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How to Stay Confident Through the Highs and Lows of Investing · She's On The Money

0:00
Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Order
0:05
Speaker 1: Order Kerni Whoalbury and a waddery woman. And before we
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Speaker 1: get started on She's on the Money podcast, I would
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Speaker 1: like to acknowledge the traditional custodians of the land of
0:14
Speaker 1: which this podcast is recorded on a wondery country, acknowledging
0:18
Speaker 1: the elders, the ancestors and the next generation coming through
0:23
Speaker 1: as this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
0:31
Speaker 1: and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
0:57
Speaker 2: Hello, and welcome to She's on the Money, the podcast
1:00
Speaker 2: that makes personal finance a lot less daunting and a
1:03
Speaker 2: lot more doable. I know investing can be an emotional ride.
1:07
Speaker 2: Every drop in the market can feel like a crisis.
1:10
Speaker 2: Those market swings can trigger all kinds of reactions, but
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Speaker 2: making snap decisions can throw you completely off course. Today
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Speaker 2: we're going to dive into how to keep your cool,
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Speaker 2: ride out the turbulence, and stay on track with your
1:22
Speaker 2: long term goals. And I am very lucky to be
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Speaker 2: joined by my very good friend Brooke Roberts from Cheesys,
1:30
Speaker 2: the investing platform that's helped everyone start small and think big.
1:34
Speaker 2: Brook with faced face. Finally no more Zoom Records. Welcome
1:40
Speaker 2: to the show.
1:41
Speaker 4: Yeah, it's so good to be here and see you
1:43
Speaker 4: face to face too.
1:44
Speaker 2: I love it. So I feel like everyone in our
1:46
Speaker 2: community knows who you are, or they should know who
1:48
Speaker 2: you are. But for those of you who might not
1:51
Speaker 2: have met you, Brook, who are you? What do you do?
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Speaker 1: Yes?
1:53
Speaker 2: How do you get on a Chase's podcasts?
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Speaker 4: Yeah? How did I? So? I'm I see a mum
2:00
Speaker 4: of two, which is heaps of fun of a four
2:02
Speaker 4: and six year old, and they keep me very entertained
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Speaker 4: actually in this day and age, and it's quite cool
2:07
Speaker 4: teaching them things. And outside of that, Yeah, one of
2:10
Speaker 4: the co founders and Coco's the Cheersy's, so there's Late
2:12
Speaker 4: and Sonya and I who are all CEOs. So we
2:15
Speaker 4: called ourselves the three Eohs.
2:16
Speaker 2: I got to go on your podcast the other day actually,
2:20
Speaker 2: and Sonya came into the office and that was very
2:22
Speaker 2: exciting and I was like, guess what I get? Brook
2:24
Speaker 2: in here? I just feel like I'm banking the Chasia's content.
2:27
Speaker 2: But you know, what everyone has been asking for it,
2:30
Speaker 2: And I was thinking back to the last time that
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Speaker 2: you were on the show, which was honestly too long ago,
2:35
Speaker 2: and I know our community loved hearing your story because
2:38
Speaker 2: we dived more into that. We'll put it in the
2:40
Speaker 2: show notes so that we don't have to recub old territory.
2:43
Speaker 2: But it is incredible to have you back. So if
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Speaker 2: you haven't listened to that episode, we will link it
2:47
Speaker 2: in the show notes and you guys can dive right
2:49
Speaker 2: into it. But Phil simp Brook, now we know exactly
2:52
Speaker 2: who you are. We've given them some more info so
2:54
Speaker 2: that they can dive further into you in your journey.
2:56
Speaker 2: But like what's been going on at Chasyas, I feel
2:59
Speaker 2: like there's been so much.
3:01
Speaker 4: There's been heaps going on at Shares. He's a so
3:03
Speaker 4: you know, we set out to create financial apartment for
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Speaker 4: everyone and there's a lot to do. We started with investing,
3:10
Speaker 4: and we see heaps more opportunities in creating, you know,
3:12
Speaker 4: more accessible money opportunities for people. We've got the ability
3:17
Speaker 4: to all to invest and roundup and heaps more coming
3:19
Speaker 4: in that space. And then we also are starting to
3:22
Speaker 4: do more with partnering with companies. So we have firm
3:25
Speaker 4: believers that in order to improve well for more people,
3:28
Speaker 4: they should be getting shares and the companies are working
3:30
Speaker 4: for so staffhold equal shareholders and that's a key thing
3:34
Speaker 4: that we're working on at the moment too.
3:36
Speaker 2: And that's Boogie. Did you ever think that it would
3:38
Speaker 2: get his bee? I mean, you don't set out to
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Speaker 2: create an investing platform that has nobody investing, so you
3:44
Speaker 2: clearly thought like this is a good idea, but like
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Speaker 2: this big Brook.
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Speaker 4: Well yeah, there's like seven hundred thousand people that use
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Speaker 4: shares Ease and have invested five billion all up. Oh yeah,
3:54
Speaker 4: we're managing over five billion, but there's so much more
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Speaker 4: to go, like this is this So it honestly still
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Speaker 4: feels that day for us.
4:00
Speaker 2: I love following a story. I'm more piercely an investor
4:03
Speaker 2: on the chaseas platform, and I feel like every time
4:05
Speaker 2: I do a money diaries like which are my favorite
4:07
Speaker 2: episodes of the show, I'm like, oh, okay, it's not a
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Speaker 2: planted question. I'm always like do invest and they're like, oh,
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Speaker 2: I'm with Sharezeas, and I'm like, here we go. More
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Speaker 2: free plugs for shazas because everybody in the community is
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Speaker 2: just obsessed and I am too. But investing is exactly
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Speaker 2: what Shareseas is all about, and we are here today
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Speaker 2: to talk about that. And I feel like long term
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Speaker 2: investment is something we talk about a lot, but it
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Speaker 2: can be really scary. Like at the end of the day,
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Speaker 2: I think that we need to acknowledge that investing can
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Speaker 2: be really overwhelming. But it's also not about the numbers.
