0:00 What does investing mean?
5:20 Getting started
10:45 Financial education
13:26 Pensions
18:56 What schools teach
24:20 Patience
29:48 Experiences and saving
56:55 Reading and resources

What does investing mean?

[Music] The Education Lounge podcast I don’t know if you’ve been in the market for the past couple of months I have it’s been very very red basically a sea of red sea of red um so today we want to talk about investing a little bit um when did you what how do you Why do you think it’s important to invest um well his current uh sacrifice for future for your future future games yeah so

Because we we work in the education industry and I kind of see it in the same in the same vein so when a parent or anyone really decides to take up education Then in a sense they’re looking for some kind of future payoff um inside those are they’re kind of sacrificing time or money well both really yeah in order to Produce a better future yep well I mean the the idea is that what you’re going to get back later on is worth more than that money at the moment and so like things like the s p 500 and

That they’ve outperformed well they outperform banks in terms of their what interest they give you yeah so your money your money’s basically worth more or it makes it makes more money your money makes more money when you Invest yeah into things like that um as opposed to you know keep saving it keep saving it and then it doesn’t really grow I mean everyone’s noticed prices going up so inflation over time having well it’s This the hidden tax isn’t it yeah so like if they don’t raise taxes then they’re looking to steal from the future so the government’s looking to steal from the future in some way and that is

Through inflation um over a long period of time because it gets easier to pay off that debt because you’ve got rising rising gdp so they sacrifice they sacrifice well they basically Look better to the public or the lecturer because they can promise tax cuts or all that kind of thing or not raise taxes um and The only way we can sort of pay for our public amenities like the nhs school system and so on is through is by inflating um the pro well if you inflate the prices

Of everything then revenues increase yeah and yeah yeah um so when when did you when when did you why did you start investing And what did you start with actually it was kind of school that started me down the path really because although like when we’ll get into this there’s there’s a lot wrong I think with How things are taught in school um well yeah and what’s not taught but I remember in a maths in maths lesson learning about compound interest

And I think most people just learn it in a very like they don’t really think about how it applies to them so don’t really think about how an idea applies to them but then I started thinking like when I was 14 15 that It’s quite a powerful idea really and I remember even I’d be plugging numbers into my calculator so I’d be imagining imagine if you’ve got 10 000 pounds or whatever and you compound a rate of Say 5 over over 50 years and then I realized like how much you can you can make um just with that initial investment

Yeah I mean I have to say when I when I did compound interest at school yeah it wasn’t a thought that crossed my mind at that age it was more like okay I need to learn I need to learn this yeah I was not a normal child Yeah yeah I don’t think many people would have thought about how to implement it it was it was more like you need to learn this and like think about know how it works and then I think also like your parents play a huge role in

Getting started

Sort of setting you on your journey because although my parents and especially my mum then they’re not big in they’re not big investors then my grandfather was though and my grandmother was but they didn’t I Didn’t really have a chance to learn much from them they they would save and so the start of investing is saving because you you need to In order to save you need excess cash yeah and that’s a very important principle that people usually forget is it’s not just about the rates of return that you get on an investment it’s how much are you actually contributing

Because because if you contribute regularly to something over a long period of time then yep you’ve got a chance of making gains and that’s one thing that especially my mum got correct she she would she’s a big saver doesn’t Spend that much um and she’d also sort bank account churn so she used to swap um to get the higher rate of interest like every sort of every few years or something like that and lock in Lock in gains um and yeah so I I guess I start started learning about about investing from a relatively young age in that sense um but not properly investing in the stock

Market only thinking about interest rates and rates of return yeah at that age I was so like saving saving was okay I could save but yeah I didn’t know I I’ve only actually started doing Trading and investing and stuff in the last two years something I wish I probably I wish I started like 15 years ago no yeah if you’ve been some because because when when uh the Best one of the best times we’ve invested would have been when we went off to university because it was 2008 or 2009 and that’s the financial crisis well I mean the only reason I went into investing at the moment is because everything crashed obviously in march

