So
• 0:16
  this is a place for you to learn about investing in finance in a non-scary or
• 0:20
  intimidating way. Thank you for being here and for listening. Because together we
• 0:25
  really can raise the curve. I think we need to paint the pictures to where we are
• 0:30
  right now. So we're in the more FM studios and these Christmas decorations
• 0:34
  everywhere. And it's the middle of November. There's like green lights. We've got a
• 0:40
  big Merry Christmas sign hanging up. I feel like people need something to look
• 0:43
  forward to. So they've started Christmas really early this year. My sister's
• 0:47
  done all her Christmas shopping. But when in the world would you have even done that
• 0:51
  in a normal situation? That stresses me out. Too much to be at home. Some of the
• 0:55
  seats in here have center sort of hats on them. And there's decorations on the
• 1:00
  desk. And also they can I have very tanned. We got spray tans. We got spray tans.
• 1:05
  And you should have seen us yesterday. We looked like a long, long time. No, you
• 1:09
  shouldn't have seen us. I took a video and I was like if you show that to anyone. So
• 1:14
  look, it's a real sight in here today. Okay, so if I was to say stock exchange,
• 1:19
  do you know what I'm talking about? I mean, I think of all four Wall Street. I think of
• 1:25
  I think you think of all four Wall Street. I know. I need to get some
• 1:30
  connotation. Well, I just don't have any other thing to compare it to. I've never
• 1:37
  ever stepped into a meeting at your work. I've never seen, I don't know, any of the
• 1:41
  stuff you look at, all your stats, all your research, like honestly, it's all
• 1:44
  pretty foreign. And to be honest, that is the worst thing about
• 1:48
  well for Wall Street is that that's what everyone thinks the industry is like.
• 1:51
  And because it's been a Hollywood movie and that's what they see. Same with the
• 1:55
  big short and the other movie. I feel like I've not seen that. I watched it with
• 1:59
  some friends ages ago and they were like afterwards they turned to me. Is that what
• 2:03
  you do? And I was like, no, no, obviously it's glamorised for Hollywood. So if I say
• 2:09
  NZX, ASX, NASDAQ, you're looking very serious. I'm just speaking of
• 2:18
  Ireland. I probably am. You're speaking in full acronyms. I mean only because
• 2:23
  you've given me context and said, do you know what the stock exchange is? I'm
• 2:26
  assuming that they are all of the different gave you the, gave you the
• 2:30
  question. You really threw the rope out there. It's like the what days father's
• 2:34
  day. Yeah. Yeah. Okay. So I mean NASDAQ sounds familiar only because it sounds like a movie.
• 2:41
  Also, is that like an American something? So that is an American stock exchange. So how
• 2:47
  many do they have? They have quite a few. I guess the two most well-known ones
• 2:51
  is the New York Stock Exchange and the NASDAQ and then New Zealand and New Zealand
• 2:57
  because we're a lot smaller. We only have the NZX and then Australia they've got
• 3:02
  the ASX. I guess what is what is an exchange's role in finance and investing and
• 3:08
  in the markets? It's a place for people to go and buy and sell shares. It's where
• 3:12
  companies come to sell shares and where investors come to buy shares. Maybe we
• 3:17
  need to think of what it would look like. You know, so is it like a market? Exactly. It's like a
• 3:23
  farmer's market. So who's on what side of the store? So the companies are selling
• 3:28
  the bananas and apples. Okay. And the investors are buying the bananas and apples. The
• 3:33
  exchange is the location where the market is held. You pay a fee to attend the market and put
• 3:40
  your stall there. You're paying the exchange a fee to list your company there and you want to
• 3:44
  go to that market and you want to be on that exchange because you know that's where the
• 3:48
  people come. Because everyone goes. Exactly. That's the best analogy I think we've ever given.
• 3:54
  So next time you go to the matter kind of markets. I'll think of mice. I wander around.
• 3:57
  They're like, you're a company. You're a company. Yeah. I'm an investor. I'm an investor.
• 4:04
  I'd like to buy shares of your apples. Look at you like you're crazy. But exactly. It's
• 4:11
  the best kind of analogy is that it's a marketplace. It's a farmer's market. It's a fruit market.
