Latest / The Curve / RTC46: Why tech companies share prices are SO unpredictable

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RTC46: Why tech companies share prices are SO unpredictable · The Curve

• 0:00
  Welcome to the Curve Podcast, a conversation for women who want to learn more about money,
• 0:06
  their money for the future they want to have. We're all busy in the pursuit for financial
• 0:12
  confidence and increasing your wealth should be a simple one. This podcast is for women
• 0:17
  to learn about investing in a non-scary or intimidating way. With short episodes, you'll
• 0:22
  have time to learn, digest and understand everything to do with the world of investing.
• 0:28
  So thank you for being here and for listening, because together we really can raise the
• 0:32
  curve.
• 0:38
  Thanks, lost your voice. She messaged me. We went to our podcast record last week and she
• 0:43
  was like, I have completely lost my voice and I thought this is a yarn like she's tied
• 0:48
  or she's hung over. And honestly, it was like Victor was on the phone. What this is day
• 0:54
  eight of no voice will not proper voice. And honestly, I was like, woke up every morning,
• 0:59
  I was like, okay, this is the day it's going to come back. And I was like, okay, now I'm
• 1:04
  kind of getting worried. And everyone's like, just don't talk. And I was like, but everyone
• 1:09
  loves him.
• 1:10
  You know that thing? That podcast that we were called involves talking. So no, but it was funny.
• 1:16
  I was talking to my dad and he was like, well, maybe you need to ensure your voice, just
• 1:20
  like Heidi Klum ensures her legs. You need to ensure your voice. And I was like, oh my
• 1:24
  gosh, imagine just ensuring my voice. Does Heidi Klum ensure her legs? Yeah, I guess
• 1:30
  because they have money maker, you know, like, and so for us, our voices help money maker.
• 1:36
  But hold on, how would she get replacement legs? Like what are you getting insurance?
• 1:41
  No, it's more that if something happened, like I look like how I lost my voice and then
• 1:46
  you can't, the business suffers or you can't make income and that's your main source
• 1:50
  of income. It's almost like income protection insurance, really. And so if she couldn't model,
• 1:55
  or couldn't walk, then she would get paid out insurance because of that. So I was like,
• 2:01
  oh my gosh, I'm like the podcast version of Heidi Klum. Imagine if one day that is a thing.
• 2:07
  I reckon like big radio hosts would definitely, yeah. Well, I've worked in radio for a long
• 2:12
  time. I've never heard of that. Maybe they do. Well, it's kind of like the show has to go on.
• 2:18
  Like when I worked for the Edge breakfast years and years and years ago, to be honest,
• 2:22
  any of the radio shows I've worked for, they, you would come in almost spewing in a bucket.
• 2:26
  Like it would, you just, the sick policy was not a thing. You know, like you would either be
• 2:32
  broadcasting from your son's birth in the hospital and they would be like literally sitting
• 2:36
  up microphone to broadcast. Yeah, it was so full on. Or you would be, have to be literally
• 2:42
  on desktop to not go in for a, and, and same as producers, to be honest, it wasn't even just the
• 2:47
  host. Do you remember when we went to Coldplay and we were, it was like 1 a.m. we're at the Coldplay
• 2:52
  after party. And you had to get up to work, like, do I have to work like three? And I was like,
• 2:57
  well, there's no point in going to sleep. I mean, we may as well just keep, we may as I just stay
• 3:00
  up. You're like, no, back. No, I have to like, and if me, such a bad effort. That's right.
• 3:06
  Because they gave us tickets. We interviewed Chris and he was like, um,
• 3:11
  oh, do you guys want to come to the show? And I'd already bought tickets and already been,
• 3:13
  but I pretended I haven't because I love him. I was like, sure, sure, sure. And then they invited
• 3:18
  us to go to the after party. And it was the coolest thing ever. Meeting Chris Martin. I was like,
• 3:23
  oh my god, thank you, Sophie. I was like, yeah. That's your friendship, beautiful life. Yeah.
• 3:28
  You were done now. Can, can you guys, can people also get in touch with us if you're listening?
• 3:32
  And you're like, can you shut up about your life? And please talk more about finances
• 3:37
  we're not interested in you as people would really appreciate the feedback on that.
• 3:42
  Yes. Genuinely, because we can just keep it snappy.
