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Hi, I'm Sophie.

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I'm one of the founders of The Curve, and I went from being in 50K of debt, not understanding investing, knowing how to budget, save.

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I was a total financial disaster.

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Now I have two investment properties, over 100K in the stock market, and I'm in no debt.

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But I did not always used to be this good with money and investing.

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And it all started from the very beginning of this podcast.

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We're currently on a podcast break.

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So we're having two weeks off new episodes.

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And we wanted to do some throwbacks to the vintage OG episodes that were released originally five years ago when I knew nothing about investing.

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If you don't need to go back to these throwback episodes, enjoy two weeks without us in your ears.

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But if you know anyone who's felt left out of the conversation when it comes to money, investing, or just really don't know where to start, please send them this podcast.

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We will be back for regular programming at the start of October.

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So in today's episode, this is our sixth and final throwback.

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But what I would just say before we get into it is if you've enjoyed listening to these, scroll back to the beginning of this podcast and listen to all of those beginning episodes because that is really the fundamentals that I learned that meant that I now know how to invest and really understand and I'm actually quite interested in what's happening in the stock market.

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So yeah.

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We've loved this little throwback.

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We'd love to hear how you found it if you're new to the podcast.

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So in today's episode, we're going to be talking about the stock market, how it works.

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We're going to explain with numbers and examples.

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And just a reminder, this was recorded in 2021.

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So some of the numbers aren't current figures, but they're still really good as like illustrations or examples.

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Wow.

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We will be back to regular programming as of next week.

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So we're going to have new Curve Weeklys.

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We've got Raising the Curves.

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There's so much good content coming.

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But thank you so much to everyone who has listened to these throwback episodes.

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Hopefully it's been a great refresher.

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And if you're new to the podcast, welcome.

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Well, this is very exciting, episode six.

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Woo-hoo.

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And I feel like today's going to be a bit Wolf of Wall Street-y, isn't it?

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We're talking about stock market?

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Yeah, we're not going to be throwing any dwarves against targets or anything.

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Okay, and off people's bums?

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No.

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That's all I think about when I think of Wolf of Wall Street is the, what was that film?

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Wolf of Wall Street?

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Was that, oh my God.

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Oh, my God.

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Oh my goodness.

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That is crazy.

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Generally when the stock market comes up in conversations, Vic, eyes just like light up.

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Yeah, it's like, how long do we have?

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Yeah, it's one of those topics that I think really, especially when it comes to people who are new to investing, the stock market, shares, share price, all that stuff is kind of overwhelming.

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And what does a share price mean?

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This is my first question.

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What does a share price mean?

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Please tell me.

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So I guess coming back to fundamentals, what are you buying when you're buying a share in a business?

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You're buying exactly that.

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You're buying a share in a company.

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So you're a part owner.

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Exactly.

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You're becoming a part owner.

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And that's why we always are harping on about picking a good company to invest in, a company that you know well, because you're effectively sharing in the company's profits and the growth of that company.

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So if you're looking at a company to invest in and you don't think it has a good outlook or you don't think it's going to be able to grow...

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Why do you want to be a part of that?

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You don't.

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You also probably want to at least vaguely understand the business too, right?

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Exactly.

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Otherwise, there's no kind of personal investment there.

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And by the sounds of it, you are personally invested, right?

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Yeah, and there's a lot of technology companies out there that do really obscure technology or a healthcare company which invests in a really intricate type of medicine.

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And I'm never going to understand those businesses.

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And I'm not going to use my resource and my time to learn those businesses when there's so many other businesses I use and I understand.

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And therefore, I feel more comfortable owning.

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Well, I guess because share markets, the stock market, whatever it's called, it can be so overwhelming.

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There's so much to learn to then put on top of that learning an entire industry or business or what kind of company is going to be successful in the tap industry.

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Like I know nothing about taps and I'm not that interested in taps either.

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So you're right.

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It makes sense to go for me to like.

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I don't know, health and wellbeing, for example.

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And if you're interested in health and wellbeing and you're interested in that business, you're going to find it a lot more exciting and not as much of a chore to research or a chore to understand.

