Mailbag: incl. Leaning into the ‘nuance’ of investing. June 25, 2023

31:14Now, I kind of sort of account for that by direct investments outside of it. But yeah, what do I say? I've got to be careful here because it's just, it's a very, help me out here. Do you know where I'm getting? because it's sort of... No, I'm a little bit surprised you did that actually because I thought you would say that... I thought you would say that you would avoid it because of the banks and miners, which you kind of partly said then went back to what was going to be my point. So I'm going to be basically stealing your own comments and repeating them back to you. The reason I asked about three years versus 50 years was exactly that reason.

31:55Was that passive versus active, right? I think over the next three years, it's entirely possible, maybe even probable, that the banking sector underperforms the ASX. And miners are hard as a group to look at because even within resources, you've got iron, oil, gold, oil, lithium, copper. I mean, if you take those five commodities, they're going to have different directions of different coal, different directions at different times, right? So you kind of go, well, where are we there? The oil prices are a 12-month low, right? So 12 months ago, we were in a different answer on oil than it is today, potentially.

32:28Not that I have a particularly strong view either way, but you know what I'm saying. So it's kind of that concept of what are resources, quotes resources, you know, it's a very difficult one. I would say, for what it's worth, that my take is yours, particularly if you've got a long-term ETF. If you're going to invest for 25 plus years to retirement, and then frankly, I keep reminding people regularly, it's not aimed at any particular listeners, including our questioner, your investment doesn't stop on the day you retire, right? It hopefully goes for 20, 30 years after that. So if you've got 25 years to retirement, you've probably got a 50-year investing horizon.

33:04And so to the extent you're looking at an investment in an ETF, trying to time, I'll buy the ETF only after banks do X or miners do Y. It's just a dangerous way to think about it. The other thing, don't forget, if you're buying an ETF is if the miners and resources companies don't do quite so well, others will grow in terms of their weighting in the ETF. So you're not just saying, I will only have the miners of their current size and the other companies of their current size and the future of that. Particularly if you're dollar cost averaging, as you invest in the ETF in three years, five years, seven years, 10 years, the proportion is going to change.

33:42And so you think about the SP5. This is a really great example. Go back, I'm going to say 15 years, mate. That might even be two. Maybe it's 20 now. 15, 20 years. The top companies in the US were GE, General Electric, General Motors, Exxon, Cisco, whatever. If you have correctly said, those businesses will be meaningfully challenged over the next 20 years, you would have been right. If you said, therefore, I'm not going to invest in that index, you would have been horribly, horribly, horribly wrong. Why? Because the smaller companies, up-and-comers, not only do they beat the big guys, they then kept growing from there.

34:15And so if you're saying, I won't invest in the ASX 300 or 200 because of the banks and miners, and yet, for example, let's assume, I don't know, pick biotech or retail or something else happens in Australia and they grow and grow and grow and grow and grow. You end up in a situation where you avoided the ETF for the right reasons, but you missed out on the returns that came from it. If you said 20 years ago, I'm not buying the S &P 500 ETF, it's got GM and GE, they're yesterday's companies. They're not going to go anywhere. And then again, you look now and out. It's easy to take hindsight bias and say, see, therefore, this might be the exception that proves the rule.

34:46But Ram, to your point, I would not exclude. So I did for a while. I invested, I still have a, I think it's in my young bloke's portfolio. He's got ASX small ordinaries, which is basically the all odds less the top 100. Now, in the event, there's actually a lot of miners in the next 200 anyway. And so the proportion is actually not that different, funnily enough. Two thirds of all companies on the ASX are materials mining companies. And it's probably, you know, they're probably 20-ish percent of the all odds, I think, but they're still like 20 % of the ASX small ordinaries anyway, because there's more of them and they're just individually still big enough combined to be a large proportion.