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Speaker 2: Investing is actually really emotional. In fact, I was talking
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Speaker 2: about you today. Literally, I was talking about you today.
4:44
Speaker 2: I went to MCROB, which is a girls' school in Melbourne,
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Speaker 2: and I was talking about the importance of financial literacy
4:51
Speaker 2: to a bunch of Grade tens, which is exactly what
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Speaker 2: I want to be doing. And I was talking about
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Speaker 2: how investing nowadays is so much more accessible, Like historically
5:00
Speaker 2: I was so scared to invest because the minimum investment
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Speaker 2: amounts or like five hundred dollars. And don't get me wrong,
5:06
Speaker 2: a lot of people might go, be like five hundred dollars,
5:08
Speaker 2: that's not much for me. At that point in my life,
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Speaker 2: that was like the most amount of money I'd ever
5:12
Speaker 2: had in my bank account. And I was saying to
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Speaker 2: these girls, like investing is not for the rich, like
5:16
Speaker 2: there is this platform shares this you can invest with
5:19
Speaker 2: as little as one cent. It is little. You're not
5:21
Speaker 2: even old enough to invest yet, but when you are,
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Speaker 2: you're going to love this. And then I realized I
5:26
Speaker 2: get to see Brook later, so that was very cool.
5:28
Speaker 2: But it is such an emotional journey. It's literally your
5:32
Speaker 2: hard earned cash, your dreams, and all of your I
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Speaker 2: guess future wrapped up in one which then feels overwhelming.
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Speaker 2: Whether you're saving for your first home that's a few
5:41
Speaker 2: years away, or your kid's education, which I'm now thinking
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Speaker 2: about and that's really overwhelming, or building a like retirement
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Speaker 2: nest egg. Your investments are representative of I guess, all
5:50
Speaker 2: your dreams and hopes and goals, and when you're asked
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Speaker 2: to make a plan for that overwhelming Brook. That's why
5:57
Speaker 2: literally every market move can make me feel sick. I
6:00
Speaker 2: am an ex financial advisor, as you know, and I
6:03
Speaker 2: still log into my investing platform and if it is down,
6:05
Speaker 2: like if I log into chairs EA's and see that
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Speaker 2: I've lost some money on the shed market, I still
6:10
Speaker 2: get that twang in the bottom of my stomach. I'm
6:13
Speaker 2: like oh, and then I'm like Victoria you're smarter than this,
6:17
Speaker 2: but I experience it, so I have no doubt that
6:19
Speaker 2: our community is. And I mean when my portfolio is up,
6:23
Speaker 2: I'm like, yeah, I'm a big dog investor. Look at that,
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Speaker 2: look at that. But when it's down, it feels like,
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Speaker 2: oh my gosh, what have I done? Have I like
6:29
Speaker 2: on the absolute wrong thing. So, Brooke, in your experience
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Speaker 2: as an investor yourself, I'm assuming on Charez eas where
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Speaker 2: do you see this emotional rollercoaster getting people completely off track?
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Speaker 4: Yeah, so investing money is emotional. You know, money, like
6:45
Speaker 4: you said, creates opportunities in life or doesn't. You know,
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Speaker 4: We've got the beliefs we have around money from what
6:52
Speaker 4: we've watched and the households when we're growing up, and
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Speaker 4: how how we feel about it is really tied to
6:57
Speaker 4: a lot of emotions really, and when it comes to
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Speaker 4: an investing often there's a whole barrage of new emotions
7:04
Speaker 4: in a way, like there's a lot of excitement thinking
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Speaker 4: about your future and it's exciting getting into investing and
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Speaker 4: feeling like, oh, you're taking control of your money or
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Speaker 4: you're doing something that's going to help future you. But
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Speaker 4: the other part, too is investing can be quite overwhelming.
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Speaker 4: There's hundreds of thousands options out there now, like you said,
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Speaker 4: there it used to be like a minimum of ten
7:23
Speaker 4: thousand dollars needed. Now it's not.
7:25
Speaker 2: You're literally changing it so that we can all have
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Speaker 2: the same opportunities.
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Speaker 4: Yeah, that was a core belief of you know, one
7:32
Speaker 4: thing we just would not walk past is that we
7:34
Speaker 4: had to make sure there was no minimum investment so
7:37
Speaker 4: everybody could feel like they're an investor and also just
7:39
Speaker 4: invest the way that you expect, Like, if you want
7:41
Speaker 4: to put a certain amount of money into it, you can.
7:43
Speaker 4: You don't have to have to calculate a share or
7:45
Speaker 4: you know, like and have random scenes on that stuff.
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Speaker 2: But like, I love it because I just remember Baby
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Speaker 2: Victoria trying to invest for the first time, and it
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Speaker 2: was really overwhelming because I was a financial advisor, and
7:56
Speaker 2: I feel like it's the story of like the plumber
7:58
Speaker 2: always has a leaky type, right, So, like, as a
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Speaker 2: financial advisor, I knew what I should be doing, and
8:03
Speaker 2: I knew what we were advising our clients to do.
8:05
Speaker 2: But I didn't have ten million dollars like my clients.
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Speaker 2: So my clients had these beautiful well diversified portfolios of
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Speaker 2: like you know, ten to twelve direct shares. I couldn't
8:14
Speaker 2: give myself instant diversification. I didn't have any cash brook
8:18
Speaker 2: I was like five hundred dollars still too much. I
8:20
Speaker 2: remember seeing like some managed funds that had minimum investments
8:23
Speaker 2: of ten grand and they'd be like, must be nice,
8:26
Speaker 2: Like that'll.
8:26
Speaker 4: Never be me.
8:27
Speaker 2: But now I can literally buy that same managed fund
8:30
Speaker 2: on your platform for literally one cent and get that
8:32
Speaker 2: same exposure, and like that to me is kind of wild.
8:35
Speaker 2: And I have looked up managed funds that were previously
8:38
Speaker 2: out of reach and like bought them on Chaes's just
8:42
Speaker 2: cause like you can buy man Like, does it make
8:45
Speaker 2: up most of my strategy? No, it absolutely does not.