• 4:16
  Whatever kind of market you want, but you're buying selling shares. So it's a place where everyone
• 4:21
  can come. One centralised place. Imagine if it didn't exist. And Facebook has millions and
• 4:29
  millions and millions of shareholders. Imagine them literally tapping on Facebook storming.
• 4:33
  Hi. Can I do you have a seller? I've got my... It would be like the world's the most
• 4:37
  disorganised festival where we're from. Where's the stage? Where's the food? No one knows where you're going.
• 4:42
  It would be like a festival in New Zealand with queues. Yeah. Yeah. So you've been bothered going to
• 4:47
  leave you to pop a squat on the side stage. Yeah. Yeah. Yeah. Exactly. So it's a great place because
• 4:58
  it facilitates the buying and selling. It makes it a super easy process. And all of everything's
• 5:03
  there. Like everyone's got their eth possible machines and they've got all their things and it's
• 5:06
  just like all set up. Yes. So people to buy and sell easily. And everyone, if you're an investor,
• 5:11
  you go there and you know there's going to be a huge selection of companies or fruit. And if you're
• 5:18
  a company, you go there and you know there's going to be a lot of investors. So it works for both
• 5:22
  parties. I'm imagining myself at this market and I reckon I'd be dressed as like inspector gadget
• 5:28
  or something because you would have stalls that look pretty from the outside and look like they've
• 5:33
  got beautiful fruit that are amazing. But then you buy them and you walk when you buy them
• 5:36
  and send them their rotten. Like you have to write unripe bananas. Yeah. And you really have to
• 5:41
  have your what's about you with what store you decided to buy. Have it all sniffer out of the
• 5:46
  product. Exactly. Make sure you know this is all of yeah. This is making sense to me.
• 5:51
  You may have said to reference well for all street again. We won't do this on different
• 5:55
  industries by the way. Do you remember seeing pictures or you may have just seen pictures of
• 6:01
  a whole lot of men in a pit yelling screaming. Yes, yes, I do. No, I do remember that. That is
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  exactly what an exchange is. It's that's a physical and person exchange whereas now a lot of it is
• 6:12
  online online. Do they still have in person? Yeah. So they've literally got people standing there
• 6:17
  going $50, $49. I don't know. Have you ever been to one? No, I haven't. But they're kind of getting
• 6:26
  made redundant because everything's online. How fun. No, that would be like in the day sporting
• 6:32
  game or something. Exactly. The atmosphere would be amazing. So back in the day, that was how
• 6:39
  you would buy and sell shares was in a what they call a trading pit like that at the exchange.
• 6:44
  And it was actually just yelling trying to find buyers and trying to find sellers and matching up
• 6:48
  prices and in completing transactions. Whereas now you lost your papers and sales sounds like a bit
• 6:53
  of a shusha. That's people buying me. Oh, no, I just sold to the wrong share. It would be very
• 7:01
  stressful for a run involved. And back in the day when it was way more paper based, it would take
• 7:07
  24 hours. You'd have to put your order and send it away by snail mail and then it would come.
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  It was just way more time consuming. Of course, they would have had shares in the stock market
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  well before the internet and computers, right? Well, they're actually the oldest stock exchange.
• 7:24
  Here's a fun fact for you. I love a fun fact. That's stock facts. It will just brainstorm that
• 7:30
  on. It's a working title. It was an Amsterdam and it was set up in 16 in the 1600s. So if you think
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  like 17, 18, 19. So how long is that over 400? Yeah. My mass is so bad. Over 400 years. Over 400 years
• 7:48
  ago. Wow. Some of companies would have even been around 1600s. I mean, it would have been
• 7:55
  railway companies and coal and wood. You know, like really industrial kind of. That's quite
• 8:02
  fascinating though. And it's still around today, which is quite incredible. Back then it was very
• 8:06
  much a market and you'd go and you'd be very interactive. Whereas now it's more of, I guess you
• 8:12
  could call like a trade me. Everything's done online. It's more. This is my price. No, I don't
• 8:17
  want to accept it. Okay. Well, lower my price. You know, it's all done instantaneously.