35:24So look, I wouldn't, Jacob. I used to, I thought I did. I bought the small ordinary specifically for that purpose and I've changed my mind. Speaking of changing our minds on things for exactly the reasons Ram said, frankly, I could be, first I could be wrong about the banks and all the miners. So do I really want to make that bet? Don't know. Even if I'm right about them and the small companies become larger and take over the ETF does well, you know now if i can still avoid them by buying the the the x financials x miners etf and go and buy that therefore i get even more upside but if i'm wrong and if i'm wrong i'm being active i'm being active i might as well pick stocks and around and around we go as you started with one last thought for me just quickly mate is the uh the etf he mentions has a management fee of 0.25 percent you can get a an asx 200 or 300 etf for about 0.04.07 percent so you have to be right but You also have to be right.

36:18And you buy the size of that management fee even to be square and then get growth on top of that. So you kind of, you know, 0.18 % is not a massive difference to make up, but it is a bogey. You're starting further behind by choice, hoping that not only you write about the difference, but you're right by enough that it offsets the fees plus something on top of that. It becomes a harder, longer part at some point. So I used to want to avoid that. I've chosen, as you just said, mate, not to do that. I have international diversification for reasons to cover that. I'd rather do it that way, frankly.

36:47If I was going to say I'm worried about the ASX exposure, I'd probably go passive in an international way rather than try and place funny buggers with the local portfolio waiting in that sense.

37:02You reminded me there of a stat. So speaking of Peter Lynch, so for those that don't know, Peter Lynch ran the Magellan Fund in the US. He ran that between 1977 and 1990. and anyone invested over that period got a 29 % average annual compound return. It's extraordinary, isn't it? He's one of the best investment managers in history, right? Like Buffett's done 20%, you know, so Buffett's done it over a much longer period, but still like that's nothing to sneeze at. But apply the rule of 72 to that. You basically doubled your money every two years, 200 years. Incredible. Extraordinary, yeah. Here's the rub.

37:41Most of the investors in the Magellan Fund lost money. Oh, wow. I didn't know that. So how do you square that circle? That's fascinating. I'll tell you how you square it because he had good years and he had bad years like every investor. He had periods where he underperformed, periods where he overperformed. And so when Magellan was doing well, everyone plowed their money into it. And then it had a bad year and everyone sold. Well, not everyone, but majority of people did. There's an investment research. I put this in the straw man newsletter recently actually. So investment research from Dalbar, they publish an annual report of investor behavior each year.

38:15and they just look at the average equity fund return versus the S &P 500. And so you can look at it. The conclusion this year was the same as it is every year. It's just like investors that are in worst enemies. But if you'd stuck in the S &P 500 over the last 30 years, you got about 9 % per annum. The average equity investor did 6%. Like how? How are you getting two-thirds of the return? Like the wind is at your back, right? Right? And again, it's everyone. We're doing the same kind of thing. So this is sort of the whole point of the index fund. So there was a point at which, I don't know, what's a recent example?

38:55It's probably no longer relevant. But Afterpay didn't exist. It did. At one point, it became the 200th largest company on the ASX and got added into the ASX 200 index and the various associated ETFs. And then it grew and grew and grew and it reweighted up as that happened. At the same time, you had – I'm trying to think of a company that hasn't done well over that period. But a bigger company that started and just did worse and worse and worse. You get that automatic rebalancing, just to reiterate your point alone. The other thing that's interesting, I think, about markets is something like – there's 260 trading days in a calendar year.

39:35And so over a 10-year period, I call it 2 ,600. Most of the gains are made over a, it's like only like 30 or 40 days in that period account for most of the gains. In other words, you take them out and the performance is radically different. And again, it all comes back to this hubris of timing of trying to get in and out and position and the rest of it. And I'm not saying you shouldn't, I mean, I'm a stock picker, right? I'm actively trying to beat the index, not by timing, but by just trying to pick the better quality companies within that. But I'm really hyper alert to the fact that it's just sort of like, given the work that's involved in that, it's a high bar to jump over when the average is actually probably going to be pretty good.