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Speaker 2: Is it really fun to feel like I own that? Yes,
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Speaker 2: Like I'm a little shareholder in that.
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Speaker 5: Ha.
8:54
Speaker 2: But you didn't see that coming, baby, Victoria.
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Speaker 4: Yeah, it's funny when you say, like I had this
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Speaker 4: thing when we first started, there's this thing, and when
9:01
Speaker 4: you're creating companies to your own dog food, like it's like,
9:04
Speaker 4: when you're creating something, make sure that you're a real
9:06
Speaker 4: mega user of it so you can see the areas
9:07
Speaker 4: where it's not working. Well or it's working really well.
9:10
Speaker 4: But I had this thing around empathy. So as we
9:12
Speaker 4: rolled up more and more investment options, I have this
9:14
Speaker 4: thing where I was like, oh, I need a bit
9:16
Speaker 4: of everything nearly because I want to if somebody comes
9:18
Speaker 4: up to me and starts talking about this investment, I
9:20
Speaker 4: want to feel the empathy and know like the journey
9:22
Speaker 4: that I've been on and now I have, you know,
9:25
Speaker 4: simplified it a lot because it started to get a
9:27
Speaker 4: bit extreme.
9:28
Speaker 2: That's literally like if you showed me your platform and
9:32
Speaker 2: you had something that I didn't have, a be like, oh,
9:35
Speaker 2: she's real smart, maybe I should have that too, And
9:37
Speaker 2: is there any logic to it? No, because I literally
9:40
Speaker 2: know my stuff when it comes to investing, But like
9:43
Speaker 2: that looks.
9:43
Speaker 4: Cool, and what we both know is consistency pays off
9:47
Speaker 4: over time, and time is the most value was spect
9:48
Speaker 4: of money. I think when we started Cheeresy's we really
9:52
Speaker 4: boilt it around that philosophy and we would do heaps
9:55
Speaker 4: of content and education in terms of trying to counteract
9:58
Speaker 4: what people call behavioral five. So like the loss of version,
10:02
Speaker 4: feeling like off it goes down that you've lost, but
10:04
Speaker 4: actually you don't lock in a loss until you decide
10:07
Speaker 4: to sell, and I need to.
10:08
Speaker 2: Be reminded of that. It's crazy. We talk about it
10:11
Speaker 2: a lot obviously at She's on the Money. It's only
10:13
Speaker 2: a loss if you're choosing to take it. Yeah, I
10:15
Speaker 2: don't choose that right now, Like I'm walking away from
10:18
Speaker 2: that brook. We talk a lot about strategy at Cheese
10:21
Speaker 2: on the Money and just buying random shares not a
10:24
Speaker 2: good strategy. Orbit it can be fun and literally when
10:26
Speaker 2: they're one scent, like you can, but I want to
10:29
Speaker 2: know more about yours, Like, tell me about your strategy.
10:32
Speaker 2: How do you keep your emotions in check when you're investing?
10:35
Speaker 2: Because I feel like you and I are both just
10:37
Speaker 2: inherently emotional people. I don't want to lose something, but
10:40
Speaker 2: like what happens when you see that you maybe are
10:43
Speaker 2: a little bit down?
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Speaker 4: Yeah, share, So the key thing is, Yeah, investing is
10:47
Speaker 4: for the long term. And I think the key strategy
10:50
Speaker 4: that we really designed Cheeses for early on too was
10:53
Speaker 4: dollar cost everaging, So investing every pay day and thatnce
10:56
Speaker 4: you can't afford and it builds over time. As you know,
11:00
Speaker 4: there's massive power in compound interest, in compounding returns, and
11:04
Speaker 4: literally that time just pays off. So I invest like
11:08
Speaker 4: that for my children and I never do anything else.
11:11
Speaker 4: It's automatically every week money going into the investment portfolios,
11:15
Speaker 4: and they consistently upperform me because because I do majority
11:23
Speaker 4: dollar cost averaging. But there's things where I'm just like, oh,
11:26
Speaker 4: I actually want to know what that's like, you know,
11:27
Speaker 4: and I will invest a little bit. But the important
11:29
Speaker 4: thing for me though, and the way that I manage
11:31
Speaker 4: my emotions is I don't take big bets, like I
11:33
Speaker 4: make sure that I'm building over time, I'm not over
11:36
Speaker 4: exposed in one area and that I'm just sticking to
11:40
Speaker 4: a habit and in anything else on top is something
11:43
Speaker 4: where I'm willing to take a bit more risk potentially
11:46
Speaker 4: more return, but I know that that consistency is going
11:49
Speaker 4: to work in the long run, no matter the peaks
11:51
Speaker 4: and flows of the market at the time.
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Speaker 2: Yeah, I feel like everyone's always surprised when I talk
11:55
Speaker 2: about my investment strategy because I think that there's this
11:57
Speaker 2: expectation that you know, if I gave you the log
12:00
Speaker 2: into my shares these platform, you'd probably see this really
12:02
Speaker 2: comprehensive list of six million different options. And like Victoria's
12:06
Speaker 2: so smart and like knows what to pick, and you'd
12:08
Speaker 2: actually log in, you'd see some really weird stock picks.
12:12
Speaker 2: You'd be like, why has she got this? And I
12:15
Speaker 2: can share them with you later because we don't make
12:17
Speaker 2: recommendations on the podcast. But then a majority of my
12:20
Speaker 2: portfolio is split among two ETFs. Yeah, and I think
12:24
Speaker 2: people are always like, wait, what, like you just invest
12:27
Speaker 2: in ETFs, and I'm like yes, because I would love
12:29
Speaker 2: to think that I'm intelligent, but I am not smarter
12:32
Speaker 2: than the people that pull together ets. I've got one International,
12:35
Speaker 2: I've got one Australian, and that is currently where most
12:38
Speaker 2: of my wealth sits. And then I have my little satellite.
12:40
Speaker 2: It's that core satellite approach where I've got those satellite
12:43
Speaker 2: ones because brook it's fun. Like there's this like biopharmaceutical
12:47
Speaker 2: company that I've been following since twenty twenty is not
12:50
Speaker 2: done well.