• 3:47
  Although I love hearing about our dating life and stuff, surely, surely run love's here right
• 3:51
  there. We had a half an hour chat just before recording this about dating life, both our dating
• 3:56
  life. There are some updates. Talk about your motorbike experience or your sauna experience.
• 4:03
  Or I mean, I've been having some sexy shit happening with some of them to my co-working space.
• 4:10
  And it is very difficult to a concentrate and be just like, keep my hands to myself.
• 4:16
  Enough about our lives now. Yes, more about finance, money. Talk to me. What are we learning about?
• 4:23
  Today, we're going to learn about the reporting season. So US reporting season is just finished.
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  And so what this is is effectively when companies in the US, they have to report their financial
• 4:36
  results to investors four times a year. So this happens January, April, July, and October.
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  So we've just had one. And it's a lot of work for companies four times a year. Can you imagine
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  being a part of the admin team? Totally. It's like, and it's so frustrating because it's like,
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  it makes the companies really short term focus because they're like, oh, we've got to put out
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  our next result in three months. So let's make sure it's a goodie. Whereas in New Zealand and
• 5:01
  Australia, they have six monthly reporting season. All right. So it's only in the state that it's
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  reportedly being an analyst and having to be across all those companies, checking their results.
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  You have like, sometimes you have like 10, 20 companies a day that you have to go through.
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  Like, do we buy more? Do we sell? Do you know what's our change in view? And it's, yeah,
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  it's pretty kind of head down bum up kind of time. So yeah. Do you have to prepare for a result
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  season? Is it like right? It's coming out. I'm going to have lots of carbohydrates,
• 5:35
  sleep lots, drink lots of water. So I can make very informed snap decisions, you know?
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  Is it kind of a bit like that? You're sort of like, okay, I've got to really be on my ball ball.
• 5:44
  Yeah. It's kind of on my ball game. Yeah. So you're kind of coming early. Okay, let's read the news.
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  Let's get all that out of the way. Let's get all the kind of other emails out of the way.
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  And let's get ready because when it starts happening, it's like, boom, boom, boom, boom.
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  And then that's why you have a team. It's like, okay, can you look at this one? I'll look at this one.
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  Yeah. So it's kind of, you have a team effort. But yeah, it is. It's kind of fun.
• 6:05
  I'll try to find the next one. Yeah. And then by the end of it, you're just like,
• 6:09
  ah, should we go have, should we go have a drink? I remember when I first started my as an analyst.
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  And I was a junior analyst. And I booked this holiday to Europe in August. And I was like,
• 6:21
  to my boss, I was like, hey, just wanted, like, we had pretty free reign of like, when we took
• 6:24
  holidays, it was fine. Had you booked it at this point? No, I hadn't. And so I was like, as a,
• 6:29
  hey, look, I am planning to go to Europe. There's kind of three weeks of August.
• 6:35
  I just wanted to check that that's okay. Like, didn't think anything of it,
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  meaning a shirt. No, we're like, um, that's actually the biggest, is this month of the whole year.
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  Okay. So so reporting season is essentially a chance for investors to go through financial
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  statements, sales targets, any kind of like KPIs for that business to see if they're hitting what
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  they're at say they should be achieving essentially. Yeah. And it's a good insight from
• 6:59
  investors to see, okay, is the company performing as I expected because I'm an investor in this
• 7:05
  company because I think that it's going to achieve this level of growth. And it's going to be,
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  you know, it's going to be a bigger and better business in the future. So if that's,
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  if they report a bad result and that changes my view, then I'm going to sell my stock.
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  Or if it's just a slip up and it's just one, you know, one quarter of bad performance or,
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  um, you know, unless your price goes down, am I going to buy more? So it's kind of deciphering,
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  okay, is this a big issue? And it's changing the entire growth outlook of the company,
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  or is it just a short term thing? And therefore I'm going to buy more. Or is this an amazing result?
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  And I now, you know, think that this company's had its time in the sun. And now I want to sell my
• 7:49
  shares. So you're constantly kind of re-evaluating, okay, what does this mean? What does this result mean
• 7:54
  for the outlook of the business? Is this essentially what you're doing? Is there quite often
• 7:59
  a quarter result where you're like, okay, it was just a bit of a faux pas, you know, um,
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  crayon sales had a bit of a shocker. And we're just going to give them a pass and we'll check
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  in for next, and you like make a note and you're like, okay, I need to check back in on that because
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  if it's continuing to decline, then maybe I'll make a decision opposed to like, oh, oh,
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  sound the alarm. Yeah, and it's hard to know that, like, that's kind of, if you can pick that,
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  that's great. But then, okay, the next quarter it comes out and it's also bad. And you're like,
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  okay, I'm starting to not have confidence in myself anymore. And then you have a third quarter.