40:20I don't have to do any work and I can just get on with my life and probably focus more of my efforts on just earning a good income and saving. You've got to be careful with this. It prompted me to do a little bit of an exercise. I love a good spreadsheet, as you know, Scott. So I went on there. I've got a data subscription service. went on um and got the all lords over the last 12 months and it turns out that the all lords is up oh here we go what what our listener said up about nine percent so and all i did was i just lined up all of those days and i just removed the three best trading days not the 20 but yeah three yep and the return was radically different in fact uh uh where am i here it was it was almost twice as bad uh yeah yeah so it's it this is the problem and and he here's he's the coup de gras so the covid crash of early 2020 feels like ancient history right because of every so much which has happened since then.

41:25But that COVID crash was, it started on the market high before the COVID crash was February 20th. And it hit a bottom on March 24th. That is a period of 24 trading days. And the market lost a third of its value, like literally tens of billions wiped off the market value of companies. 34%. Now within that 24 period, we actually saw in a full third of all trading days, the market went up. In three of those trading days, the market went up by more than 4%. So the idea with timing is that, well, I'm going to get out before it goes down. And so someone up there going, yeah, but what if you take the three worst days out?

42:09Well, the return is insanely good, right? It's much, much, much, much better. But you've got to be right there because it's very counterintuitive that the best one-day gains tend to happen in bear markets because you've got extra – it makes sense when you think about it because there's extra volatility, there's extra uncertainty. So the bigger one-day – if you want to find – if you were to ask me at what periods did the best one-day gains happen on the ASX, I reckon they happened during periods of when the market was selling off because it sort of like plummets and then it bounces back up and it plummets and it bounces back up.

42:42But my point is you only have to remove a few of those and gosh, you shoot yourself in the foot massively, like just hugely. And you just get further and further behind. So I'm kind of gone well off the original sort of point here. I guess my point is you're either going to be a direct investor or you're going to take an ETF. You absolutely take a blended approach depending on what you want to do. I do, right? I just said I own some ETFs. I mean, the vast majority is indirect picks, but there's nothing wrong with doing it. But if you're going to go, I just feel as though if you're going to go the ETF approach, let it do its thing.

43:17Don't start applying either a timing lens to it or a sector selection period to it because it kind of undermines the whole, it is counterproductive, I guess. And particularly if you don't dollar cost average, right, you're going to be investing during some high periods and low periods, some uncertain periods in between. And even the high periods will be higher later on. you know it's a it's a very very important message you share man i like it a lot can i make another quick point sorry mate sorry sorry i i don't hate emerging market investing i don't like it yep don't like it don't like it too many it comes from i think a fallacy that you know uh managers will say well you want to expect you want you want to you want broader exposure sounds good right So here you've got this developing part of the world, which by definition has more upside.

44:10And so you should invest some money there. And I would say, well, history doesn't suggest that's true. In fact, a lot of these economies have been emerging for decades. I can't think of the last developing country that became a developed country, quite honestly. Right? I mean, they're all getting better. Yeah. As the world rises in prosperity, but it's not an even kind of thing. So here's the best example of all, right? So unequivocally, over the last 10 years, China is a much bigger economy, right? Today than it was in 2013. Would you agree? Yes. Like, I don't think anyone's silly enough to debate that.

44:49No. So in mid-2013, 10 years ago, I'm going to put all my money into a Chinese ETF. There's a developing market, right? Like, it's massively developing. So I just Googled one quickly. So the iShares China Large Cap ETF, the ticker code here is IZZ. Guess what the price is? You can guess where I'm going here. I can go on. Right? So 10 years ago, the unit price was$39.26. Today it's$41.82. So this is that thing of being right and wrong at the same time. Yes. My 2013 self said China is just on a tear. It's going to keep getting bigger. I'm therefore going to bet on it. Well, you were right. It did get bigger.