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You know, you're going to be interested and want to know more and want to know about the competitors and the industry dynamics.

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And it's just a bit more interesting.

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I guess also wanting to see a company succeed too.

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Because say you're interested in, I don't know, vitamins and you decide to invest into BePure, for example, that New Zealand brand, and you've researched it and you really believe in the ethos and everything that they're doing, you want them to succeed.

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So putting money towards them growing is in your personal interest as well.

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And when you're using the product or using the service –

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You're researching without knowing it.

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Does that make sense?

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Yeah.

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If you're purchasing these vitamins because you like them and because you think they make you feel good, you're already doing the research without having to sit down and read something, which is kind of what people think research is about.

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You're going out there and you're using the product, seeing if you like it, and the fact that you like it and then you buy shares in the company, that's research.

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Yeah.

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Okay, so basically what you're saying is rather than getting too overwhelmed with the idea of the stock market and Wolf of Wall Street and every company in the world's listed and all of that stuff, start with the basics, look around you.

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What are you using?

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What are you interested in?

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And then maybe start with those companies to maybe invest in?

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Exactly.

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Yeah.

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Coming back to the vitamin example again, if you see a new vitamin that's on the market and you start to use that instead, you're also doing research and it's having the thinking of, why did I change?

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Does that mean everyone else will change?

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And therefore the outlook and the growth trajectory of that business, it might not look as good as I first thought.

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And it's kind of always having that...

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investment hat on and this is what I really struggle is to to turn it off when I go about my day and I use all these these products and these services or I see a product that has flown off the shelves not toilet paper I'm not talking about that

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But for example...

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I feel like, just by the way, that would have been a really good investment.

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Yeah, very short term.

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But yes, you know, it's looking at those trends, looking at the products that everyone's using, the services that everyone's using and thinking, you know, is that investable?

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But coming back to your initial question about what actually is a share price, I just want to break it down a bit further because we kind of felt like we're on a bit of a tangent about what to invest in, which we'll get back to in a bit.

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But it's more about you become a shareholder.

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And when you buy a share in a business, you become a part owner of that business.

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You become a shareholder because you're buying a share.

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And if you buy multiple shares, then you're still a shareholder, but you're buying more than one share.

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So say a business was publicly listed and you could buy shares for a dollar.

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You bought $10,000 worth of shares in that business.

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You would own 10,000 shares.

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And it might have 100,000 shares that are publicly issued.

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So anyone could buy them.

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And so you would own 10,000 out of that 100,000.

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You become a shareholder.

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So then how is the price determined?

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Like if Sophie Hallwright wants to buy a share in a company and she's bought it in 2014, for example.

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I don't know why I'm speaking in third person.

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But say I wanted to buy something and then in three years time someone else wants to buy a share from that same business.

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How does the price of that differ?

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What changes it?

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It all comes down to the valuation of the business, which we won't get into in this episode because we can go into a lot of detail with how to value businesses.

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But to keep it very high level, it's all about the outlook for the earnings and what you expect those earnings to be in the long term.

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So when I look at businesses and I am making a decision on whether to buy a business or not and make that investment...

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I tend to think in my head, can I see this business doubling in five years?

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And if the answer is yes, and like, look, we're never going to get it right.

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Don't beat yourself up if it doesn't double or if it takes 10 years to double.

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But it's a small rule of thumb that I try to follow.

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So will this business double in five years?

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If so...

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That's a 15% return per year on average.

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And I'm very happy with that.

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Let's look at Microsoft, for example.

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That company in the last five years, it delivered a 36% return per year.

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Whoa.

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I know.

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That's crazy.

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I need to invest in Microsoft.

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I mean, some people would have guessed that.

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Some others wouldn't.

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But that's pretty phenomenal for a business of that size.

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So there are those businesses out there.

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And I get asked a lot.

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oh isn't it best to invest in small companies because they're more likely to have a better growth trajectory because it's finding the diamond in the rough right totally it's finding the small business that hasn't got big yet and i'm like yes there are those businesses but there's also large businesses like microsoft like amazon that have done fantastically well and we continue to do well exactly we were sitting here five years ago we could have been having the conversation saying oh no they won't double again and

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You know, it's all about what do you think the growth trajectory of that business will look like?