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  And that's also bad. You're like, okay, like should have, should have calling it at the first
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  first time, not the third time. You know, like, it's kind of, that's what you're trying to figure
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  out. It's like, is this a systemic issue? Or is this a bigger issue? Is there, is them losing
• 8:48
  customers a temporary thing? Or is it like an actual thing where competitors, where customers
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  are going to competitors? And they're going to keep going to competitors. Can they win those
• 8:59
  customers back? Like, this is kind of everything you're thinking about. And with so much going on
• 9:03
  the world right now, it's so hard to know. Like Netflix is probably a really good example of that.
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  Like Netflix had a terrible quarter last quarter. And they were losing subscribers and everyone's
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  like, this is the death of Netflix, because that was everywhere actually. Yeah, everyone's like,
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  it's done so well during the pandemic. It's got, it's done what we've called this pull forward,
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  where you kind of pull forward all these customers that you would have got in a normal environment.
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  But due to the pandemic, you know, or it got all these new customers. And so it had this kind of
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  pull forward of demand of customer growth. And then it kind of had a lot as there wasn't that
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  increase in new customers. And so everyone was like, oh, this is the death of Netflix.
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  And Disney plus is doing really well, taking share. Yeah, I definitely got a vibe. I was like,
• 9:51
  oh, shit, maybe I should be buying Disney shares. That support was my immediate reaction. Classic
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  sheep following everyone. And then they came out recently with a really good result. And they
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  blew it out of the park in terms of subscribing numbers. Like they they guided to a million additional
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  subscribers this quarter. And they came in at 2.4 million. So they just like pulled out of the
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  park. Can they find another million people that don't already have Netflix? That's crazy.
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  Surely everybody in the world has Netflix by now. Like they've got 223 million subscribers.
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  Like that is crazy. Actually, I guess it would be trying to take it from competitors now, right?
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  Like that's probably their main focus, not so much converting people to watching online,
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  because most people have already adopted that trend. It's probably more, how can they be better
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  than the competition and get people to swap? And they're cracking down on like password sharing
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  and all that as well. So, you know, I might have an account and then my sister and my parents
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  also logged into that. It's like they're cracking down that. So therefore, those people have to
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  actually buy Netflix. And they've launched this kind of this ad to supporters tier. So you'll have
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  an expensive, expensive option where you can have no ads and then you've got a cheaper option
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  where you can have ads. And so that opens up the market to a whole lot of people that might not
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  have been able to afford Netflix. Like this, this share price was up 10% on the days. So this is
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  a really good result from Netflix, the fact that and now all the headlines are changing saying,
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  oh, you know, the worst is over for Netflix. You know, now it's, now it's back to growth and
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  it's crazy how quickly it changes. Hold on, can we just stop for one second? I want to know
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  if we had the option to pay less or more for Netflix and you had ads or no ads, what would you choose?
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  Good question. I'd probably choose no ads. I'm just too, I think I would to.
• 11:43
  I'll straight it. Yeah. But the key with the ads option is that if you think about what that means
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  for like network TV and kind of free to air TV, you're now encroaching on their business model.
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  And like you were before, but now I was thinking and advertisers, if I can advertise on Netflix,
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  when I know exactly who I'm targeting, what type of person, what time, what they're watching,
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  what they like to watch. Like it's way better than just the data you could get.
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  And so everyone's like, oh, it's the nail in the coffin for the TV networks now. Like this,
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  this is them done kind of thing. So it'll be interesting to see what happens.
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  Isn't it dead already? I thought that we've established that. I can't remember the last time.
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  I can't remember the last time I watched normal TV, normal television. I don't think I
• 12:31
  either, I don't even own a television in my house. Yeah. I used to love it though. I remember it like
• 12:36
  at 5.30 and home and away would come on and I would run down the hallway and I'd be like, oh my
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  like, it's 5.30 and like, you couldn't pause it. You couldn't fast forward it. Like you literally,
• 12:45
  like if you weren't there at 5.30, like you missed it. Or even 7 o'clock, Jordan Street was on.
• 12:51
  Might do a cheaty doll up. I don't remember when that even the phone would ring, the house phone.