12:51
Speaker 4: This is why you.
12:52
Speaker 2: Shouldn't recommend Yeah, exactly exactly. But I got this biofarmer
12:57
Speaker 2: company and would I recommend it?
12:58
Speaker 1: No?
12:59
Speaker 2: But I put money in it and I'm not going
13:00
Speaker 2: to pull it out at a loss. I don't need
13:02
Speaker 2: that money right now, but I look at it and
13:04
Speaker 2: I just go I'm glad that I didn't make that
13:06
Speaker 2: recommendation because that was a punt, and I'm so glad.
13:09
Speaker 2: I just have that core portfolio that every month I
13:12
Speaker 2: just add two and it kind of tracks along, and
13:15
Speaker 2: I know future me is going to be okay, but
13:17
Speaker 2: I'm not always chasing Okay, Well, what's the next thing
13:19
Speaker 2: I should invest in to create wealth? Like I'm going
13:21
Speaker 2: to be screwed if I don't. Yeah, I know, I'm fine,
13:25
Speaker 2: but I do still like to have a little bit
13:26
Speaker 2: of fun.
13:27
Speaker 4: Yeah, and we're in the industry, right, so of course,
13:29
Speaker 4: like we're a bit more tuned in some ways to
13:30
Speaker 4: what you know.
13:32
Speaker 2: I thought I was a genius. I'll talk to you
13:34
Speaker 2: about this off air, but I read all of their
13:36
Speaker 2: annual reports. I did a deep dive into who their
13:39
Speaker 2: CEO was, where he used to work. The fact that
13:42
Speaker 2: this biopharmaceutical company deals with this particular health condition and
13:46
Speaker 2: the CEO has it like he is using their treatment.
13:49
Speaker 2: I'm just like, I've cracked. Yeah, it's gone down. I
13:52
Speaker 2: think I bought in it like a dollar thirteen per
13:54
Speaker 2: share and it's like a twenty six cents or something.
13:56
Speaker 2: So is that a good share for you to buy. No,
14:00
Speaker 2: you might be though.
14:02
Speaker 4: When we studied finance and when we were getting access
14:05
Speaker 4: to this world, I remember all of my research saying
14:08
Speaker 4: in all of the academic papers saying that buying and
14:11
Speaker 4: holding up performs that buys us out buy and women
14:14
Speaker 4: typically are way better at investing and taking a long
14:17
Speaker 4: term approach with it. And we know that that strategy
14:20
Speaker 4: pays off significantly more over time than somebody who's are
14:23
Speaker 4: actively trading. And so I think that that hopefully helps
14:26
Speaker 4: relieve some of that comfort when you've got those feelings
14:29
Speaker 4: around haven't made the right choice or you know it's
14:31
Speaker 4: are you happy with the investments you've made, are you
14:33
Speaker 4: diversified enough to wither storms? And is it money that
14:36
Speaker 4: you're happy to invest in the long term? Knowing that
14:39
Speaker 4: markets will go up and down, but traditionally over time
14:43
Speaker 4: they are trending up in the long term, do you.
14:45
Speaker 2: Put some blinkers on, like are you looking at what
14:48
Speaker 2: other people are doing? Are you looking at what your
14:50
Speaker 2: investors are doing? I feel like blinkers for me are
14:53
Speaker 2: really helpful, but other people using their strategy.
14:56
Speaker 4: Yeah, so a lot of people on Cheesy's aort to
14:59
Speaker 4: invest that to invest and abording their portfolio over time.
15:03
Speaker 4: That's the vast majority. I don't get caught up in
15:05
Speaker 4: the hypeie things. I just know that I feel like
15:07
Speaker 4: it's all over social media.
15:09
Speaker 2: Yeah, have you seen the most recent stuff about the
15:11
Speaker 2: day trading and how that's going to create ultimate wealth?
15:13
Speaker 1: Oh?
15:14
Speaker 2: It kills me because you see these posts from people
15:18
Speaker 2: who genuinely think that they're helping, they have no finance background,
15:21
Speaker 2: and then you see people commenting like, oh my gosh, yes,
15:23
Speaker 2: please tell me more. I'd love to create wealth, and
15:25
Speaker 2: you just go, this is a scam. Like, yes, some
15:29
Speaker 2: people can create money in day trading, but it is
15:31
Speaker 2: not a long term solution. In fact, most people who
15:34
Speaker 2: day trade lose more money than they make. And you
15:37
Speaker 2: just go, if you're so worried, go down a very
15:42
Speaker 2: classic pathway. Like the best type of investments I've seen
15:45
Speaker 2: over my career have been the most boring ones.
15:48
Speaker 4: Yeah.
15:48
Speaker 2: Like I remember one client brook, I inherited them from
15:52
Speaker 2: another financial advisor who'd retired, and they had BHP shares,
15:57
Speaker 2: and like that could be a little bit topical because OBVIOUSLYHP,
16:01
Speaker 2: like it's a fossil fuel company and a lot of
16:02
Speaker 2: people might not agree with that, and the person I
16:05
Speaker 2: was advising was actually morally not okay with it. I mean,
16:08
Speaker 2: there's a bigger conversation. He'd inherited them from his grandfather,
16:12
Speaker 2: but when we looked at it, it was just this tried,
16:14
Speaker 2: true blue chip stock that had paid off over time,
16:18
Speaker 2: and the way that he held them was really complicated
16:21
Speaker 2: for me as a financial advisor because they'd bought them
16:24
Speaker 2: when you bought them in British pounds, like way back
16:27
Speaker 2: when they had originally listed, and you could see from
16:30
Speaker 2: that period of time like how much it had grown,
16:32
Speaker 2: how many dividends it had brought in, and it was
16:35
Speaker 2: a bigger conversation, but it was just incredible to see
16:39
Speaker 2: such a long term portfolio and how it had provided
16:42
Speaker 2: wealth for this family. And it was like, this is genius.