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That's what predicts.

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really the prices and the valuations of those businesses.

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But I guess to summarize, it's the price that you pay to become an owner of that business is what a share price is.

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You know how you're using the Microsoft example and saying that maybe five years ago we could have said, oh, Microsoft isn't going to double again.

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It's just not going to happen.

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But if you don't know the plans of the business or what they're going to be doing that year, I mean, surely there's only so much that you can...

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figure out before you even invest.

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Exactly.

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And that's kind of coming back to the point that we said before.

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It's investing in a company that you understand that you can see the growth outlook, or you understand the growth outlook.

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You can see people using the product or the service, or they might have a really strong brand, like Nike, for example, or Lululemon.

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All those companies have strong brands.

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Yeah.

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And I think personally having a strong brand is pretty key to the success of a business.

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It's not the only success, but it does help in creating that competitive advantage.

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The cool new thing always is going to take over, isn't it?

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And if you use the product or using the service, you can also see when you stop using that service or you see another product that's better.

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There's all those elements that come into what you think the growth outlook for the business will be.

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And so then going back to the share price and what makes it go up and down, what other factors is it important to think about?

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Like when to buy a share versus when to sell a share?

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Well, the share market, it's exactly that.

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It is a market.

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It's a marketplace.

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So just like when we go to the French markets or the... We love the French markets.

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It's a marketplace where you buy and sell shares.

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So you can kind of think about it as imagine everyone goes to the French market, but instead of selling bread and croissants and coffee.

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I'm hungry just thinking about it.

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Yum.

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They're going there to buy and sell shares.

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They've bought their shares in Microsoft.

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They don't want to own them anymore.

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So they're running around trying to find someone else to buy those shares.

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It's a bit of a strange analogy, but that's effectively what the share market is, but in a digital form.

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So it's a marketplace.

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It's all about supply and demand.

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It's basic economics.

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The more buyers you have and the less sellers, the more the price is going to go up.

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Okay.

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The more sellers you have and the less buyers, the price is going to go down.

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Which is scary because you never want to buy something.

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It's like you go past a cafe and there's no one in there.

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You're not really wanting to go into that cafe.

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You know, it's the same with buying a share.

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It's like no one's buying it.

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It's probably for a reason.

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Where I think I lose confidence.

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Yeah, and there's a bit of following the crowd, what we call momentum trading, which is kind of when you're talking about the cafe with nobody in it versus the cafe that everyone's at.

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Sometimes it's good not to follow the crowd because you don't want to be the last one that buys that stock.

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You don't want to be the last one that's buying those Amazon shares before they start falling.

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If you're not coming back to the research argument and you're not coming back to your fundamentals of why you're buying that company, if you're just following the pack and have no reasoning for your investment decision, when that share price starts to fall, you've got nothing to fall back on.

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Whereas if the share price starts to fall and you're like, hang on a sec, nothing's changed.

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I still really like that product or that service.

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I still think it's a very well-run business.

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I think it's still got plenty of opportunity to grow.

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I'm going to buy some more.

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It's getting away from following the crowd because that can be quite a dangerous game when investing.

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Do you think it's a good way to start or not at all?

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No.

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Okay, cool.

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It just feels quite scary.

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I don't even know how I would look at a share price of a company when everyone's selling and think, oh, I know more than all these other people.

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What do I know?

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It depends why the share price is falling.

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So what are other reasons?

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I guess just the market fluctuations.

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So there's a good quote which a colleague told me, and he said, there's three certain things in life

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Death, taxes and market fluctuation.

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This is so depressing.

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And it's so true.

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Markets are always going to go up and down.

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There's always going to be opportunities to buy and sell shares.

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Say during COVID, I keep coming back to COVID because it's kind of the most relevant, massive market creation that we've had in our lives.

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The global financial crisis happened before I was in the investing world, so I didn't really experience it.

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Whereas COVID for me was really an eye-opening and bloody scary time.

218
00:14:23.780 --> 00:14:26.942
Was it quite scary in terms of your personal and work investment?