• 8:21
  There's not really the buttering happening. Imagine you probably could actually. It's like
• 8:25
  a auction. I guess it's kind of the best way to do that. But back in the day when it was in the
• 8:30
  1600s, what was the Amsterdam one called? Do you know what that Amsterdam stock is?
• 8:35
  Anybody there? That would you have been able to bargain down share prices then? Probably, right?
• 8:42
  Like they wouldn't have been necessarily as set. Yeah, I think it's all kind of a negotiation.
• 8:46
  Not now though. Well, now it's, it depends. You just have a price. And if someone doesn't want to
• 8:51
  sell at that price, then it depends how much you want it, whether you allow your price. So I guess
• 8:56
  it's kind of still a negotiation. Yeah. Yeah, I guess because I've been thinking about it as a set
• 9:00
  price, but that's not right at all because everyone sells it different. And it depends if it's a
• 9:05
  liquid company. So again, my Facebook. What's liquid again? Liquid just means there's lots and
• 9:09
  lots of shares and lots and lots of investors wanting to buy and sell. Then you'd have less
• 9:14
  pulling power on the price that you got, but there'd be more people that would be willing to sell
• 9:18
  at different prices. So that makes sense. So say I wanted to sell at $1.50 and say it was a really
• 9:24
  liquid company. There'd be tons of people that would want to sell it. $1.49, $1.50, $1.51.
• 9:30
  You know, they're broad range. Whereas if it's more illiquid, so say something like a company that
• 9:36
  only sells a few shares every day, then you might say, Hey, look, I want to sell for $1.50
• 9:42
  and there'd be nobody that was interested. So therefore maybe the next day you come back, okay,
• 9:45
  I'll just sell for $1.45. So what you mean is basically it's the same thing as the overall
• 9:51
  concepts that you teach about having, the more demand there is, the more that prices go up
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  and therefore- Perfectly. You're probably more likely to sell something for a higher price point
• 10:00
  or what you want to sell it for if there's lots of buyers and it's not a liquid company.
• 10:04
  Again, back to the market, I'm now in LG. If you're selling bananas for $10 each,
• 10:08
  there's probably not going to be a lot of buyers, but you slowly start to feel out what the
• 10:13
  equilibrium is that when you get the sellers and it might have to go to $8, $7, $6, and then finally,
• 10:18
  at $5, people come to your store and go, Yeah, okay, I'm interested at $5 and they're buy at $5.
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  Whereas if you're at a market where there's no one that $5, you might have to go down to about
• 10:28
  $2. So it just depends if it's a liquid company or not and if there's a lot of investors around
• 10:34
  that are interested, so- Yeah. So if it's a rainy day at the market, you might have to lower those
• 10:41
  prices. You might. But if it's a sunny, beautiful day, there's many people out to buy their groceries.
• 10:48
  You might be selling those bananas for $10 a pop. I can't believe there's so many stock markets
• 10:52
  all over the world. Do we have access to buy them or just- Yeah, so the thing with New Zealand
• 10:57
  only having really one exchange is because we are a small market. We've only got about 150
• 11:02
  listed companies in New Zealand. Does that feel boring to you? That is very little, but then Australia's
• 11:08
  got 2000. What about the NASDAQ? So the NASDAQ is about 3000 companies listed on the NASDAQ,
• 11:14
  which again, if you think about Australia versus the US, it's not actually that much difference.
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  But there's more in the US though, right? Yes, so the New York Stock Exchange has got about 3000.
• 11:23
  So there's multiple. I want to visit the New York Stock Exchange. It just sounds so cool.
• 11:28
  We should do a curfew trip to Wall Street. No, to the New York Stock Exchange. It just sounds like
• 11:33
  she can cool. So it's on Wall Street. It's like, yeah. Oh, that can we go? We get a million
• 11:39
  listed on our podcast. We'll do a podcast. We'll be doing our podcast from Wall Street.
• 11:46
  Oh, that would be amazing. Yeah. So every country does have a stock exchange pretty much,
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  most definitely most developed countries. So London, China, China has quite a few. Japan,
• 11:58
  Hong Kong, the cool thing about Japan, Hong Kong and China is they have lunch breaks within their
• 12:04
  exchange where everyone goes in has lunch. They have a sandwich. And they shut down the exchange.