16:46
Speaker 2: But I can still do it today because these companies
16:49
Speaker 2: are still growing, like these options are still on the table,
16:53
Speaker 2: and I just remember thinking, yeah, maybe I do need
16:55
Speaker 2: to invest a little bit more. After seeing that, it
16:57
Speaker 2: wasn't impressed that I had to do the currency conversion
17:00
Speaker 2: from way back in the day though. That was a
17:02
Speaker 2: little bit of a meth around, but it was fun nonetheless.
17:05
Speaker 4: And it's interesting the emotional side of that legacy left too,
17:09
Speaker 4: and going, well, this is what my grandparents believed in. Yeah,
17:12
Speaker 4: you know, should I continue because it's their essets that
17:14
Speaker 4: I'm getting on, or should I got my way? And
17:15
Speaker 4: I think that's another interesting element. You know, there's a
17:19
Speaker 4: lot of emotion when it's passed down.
17:20
Speaker 2: And I think it's important to remember that your values
17:23
Speaker 2: can control how you invest. I mean, that's what that
17:26
Speaker 2: conversation was about. Like, the BHP shares was something that
17:29
Speaker 2: my client was not that happy with because he was like,
17:32
Speaker 2: that's not ethical. I don't want to have my wealth
17:34
Speaker 2: being generated by this company. But to dispose of those
17:37
Speaker 2: shares after such a significant time holding them, the capital
17:41
Speaker 2: gains tax was astronomical, and so it just didn't make
17:45
Speaker 2: sense to sell an asset because you would have to
17:47
Speaker 2: pay so much in tax. But what strategy can we
17:51
Speaker 2: implement to counteract that? And we ultimately ended up having,
17:54
Speaker 2: you know, any new acquisitions were all very ethical, and
17:57
Speaker 2: he started investing some of the money he was making
18:01
Speaker 2: from BHP into environmental charities which were then working against BHP,
18:07
Speaker 2: which was quite funny because it was like, eh, swighing
18:09
Speaker 2: it up, and you feel good about this. We've got
18:11
Speaker 2: a strategy, but everyone's strategy is going to be different, right, Like,
18:15
Speaker 2: at the end of the day, we have been chatting
18:17
Speaker 2: for a while and I could talk underwater with a
18:19
Speaker 2: mouthful of marbles about investing, and I know that you
18:21
Speaker 2: could too. We've covered why investing can feel a bit
18:25
Speaker 2: like an emotional rollercoaster and how it can completely derail.
18:28
Speaker 2: Let's be honest, even the best laid plans, like you
18:30
Speaker 2: just get overly emotional and then you're like, I should
18:33
Speaker 2: sell brook. One of the things that we say on
18:35
Speaker 2: this podcast all the time is when in doubt, zoom out,
18:38
Speaker 2: Like when in doubt, look at the bigger picture, like
18:41
Speaker 2: it could feel trash. I was looking at a chart
18:44
Speaker 2: this morning and one of my favorite resources. Sorry it's
18:46
Speaker 2: not the Chesy's website, but you can replicate this or
18:48
Speaker 2: create your own version for me. It is the Vanguard
18:52
Speaker 2: Interactive Index Chart. Have you seen that? Adore it? So
18:55
Speaker 2: it's on their website and you can kind of put
18:57
Speaker 2: in your own dates and your own asset classes and
19:00
Speaker 2: shows how it would perform over time and historicals and
19:03
Speaker 2: if you put in any thirty year period, you can
19:06
Speaker 2: see that long term investors have never lost so any
19:09
Speaker 2: thirty year period. But then you know, if I put
19:12
Speaker 2: in my birthday, which was the thirtieth of June nineteen
19:15
Speaker 2: ninety one, great date for a finance girly, literally right,
19:21
Speaker 2: I put that in, And over that period of time,
19:24
Speaker 2: you can see the drop in the share market when
19:26
Speaker 2: the global financial crisis happened. And we know that that
19:30
Speaker 2: is spoken about. You know, two thousand and eight was
19:32
Speaker 2: obviously horrific. People lost their homes, people lost their money,
19:36
Speaker 2: like that's the worst thing ever. You might even listen
19:39
Speaker 2: to your parents' generation. They're like that ruined us, that
19:41
Speaker 2: you know, ruined my friend. But then when you zoom out,
19:44
Speaker 2: that's actually just now a blip in their performance chart,
19:48
Speaker 2: like our economy has recovered and then some and when
19:52
Speaker 2: you look back, obviously there was some really big flaws
19:55
Speaker 2: in the American financial system for that to happen. But
19:59
Speaker 2: the and you know that a lot of people during
20:02
Speaker 2: that period of time lost a lot of money because
20:05
Speaker 2: of their emotions. It wasn't because they were poorly invested.
20:08
Speaker 2: It was because they saw all of this housing stuff
20:11
Speaker 2: happen and they started to freak out. And because the
20:14
Speaker 2: market was reflective of other people's poor decisions. Even really
20:17
Speaker 2: good performing stocks started to dip because market sentient was that, oh,
20:23
Speaker 2: this is scary, So good quality shares were dropping, and
20:26
Speaker 2: those people that owned those good quality shares were freaking
20:29
Speaker 2: out and they were like, oh my gosh, Brook, I'm
20:31
Speaker 2: just going to sell today because I'm going to put
20:33
Speaker 2: all in my savings account and then I will feel secure.
20:36
Speaker 2: But you can see this chart and how it completely
20:39
Speaker 2: rebounds and some more so, a lot of people that
20:42
Speaker 2: lost a lot of money during the global financial crisis
20:44
Speaker 2: weren't actually impacted, but they were scared. And I think
20:47
Speaker 2: that that's a really good story to tell. To go, well,
20:50
Speaker 2: you need to zoom out and have a look at
20:51
Speaker 2: the bigger picture, Like is this just another situation where
20:55
Speaker 2: so many people are terrified. So many people are so
20:58
Speaker 2: scared to lose their wealth, which makes sense, like we
21:01
Speaker 2: do have to do some education around this, But they
21:04
Speaker 2: actually shot themselves in the foot by transferring their wealth
21:07
Speaker 2: that was going to recover into cash which then hasn't
21:10
Speaker 2: really performed.