219
00:14:27.062 --> 00:14:27.663
Oh, totally.

220
00:14:27.703 --> 00:14:30.885
It was the markets in kind of full meltdown.

221
00:14:31.465 --> 00:14:32.866
The economies are shutting down.

222
00:14:32.966 --> 00:14:34.487
Nobody knows what the world's going to look like.

223
00:14:34.527 --> 00:14:36.869
Nobody knows how long we're going to be in this predicament.

224
00:14:37.650 --> 00:14:43.273
And we're also trying to work from home and we're away from our colleagues and we don't have that dialogue and that discussion.

225
00:14:43.293 --> 00:14:48.517
And it was a really eye-opening time and trying to remove that emotion from...

226
00:14:48.977 --> 00:14:51.759
of getting caught up and going, oh my gosh, the market's down 30%.

227
00:14:51.779 --> 00:14:53.180
I've never experienced this in my life.

228
00:14:53.460 --> 00:14:55.161
To going, hang on a sec.

229
00:14:55.422 --> 00:14:58.544
Okay, let's look at this market as it is right now.

230
00:14:59.144 --> 00:15:01.226
What do I think are some good opportunities to buy?

231
00:15:01.246 --> 00:15:03.367
Who cares what's happened yesterday?

232
00:15:03.467 --> 00:15:04.848
Who cares what's happened the day before?

233
00:15:04.868 --> 00:15:10.432
Right now, these companies are 30% cheaper because the market's fallen.

234
00:15:10.612 --> 00:15:12.854
So it was also a great opportunity as much as it was terrifying.

235
00:15:12.874 --> 00:15:14.495
And there's nothing that's changed.

236
00:15:14.695 --> 00:15:16.537
Well, admittedly, some companies...

237
00:15:17.217 --> 00:15:20.318
a safe flight centre, for example, their outlook had completely changed.

238
00:15:20.998 --> 00:15:22.459
We didn't know when people were going to travel again.

239
00:15:22.479 --> 00:15:24.639
We didn't know how long the lockdowns were going to go on for.

240
00:15:25.099 --> 00:15:27.200
And admittedly, 12 months later, we're still in lockdown.

241
00:15:28.740 --> 00:15:29.361
RIP travel.

242
00:15:30.241 --> 00:15:33.262
So it was assessing, okay, which company is going to be stronger?

243
00:15:33.522 --> 00:15:36.963
The likes of Amazon, the likes of PayPal and Visa and Mastercard.

244
00:15:37.003 --> 00:15:38.143
Everyone doesn't want to hold cash.

245
00:15:38.163 --> 00:15:39.083
They need it online, right?

246
00:15:39.103 --> 00:15:39.283
Yeah.

247
00:15:39.623 --> 00:15:44.405
So it was looking at who's going to be the beneficiaries and who's going to take longer to come out of this.

248
00:15:45.145 --> 00:15:53.607
And I think there was a lot of companies in there that it would have been great buying opportunities if you had just removed the emotion and gone, okay, nothing's changed.

249
00:15:53.707 --> 00:15:54.887
I'm going to buy.

250
00:15:55.307 --> 00:16:01.189
Gosh, even some of the best fund managers struggle to do that, to remove that emotion and get involved.

251
00:16:01.269 --> 00:16:08.490
So I don't expect anyone listening on this podcast to have been able to pick the bottom and invested all their money.

252
00:16:08.610 --> 00:16:10.251
And if you did, well done.

253
00:16:11.631 --> 00:16:14.692
Please get in touch by this one and what you did.

254
00:16:14.712 --> 00:16:22.914
The market will always move up and down, and it's all about just finding good companies, quality companies that you want to invest in that you know well.

255
00:16:23.114 --> 00:16:31.196
I was going to say it's hard to think, okay, you're going for companies and investing in shares in companies that you feel connected to, but then don't fall in love with the stock.

256
00:16:31.216 --> 00:16:38.657
It's like you're personally invested or you know a lot about that industry or that company and you use the product or service, but then also keep it at arm's length.

257
00:16:38.897 --> 00:16:40.998
It's definitely contradictory, yes.