• 12:08
  So no one can trade with it. Oh, that sounds great. Imagine that. It's so old school.
• 12:14
  I know. It's like a seaster in Europe. I love that. So I'm going to use to cover global
• 12:19
  equities, global, global markets in a previous job. And it was like, you'd wake up in the morning,
• 12:25
  you'd have a couple of hours for the US market, then kind of midday-ish, you know, from midday,
• 12:31
  you'd have Asia open, and then kind of seven o'clock at night, you'd have Europe that would open.
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  So it was just a constant. There's no off switch. So exciting though. So exciting,
• 12:41
  yeah, but quite hectic. Whereas I'm really enjoying now, Australian New Zealand. You're just
• 12:46
  getting lazy with your old age, I think. Yeah, I know. So with those jobs when you've
• 12:51
  recovering global markets, I mean, how did that even work? Did you have to go on visit companies
• 12:56
  in different parts of the world? Yeah, yeah. A lot, a lot of travel, which I loved. I went to Tokyo,
• 13:02
  and went to visit a whole lot of Japanese companies. I mean, to Canada, to visit a whole lot of
• 13:06
  Canadian companies. It's quite amazing. It's kind of now you're stuck on zoos.
• 13:11
  It's a really downgraded. Yeah, definitely. But it was great, because you'd go over there
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  and all these companies, especially Japanese companies, they're like, oh, from New Zealand,
• 13:18
  amazing. And they're really excited to see you, because you've come all this way to visit this
• 13:22
  company. And same in Canada, Canadians are quite similar to Kiwis and how business dealings.
• 13:27
  Would you have done a lot of research before getting to the point of going on a plane to
• 13:30
  see the company? Surely you would have been like, it's worth traveling across the world to go
• 13:34
  and talk to this company. Totally. And you'd go to cities where there's a lot of companies
• 13:38
  that you can visit at once. You wouldn't go to some obscure little town in a small
• 13:42
  line. A small line. Yeah. You go to Tokyo with the majority of companies, the
• 13:46
  listed companies are there. You can visit, you know, kill a lot of birds with one stone.
• 13:50
  Oh, it's quite sadistic. You get the analogy. Look really distraught by that.
• 13:57
  You didn't kill a bird, like it's all good.
• 14:01
  Just petrinated birds and getting right there. Because what else do I need to know about
• 14:05
  those different stock exchanges? So they move differently. Yeah. So I guess the thing with the
• 14:10
  NASDAQ in the New York Stock Exchange, which are two quite well-known stock exchanges,
• 14:15
  is that the NASDAQ is kind of more tech focused. So you've got your apples,
• 14:20
  Amazon's Facebook, Google, Microsoft. Love Microsoft.
• 14:25
  This girl would sleep with Microsoft sheets if she could.
• 14:30
  Obsessed. And so they're all listed on the NASDAQ because they're more tech focused
• 14:35
  companies, whereas the New York Stock Exchange is more traditional companies, I guess. So your
• 14:40
  Coca-Cola, Pfizer's, Disney, Johnson Johnson, we get asked a lot, how do I know if companies
• 14:45
  listed or how do I know if I can invest in a company? And so if you went on to the NZX,
• 14:51
  or the ASX website, and typed in what do you have a company that you want to invest in,
• 14:55
  if it pops up, then it will be, you'll be able to invest in it, it'll be on the exchange.
• 14:58
  Because only publicly listed companies are on the exchange. So if you wanted to invest in
• 15:03
  Mary's here, so on down the road, you're not going to find it on the New York Stock Exchange.
• 15:07
  What, why do you say Mary's would do this? I mean, if Mary's was some kind of global franchise or
• 15:13
  so if you're not sure if a company is listed, you can just look it up. Yeah. So I think
• 15:18
  say a burger fuel, for example. Am I right in thinking that's really hard to invest in?
• 15:23
  So they're listed, but a lot of people don't actually realise that it's a listed company in New Zealand.