45:30You didn't make any money though. In fact, you lost in real terms. And why is that? A, the economy, market is not the economy. That's a really important point to make. And I think one of the things that while they have better growth potential and prospects, I unfortunately, I'll speak to anyone who comes from these or has experience, they don't have the strength of institutions that we have. They don't have the rule of law. They have generally high levels of corruption and that. So it's not like wealth isn't being created. But don't kid yourself that it's being evenly spread around. And much of it is being left over for ordinary shareholders.

46:07So I don't like emerging markets. I think if you find a really great company, and it happens to be in an emerging market, by all means do it. But too many people do it because, oh, it's an emerging market. It's good sense to invest outside of Australia just because. I think he's flawed. And I think there's a lot of good evidence to sort of suggest that I've never met anyone who's done, I mean, that doesn't mean anything though, because I don't know everyone, but I've certainly never met anyone who's done particularly well in these markets. Because, you know, most of the wealth gets siphoned off, wealth creation gets siphoned off.

46:43And if there was a scenario where I just had zero opportunity in my local market, which has much stronger institutions, much better rule of law, I have a home field advantage because I live here, speak the language. I know the market. I probably deal with a lot of the companies. I'm going overseas into these jurisdictions that are just very opaque and foreign, just conceptually to me. I just feel as though with investing, you stay within your circle of competence, play where you have an edge. What do I – I mean, the arrogance to think that I am going to understand these companies better than the locals.

47:22I just feel as though I've got no edge there. and therefore I've got no business investing in them. What about though, that you've gone from ETF investing to individual stock picking? You're talking about the image you may have. Yeah, sorry, I did. No, no, no, I'm not Christmas at all. I'm wondering whether, is that different if it's an ETF? If it's a case of, I want broad global exposure, I'll have some Australia, some developed markets, some emerging markets, roll those together, I've kind of got the world on average. That's a pretty good starting point for some people who are saying passive is passive is passive, a bit of everything.

47:52Is that meaningfully different? I think it's more about saying, well, why do you want exposure to emerging markets? If you want exposure to emerging markets because that feels as though it makes sense and someone in a suit and Martin Place said that it makes sense. I don't think it's – and they've probably got a vested interest in – they just happen to have a product that they can sell you that will scratch that itch. It sounds good. It sounds good. But these are – I mean, invest in Africa. Best of luck to you. A lot of capital has gone there to die for a whole bunch of depressing reasons. Same with South America.

48:30Same with a lot of Asia. Just, you know, I think sometimes we have to check our financial privilege. We forget the incredible good fortune we have to live in these liberal democracies with very strong rule of law. A whole bunch of problems, of course, but I know where I would prefer to be. And we find Australian companies experience this all the time. There's one in the news at the moment. I've gone blank now. is it lake or one of the lithium miners? They've got all these operations over in Africa. And, you know, market goes nuts because, hey, lithium. And, whoa, look, they've got a huge deposit.

49:03And, oh, you just got rug pulled by the government. Bye. Oh, that's not fair. Yep, that's right. That's what happened. That's what happened. And I'm not trying to be critical of the people from those countries. You know, they're human beings and beautiful people like there is a bit, but their institutions are crap, right? They just are. and I'm not going to invest in those places where I just can't take for granted what I can more reasonably take for granted here. That's just me. That's just me. Yeah, I'm less sure that only looking at the negatives or risks is the only way to do it. I don't have any emerging market exposure.

49:43I don't think I need it necessarily. I've got the VGS, the Vanguard Global ETF, which is Develop World X Australia. That's good enough for me. sorry i do do i still have i should know i had the asian tigers etf for a while i think i might still have it let me double check before i get myself in trouble um how's this for live research as we go login login login no i don't have it there do i have it there i think i know wouldn't yes i do i still have a few units of the asian tigers etf which is emerging-ish markets um hasn't done out of interest i'm not i'm not i don't i don't i don't know i'm just generally thank you very much genuinely curious 39.7 % since I bought the ETF units what was that?

