Fred Schebesta - Follow the Founder
Fred's best known as a co-founder of Finder, but he's also active in the stock market. He started as a trader before realising that he was an investor. It's a journey common for those coming fresh into the share market. We hear about phenomenal gains in stocks like Afterpay and Mesoblast and think how hard can it be? But the market is a harsh teacher and the lesson is always to invest for the long term and let the gains compound.
We discussed:
- How the world has changed
- Investment trends
- A warning for new investors about the dangers of pump & dump
- Following the Founder
- Trading vs Investing
- Lesson learnt on the floor of the NYSE
- Cryptocurrencies
- Consumer Data Rights
- Advice for investors just starting out
What are the trends that Fred is seeing
as the world changes.
The obvious trends are to do with travel, retail, office space after WFH and video conferencing. But Fred looks deeper into other areas for his investing decisions.
There's a useful resource that provides unique data and key insights from Finder's expert team of analysts. Here's a link to Finder Insights where trends are identified and written about. Some good stuff there for looking at the bigger picture.
What did Fred learn on the floor of the NYSE?
What is Cryptocurrency?
We explore the thinking behind currencies and take a journey through money from 5,000 years ago to 500 years into the future.
What is CDR?
Consumer Data Rights - the biggest changes in financial services since internet banking. By law you now own your own financial data. It is now up to you whether you share your data with financial institutions other than your own. It has far-reaching implications for empowering consumers to get the best deals across a whole range of products.
Advice for someone young and new to investing
Invest in yourself, invest in your education, cut down on your living expenses and invest.
The dangers of pump & dump
What is pump and dump? This is something that you should be aware of. There are groups, forums, chat rooms where people are promoting certain companies with a view to pump up buying so that the price goes up so that they can then sell (dump) their own stock at a profit. Don't get caught in irrational exuberance.
A few words from Investopedia on the difference between being a trader and an investor
Stock traders shouldn't be confused with stock investors. Institutional stock traders use the firm's money and typically focus on short-term trades. Stock investors use their own money to buy securities and typically are not short-term traders–although, some retail traders are also short-term traders.
Most stock investors tend to buy a stock and hold onto it to generate a capital gain or dividend income. Capital gains represent the difference between the purchase price–called cost basis–and the sale price of the stock or security. Dividends are cash payments by companies that reward shareholders for buying their stock. Some stock investors hold onto positions for years, particularly if it's a solid, stable company with a consistent track record of paying dividends. Dividend income strategies are popular with retirees since it helps generate an income stream to complement Social Security income.
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.