258
00:16:41.598 --> 00:16:45.219
Find a company that you love and that you... You want to support.

259
00:16:45.319 --> 00:16:47.000
Yeah, and then it's like, oh, but don't fall in love.

260
00:16:47.100 --> 00:16:49.161
It's like dating.

261
00:16:50.201 --> 00:16:51.321
Oh, God, it is like dating.

262
00:16:51.341 --> 00:16:54.202
It's like playing hard to get, but no.

263
00:16:54.243 --> 00:17:00.245
It's just more about having an open mind and looking at that company as what it is.

264
00:17:00.325 --> 00:17:00.945
It's a company.

265
00:17:01.205 --> 00:17:05.607
It doesn't know or care that you own its stock or that you're a shareholder.

266
00:17:05.827 --> 00:17:09.548
Don't get too involved and, yeah, like you said, don't fall in love with it.

267
00:17:09.968 --> 00:17:12.531
Because outlooks change with businesses.

268
00:17:12.991 --> 00:17:14.393
New competitors come to market.

269
00:17:14.533 --> 00:17:20.479
New management teams that run that business will come in and maybe run it worse than the previous management tech.

270
00:17:20.499 --> 00:17:21.841
There's lots of changes that go on.

271
00:17:22.381 --> 00:17:26.686
And so if you're falling in love with this company, you're going to be, you know, love is blind.

272
00:17:26.746 --> 00:17:29.089
You're going to be blinded by that.

273
00:17:29.169 --> 00:17:32.092
And you may continue to hold it when you shouldn't.

274
00:17:32.352 --> 00:17:36.613
So what you're basically saying is the share prices, the stock market goes up and down.

275
00:17:37.193 --> 00:17:47.616
But the most important thing and the most defensive way that you can protect your finances and your growth is to be objective and look at what's happening constantly.

276
00:17:47.776 --> 00:17:59.299
And if it's feeling as though even though you love that company and you want to stay invested in it, you know, the new manager, for example, sucks, then you might need to take action and decide, OK, I don't want to be objective.

277
00:17:59.459 --> 00:18:00.919
I don't want to hold this company anymore.

278
00:18:00.939 --> 00:18:01.039
Yeah.

279
00:18:01.400 --> 00:18:01.600
Yeah.

280
00:18:01.680 --> 00:18:06.141
And it's what you're doing is you're giving your money to that company to grow.

281
00:18:06.521 --> 00:18:08.061
You want to be a part of that action.

282
00:18:08.161 --> 00:18:12.263
So you want to invest your savings into that company.

283
00:18:13.203 --> 00:18:15.223
So you've got to be a bit selfish.

284
00:18:15.564 --> 00:18:16.644
You want your money to grow.

285
00:18:17.184 --> 00:18:20.505
So don't let it sit there with a company that's not growing it for you.

286
00:18:21.085 --> 00:18:23.306
It's about giving fuel to the fire.

287
00:18:23.567 --> 00:18:24.787
You want to support these businesses.

288
00:18:24.807 --> 00:18:28.710
You want to give them your money or your capital to help them grow.

289
00:18:29.290 --> 00:18:31.131
But equally, you want to benefit from it too.

290
00:18:31.191 --> 00:18:32.092
You want to benefit from it.

291
00:18:32.232 --> 00:18:43.359
And in reverse, if they're not doing what they say they're going to do or you don't think that the earnings outlook looks as good as it previously did, then take that money out and put it somewhere else because that's your hard-earned money.

292
00:18:43.799 --> 00:18:47.641
Don't just let it sit there and watch it slowly fall or sharply fall.

293
00:18:48.622 --> 00:18:49.362
For Pete's sake.

294
00:18:50.023 --> 00:18:50.223
Yeah.

295
00:18:50.803 --> 00:18:54.484
For Pete's sake, we're like 85. Who's Pete?

296
00:18:54.524 --> 00:18:56.585
Yeah, I wonder.

297
00:18:56.605 --> 00:19:00.087
Whoever was married to Pete was obviously having a real rough time.