• 15:28
  So you would go on to the NZX website, type in burger fuel, and then you'd realise that it's
• 15:33
  listed and you can buy shares. So it's a great, it's a great centralised place. They're
• 15:37
  annoying thing is in the US, you'd have to go to the New York Stock Exchange. So we're lucky because
• 15:41
  we've got a one stop shop. Yeah. So I don't really feel that inspired by investing in New Zealand
• 15:48
  companies for some reason, is that bad? I know, just because there's not a lot to invest in.
• 15:52
  You know, the US is a lot more exciting because it's brands we see, brands like Visa and Mastercard
• 15:57
  that we're using or... I mean, I do eat burger fuel, but I'm still... I'm surprised you.
• 16:04
  I don't know. Yeah, they're vegan burgers on, I hate it. But there's just something that feels
• 16:09
  more international and big scale and exciting about the US Stock Exchange. Yeah. I mean, I'm not
• 16:15
  to say I've invested in it, but it does sound a little bit more exciting. Yeah, notice.
• 16:20
  And the curly thing, the curly thing, if you ever use that adjective. My analogies and my
• 16:27
  sayings, I always get... I'm like... Oh, that's a pop calling the Toaster Black. You're just
• 16:33
  free as a tree and it's like, you mean bird, babe. So apologies in advance for getting any of my
• 16:39
  sayings wrong, but... What's curly? I mean, that the exchanges are listed themselves. So if you
• 16:45
  wanted to invest in the New York Stock Exchange or the New Zealand Stock Exchange, you can actually
• 16:51
  invest in those companies yourself. Wow. Sorry. That's why you can say that. Wow. So you can invest in
• 16:59
  the market itself, the whole market. Should we? Is that a good investment? Well, it kind of depends
• 17:05
  on a lot of things. It depends on how that exchange gets it through revenue and a lot of exchanges
• 17:11
  get their revenue from IPOs or when companies first list on the Stock Exchange because they pay fees
• 17:16
  to be at the exchange. So they pay fees to be at the market. And so there's a... It's the best
• 17:21
  analogy we've ever had because I know that every stall has to pay to be at a market. It makes total
• 17:27
  sense. And there's an initial fee when they first list or join the market. There's a fee then.
• 17:32
  And so that's when you get a lot of new companies coming to the market. They're paying their
• 17:35
  initial fee and they're also paying additional kind of annual fees. So... Have you ever invested
• 17:40
  in an actual Stock Exchange? Good question. Yes. Which one? It was like a European one ages ago.
• 17:49
  Why European? Because I think at the time, if I remember correctly, it was... Yeah, there was some
• 17:54
  reason, but it was more about that the company itself was quite attractive in terms of valuation.
• 17:59
  And then also had a lot of IPOs and a lot of companies listing. So therefore,
• 18:03
  its revenue is going to be increasing and it's earnings and yeah. And then also many things.
• 18:12
  Find a concentrate. Companies can also be listed on more than one Stock Exchange. So... Why? A good
• 18:20
  example of this is say Kathmandu where you can buy shares in New Zealand. You can buy Kathmandu
• 18:26
  shares in Australia. So they listed on both the ASX and the NZX. And that's because they wanted
• 18:31
  to get more global reach or more Australasian reach. So companies, you know, quite a few New Zealand
• 18:37
  companies as well, they might list on the NASDAQ as well as you know, there's a range to pens.
• 18:42
  There's obviously additional fees. The company's got a way up. Is it worth it? Or should we just stick
• 18:46
  to listing in Australia and New Zealand? Is all birds a New Zealand company? No. It was co-founded by
• 18:53
  New Zealander, but it's listed in the US. So it's only listed in America? Yes.
• 18:59
  Yes. For some reason, I thought it was a Kiwi brand. It's not Kiwi roots.
• 19:02
  So if you were to invest, if you were to find a company that you wanted to invest in and it was
• 19:06
  on two different Stock Exchange's, would you be paying the same price regardless of... You know,
• 19:13
  including exchange rates? Yes, you'd be paying because there's traders out there that evaluate what
• 19:18
  it's worth. That trade it constantly to get rid of that, what we call arbitrage. If you were going
• 19:24
  to invest in a company that was listed on two Stock Exchange's, it would make sense to invest in the
• 19:28
  one where your home market is. If you're buying New Zealanders, you're paying New Zealand dollars,
• 19:33
  therefore you don't have to worry about exchange rates and currency fluctuations and all that.