2020. I didn’t know what I was doing I opened up a free account and um I was like well the airlines aren’t running I looked at the charts for like quite a while in a few weeks and then I thought I was and literally I was paying 10 pounds just to see what would happen then gradually now I’m at a point where I’m putting in a regular regular amount every month and I’ve chosen a load of stocks that pay the paid dividends And have it I’ve had it set to automatically reinvest so obviously com why put in compounds what’s already there compounds you get gain from the stocks hopefully going up which most of mine have and then you get your dividends they get put back in automatically

So just to increase the yeah compound effect a very important part of investing is is uh the vehicle that you’re investing into as well because an important part of investing is avoiding as much tax as you can on your Investments and your gains so setting up an isr um yeah that’s what I’ve done mine in yeah so stocks and shares iso there’s also lifetime isa which is um so the government tops you up 25 yeah it’s 25 so and the max that you can put in it is 4 000. um yeah yeah 4 000 a year um between so between april and so new tax year yeah

Um so so that’s a really important part of investing is actually reducing um because if you think about it this way if you had your dividends in a taxable account then you get charged on the gains that you make if you You need I mean your dividend allowance per year is about two two grand I think so yeah so essentially you’ve got to yeah if you’ve got a lot in in investments Then it can really hurt you if you don’t um and also if you you get taxed on capital gains so that’s when your equities or stocks or instruments of like financial instruments gain value um

And basically if you sell them then it’s counted as a capital gain so you’ve also got to so bear that in mind um buying a non-in a sort of uh non-tax account like a nicer Um it it doesn’t it won’t matter do you think that was like do you think there’s anything that we should have been taught in school that that we weren’t uh quite a bit

Financial education

Nobody really teaches you about money yeah uh how it works what to do what not to do oh there’s quite a good uh explained on netflix by fox Vox they do all the illustrations and stuff it’s like a but two-part series that um teaches you about like what you saw some of it didn’t you credit credit cards like loans mortgages how it works taxes I think all that sort of stuff Should be taught in schools but it isn’t because obviously who makes the curriculum there’s some there’s some stuff that they really need to learn on your own there is that but I suppose the thing is is is if everyone does it

Yep then remember this is a capitalist system so essentially you sort of benefit from the fact that people are ignorant of yeah there’s another stuff this is my point There’s a reason why it’s not in the curriculum but it’s also I mean I mean I’m I’m not too bad with with savings and that sort of stuff I’ve never like I wouldn’t go into debt and that sort of thing wouldn’t need to build up a credit score all that sort of stuff but I do think it’s something we should have learned or I should have learned earlier yeah one of the most important things that I think

Becomes clear to me when when you talk to people is people don’t know much about pensions at all yeah I never did I until if you think about it that’s the most important reason to invest is at some point in your life You probably first of all won’t want to work anymore and or will be unable to work anymore so you’re in your ability to earn income on a monthly basis just decreases rapidly yeah well there’s no There’s a there’s a graph isn’t there where uh if you’re so if your age is along the bottom and your ability to earn is on the y-axis it kind of does that it peaks and then it tapers off yeah so oh yeah of course yeah so

You want your investments to be compounding over time and doing this um and if you don’t even understand how pensions work then some people think it’s just like magic

Pensions

It’s like a magic trick so the company somehow puts it so you get workplace pension right um like the company just puts money aside and then returns it to you later but if you actually Read into it and understand investing you’ll realize that they actually invest in a portfolio of of of assets and you can’t always trust the company to invest in or you can’t trust your company Necessarily to invest in things that will deliver the most return um sometimes they’ll play it way too safe or sometimes if the if you’re a little older it’s important to actually

Be less risky in terms of how how you make investments if you’ve got a long period of time so if you’ve got a worker in their 20s then it’s more rational to take as much risk as possible in I’m not saying make bad investments I’m saying um invest in mainly equities so or stocks rather than something like bonds which over long long periods of time will be outperformed by stocks Yeah um whereas like later on in your investment life so so when you’re like 50s and 60s you might want to take a bit less risk um and not have such a great exposure to