21:12
Speaker 4: Yeah, I think that's an interesting important part that people
21:15
Speaker 4: should understand. It's like the reason markets move is purely
21:19
Speaker 4: because of our and our motions, you know, it's actually
21:23
Speaker 4: not mad some information and you're well, now do I
21:26
Speaker 4: believe in this company or the fun?
21:27
Speaker 3: Now?
21:28
Speaker 4: Yes?
21:28
Speaker 1: No?
21:28
Speaker 4: And your buy sale. And I think there's obviously the
21:31
Speaker 4: big companies at play and institutions, but as individuals too,
21:34
Speaker 4: it's like, yeah, zoom out, do we believe in this
21:37
Speaker 4: investment we're making in the long term? Do we believe
21:38
Speaker 4: in this fun, this country whatever it might be where
21:41
Speaker 4: you're exposed all these companies. You know, we are actually
21:44
Speaker 4: typically good at just buying and holding and not being
21:49
Speaker 4: to a motive. And that was a lot of the
21:51
Speaker 4: like crap would get at the start of CHESI is
21:53
Speaker 4: to be honest, is that people don't know what to do,
21:55
Speaker 4: and you know they've got to be sophistcurated.
21:56
Speaker 2: It's like, well, now you seven people that know what
21:59
Speaker 2: to do.
22:00
Speaker 4: It's oposticated when the majority of their mar which.
22:03
Speaker 2: Is you know like that because Brook you are female. Jeez, Louise, Yeah,
22:10
Speaker 2: we never get to ten thousand customers and all that
22:12
Speaker 2: sort of jebs. I mean, you don't have ten thousand.
22:14
Speaker 2: We've got seven hundred two thousand growing. Oh, I love it. Yeah,
22:19
Speaker 2: all right, let's go to a really quick break on
22:20
Speaker 2: the flip side. We're going to dive into some practical
22:22
Speaker 2: steps you can take to keep those emotions in check
22:25
Speaker 2: and make sure that you're on the right path to
22:27
Speaker 2: reaching your financial goal. So guys, stay tuned, Welcome back.
22:35
Speaker 2: So we've been talking about the emotional ups and downs
22:38
Speaker 2: of investing, but now Brook it is time that we
22:40
Speaker 2: get practical. I'm not a podcast that just motivates people, like,
22:44
Speaker 2: we actually need to give them practical steps and things
22:47
Speaker 2: that they can do to implement this. Do you know
22:49
Speaker 2: there's nothing worse and you've probably done it because like
22:51
Speaker 2: I feel like you are a ted talk early, Like
22:54
Speaker 2: you're the same as me. Like I love a motivational talk.
22:57
Speaker 2: I love watching other people speak, love going to a conference.
23:00
Speaker 2: There is nothing worse than walking out of a conference
23:02
Speaker 2: being like, I'm so motivated, she was so great. I
23:05
Speaker 2: don't know what to do, Like, we need to give
23:08
Speaker 2: people the tips and tricks that they can implement to
23:10
Speaker 2: actually get stuff done. I mean you're clearly doing it,
23:14
Speaker 2: because not only are you empowering people to invest, you're like,
23:17
Speaker 2: here's the actual investment platform, like you lead a horse
23:20
Speaker 2: to Yeah, yeah, I like it. I like it Picasso.
23:24
Speaker 2: So now it's super easy to say, you know, we
23:27
Speaker 2: need to be investing for long term. We're talking about
23:29
Speaker 2: that before, but let's be really real, it's tough to
23:32
Speaker 2: stay motivated. Like you can walk out of the motivational presentation,
23:35
Speaker 2: you can listen to the podcast, you can be like
23:37
Speaker 2: investing Brook it's for me, yeah, And then life gets
23:41
Speaker 2: in the way and you just feel like the payoff
23:43
Speaker 2: is so far down the road. What's it going to
23:45
Speaker 2: take to compound nicely? Like seven to ten years?
23:48
Speaker 4: Like that just.
23:49
Speaker 2: Feels so far off. But how did you keep yourself
23:53
Speaker 2: pushing forward when you first started your investing journey and
23:57
Speaker 2: what helped you stay engaged and don't lose any focus
24:01
Speaker 2: even when progress sometimes feels slow and like I checked
24:04
Speaker 2: it yesterday and I've earned nothing.
24:06
Speaker 4: Honestly, the best thing to keep me on track is automation.
24:10
Speaker 4: Like that's literally about investing all the time.
24:13
Speaker 2: Why not I do, Welcome to the money. It's not
24:17
Speaker 2: that sexy though, No, no, no, not everybody you.
24:20
Speaker 4: Know and for most people too. It's just like the
24:23
Speaker 4: best way of managing money is having really good habits, essentially,
24:27
Speaker 4: and for me, it's about automation. So I have my
24:29
Speaker 4: autumn best set up if I was here in Australia,
24:32
Speaker 4: I'd be definitely doing roundups. We don't have that in
24:34
Speaker 4: New Zealand yet. But in New.
24:36
Speaker 2: Zealand you also have investing for kids, and we don't
24:38
Speaker 2: have that. Exactly is we could do a little bit
24:41
Speaker 2: of a swat seat, let them have roundups and they
24:46
Speaker 2: can let us have investing for kids.
24:47
Speaker 4: That's exactly what we're working on the structure on at
24:50
Speaker 4: the moment. Yeah, and so just automatic investing, because I
24:54
Speaker 4: really want to make sure we're giving back because when
24:55
Speaker 4: you're investing, you're helping, you know, companies create jobs and
25:00
Speaker 4: for all this vision they have for the world that
25:02
Speaker 4: you want to have, you know, come to life. And
25:04
Speaker 4: also on funds too, you know. And so I think
25:06
Speaker 4: their automation for me is the biggest way that just
25:08
Speaker 4: makes me relax. I'm like, well, I know I'm putting
25:10
Speaker 4: a certain amount of where I'm happy to every payday,
25:13
Speaker 4: and that's fine.