• 19:37
  Fuxurations? Fuxurations. Fuxurations. Like someone is shitting in the
• 19:44
  market. We have to say, okay, so VIX just started doing a regular segment on Magic Talk
• 19:51
  and she was talking about how... What was the quote? It was a Warren Buffett quote that
• 19:57
  is about... We were talking about Kiwi saving, investing for the long term and the quote is
• 20:03
  someone is sitting in the shade because... Someone is sitting in the shade.
• 20:13
  Oh my god. This was on live radio. On live radio, the quote goes,
• 20:19
  someone is sitting in the shade because they planted a tree a long time ago and I started saying
• 20:24
  the quote and I said, someone is shitting in the shade. Wow, it's really tongue tied.
• 20:30
  And she didn't correct yourself either. She just sort of like stumbled over and kept talking.
• 20:35
  It was so fun. I was, yeah, thank goodness it was on radio and you couldn't see my face because I
• 20:40
  went... Right, right. Can I invest in the different stock markets? So if you want to invest in the
• 20:48
  Australian or New Zealand share market, you could do as she is, but if you wanted to invest in the
• 20:54
  US stock market, so the New York Stock Exchange, any company listed on the New York Stock Exchange
• 20:58
  or the NASDAQ, you can do that through stake or hatch because they are primarily US.
• 21:04
  Are there any companies that aren't... You aren't able to access through the likes of
• 21:10
  stake shizzies hatch that are listed, but you can't access using those platforms?
• 21:16
  Yeah, so on those platforms there are probably... There's some smaller US companies that wouldn't be
• 21:21
  listed on them. It's not the whole US market listed on them. It would be the most popular
• 21:26
  liquids, well-known names. Okay, yeah, and as they get bigger, so that's kind of what Shazies did,
• 21:32
  they started with the US and New Zealand and then they added Australia. So as they get bigger and
• 21:37
  get more scaled and they'll probably add more exchanges. So you could get the London Stock Exchange
• 21:41
  on there eventually and then with stake and hatch, you could get New Zealand Australia, but there's
• 21:46
  obviously a lot in the back end of getting those stocks and the availability to invest in those stocks.
• 21:51
  It's so cool because someone was saying to me the other day like, oh wow, the curves come about
• 21:54
  at such a crazy time because it is true. So it's so serendipitous how it's happened and the fact
• 22:01
  that all of a sudden there is this availability for the common Kiwi or Australian or wherever you are,
• 22:07
  to actually invest yourself, to think before that, I mean to be able to even start trading,
• 22:12
  you need sometimes upwards of 10k. Yeah, and this you can do, you know, $5, $50 kind of thing.
• 22:20
  So cool. And we've actually seen that in share price performance or share market performance,
• 22:25
  is if you broke down who was buying and selling the shares, the percentage proportion that
• 22:32
  is retail investors now, which is the likes of you and me, versus institutional, which is like
• 22:38
  companies like fund managers, that the retail portion is increased significantly. There's just
• 22:42
  so many more tables in. It is good and bad. Oh really? Well, it's just there's a lot of people that
• 22:48
  don't know what they're doing. So it's affected things in a bad way. It's having a bit of a
• 22:53
  punter or a bit of a gamble and you know, they don't really know what they're doing or haven't
• 22:56
  done their research. But I think the positives that way, the negatives in terms of more people
• 23:02
  investing, more people growing their wealth, you know, it's beneficial for free everyone.
• 23:07
  So one of the things that you talk about is like the S&P 500. Is that a stock exchange?
• 23:12
  No. So this is where it gets a bit confusing. You need to stop throwing out those acronyms
• 23:18
  because it's not me. It's confusing. It's not me. It's the industry. Honestly, you got the NASDAQ,
• 23:23
  the new... Honestly, don't. I'm like, yeah, I'm starting to feel like I understand. But yeah,
• 23:28
  with that particular one, you say it a lot. So that is the main index of the US stock market.