50:24I don't know actually I'll cut you some slack if it was you know short term but it was over 10 years it kind of probably two or three years ago probably max okay sometime in the last couple of years okay and for me it was purely a diversification move which is like hey I'll buy some the broad thinking was this is partly active and partly passive and again to the kind of comment we've been having or the conversation we've been having on going uh i i think it's very likely that in the next 20 years the top three or four of the top 10 companies in the world are probably asian and probably chinese just because the sheer development of that market and the size of the population and the the realities of the compound and think about alibaba's and the jd.com's and the others um and so it's just a case of you know to the extent that that might be a market i should be exposed to i bought some units the etf now it's 1.26 percent of my super fund which is probably you know whatever percent of the total so it's a tiny it's a tiny holding um but it was on that basis that it just made some sense for me to have some exposure to that market as a as a quasi passive part of my superannuation portfolio i have some nasdaq in there i have some vanguard small lords and some global so there you go so kind of you know as a as a as a as a box set I've got Small Lords, Global, NASDAQ, and Asian Tigers.

51:45They are the only ETFs I have in my super fund. And it was just for that kind of broad global exposure. I didn't have that Asian exposure to any of my other ETFs. So I thought, yeah, that sounds like something I could probably, you know, should have some exposure to. I have no idea where they go next. Maybe it was always a terrible idea. Maybe it was always a fine idea. Chinese companies, Alibaba in particular, was whacked by the Chinese government. Speaking of sovereign risk. So surprise, surprise. Yes. I mean, Alibaba has gone nowhere in 10 years, right? Yeah. Yeah. So that's part of the, well, it hasn't been flat, of course.

52:17It is now, you know, where it was, but very volatile in the meantime. Anyway, yeah, so I have a little bit. I don't think you need exposure to emerging markets for the sake of it. I do think global diversification makes sense if you're going with a passive ETF strategy. I think only investing in Australia is a very concentrated way to think about living your life. if your job, your house, your car and your portfolio are all in Australia only. You're just taking geographic risk you don't need to take. Not that I'm anti or worried about Australia at all, but looking back and going, something happened.

52:49Was it smart not to diversify or nothing happened? Did it cost you much to diversify? If you weigh up the outcomes of those two questions, I think it makes a lot of sense to have some global exposure. Do you need emerging markets? Probably not. Yeah, I don't. Look, it's just the opinion of one ill-informed person who's just shooting from the hip here. But I just, I think that you always need some degree of diversification, but I think it really does become de-versification when it is purely for the sake of it. It's like we often criticize a lot of pundits who'll say, you should own a bit of gold and you should own a bit of financials and you should own a bit of retail.

53:31And it's like, well, why? Again, back to my original point, I own the whole damn lot. I just sit back and go for it. Or I try and don't forget, your returns can be made significantly better, not by identifying the best performers, but just by actively removing what's likely in your view to be the best performers. Yeah, fair. Look at your own portfolio, not you specifically, like anyone listening. Take out the one worst performer over the last five years. Just the one and see what changes. you know it's like it's mass and this is really i think too many of us we all focus on oh what's the next you know after pay or whatever it happens after pay is a bad example these days um yeah you know um yeah which was kind of the point right but but but it's just like i i try to focus as much as i can as well as like well what's the one thing that i can what's the the tumor i can excise here from my portfolio rather than the supplement that i can add horrible analogy but you get where I'm coming from I do exactly know exactly what's coming from man let's finish off with a question from Adam who says hi guys I'm brand new to this podcast machine thingy and I can't work out what straw man is is there someone you can ask and get a rant no there's not no there's no one to ask if I asked you what strawman.com is you couldn't tell me you've already you've done your shtick for this week we've done it and yet Adam would like to know and you're going to deny him.