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  And I would run. I'll get it on. Well, if you're old, don't remember that. Now I'm like, oh my god,
• 13:01
  like the phone rings. I'm like, what the fuck is that? I'm like, I'm dead. Do you still have a
• 13:05
  house phone? I'm like, what? I'm so weird. Okay. So essentially the Netflix was a good example
• 13:11
  of one where it went shit and it for three months and then it came back soaring. Yeah. Yeah.
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  And did the share of tank and then come back again? Yes. Yeah. It's tanked a lot. It was down like
• 13:23
  70%. This is why we say take a long-term view because it's so hard. And even for business,
• 13:30
  like they have ups and downs during the year. You know, they have ups and downs during the quarter.
• 13:34
  Totally. So if they didn't have to report quarterly results and they just reported this one,
• 13:41
  we would have missed the bad ones because they wouldn't have disclosed that. So it's kind of like,
• 13:47
  they have to disclose it to investors. But if they didn't, we wouldn't even know that they had
• 13:52
  a decline in subscribers and then they'd come out with this result with like, oh, there's
• 13:56
  nothing wrong with that. So it's kind of like more information is sometimes worse. You can get
• 14:00
  information overload, definitely. I also think it's important, like you know how you always talk
• 14:05
  about investing in companies that you understand. If say, for example, you were invested in some kind
• 14:10
  of a ski company or something, of course, when it's winter, that company's going to be doing
• 14:14
  better, right? I mean, this is a really basic example. But it's more just the idea that if you
• 14:19
  understand the company, then if there is maybe a decline in sales or something's happened,
• 14:23
  you can probably look at the bigger picture or the environment or the social hatnings in the world
• 14:27
  and be like, oh, I can understand why that's happened. And I've decided it's not a long-term
• 14:33
  giant red flag. Totally. And you just see the ship race going down. You'd be like, oh, I want to
• 14:36
  sell. I want to sell because you don't understand. And it's also okay. Why we say, you know, if companies
• 14:41
  got a really good track record of growing consistently over time, say they grow their earnings 10%
• 14:47
  every year for the last 10 years. And then they have one year where it doesn't grow, you know,
• 14:53
  maybe it goes backwards or it grows by like 2%. I would be way more comfortable being like, you know
• 14:58
  what, this is just a one-off year. Well, it depends what the reason for that. But I would be way
• 15:02
  more comfortable being like, you know what, this is just a one-off year. The share prices down,
• 15:06
  I'm going to buy some more because they've had such a good track record. You know, management has
• 15:12
  you know, stared this company in such a good direction and delivered on what they said they would.
• 15:16
  This is just a hiccup. I'm going to buy stock and you get it at a good price. So there's kind
• 15:20
  of that element as well of like why we say, if you're investing in a company that's got a really
• 15:24
  good track record, when they do slip up, that should be a time where you could be, you know, looking
• 15:29
  to buy it rather than sell it. Every company is different. Like, that's why we say take a long
• 15:34
  to a view because there will be these kind of short-term fluctuations and especially around reporting
• 15:39
  season. But I wanted to go through some good results and some bad results because it was quite an
• 15:47
  interesting reporting season just with everything that's gone on the world with inflation, interest
• 15:52
  rates, you know, this was a really key reporting season because it gives investors an insight
• 15:57
  and like, what are companies on the ground seeing? What, you know, what companies are doing well,
• 16:01
  what companies aren't doing well, what companies does inflation and affecting?
• 16:05
  Would have been quite interesting. Yeah. And so obviously companies want to, they're trying to sell
• 16:11
  themselves. At the end of the day, they want their share price to be attractive to investors.
• 16:17
  So if it's a terrible result, they're going to try and make it look good. If it's a good result,
• 16:21
  they're going to try and make it look even better. So it's kind of, you've got to kind of sift
• 16:24
  through the bullshit effectively sometimes. But if we looked at some headline, like really some bad
• 16:30
  results, so a lot of the large tech names had really bad results and their share prices were
• 16:39
  down a lot. So Alphabet, Mesa, which is Facebook, Amazon, Microsoft, all had really bad results.
• 16:48
  And this, oh god, you're darling Microsoft. I know. I know. I was like, oh god, no,
• 16:54
  do you need some tissues? You're right. No, it's fine. Long-term view, so-feel-long-term view.