298
00:19:00.387 --> 00:19:01.747
It's also just be a bit selfish.

299
00:19:02.428 --> 00:19:03.308
It's your money.

300
00:19:03.608 --> 00:19:09.410
You need to make sure that it is in a company that you admire and that you want to help grow.

301
00:19:09.750 --> 00:19:14.552
And I guess the reality as well is that, as you're saying, you can lose everything if you're not on your ball.

302
00:19:14.812 --> 00:19:15.393
On your ball.

303
00:19:16.802 --> 00:19:18.183
We really got some great quotes.

304
00:19:18.203 --> 00:19:26.710
Wow, if you're not on the ball, I must admit, I'm on this third day of my juice cleanse, so my brain's not as sharp as it normally is.

305
00:19:26.810 --> 00:19:29.352
And she'll probably go to the bathroom about five times to drink this episode.

306
00:19:29.372 --> 00:19:32.515
Honestly, the amount of liquid you have to drink is so terrifying.

307
00:19:33.075 --> 00:19:44.281
So basically you're saying that if you invest in shares, yes, you need to be going into it with your eyes open, continuously taking note of what's happening within the industry, within that company, etc.

308
00:19:44.321 --> 00:19:47.723
But you also need to be realistic about the fact that you could lose all your money.

309
00:19:48.310 --> 00:19:48.510
Yes.

310
00:19:48.811 --> 00:19:59.561
With any investment, and particularly in shares, there's so many factors that come into play in terms of it's not just the business, it's the share market, it's other people are buying something.

311
00:19:59.581 --> 00:20:01.904
Whenever you buy a share, someone's selling that to you.

312
00:20:02.224 --> 00:20:04.686
So they've got a different view to you about the outlook of that company.

313
00:20:04.706 --> 00:20:04.827
Yeah.

314
00:20:05.387 --> 00:20:09.689
Wait, but aren't sometimes the shares just from the company and not from a person selling it?

315
00:20:09.929 --> 00:20:13.670
That's an IPO, which we'll get into in a few episodes.

316
00:20:14.010 --> 00:20:19.692
That's when a company first lists or first comes to market, first offers its shares publicly.

317
00:20:20.153 --> 00:20:24.114
And that's when it's raising a lump sum of money and it's going, here you go, guys.

318
00:20:24.494 --> 00:20:27.335
Can you buy these shares so that we can have some money to grow?

319
00:20:27.595 --> 00:20:30.076
But once it's listed, you're buying and selling.

320
00:20:30.096 --> 00:20:32.197
You're transacting, just like coming back to the marketplace.

321
00:20:32.417 --> 00:20:34.018
You're transacting with someone else.

322
00:20:34.978 --> 00:20:37.259
So I could be sitting across from you, which I am.

323
00:20:38.239 --> 00:20:38.680
Hey, Vic.

324
00:20:39.820 --> 00:20:42.661
And I could say to you, Soph, I don't want these Microsoft.

325
00:20:42.681 --> 00:20:43.722
I keep coming back to Microsoft.

326
00:20:43.802 --> 00:20:44.562
Great company.

327
00:20:44.602 --> 00:20:46.703
Microsoft sounds so old and boring to me.

328
00:20:46.783 --> 00:20:48.183
It feels so boring.

329
00:20:48.323 --> 00:20:53.465
I mean, the fact that it's still doing well, I honestly thought it was dead in the water when Apple came along.

330
00:20:53.545 --> 00:20:54.226
Obviously not.

331
00:20:54.546 --> 00:20:55.886
It's all about the cloud.

332
00:20:56.346 --> 00:20:57.347
What's a better example then?

333
00:20:57.767 --> 00:20:58.527
Visa or Muscat?

334
00:20:58.547 --> 00:20:59.548
What about Converse shoes?

335
00:20:59.568 --> 00:20:59.648
Yes.

336
00:21:00.788 --> 00:21:18.219
oh my god I'm bad at investing aren't I I just don't think they're this so it's like we're sitting opposite each other and I don't want to hold my Lululemon shares anymore and I go to you Soph hey Soph would you buy these shares off me because I don't want to hold them anymore and there could be a ton of reasons why I don't want to own the shares anymore

337
00:21:18.739 --> 00:21:18.959
True.