25:15
Speaker 2: You know.
25:15
Speaker 4: Yes, I might dabble on the side and do the
25:17
Speaker 4: satellite approach as we're talking about before, but that is
25:20
Speaker 4: the consistency and that is why I just sleep easy.
25:23
Speaker 2: And I think that's why I'm so clear about the
25:26
Speaker 2: approach I take because I don't want people hearing me go,
25:28
Speaker 2: oh my gosh, yeah, I did this research into this
25:30
Speaker 2: like farmer company or whatever. I'm thinking that that's the
25:34
Speaker 2: investing journey. It's not like my portfolio is so boring.
25:39
Speaker 2: But then I do some fun things and the fun
25:41
Speaker 2: things happen, not because you have to do that, but
25:44
Speaker 2: because Brookware on cheese on the money. I'm obsessed with
25:48
Speaker 2: the sher market. I love chatting about it, I love
25:51
Speaker 2: seeing what's going on. I really love good companies. Yeah people,
25:55
Speaker 2: and I really love reading an annual report. But that's
25:57
Speaker 2: not for everybody. And that's why I I guess Chazy's exists.
26:01
Speaker 2: And I feel like I'm a walking like billboard for
26:04
Speaker 2: Chasy's because whenever people are like, so what should I do,
26:06
Speaker 2: I'm like, well, sit down, so have you heard of Chazy? Literally,
26:10
Speaker 2: because I'm just like, not everybody wants to be as technical,
26:14
Speaker 2: and you can be, but sometimes you just want the
26:17
Speaker 2: spark notes version. I want you to tell me what
26:20
Speaker 2: does this company do, how does it do it? Where
26:22
Speaker 2: can I find it? You know, what are the spark
26:24
Speaker 2: notes of this? And that's what the Chasi's platform does.
26:28
Speaker 2: And then all of this other stuff I'm doing in
26:30
Speaker 2: the background. I guess a good question that I have
26:32
Speaker 2: for you. I mean, I think it's good because it's
26:34
Speaker 2: my question. It's going to be great. You're a CEO.
26:37
Speaker 2: That's pretty big dog. Are you investing differently now that
26:42
Speaker 2: you're a CEO than when you were just a salary
26:46
Speaker 2: and wage earning employee. Is there like some kind of
26:49
Speaker 2: like I'm cracking the code because now I have lots
26:52
Speaker 2: of money coming in? Or am I cracking the code
26:55
Speaker 2: because now I have a you know, really fancy career.
26:58
Speaker 2: I feel like people seem to think that because you
27:02
Speaker 2: have a very fancy job title, your investment portfolio must
27:06
Speaker 2: be oodle's more complicated.
27:09
Speaker 4: I would say it's changed more from being a founder
27:13
Speaker 4: and going through the process of starting a company that
27:15
Speaker 4: then I'm more exposed to other startups and things like
27:18
Speaker 4: that that I want to, you know, in a small
27:19
Speaker 4: way with a group of friends, we are trying to
27:21
Speaker 4: get more female shareholders and companies. We're going to talk
27:25
Speaker 4: about this offer. Honestly, I wanted to invest. I looked
27:30
Speaker 4: at platforms in New Zealand, but my first investments were
27:33
Speaker 4: through staff share scheme, so zero I got shares from
27:36
Speaker 4: working there and that was my first actual ownership of
27:39
Speaker 4: a share And so it wasn't till Chares Is that
27:42
Speaker 4: I got to start investing and then we got to
27:44
Speaker 4: create it the way that we But that's really cool, Yeah,
27:46
Speaker 4: but I was so ashamed that it wasn't there when
27:48
Speaker 4: we were younger. But I'm just so stoked it.
27:50
Speaker 2: But it wasn't as accessible.
27:52
Speaker 4: I mean, I did the same calculations you did, and
27:54
Speaker 4: I was just like, the cost of the transaction wasn't
27:56
Speaker 4: going to be worth the amount.
27:57
Speaker 2: Of money Anchorage was astronomical, Like, there's no way that
28:02
Speaker 2: when I started, I could have afforded to invest in
28:05
Speaker 2: the way that we recommend now, right, Like you spoke
28:07
Speaker 2: before about dolar cost averaging. For those of you who
28:10
Speaker 2: are like, oh my gosh, like I have not listened
28:12
Speaker 2: to enough Sheese on the money. That's essentially where you
28:14
Speaker 2: invest consistently and regularly, so that even if it's a
28:17
Speaker 2: good time in the market, you're investing. When it's a
28:19
Speaker 2: bad time in the market, you're investing, so that on
28:21
Speaker 2: average we can get access to all of the best
28:25
Speaker 2: days in the market. Whereas if I could time the
28:28
Speaker 2: market brook I'd be so rich so would you like,
28:31
Speaker 2: we wouldn't even have to have investing platforms because we
28:33
Speaker 2: would be Warren Buffett. But we're not. Nobody can time
28:37
Speaker 2: the market, and the second best thing to timing the
28:39
Speaker 2: market is time in the market. So dolar cost averaging
28:43
Speaker 2: is literally making sure that you're investing consistently so that
28:47
Speaker 2: you know, if the market goes down, you get the
28:49
Speaker 2: little discount. If it's up, it's not so worrying because
28:52
Speaker 2: last month you got the discount and all averages out.
28:55
Speaker 2: But when I started my journey, that wasn't an option.
28:58
Speaker 2: I had to like get my money together. I worked
28:59
Speaker 2: out out what brokerage was going to cost, and it
29:01
Speaker 2: was going to be way too astronomical to do dollar
29:04
Speaker 2: cost averaging, and so then I had this additional stress
29:07
Speaker 2: of working out, well I can only afford to basically invest.
29:10
Speaker 2: I think it was like four times a year because
29:12
Speaker 2: of the amount of money I was investing, and I'm like,
29:14
Speaker 2: when's the best time? And then I get analysis paralysis.
29:18
Speaker 2: I remember one year being like I haven't invested at
29:20
Speaker 2: all because like I just couldn't find a time and
29:21
Speaker 2: dumping all my money in. And then something happened and
29:23
Speaker 2: I was like great, Like I didn't get that control.