Equities um and more have more bonds and things like that in your portfolio just to [Music] offset that risk in case of market downturns because what what happens with a pension is that your assets are drawn down So if there’s a financial crash or something like that if you’re at a low point in the market then essentially your pension will be drawn on a low pot So it’ll be eroding your the amount that you’ve invested like very quickly if they draw down upon that amount but if you had mainly bonds in your portfolio then chances are it will fall it will fall

Less um a lot less than uh stocks because stocks are ownership in a company but then bondholders get paid first it’s a real difference between bonds and Stocks so bonds are like they’re basically debt so you you’re buying debt and gain interest um and they’re paid first so people who owe bonds are paid first then you have The profit preferred shareholders and they’re paid and then you have your common stockholders and they’re paid they’re paid loss so if a company goes into liquidation then

The bondholders will be paid first usually the stockholders will be left with very little um so yeah that’s that’s kind of important to know um because some companies will either Take too much risk and invest in something like mortgage-backed securities um when their clients are old which is not necessarily I mean we saw during the financial crisis it wasn’t the best Place to be when you’ve got housing crash or something like that or they invest too much in like a certain in certain companies that have um they might have revenue growth or something like that but they don’t have um

Meaningful cash flow to survive in a and recession or something like that so that’s quite important or they’ve got excess liabilities or loans debt um So it’s really important that people are aware of what’s in um their pensions what’s it so who’s managing it what are the fees on the uh funds that Or the stocks or trusts investment trusts or whatever whatever’s in it okay they should be aware of what’s in it and really a company should um and this is kind of why I like to

Manage my own financial affairs I’m not I’m not suggesting that you should if you don’t know what you’re doing but I like to know what I’m investing in over a long period of time Because it will just determine my gains and and losses so we spoke briefly about uh just very briefly about what was taught in school and what wasn’t touring school

What schools teach

Well what are your thoughts on that like I’ve kind of I’ve kind of said roughly what I think yeah well uh what firstly what do you think should be added what should be touring schools Um and secondly what do you think is taught in schools to help you with this sort of stuff so if you don’t study business or economics but I do think you miss out on First of all learning about the system that we’re living in and I think that’s quite important to know the system that you’re living in yeah yeah um and actually as early as possible yeah um

So first of all like it I I guess it’s a bit different in my case because like I and I would say like it’s also the responsibility of it’s it’s also important for the individual to take on some responsibility themselves it’s not it’s Not just the job of the state education system yeah and parents as well I think parents should already be relatively educated on this sort of stuff you’d be I mean you’d be surprised some people aren’t but This a lot of it is their job as well but then having said that I I I think yeah most most parents on that astute when it come well

If you take the average parent in the united kingdom or the average person they don’t save nearly enough they don’t invest nearly enough they don’t have enough in their pension um I doubt they understand I mean they might have learned it at one point but I don’t think they understand the uh principle of compound growth so I don’t think there’s really um and we’ve got a system that essentially is aimed towards getting people to spend Right and if everyone saves and nobody spends then the system sort of collapses yeah so there’s very strong incentives not to for people not to be educated in this way even though it might be the most important thing that they ever

Learn yeah I think you probably would be um like I know it’s kind of changed my life and how I approach things um so we’re thinking about everything towards the long term um investing Not spending too much it’s basically basically the marshmallow experiment played out over your life yeah right but but I remember like it’s true if you’ve got I’ve had this experience a few times when you’ve got Quite a large amount of money in a bank account or something like that and then you your media reaction might be to spend it like because that’s kind of what society is forcing you to do so there’s there’s two tips I would give on that

The first is get a separate bank account for your savings obviously yeah so that to you that money does nothing and the second thing which is really really important to do automate it Yeah don’t because if you have to rely on yourself to be oh yeah but I know actually this month I’ll put in like a bit less because I want to buy this just set up an automated direct debit 100 a month whatever it is and just let it yeah let it go out And you’ll be surprised how much you don’t notice what you’ve what’s not there like if you take a hundred pound a month over you’d be surprised how much that doesn’t really change your day-to-day life it’s interesting because like we’ve got this idea of ratio we learn it very