• 23:34
  So it's the top 500 largest most liquid companies on the NASDAQ, the New York Stock Exchange,
• 23:42
  etc. Yes. Across both exchanges. So... Oh, cool. Okay. So for example, those companies that I
• 23:47
  mentioned before, so Apple, Amazon, Facebook, Google, they're all on the NASDAQ, but they're also
• 23:53
  in the S&P 500 index. What is that mean and what would people use it for? So it's a representation
• 23:59
  of the US market. So when even someone talks about, oh, the US market has gone up 10% or it's
• 24:04
  fallen 20%, they're talking about the S&P 500. And the same when we talk about the New Zealand
• 24:09
  market. If we're like, oh, the New Zealand market fell 5% today. They're talking about the NZX
• 24:14
  50, which is our equivalent of these and 500. Oh my goodness. So it's a representation because
• 24:20
  you can't, there's so many, like the 150 companies listed in New Zealand, there's some of them that
• 24:25
  don't even trade because they're so liquid or so, so small. So you're taking a representation
• 24:34
  in an average, really, or a snapshot. Yeah, of the whole New Zealand market. And that's what
• 24:40
  you're referencing. So every country will have what it's called its main index. So what are the
• 24:46
  main indexes? Yeah. So straight there, it's the ASX 200, which means it's the 200 most the largest
• 24:52
  most liquid listed companies in New Zealand. It's 50 and then the S&P 500 means that it's the 500.
• 24:59
  And those indexes change. So as companies, performance might deteriorate, therefore they're not
• 25:06
  no longer, they're no longer big enough to be in the index. They might drop out and others might
• 25:10
  pop in. So it changes kind of every three months or so. There'll be rotations. But if someone
• 25:15
  came up to him and was like, oh, so the US, but did you know the US market is up 10% overnight?
• 25:20
  That's S&P 500. Yes. Boom. Yes. There is a lot of acronyms, but there's difference between
• 25:25
  exchanges and indexes. What's the main purpose for it, though? Would you be looking at that to know
• 25:31
  that those are companies that are doing really well and that maybe it's a good place to start
• 25:34
  for investing in maybe those? Yeah. So you could invest in the index. Oh God.
• 25:40
  Invest in that as well. You're kidding. Let's go back to the market and be like, NLG, the exchange
• 25:47
  is the market. And then the index is the reputation of the most successful stores. So it might
• 25:54
  be like a store that has a selection of goodies from the best stores at the market. Yes.
• 25:59
  Or it's the top-team performing stores at the market. And if you don't keep up with NUGA
• 26:06
  and maybe some Paye, yeah. And you can invest in that store. Paye, yeah. I can't be saying to
• 26:16
  pronounce it right. Yes, or it might be the publisher or the quinoa or the, yeah, it could be a bunch
• 26:22
  of different stores. But if you're not, if you don't keep performing well. If someone makes a
• 26:26
  shitty Paye, the Paye gets sick. Or if another Paye still comes in and starts doing way better,
• 26:33
  then the old Paye, yeah, might fall out of the index. We are pronouncing it right, aren't we? Yeah.
• 26:38
  They might fall out of the index and therefore you're not part of the index of the farmer's market.
• 26:43
  So say you wanted to invest in, you're like, look, I really don't know what US company to invest in,
• 26:47
  but I know that it's one of the best in the US. Then you could buy the whole index. Is that
• 26:53
  ETF? Yes. Oh, my God. Oh, my God. I feel so proud of myself. Isn't it really that's ETFs,
• 27:03
  you get a little bundle of all the goodies. It's like a hamper. It's like a bundle of five hundred
• 27:08
  companies. Oh, and you get a little bit. My dad will be so proud. Yeah. He always talks about ETFs.
• 27:14
  Shout out to Mike. Hey, Mike. Hey, he's so cute. He's been lusting. He was,
• 27:18
  I just got to the episode when you, when you did a shout out to me about telling you about your
• 27:22
  key, we say everyone is like so stoked. So you can invest in the index. You can invest in every
• 27:30
  company within that index, which is also featured on the marketplace like the exchange. Yes.