• 17:01
  Do you hear the moment when you're like, oh, Microsoft could go to zero. And I'd probably be like, no,
• 17:05
  you know, it's making a comeback. It'll come back. I'm in it for the long haul.
• 17:10
  I was like, bankrupt, goes into administration. I'm like, no, no, it'll come back.
• 17:17
  I don't know what those things are, but I assume it means that that's really at the bottom.
• 17:20
  I don't know what those things mean. It's so good.
• 17:27
  Yes, so these, all these companies, all the tech companies benefit massively during COVID
• 17:33
  and during the pandemic. We're all working from home, all being online, all getting, you know,
• 17:39
  using e-commerce, like using the cloud, everything technology-based was seeing a huge boom during
• 17:44
  the pandemic. And so we're starting to see this unwind, and this is why a lot of the tech names
• 17:49
  had really bad results. So, alphabet was kind of first off of the-
• 17:54
  Sorry, what is alphabet? Google. Sorry, there's Google's parent. Yeah, it's the parent company's
• 17:59
  called alphabet. Oh my god, I didn't know tell me that before I put something on social media about
• 18:04
  it. I was like, what alphabet? I should have asked what that is. I put a thing up saying,
• 18:10
  public service announcement, Apple now has a market cap of 2.3 trillion, making it more valuable
• 18:17
  the meta, Amazon, and alphabet combined. But no one's going to know what alphabet is.
• 18:23
  Yeah, true. Maybe I should just put in brackets, Google. Sorry, everyone.
• 18:26
  But that's okay, forget this. Google. So, their share price was fell 7%, which might not sound
• 18:33
  like a lot, but it was $100 billion that the company lost in one day. I know. Crazy. So, when these
• 18:39
  are mega company names, 100 billion. 100 billion. Yeah. No way. Yeah. And then Facebook fell 25%
• 18:50
  on the day it reported it was 80 billion. Then Amazon was down 13%, and then Microsoft fell
• 18:59
  8%. So, all these companies had really, really big falls. And now, yes, like we tweeted,
• 19:06
  Alphabet, Google, Meso, Facebook, and Amazon, their market cap. So, that's their shares they
• 19:14
  have available to the public, times the share price. So, their market cap is essentially how big
• 19:21
  a company is. Yeah, the value of a company. Yeah. So, the value of those three companies combined
• 19:26
  is now less than Apple. So, Apple had a really good result. The share price went up. And so, now that
• 19:33
  Apple is itself is bigger than all those three companies combined, which is
• 19:38
  fucking and ridiculous. Like, Apple is almost my new Microsoft.
• 19:45
  It is. I need to buy more Apple. Also, can I just do a shameless plug here? If you're listening
• 19:51
  and you're like, oh, market cap, what are you talking about? That's so confusing. This is
• 19:55
  something that is in our curve classroom. So, if you're interested in learning like deep dive into
• 20:00
  understanding properly how to build your portfolio. And yeah, in terms of those kinds of concepts,
• 20:06
  then like market cap and valuation stuff is all in that. So, we've got to wait list on our website.
• 20:12
  And then it takes us in March. So, if that's of interest, then feel free to jump on the website.
• 20:17
  I was about to be like, dub, dub, dub. But if you're on, no, it's dub, dub, dub, dub.
• 20:21
  Curved. I cannot believe that it's worth all of them can more than all of them combined.
• 20:30
  It's I know it is. It's crazy. And so, throughout reporting season, those large tech names,
• 20:37
  they lost $1 trillion in total. So, it's quite crazy when these companies move, they move at a big
• 20:45
  way that you're talking about a lot of money. And so, a trillion dollars, yeah, so it's quite,
• 20:51
  quite crazy. Yeah, so those were the bad results. But we did have some really good results as well.
• 20:58
  We had Visa. Visa had a really good result. And so, they've been affitting from the strong US dollar
• 21:05
  that we're seeing. And so, Americans, it's way cheaper for them to travel overseas because their
• 21:10
  dollar is really good. So, they're spending overseas, they're traveling, and Visa, it's revenue,
• 21:15
  it's business model, is that it takes a percentage of the transactions. So, more people spending,
• 21:21
  and also, more people spending higher amounts, it's good for Visa. And we've still got 80% of
• 21:28
  the world's transactions in cash. So, you know, the large amount of... I know, it's crazy.
• 21:35
  And then we had Harley-Davidson, it's a goal for the bogans. It's not bogans, thank you very much.