Young yeah um year five and six sort of um and that’s really the most one of the most important concepts that you’ll ever learn because as long as you you get your ratios right throughout your life In terms of what you’re spending what you’re saving what you’re investing that kind of thing you will generally do quite well um I mean for instance if you save if you manage to save 25 or save and invest about 25 of what you Bring in so income wise then that’s usually quite a safe ratio right so quite it’s quite high yeah it is higher um I found recently uh yeah because that would put you in the top say like

Top savers and investors um yep sort of country-wide like easily because I think most people save like a ridiculously low amount it’s like five or ten percent um but if you get to between 15 and 25 Into savings and investments then you’ll be surprised that it’s all the effect it has over time and I think it changes you in that you don’t when you start the lane gratification

Patience

[Music] I think uh I’m becoming a bit more patient not chasing like quick gains then I think your approach to life changes a bit too so I found it transformative I don’t really I didn’t I do have aspirational goals obviously like aspirations for the future and that kind of thing but then I can set realistic targets for how to get there and yeah because if it’s structured you kind Of know what’s yeah yeah um so you think ratio proportion and uh compound interest yeah all of these things they’re the things that are taught in school they are they are taught in schools but I suppose like very few people realize

How important and most people realize this at sort of near the end of their life so so they go oh oh maybe I should have done that and you don’t want to live a life of regret yeah I mean I I realized it in my late 20s probably A few years ago right so ratio proportion compound interest the concepts are taught the implementation and uh the changes it could have on your life obviously they’re not yeah explained Uh anything else what about well you learn you learn depreciation that’s also similarly important so if you buy an asset um a car or something like that you know

That if you buy a car new then yeah it depreciates extremely quickly it’s like a massive yeah the second you turn the engine on like move it two feet out of the four court it does that yeah yeah just gradually Yeah so so buying a depreciating actor is it is usually a bad thing to do with your money but but I mean if you’ve got if you get your ratios right then um and and I mean for instance it some people spend like half their income on Their car payment or something like that and um that that that to me is ridiculous like some people actually do that like it’s a pro it just really surprises me but I don’t think any asset anything nothing no it’s not an asset

Nothing should be that important to you um that you spend half basically half your income on it especially as it depreciates generally there’s some there’s some exceptions like but they’re very hard to find yeah and you won’t know until it happens like Vintage aston martin’s or something like I don’t know you probably know a lot more about not so much about that sort of stuff vintage and all that it’s difficult to tell what would I it appreciate it but yeah when I when I when I when I get a Car I don’t I don’t get new yeah I buy it after that drop off you want it I don’t spend half my money on it yeah you want it to be drivable and and I think easy to

Well you don’t want problems with it so you need to strike that balance between affordability and age but different people are into different things like I I like cars yeah you like watches yeah that’s true so But it’s it’s fine for somebody to have yeah but it’s in an interest still would disgust me like the idea of spending well it’s all it’s all down to ratios like if if you can get to the point where Buying like a rolex feels like buying a biscuit then yeah where was that from again somebody dave ramsey so he was like he was like saying uh he had a friend and he bought a lamborghini or something like that so they’re quite expensive yeah and I

Maybe quarter million maybe and and then um dave ramsey was like yeah so here’s this uh he’s got well he’s he’s quite quite a hardcore christian I’d say um But he he sort of uses those biblical principles um in his financial advice and he was just saying that um to his friend buying that lamborghini was like the equivalent of buying a biscuit and at that point then it doesn’t really Matter because because you’ve kind of that person can can now pretty much spend how they want to spend because they’ve sort of set up their financial future and that’s really that’s really the thing it’s completely fine to like spend a great deal on a

Holiday or um experiences on a car on a watch but you need to sort of think about how that purchase will affect your um ability to invest and that kind of thing I think it depends on your age I was watching a video the other day is it yesterday anyway um ali ali abdul youtuber he said if you’re younger say you’re in your teens and twenties the money

Experiences and saving

That you would the money that you could save say it’s like 50 quid or something 50 quid saved to that age is less valuable than the experience that you could get 50 quid at that age So if you’re like 16 well save definitely yeah if you’re 16 right and you’re like going out with your friends going like on a trip cinema whatever else that 50 quid is worth a lot more at that age Whereas 50 quid now or when you’re 50 60. it’s nothing so there’s a balance between your where your age is and what you spend and what you save so it’s better to spend that sort of