55:00Go to strongman.com, figure it out, Adam. You're a smart guy. You'll work it out. In case you haven't worked it out, I've been listening to you for years and thanks again for all your help. I know you can't give advice and I'm trying to get all the info to make my own decision. My question relates to an SMSF and when to start one. I've always been worried about starting one due to compliance regulations and penalties if breached. There also seems to be considerable ongoing cost with audits and accounting fees. I saw that one provider has just started a new complete SMSF service for$990 per year, including setup costs, but not including brokerage fees or foreign exchange.

55:34What have you heard about one-stop SMSF shops? Are they trustworthy? Couldn't they just jack up the fee later on? I already have Australian Super Members Direct with four ETF broad-based index funds and would do the same in an SMSF. When I ask an advisor, anyone, sorry, anyone who does an SMSF will say, yes, do one. He says in brackets, every barber wants to cut my hair sorry scott yeah thank you adam i would really appreciate some impartial feedback thanks and fool on adam go on mate i don't know the particular product i think there is a place for uh companies that can enhance the user experience and just making it easier straightforward doing it at a reasonable fee definitely right i'm no problem with that anyone who provides a service of genuine value deserves compensation for that in fact you know that's that's that's totally cool but it's such a broad question because within that you've got a whole bunch of shysters when i say shysters they're not doing anything illegal but they've they're gouging you know they've been they're charging prices that are well above what what is reasonable in terms of what they are doing.

56:47So it's hard to speak specifically. I use Australian super for whatever it's worth. And I even say that without having done an exhaustive search and pro-con, you know, competitor analysis. It was just like, I think it was when I was at the full with you. You know, I was like, that's who we went. Sort of stuck with them. They've worked out pretty well. It's a very, very low touch affair. So I don't end up copying much costs at all because it's a very inactive kind of segment. um but you do see a lot of things that are out there lots of bells and whistles and the rest of it i think the more of you actually for super i don't think you want necessarily two feature richer set because each each feature is going to be associated with a cost yeah correct correct and you just i mean you really less is more when it comes to these these kinds of things yeah you know do i need to um install a home gym and do all this kind of stuff to to get fit and hire a personal trainer to come around for three hours every day or i could or just you know maybe cut back a bit on the ice cream and go for a walk every now and again is it like there's there is there is there is sometimes the added complexity uh is is a negative because when there's a button and a lever to pull and push i'll probably do that and i'll probably be my own worst enemy not not to be critical of and just just we are and we've this we've touched on this earlier on in the pod it's just really for this kind of stuff just focus on what you can put into it let compounding do its thing stay broad stay basic you'll do pretty well could have you done better yeah obviously you know you could have bought bitcoin at a dollar you know one point in time does that mean that the smart investor put all their money into that in 2011 or whenever it was like no i guess it's crazy so i just i i am a little cynical on on a lot of the products that out there yeah um yes Warren Buffett talks a lot about the helpers in our industry by the way and I help us as well and so we're charging a fee for our respective products and you choose whether or not that's worth your money so you know we're not squeaky clean or wider than white here we're not doing it for love um there's bills to pay and you know business to build but I share his thought Adam you're so let me go DTS first I have an SMSF I wanted to have more control of my investments timing it is more controllable easier you're closer to the product you're closer to the investments you make the trades yourself all that kind of stuff is nice to have I got to say mate if I was trading stuff as well through Australian Super Members direct option it'd be cheaper and a whole lot less hassle just to do that so honestly I'm not a million miles away from going back to an industry super fund with a direct investment option because I'm like, I'm spending the money.