29:27
Speaker 2: The idea that you can just do this for so
29:30
Speaker 2: cheap and so easy now to me is kind of
29:33
Speaker 2: wild brook. We've covered a lot today, from I guess
29:37
Speaker 2: the highs of market gains to the loads of like
29:39
Speaker 2: the nerve wracking dips. I still get that pit in
29:42
Speaker 2: the bottom of my stomach. But here are the golden rules.
29:46
Speaker 2: So keep your cool when in doubt, throom out, stay
29:49
Speaker 2: focused on the long term game, and let compound interest
29:52
Speaker 2: do what it does best, and that's making your money
29:55
Speaker 2: make even more money.
29:56
Speaker 4: Like I love that saying. It's like you can't work
29:59
Speaker 4: twenty four seven, but your money can. And it's like
30:02
Speaker 4: that's what happens. Your money starts earning money, that creates money,
30:05
Speaker 4: and it's incredible. Over time, you've typically compounded more money.
30:09
Speaker 4: Your money's made more money than you ever started putting
30:11
Speaker 4: in or even put in. I wish I could show
30:13
Speaker 4: that graf visually right now, but it's so important, like
30:15
Speaker 4: I think, for people to understand.
30:16
Speaker 2: So sorry, no, no, no, no, I love it. In
30:18
Speaker 2: the presentation that I did this morning, I was talking
30:21
Speaker 2: to the group of girls and I was so excited
30:23
Speaker 2: about it, and I was like, would anyone say no
30:25
Speaker 2: to a million dollars of free money? And they're all
30:28
Speaker 2: like no, obviously, because like we're not crazy, Like that's fine.
30:32
Speaker 2: But I was like, if you invest every single month
30:36
Speaker 2: for your entire career, five hundred dollars each and every
30:39
Speaker 2: single month, whether that is in your Keywi saver or
30:42
Speaker 2: it is in your superannuation, like, or you just want
30:44
Speaker 2: to do it externally, five hundred dollars every single month
30:48
Speaker 2: over that period of time, that becomes two hundred and
30:51
Speaker 2: forty thousand dollars. And they're all like, oh, that's a
30:53
Speaker 2: lot of money, and I'm like, yeah, I know, but
30:55
Speaker 2: that's just if you saved it. If you invested it
30:58
Speaker 2: with an average rate of return of seven and a
31:00
Speaker 2: half percent, which we know it's not it's more than that,
31:03
Speaker 2: but we like to be conservative, that becomes one point
31:06
Speaker 2: two to five million dollars. So I'm telling you that
31:09
Speaker 2: if you invested instead of saved that same amount of money,
31:13
Speaker 2: you could have a million dollars for free just by waiting.
31:15
Speaker 2: I love money. I want a million dollars for free,
31:18
Speaker 2: brook And I guess that's why to me it's so powerful,
31:22
Speaker 2: because that's what gives women in particular power. And I've
31:26
Speaker 2: never met anyone who's like, oh, yeah, when women get
31:28
Speaker 2: financially literate, world's a worst place. Like every time a
31:33
Speaker 2: woman becomes more financially literate, our entire world becomes a
31:36
Speaker 2: better place. Women help women. I'm seeing it literally in you.
31:40
Speaker 2: You're like, oh my gosh, now that I am a CEO,
31:43
Speaker 2: I have the funds to get together with my friends
31:45
Speaker 2: and help other women get into business or get them funded,
31:48
Speaker 2: Like this is happening around the world. Isn't that cool
31:51
Speaker 2: that you get to not only be a part of
31:53
Speaker 2: it in that aspect, but your investing platform is going
31:56
Speaker 2: to create these women into millionaires.
31:58
Speaker 4: I love that saying a rising time floats all boats,
32:01
Speaker 4: you know, And I think the there's so much more
32:02
Speaker 4: to do to empower more people to have more excess
32:06
Speaker 4: to opportunities. And yeah, I say that.
32:08
Speaker 2: All the time. I feel like you and I just
32:10
Speaker 2: like you're the blonde version of my brunette because like
32:13
Speaker 2: I always say, a rising tide lifts all shits. Oh no,
32:16
Speaker 2: and like I'm always like no, no, no, Like it
32:18
Speaker 2: doesn't matter. We're all on the same page. Like there's
32:21
Speaker 2: more than enough out there, like and that quote about
32:23
Speaker 2: like you don't make your light shine brighter by dimming
32:27
Speaker 2: somebody else's. I really like that one too. But now
32:30
Speaker 2: we've moved on to quotes, I think it's time to
32:32
Speaker 2: move off the show because I want to talk about
32:35
Speaker 2: investing for kids, which you know watch this space She's
32:39
Speaker 2: on the Money community. But Brooke, as always, it has
32:42
Speaker 2: been an absolute pleasure having you on the show. Thank
32:44
Speaker 2: you so much for sharing your wisdom with our community.
32:46
Speaker 2: Before you say goodbye, though, I obviously have to do
32:49
Speaker 2: a completely shameless plug if you haven't joined chares E's,
32:53
Speaker 2: please don't forget that. If you sign up to Shares's
32:55
Speaker 2: using the code STM, you get a free ten dollars
32:59
Speaker 2: in your account to invest with. And did you see
33:02
Speaker 2: Brook the other day, our co host on our Wednesday episodes.
33:05
Speaker 2: Beck started investing and she now has eleven dollars invested,
33:09
Speaker 2: and I am so excited because ten of that was free.
33:13
Speaker 4: Be for real.
33:14
Speaker 2: We basically funded her entire investment portfolio so fast. I
33:18
Speaker 2: loved that, all right, Thank you, Brook, It has been
33:20
Speaker 2: a pleasure.
33:21
Speaker 4: Thank you so much. Appreciate it.
33:28
Speaker 5: The advice shared on She's on the Money is general
33:30
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Speaker 5: of money SHERPA pty Ltd ABN three two one is
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Speaker 1: Hmm