• 27:38
  Yes. So lots and lots and lots of ways to invest. So could you just explain to me any other reasons
• 27:45
  why the index is important? Would you look at that index like the S&P 500 and would that be a good
• 27:51
  place to start if you were looking at investing in American companies? Would you say that probably
• 27:56
  those 500 companies are doing reasonably well and therefore maybe a good place to start to start
• 28:00
  narrowing down what you want to invest in? Yeah, definitely. I mean, there's companies in there.
• 28:05
  Most of them you will probably know the household brands. Big, big companies. Big, big companies.
• 28:10
  I think a better place to start is just to look around you and find ideas that way and then see
• 28:15
  if they're listed and do that by going onto the exchange, typing in the company, seeing if it's
• 28:20
  listed or just going to Google and going, if you typed in Google right now and wrote Facebook stock,
• 28:30
  you can see. Oh my goodness. And you can see what exchanges are. Just see this connection is private.
• 28:35
  Obviously that's like a blocked thing. But it says 340 and then 77 cents in US. It's down 2.19 today.
• 28:44
  Yeah. So then you can see and you can see the little code, the NASDAQ after the ticker,
• 28:49
  says FB and then NASDAQ and that's how you can tell what exchanges are on. So if you're looking
• 28:57
  at a company and you don't know if it's listed, just type in. Let's do that again. What's another one?
• 29:02
  Bullworth stock. Bullworth stock. I mean blocking me. Why don't they want me to invest?
• 29:12
  Road. Okay. So it's $39.48 Australian. Yeah. It's on the ASX and it says wow next to it.
• 29:19
  Yeah, it's a great ticker. What's wow? That's a ticker code. That's it's abbreviation.
• 29:23
  So it's not in the ASX 200. ASX 200, yes. You're on a roll today. Thank you so much.
• 29:30
  I have a copy. So ASX, so this is in the top 200. Yes. How can I tell that? So that you have to
• 29:37
  go to then to the exchange website. But this is the good way to to find out if a company is listed
• 29:43
  first. So good old again. This is fun. What's another one? Let's do, let's do Coca-Cola. Coca-Cola.
• 29:52
  Cola. Stock. I hope this is really low. Oh, it's only $55.91 in US and it's in the New York's
• 30:03
  Stock Exchange because it says NYSE and then KO. That's its code. And again if I wanted to find out
• 30:10
  if this was in the don't tell me, ASX 500, the ASNP 500, how would I find that out?
• 30:21
  So you would then go to the New York Stock Exchange website. I'll do this later. So I go to the
• 30:26
  New York Stock Exchange and then I can Google if KO is in there. Yeah, you could just Google
• 30:31
  as Coca-Cola in the ASNP 500. But this is just game changer. So gosh, it hits off to Google.
• 30:38
  I don't know what we'll do with that Google. Yeah, imagine if it was back in the day.
• 30:42
  If you go up and look at the little board at the market that was there, the top stalls.
• 30:47
  I've loved this episode. If you're fun and exciting. Okay, so in summary,
• 30:52
  exchanges are like your local farmers market where you can buy your apples, your bananas,
• 30:57
  your pears. Your new gut. Your new gut. Your paella. And an index is a representation of the best
• 31:04
  stalls at the market. The top sellers. The top sellers. And the way you can find out if something
• 31:10
  is listed and what exchanges are on is just to Google. It's amazing. Cool.
• 31:15
  I feel very excited. I can see. We were going to do some question and answers at the end of
• 31:20
  each episode, but we took that analogy with the market and ran with it and we've been talking
• 31:24
  for far too long. So we'll do that next time. So if you do have any questions, then definitely
• 31:28
  send us a DM on Instagram or get in touch via our website, the curve.co.nz. And we'll see you next
• 31:35
  episode. Thank you so much for joining us for today's episode of Raising the Curve. Please
• 31:42
  subscribe and leave a review on what ever platform you're listening on. And we would also love
• 31:46
  for you to share this podcast with anyone you think would benefit from it. For more information
• 31:50
  about the curve and how you can learn more, head to the curve.co.nz or find us on socials
• 31:56
  at the underscore curve in Z.