59:29I'm taking the time. There are other penalties. If I get it wrong, there's obligations, paperwork. I'm like, well, what am I getting extra here? And there is a real, let's be really honest with people listening right now. There's a real psychological desire to have control over things, right? Control is a really human desire. Control over our lives, control over our money, control over this. The whole area of super, it's your money stuff you know all this stuff is all about you know you control it you're better than this there's more bloody trading as we've seen it recently i'm not going to name the company um you know there's new ads on tv with the you know own the trading you learn to trade and then master the markets and all this kind of rubbish and it's all about playing to the ego of i want to take control because i can do this because it's mine so whatever whatever um we don't even want control when it comes to fixing the car or the wiring or by the way mate just quick heads up for our listeners while uh just for fun while we're recording this podcast got a message uh from someone up in the house saying that the guy digging outside has hit a water main so that's what i'm gonna deal with when i produce this podcast which is exciting uh but i'm not digging my own holes right well maybe i should have because i got hit the water main but you know what i'm saying um so look you know there's times when you should absolutely take control of your own stuff you should be responsible for it for sure but do you need an smsf to do that for most people it's actually no you know like money full advisors individual people are individual companies but we don't tell you you need to have an SMSF to do it.

1:00:47If a member's direct option or something similar does it for you, knock yourself out. Don't make life more complex than it needs to be, right? Make it, as you said, just make it simple. You know, the SMSF people will make their money trying to tell you to take control and play up to your ego and all that kind of stuff and you know, that's their bread and butter, right? Is it useful sometimes? Yeah, sure. Is it useful all the time? No. Should as many people have SMSFs? No. There should be fewer of them, frankly. And honestly, The ability to take a superannuation fund, which is in trust for my retirement, and screw it up by investing badly, I actually think there's a policy failing because honestly, people say, well, that's my man, I can do what I want with it.

1:01:26It's like, yeah, but you're going to still want the pension if you make a mess of this. You know, it's sort of a moral hazard, right? It's like, heads I went to go on the pension. That sounds okay. Why would I not take the risk? It's a very, very difficult combination to try and get your head around. The whole thing should be simple. I mean, super is a wonderful concept. Yes. You know, and then the finance industry gets its dirty little fingers involved. Exactly. Milks that baby dry. Totally. It just, I mean. Yeah. And it's such a non-productive component of our economy. Correct. You know, it's sort of like really, this is not strictly true, but I'd be very tempted if I was king of Australia to say with super, you've got one choice.

1:02:11It's a broad-based. Yes. Yes. equity, it just follows the market. You know, that's the prosperity essentially of our country. That's it. That's all you can do, you know. You don't need all of these products and advisors and accountants and everything sort of around it. It's basically become a tax haven for rich people. Unfortunately, it's been bastardized beyond all recognition. I mean, the amount of the literally billions of dollars that go into sort of administering something that really shouldn't be that hard. I'd probably actually tie it to our sovereign wealth fund, where you're basically, you know, that's it.

1:02:45It's one and the same. That's the default. That's it. You know, you don't have to invest in it any more than what's mandated above that. But that's the go, right? And it's a bet. It's a bet on our shared future prosperity. And I think it makes a lot more sense than, you know, having four negatively geared properties inside of it and, you know, squirreling away$8 million. You know, it's just, it's kind of sickening, really. It is. Mate, with that, I'm going to go and try and fix my watermate problem. I'm sorry, mate. I'm so sorry to hear that. How good is that? And then I'm going to go on holidays.

1:03:21But we have got plenty of podcasts backed up for you. We will be publishing, good Lord willing, The Creaks Don't Rise, every Friday and Sunday over the next four weeks. And then you and I, Ram, will be back to record some fresh episodes. By the way, I want to say fresh. Everything's fresh. It's all new. We've pre-recorded some so we can give you some podcasty goodness from the podcast machine. Pre-recorded freshness. pre-recorded it's still fresh fresh at the time of production yes first time around it's being kept fresh in the freezer and being bought out especially nice for the first time ever anyway I'm going to holidays enjoy if you want to follow me on Twitter please feel free at TMF Scott P or on Facebook at Scott Phillips Money you'll get some holiday photos in the next few weeks you can follow Ram on Twitter at Sage underscore Simeon or at Strawman Invest until next time Fool on cheers The Motley Fool and people appearing in this program may have positions in the companies mentioned.

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