Pocket money or whatever on an experience but as you get older or invest it in some way what you could do a bit of each you could say you had 50 quid I’d probably like put 10 quid aside and take 40 out but as you get older it changes from experiences to To savings and stuff if you invest if you were to invest one pound just imagine if you invest one pound in yeah 500 500 over 60 years or whatever yeah you’d end up with something like 86 quid That pound [Music] I mean I know like that 86 quid will be worth less than it is now because of inflation but it still shows you sort of the power of compound interest um there was an interesting thing about

How different ages invest so people that were born I think it’s like the 60s or 70s they’re they’re used to the s p 500 not doing much like it didn’t really grow people were born in What 80s 90s they’re they’re used to the s p 500 going up so different ages think differently about how to invest well I’ve heard of people who they were in the Loss financial big financial crisis like the the 2008 2009 where basically liquidity was completely um banks were kind of unable to lend and that kind of thing that really

Capitalism basically was in in dire straits at that at that point um now they they didn’t enter the market again because they were so scared like like once they lost all their money they didn’t they could no longer trust Trust the even the idea of continuing to invest in it whereas whereas people who either started investing in it or stayed in the market they did really well yeah they’ve done quite well I think they modeled like They imagined some investor like investor x or whatever um investing at the worst points so so at the very peak of the market um over I think it was like 250 000 that they

Gave investor x or whatever so they back tested this um over the part over the last like 30 years so investing at the peak of every single crisis and then um but the only thing that made him different was he didn’t take any money Of the market in their model yeah so he he stayed in the market and he still made like a few million yeah because overall yeah it goes up because yeah because over at that like a market goes up and down up and Down up and down over a period of time but the trend upward trending is upwards yeah well it’s this idea of averaging in because if you’re doing it every month then

You could buy one yeah share it 10 pounds and one share at five pounds you know you would average out yeah yeah yeah over a long period of time um and this is what we I mean to the there’s a There’s a great guy called a great investor called uh john bogle and I think he wrote common stocks for uncommon prophet so I can’t remember the exact title of the book but basically he analyzed The performance of um and you’ve heard of vanguard right yeah the kind of guy behind it um [Music] he discovered that if you solve back tests

Index funds over long periods of time they outperform most individual investors or people are investing in individual stocks um because you’re essentially you’re trying to you’re trying to time the market yeah if yeah if you if you Like what what what the what it does is so in an index fund the index fund buys um the broad market index and usually weighted according to how much their what percentage they make up in the Market so I think like for instance at the moment it’s a bit crazy because um the fang stocks so apple facebook metal um [Laughter] google well alphabet um amazon they and

I think it’s it was netflix but I feel like it at some point it probably will be in video and then you could argue also tesla’s kind of getting to that stage they’re such a they’re such they have such massive Market caps that they’re kind of like the majority of the market yeah so it’s kind of a very unusual time we live in where very few companies make up most of the market but you know um it’s only going to get more More like that isn’t it really you think there’ll be anything to challenge those companies in terms of their dominance uh yeah it would take quite a disrupter yeah decide to change it I think nothing can disrupt like apple

No no it’s just so so entrenched like because the brand power that apple has that they’re probably the greatest brand um like amazon I wouldn’t say it’s got brand power In the same way though there’s a lot of negative connotations with when it comes to samson I mean somehow apple seemed to have avoided all of that they well the thing is is that amazon’s a platform but then Because apple has all of these devices and things like that it’s created the moat so this again is something that you look for in a good investment one one that has a moat so if you if you buy a company or something like that you you need to look for companies with

With strong moats um what do you mean by moat well there’s like I guess there’s different kinds of moats so a moat could be a brand coca-cola is a good example They might they may be complete competing products but at the end of the day when you walk into um a restaurant a restaurant or something like that and you want a drink and you want something coke-like you will always say coca-cola Yeah oh we’ve we’ve only we’ve only got pepsi is that okay yeah yeah sure just bring bring me some brown sugar water they’ll always lead with coke and that’s one of the reasons why it’s it’s such a powerful brand well it’s been I was watching something