• 21:41
  Okay, sorry. I've been wrestling Harley-Davidson T for a while. Yeah, I didn't want to know why.
• 21:46
  They've been riding a Harley-Davidson. Oh, God stoppers.
• 21:51
  It's not a Harley-Davidson, actually. Do you know what, he drives with this, this is this guy,
• 21:56
  and I work place that I went on a road bike with. He has helmet, doesn't have it.
• 22:00
  Yeah, she has a big... Shut up, oh my God. Oh my God, stop it. We'll be cutting that out.
• 22:06
  No, I hate that you get to edit the podcast when I can't. No, I won't.
• 22:13
  But the helmet doesn't have a screen protector, so I'm driving with like, it's like just a big hole
• 22:19
  in my face. I'm like, trying to look all cute, and it's like, wind and stuff flying in my face.
• 22:24
  Oh my God, I'm like, oh. Oh, you're flying your mouth and you're like,
• 22:26
  yeah, it's not cute. But I don't think motorbikes is voting.
• 22:31
  No, it's not voting. No. But this was a case of the volume, they didn't have volume growth,
• 22:39
  but they had revenue growth. So this is a case of high inflation. They're putting up the prices,
• 22:44
  but the volume isn't there, which is kind of concerning, because you want a company that has
• 22:48
  volume growth, more people buying Harley-Davidson's, as well as paying a higher price, not just,
• 22:53
  because you can only push the price so much. So it was a good result, but not a good quality result,
• 23:00
  with any sense. And then we had all the oil companies, unfortunately,
• 23:03
  had really good results. Again, a case of inflation, the price of oil, the price of petrol is skyrocketing,
• 23:11
  and these companies are profiting from it. They're not actually doing anything innovative or
• 23:16
  anything. And so they have all done incredibly well this year, unfortunately, which is not good
• 23:23
  to see. And so I guess just to summarize some themes, we've kind of spoken about summer
• 23:30
  on inflation and stuff, we did see a massive shift this reporting season. And we've kind of been
• 23:35
  seeing it for a little while, more investors preferring defensive companies. So by defensive,
• 23:44
  I mean, companies that are going to do well in all environments. So you're Coca-Cola's,
• 23:50
  you're Costco's, you're Johnson & Johnson, you're Kraft Heinz, you're very stable, consumer
• 23:56
  staples, things you're going to buy, no matter if the price goes up 10%. You're going to buy tomato
• 24:02
  sauce. If it goes up 10%, you're still going to buy tomato sauce. If you're with Johnson & Johnson
• 24:09
  you need plasters or band-aids, price goes up 10% you're still going to buy that. They benefit
• 24:15
  in a kind of a lower growth environment. They will still do well because the products, products
• 24:23
  that people need to buy or will still buy, even though the economy is tough. Versus the likes of
• 24:30
  growth companies, so we saw with all the tech companies not doing too well, like Peloton didn't
• 24:36
  do very well, zoom, beyond meat. These are all really high growth companies that have done
• 24:42
  phenomenally well and have now kind of come back to earth. And so we're seeing this real shift into,
• 24:48
  you know, I want to position my portfolio a bit more defensively because I don't know what the
• 24:51
  world's going to look like next year. So this is kind of happening on a massive global scale.
• 24:59
  And so yeah, we're kind of seeing that that play out and we saw that with a lot of
• 25:05
  defensive companies doing really well during reporting season and the growth companies not so well.
• 25:09
  We also saw this kind of old world versus new world. So it's kind of like the revenge of the old
• 25:15
  economy. And it's I thought it was kind of funny, but obviously not okay. Well, I'm just imagining
• 25:23
  like my dad coming at me being like, is it like the older generation? Is that what you mean?
• 25:28
  It's more, yeah, it's more like tech doing really badly. And that's kind of new world technology.
• 25:33
  Okay. And then like the real like old school kind of manufacturing industrial companies doing
• 25:39
  really well. And another example of this is actually the old world like oil companies doing
• 25:44
  really well and then Tesla's not doing well because that's like a new world. And so I'm kind of
• 25:48
  saying this this year revenge of the older kind of like the old world companies doing a lot better,
• 25:54
  which is quite surprising. I kind of thought we were done with that, but obviously not.