338
00:21:18.999 --> 00:21:21.281
It could be nothing to do with the company's success.

339
00:21:21.341 --> 00:21:23.443
It could be, I want to go buy... A new boat.

340
00:21:23.683 --> 00:21:26.105
Dreams are free.

341
00:21:26.165 --> 00:21:27.806
There's just so many reasons for selling.

342
00:21:28.167 --> 00:21:30.869
And there's really only a few reasons for buying.

343
00:21:31.049 --> 00:21:33.251
And that's that you think the business is going to do well.

344
00:21:33.651 --> 00:21:40.116
So it's not getting hung up on the fact that there's another person transacting or selling you those shares.

345
00:21:40.137 --> 00:21:41.257
It's just something to be aware of.

346
00:21:41.798 --> 00:21:42.759
You could lose everything.

347
00:21:43.139 --> 00:21:45.521
Not getting overwhelmed when the market's down 20% or...

348
00:21:47.222 --> 00:21:48.803
The same way the market's up 20%.

349
00:21:49.283 --> 00:21:54.906
You've got to keep coming back, take a step back, take a deep breath and ask yourself, what are you actually buying here?

350
00:21:55.366 --> 00:21:56.187
Keep coming back to that.

351
00:21:56.367 --> 00:22:00.289
You're buying a part share of a business, so you need to think like a business owner.

352
00:22:01.229 --> 00:22:07.613
Just the same if you're going to buy, say, a part share in your friend's fashion business or your friend's hairdressing business.

353
00:22:08.233 --> 00:22:12.734
You need to do your research on what you think the growth of that business is going to look like.

354
00:22:13.334 --> 00:22:22.176
And it's very easy when you're dealing with publicly traded or listed companies to get caught up in the day-to-day market fluctuations or the market movements.

355
00:22:22.596 --> 00:22:30.598
So that's why we try to not look at our investments all the time because you forget the reason that you bought that business and you get caught up with the day-to-day market fluctuations.

356
00:22:30.618 --> 00:22:33.419
It's super distracting and you make irrational decisions.

357
00:22:34.006 --> 00:22:38.311
And I guess it's also that instantaneous nature that is 2021.

358
00:22:38.371 --> 00:22:39.412
We want things now.

359
00:22:39.472 --> 00:22:40.633
We want success now.

360
00:22:40.673 --> 00:22:42.375
We want someone to reply to our texts now.

361
00:22:42.435 --> 00:22:46.079
There's never that patience to sit back and think from a long-term perspective.

362
00:22:46.119 --> 00:22:48.562
And that, if I remember anything, Victoria.

363
00:22:49.962 --> 00:22:52.204
is that long-term is what we're going for.

364
00:22:52.464 --> 00:22:53.084
It's patience.

365
00:22:53.284 --> 00:22:57.867
And yes, we all want that quick win and that stock that's going to double overnight.

366
00:22:57.987 --> 00:23:05.430
But when it comes to investing and sustainable investing and wealth creation, it's all about patience.

367
00:23:05.751 --> 00:23:07.031
Patience, patience, patience.

368
00:23:07.071 --> 00:23:08.572
I'm going to write it on my merch.

369
00:23:08.850 --> 00:23:14.232
Vic, I must say, we're definitely getting to the end of this episode and I definitely need to use the bathroom.

370
00:23:14.292 --> 00:23:22.134
But is there any other key points that people need to write down, remember, take away when they're thinking about shares, stock market?

371
00:23:22.174 --> 00:23:24.235
Is there any other kind of key information to go over?

372
00:23:24.775 --> 00:23:28.116
We say that you're a part owner of this business that you're investing in.

373
00:23:28.217 --> 00:23:29.657
So you've got to think like a business owner.

374
00:23:30.157 --> 00:23:37.880
The only downfall or the only thing to remember when you are investing in these businesses is that you don't have any rights.

375
00:23:38.860 --> 00:23:39.821
which might sound harsh.

376
00:23:40.001 --> 00:23:40.922
It's quite harsh.