Recently it’s been embedded into our like psyche over generations to the point where restaurants like to stock coke because it shows them that they’re Trustworthy yeah so if you look at a restaurant although they they sell coca-cola it must be at least a half-decent restaurant it’s that is that that idea of branding like really is fascinating because it’s like There may be no real sort of intrinsic difference between two things I like pepsi and coke I know I know there are differences yeah um and yeah most most people will say that there’s differences but um really they’re kind of fundamentally the

Same but coax as a brand is just so much more powerful in its primary colors as well so red mcdonald’s red and yellow they have like an effect In your yeah in your perception of the product yeah um so that’s one kind of moat then you’ve got kind of like you’ve got like infrastructure modes so I guess telecoms is a good example or Like rail networks tesla’s supercharger network yeah something like that like it’s something that’s built in there and no one can really do anything about it um and you can’t really switch very easily so it’s like is is this is the apple

Ecosystem and that’s all that’s also each little thing hooks you in a bit more apples is interesting because it’s kind of like there is consumer choice but at the same time their brand strength is is so strong their products are really good so I Suppose that that’s a really positive moat to have um and then to a regulator as well to like the government and things like that um I know you know they they do kind of lock you in with a few things like charges and stuff like that and the eu Is really sort of in on them because yeah I don’t know if I agree with government stepping in on a how a business does things as much as I would really really need usbc on an iphone I don’t know if I agree with

Government stepping in and telling you how to run your business it depends I think it depends on [Music] well I mean they’re they’re more they’re more powerful than most countries apple so they’re at that sort of level Yeah I mean I kind I kind of I kind of agree with you to be honest but then I do think like there is a point for governments to step in so um if if a product or service poses A great risk um and it is exploitative or or something like that but it depends where you draw the line and what’s it’s exploiting the user because like you could say the whole advertising industry is basically like

Exploitation um exploitatively because either way but I mean it’s it’s like it’s very very difficult to make those sort of judgment calls that’s that’s kind of also why they come these big tech companies can’t really be pinned Down to because it’s it’s up to values when it’s up to how you perceive the problem so some people perceive them as like the most evil things ever like large corporations but then some people don’t so it’s very difficult To like I think people forget or or don’t realize how hard it is to get to that sort of level well yeah yeah every every one of these companies has started out

In a garage or on a dining table yeah like a cottage industry business yeah every company even our company started out on a dining room table to get from there there are so many different Changes in how you work and and people that come in and out to to take even from this level to medium level to to large companies to apple amazon that sort of thing like it’s not it’s not easy they’ve solved really difficult problems So people people forget I think that also kind of boils down to education like I’ve written down here um some sheet of paper um do you think there’s a left-wing agenda

In education that is kind of set against private enterprise and capitalism yes 100 100 because I definitely I’ve noticed that I wouldn’t say so much at school but I know it’s like our university Well universities are ridiculously left-wing yeah right I think at school though as well not maybe not so much left-wing but against uh what did you say against capitalism yeah because you’re conditioning people To wake up at this time go to this time listen to the bell have your breaker this time go back to work go home do a bit more work go to bed wake up repeat like the actual the school bells

In schools are the same with factory bells but but then they’re that that’s what wouldn’t you say that supports capitalism like it supports the system because what do you mean in terms of making your own venture and Like not so so what you say is like it’s sort of the the system that we live in doesn’t encourage individuality it sort of doesn’t include individuality or entrepreneurship anything like that yeah but then it’s built it’s built it hasn’t Changed the system hasn’t changed it’s been it’s built to produce factory workers even though we don’t really have people well in this country really working in factories like they were in victorian times the school system and the way it works hasn’t changed but only we’re

Still producing that don’t you think though that we need like they they do need structure in schools otherwise it it kind of descends into chaos yeah no obviously you need structure but I think you should Back to what we’re talking about before this specific things that aren’t taught in school such as money and tax and yeah that’s awesome mortgages savings investors to be honest like with pensions I kind Of feel like maybe companies I feel like perhaps this is this is where regulation sort of plays a role is I kind of think that companies should kind of provide a little bit of education to