• 25:59
  Certainly. I totally thought we were done with that. And then the biggest thing, obviously inflation
• 26:03
  and you know, investors are trying to decipher, okay, which companies
• 26:08
  benefiting from inflation and can pass us on to the customers, which ones aren't,
• 26:13
  you know, and they companies with really good brands. So like Apple, you know, you're still
• 26:18
  going to buy those AirPods lost five of them. That's so embarrassing. Oh god.
• 26:24
  Honestly, like I just catch myself. I decided if I lose them again, I'm going back to the
• 26:28
  cold cold ones because. Hey, that's probably why Apple had such a result. Because Sophie
• 26:32
  Hall right bought about five years of AirPods. And you bought a new MacBook and MacBook stood
• 26:37
  fantastically well for them. So there you go. But yeah, so inflation, if you've got a strong brand,
• 26:42
  you are much better placed in a world where we've got high inflation. And if you've got,
• 26:47
  because you've got that pricing power, you can push through prices and consumers will still buy
• 26:51
  your products. And so we're seeing those companies, you know, beat expectations. So investors'
• 26:57
  expectations are here and those companies are coming in above expectations, which means their
• 27:01
  share prices tend to go up. This is why diversification is so key because you never know what companies
• 27:07
  are going to report good results, what companies aren't. And you never know what the world's going
• 27:12
  to look like in the next one year, two years time. So having a diversified portfolio is key. And also
• 27:19
  not getting consumed with short-term movements in stocks and in companies, you know, US reporting
• 27:25
  season happens four times a year. And this is going to lead to a lot of fluctuations in the market.
• 27:30
  But if you have a long-term view and you're like, look, I'm confident this company that I invested in
• 27:35
  is going to do well over the long term, I don't need to get caught up in the short-term
• 27:41
  US reporting season. Palaver. Palaver. Palaver? Yeah. Palaver. I love sure. But it sounds like
• 27:48
  Pavolova. Yum. Yum. Actually, I don't like it. I don't know why I said that. Oh, I need those.
• 27:55
  I was just trying to be like, I don't have a love at y'all. I fucking hate Pavolova. It's
• 27:59
  eating it fresh. I hate it fresh. It's so gross. It's just cream or not into it. I don't even like
• 28:04
  cream. In fact, I hate the whole cake. Okay. So essentially, the main takeaway for investors like
• 28:11
  myself who are maybe investing in funds or building their own portfolio is to remember that four
• 28:17
  times a year when the US reporting season delivers results. And also twice a year for Australian
• 28:22
  New Zealand, there will be huge fluctuations probably in the market. And if you've bought companies
• 28:29
  where you think I want to hold this for 10, 15 years, unless there's some dramatic changes,
• 28:35
  then don't stress if it's going up or going down in that time because it doesn't necessarily mean
• 28:41
  that it's going to be like that forever. Yeah. And it's good to look at the result and go, okay,
• 28:44
  cool. And move on. And you know, keep on top of what's going on. The company's you invest in.
• 28:50
  But just keep remembering I'm taking a long-term view. Is this a short-term issue or is it not?
• 28:55
  And then make a decision. But don't feel the need to do something just because a company is reporting
• 29:01
  as a result. Also, I think it needs to be your responsibility that just to report on all companies
• 29:06
  and tell us the key things we need to know because honestly, I am not going to look through a company's
• 29:11
  financials twice three times a year. I'm just not. So this is your responsibility actually for all of
• 29:17
  us. Okay. Sorry. But on you. But oh, I'll go into my hole. More times the door and pull out your
• 29:25
  brain. You know how he pulls out his memories from his brain. Dumbledore. I'm not a Harry Potter fan.
• 29:30
  Okay. Okay. I was at Lord of the Rings. I'm not sure. I'm not an fan of either. Oh, my God.
• 29:36
  Why are we friends again? I don't like fiction. I don't like make believe. I like the real
• 29:41
  shit. Yeah, right. We're so different. I'm just going to go read my finance book now. Like,
• 29:46
  tell me all about the theories. Okay. Awesome. Well, I really hope that I've managed to cut this
• 29:51
  episode down to 30 minutes because the unedged version is currently 53 minutes. So hopefully if you're
• 29:56
  listening to this, it was much shorter. Go get your voice better, please, before we record our
• 30:04
  next one. I will try. No talking in between now and the next podcast record. Okay. She's
• 30:10
  melting and that is the end day. So thank you so much for joining us for today's episode of
• 30:19
  Raising the Curve. Please subscribe and leave a review on whatever platform you're listening on.
• 30:24
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• 30:28
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• 30:34
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