377
00:23:41.322 --> 00:23:42.083
It's true though, isn't it?

378
00:23:42.103 --> 00:23:49.548
You're a tiny owner and you don't have any rights to stand up and change the board of directors so they're the people that kind of govern the business.

379
00:23:50.028 --> 00:23:54.111
You don't have the right to stand up and say, we want to change the management team.

380
00:23:54.211 --> 00:23:55.732
Well, the colour branding sucks.

381
00:23:55.772 --> 00:23:56.113
Yes, exactly.

382
00:23:56.213 --> 00:23:58.154
Or like anything that you don't like about the business really.

383
00:23:58.314 --> 00:23:58.534
Yes.

384
00:23:58.574 --> 00:24:04.999
So even though you're a part owner, don't think that you can go in there and change the whole – if you're a part owner – I've spent $300 on your company.

385
00:24:05.019 --> 00:24:05.159
Yes.

386
00:24:06.640 --> 00:24:12.303
Just remember, if you want to change the branding or change the management team or anything, really, you don't really have those rights.

387
00:24:12.503 --> 00:24:15.024
You're at the whim of the management team that's running their business.

388
00:24:15.044 --> 00:24:22.168
So make sure that you're investing in a company with a good management team that's historically delivered on what they say they're going to deliver on.

389
00:24:22.848 --> 00:24:28.874
And we'll touch on more in a few episodes about what makes a winning investment and what to look for.

390
00:24:28.914 --> 00:24:31.316
How to find a stock that you think is going to be a good investment.

391
00:24:31.336 --> 00:24:31.416
Yes.

392
00:24:31.436 --> 00:24:33.277
Because that's a whole other ballgame.

393
00:24:33.638 --> 00:24:34.539
Yeah, exactly.

394
00:24:34.999 --> 00:24:38.202
I'd love to know as well where you even find the businesses.

395
00:24:38.542 --> 00:24:39.963
When you find them, what do you look for?

396
00:24:39.983 --> 00:24:42.085
You know, that's all way over my head.

397
00:24:42.326 --> 00:24:42.506
Yeah.

398
00:24:42.526 --> 00:24:43.667
But we can do that next episode.

399
00:24:43.687 --> 00:24:45.689
I think that's a whole episode in itself.

400
00:24:45.909 --> 00:24:46.069
Yeah.

401
00:24:46.629 --> 00:25:16.216
we'll tune in for our episode 7 when we talk about it we actually should talk about that next though shouldn't we yes okay great cool I do feel like I learnt a lot though thanks Vic no worries thank you so much for listening to Raising the Curve these conversations are designed to teach you everything you need to know to be better with your money from saving to investing to talking with your friends about your salaries all of that stuff and if you like what you heard we would love if you could please hit subscribe wherever you're listening and leave a comment let us know what you thought about the episode and it only takes one second and it would really make our week our month our year

402
00:25:16.216 --> 00:25:16.437
Yeah.

403
00:25:16.778 --> 00:25:16.978
Yeah.

404
00:25:17.098 --> 00:25:17.259
Yeah.

405
00:25:17.500 --> 00:25:18.342
So please do it.

406
00:25:18.563 --> 00:25:18.884
Okay.

407
00:25:18.964 --> 00:25:19.305
Love you.

408
00:25:19.365 --> 00:25:19.806
Bye.

409
00:25:22.827 --> 00:25:28.256
Okay, quickly, the Curve was created to empower and educate you about investing, but we are not financial advisors.

410
00:25:28.777 --> 00:25:37.771
Our platform exists for educational purposes only, and it doesn't provide personalized investing advice for your individual needs and should not be relied upon to make an investment or financial decision.

411
00:25:38.192 --> 00:25:42.559
And always remember to do your own research before making any investment or financial decision.

412
00:25:42.879 --> 00:25:46.625
We're here for any knowledge and support you need, but the final call is always yours.

413
00:25:46.905 --> 00:25:47.807
And thanks for being here.

414
00:25:48.308 --> 00:25:48.889
You got this.

415
00:25:48.929 --> 00:25:49.950
Yeah, we know you got this.