The employees on on pensions and pension schemes because I don’t think most most most workers have no idea what’s what’s going on I know in some ways there’s a there’s a there’s definitely a sense in which this Is kind of up to the individual they they need to sort of take control of their financial future um and and so make it make effort to to learn about it here whoa here’s another problem everything is Everything is going more like projects based zero hours contracts that sort of stuff which doesn’t require a company to do pensions both because also yeah the government’s made it

A lot more effort so like they’re they made it a lot more prescriptive for companies to to sort of yeah but my point is there’s gonna be less of that happening there’s a lot of people creating their jobs recently as well To go and start their own I think during during the whole kobe thing I suppose it’s natural there’s been a lot of people walk out of their jobs when there’s like disruption on a massive scale best time to start then then people start to sort of Think about life a little bit and what they want and yeah most people won’t at that point I know I realized that I’m well way too sort of dependent on

Um on a source of income or something like that monthly yeah yeah me too and and you you kind of take stock of that um pun intended or No actually not but yeah you you take stock of that and and you realize that you do need to get a move on as it were in terms of yeah I’ve realized this I’m beginning to start other projects outside of here too because you need something So yeah before before it was just what I got from tutoring and what I got from here and now the last couple of years obviously investing in stuff uh yeah and then I’m now starting another

Like another project to try and build up another yes stream of income yeah so take a long time yeah anything like this does but you learned that any sort of Worthwhile investment usually takes a long time to sort of set up it’s the same as everything is consistency persistence just showing up each day it’s like that that value of disappointment thing So um growth in any direction yeah yeah it tends to never be it’s never not linear it’s not like that it’s it’s yeah yeah and then there’s this value of disappointment that everyone sort of rests in when you you go to well yeah

Like you kind of think to yourself it’s happened in everything think about when we started this when we rebranded when we started a YouTube channel when we started instagram like social media for the company There’s all there was that two like two years of just sitting in that valley posting every single day you know without fail nowadays it’s just like yeah if you if you it’s the same with absolutely everything I think with Everything in life um really persisting at something and um not doing something that you know will fail because some people do that some people think that if if you keep plugging away at something you’ll

Naturally achieve success um but it’s more if you if you have a plan and that goal can certainly be achieved and you’ve got the you understand how to get to that goal Then if you keep persisting at it you will get there yeah um and you won’t get there in the way that you expect so it will never be linear always be exponential which always starts off yes really slow and then it accelerates At a quicker and quicker pace and if you do the right things along the way you automate stuff and you you know you change how you work you work smarter or not harder to get more done that’s also helped me within investing like yeah financially

It’s fractal it applies to everything right any any fund and things like that you could usually set it up so invest in that fund monthly and that kind of thing and yeah um it’s it’s quite a good It’s quite a good lesson for life and investing is not just about it’s not just about building wealth um and and having money it’s also about your development as a person I kind of See it more that in it’s like a spiritual thing for me it kind of extends into every aspect of my life so what do you you use hl when you

Yeah I use hardscreen yeah that’s what my pension stuff is now well I wouldn’t say it’s the just I’ve always used it so I like predictability I wouldn’t say it’s necessarily the best tool um because there are I think cheap there’s cheaper platforms Yeah because I use trading two one two where you don’t have you don’t have fees per se but what they would prob what they would do is they would if you if you buy a share you’ll be buying it Like a fractional amount not not noticeable but a little bit more expensive than than you would yeah they’ve got those like dividend well they’ve got those those pie things where you can yeah well that’s that’s different though I’m saying like how it works is when you

Sell you sell a slightly lower price and then make a bit of money there and when you purchase a share you purchase it slightly higher like it’s not noticeable to the to the consumer but that’s how they make their money yeah it’s like the Spread as it were yeah yeah and then you have the pies where you can which is what I’ve done you can essentially create your own uh what’s it called your own it’s a portfolio of so you you select In yeah so you can select so what yeah so I spent a couple weekends looking at dividend stocks because that’s what I wanted to do picked like 15 20 of them put them in this pie and uh

Automatically invest into it every month uh and then the dividends that come in they are automatically reinvested back into the pie so I’ve got I’ve got kind of a similar strategy but in Hungary’s landslide you can’t buy fractional shells but that’s the other thing trading twenty you can do france you can buy like north point naught one of the share literally start with a fiverr start with ten quid for me it’s like that’s how I did it sounds really really weird but I sort of I kind of treat the fee as like it’s Like the you know you’re you’ve got you’ve got a few charges when whenever you trade a stock on hoggy sandstone I kind of treat it as a filtering mechanism so it kind of disciplines me because I know that if I invest in a

Stock I I need to make outsized gains in that stock in order for it to be worthwhile yeah for me it’s like oh I’ll just yeah yeah why I’ve noticed bar like one or two is the ones I’ve Taken a punt on yeah have lost me money for the most part yeah and the ones in the pie the consistent investment yeah yeah because you’re averaging in I’m averaging and they but I know so I started it when everything was Down down yeah uh those have got me quite quite big gains so you’ve never experienced a massive drop in your portfolio uh I’m in the red at the moment no but like like you didn’t give me so what do you mean by mathematics

Um a fifty percent drop no they’ve never had that 10 to 15 at most see I’ve gone through that I think that makes you stronger as an investor like when you you sort of learn about yourself a little bit and how you react to things Yes I’ve got better reacted to that sort of stuff and the mindset that I have is it’s not an l until you sell it’s not a loss until you sell so don’t sell I went through the whole like covered crash basically yeah and that’s where I started that was my and I think that was my as a big big crash for me but what I you just put more in yeah I I just went

I didn’t I did sell out of a few positions because I saw better opportunities and that’s really where that’s I think that’s an important aspect too is kind of realize when I realized I was kind of too I was too much in one sector or something like that and and then I thought okay wait a minute I’ve I should really invest in in this sector um because now it’s a reasonable value so like for instance apple like Yeah yeah I bought that quite as lows basically because I I really I was like yeah okay they’re not they’re not really going to be that affected compared to a lot of a lot of these other things like more malls and things like that and yeah

Travel um yeah that’s again that’s why I started because I just was keeping an eye on like easy jail ryanair and travel obviously dropped off I just thought I’m just going to put 10 pound in here and see what happens I mean but but even the best investors like they so I think warren buffett said and he’s I think probably the greatest ever like you could argue there are a few others that are pretty impressive Um but I’d say like in terms of a pure investor like true investor warren buffett that’s probably probably one of the greatest he also started I started really young yeah did we do a book review in the reading corner a little bit but it wasn’t it wasn’t

Much detail you did what book was it was it the warren buffett way I think it might be that that was like a biography um joe quite quite good you find out about his life and sort of decisions he made um

Reading and resources

Yeah we can leave a link yeah I’m going to leave a link to a few things I think I think we’ll probably what we’ll do is we’ll leave loads and loads of links to to different investing books and things like things that I’ve read And things like my listeners yeah I think someone you’re listening yeah intelligent investor wasn’t it that was one of them yeah I’d say what we could do is we could do it in order of of like difficulty so like for instance probably probably the first book that You should read even though I don’t think it’s I don’t really like the guy much but robert kiyosaki’s rich dad poor dad because even though it’s not I wouldn’t it’s not an investing book it’s not heavy at all but I think

I think there is quite a few elements of investing in there but not not in terms of stock just in terms of how you think about money but by but I think uh there are some sort of a little bit of wisdom and it’s very accessible so even if you’re if you’re a younger listener Um not very experienced with any of this stuff then you can kind of get into it a little bit and and then they’re going to be doing a review on that shortly as well you know on the channel oh okay so that’s good Yeah we can summarize it for you as well yeah um yeah so there are a few easy books and and then you could graduate to more difficult ones once once you understand what’s what’s there really um the other thing I would do just to

Wrap it up is uh unless you have something else you wanted to add in you guys say something I don’t think there’s anything so we’ll leave the link to the books the other thing I’ll leave is a link to my pie A link to the pie so if anyone wants to just copy the dividend pi and use it for themselves you can do that yeah uh and I’ll leave a link to trading212 as well and if you use the link you get a free share when you sign up Okay so yeah should we leave it there yeah okay thanks for watching as always and uh yeah see you next time [Music]

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