Ask An Advisor

Hello and welcome back to Ask An Advisor.

A big focus this month for us here at Equity Mates is growing our mailing list. To do that, we have put some money aside for Facebook and Google ads.

But instead of running ads, we figured that money could be put to better use helping some members of the Equity Mates community with the current cost of living pressures.

Rather than putting this money into Facebook and Google ads, we’ve created three $500 Bills & Grocery prize packs. These prize packs include:

• $250 voucher to go towards your utilities bills from Bill Fairies

• $200 voucher for either Woolworths or Coles

• $50 voucher for BWS

To be in the running to win, all you need to do is refer two people to the Equity Mates mailing list. Simply share your unique link below, and ensure whoever you refer verifies their email. You only need two referrals to be eligible!

Competition closes 11:59pm, Sunday 29th October 2023.

Thanks for the support as always.

Have a great day!

- Bryce and Alec

This newsletter is sponsored by Fidelity

The week’s question

"When you hear experts speak about buying ‘good quality’ investments on the podcast, what do they mean by that?" Is there criteria for ‘good quality’?”

- Sophie, Melbourne, VIC

This week’s advice

This week’s advisor is Charlie Viola, Partner and Managing Director of Wealth at Pitcher Partners.

This response is actually an excerpt from a recent episode we did with Charlie, where the same question was asked. This was his response:

Charlie: I often say to clients that we have three fundamental things that we want to tick the boxes of in terms of the assets that we buy.

One, we want the assets to be producing revenue for them.

We want the assets to be producing income or at least have the ability to generate revenue over a period of time.

Secondly, we don't want to blow up the capital.

We don't want to be buying things that have got high risk of impairment. I look at risk very differently to what some people do. Some people look at risk in terms of asset allocation and growth assets and, you know, income assets or defensive assets.

I don't look at it that way. I look at risk in terms of the risk of impairment. So not so much the risk of it going up and down, but the risk of it actually turning to dust.

I take the view that large cap defensive equities are actually a defensive asset. Yeah, they change in value, but they're going to be there tomorrow. And if they've got good balance sheets, they’re well-run, they've got good competitive advantages, they're going to have an ability to generate revenue into the future. So buy those types of assets.

The third one is, make sure that you're protecting the buying power of your money over time.

You absolutely want to have more growth assets in your portfolio because you want the revenue that that asset can produce to increase over a period of time, not reduce.

You want to make sure that, you know, if you're buying any company or any portfolio, if it's generating a dollar today in earnings, you want it to have the ability to generate a dollar ten next year and a dollar 20 the year after, and 30 the year after, so that you can protect the buying power of your money.

About Charlie Viola

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A message from Fidelity

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So how can you find the ‘next Apple’ when there are more than 4,000 global investment opportunities to research?

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This information does not take into account any person’s objectives, financial situation or needs. The PDS and TMD for the relevant fund can be obtained by contacting Fidelity or on our website www.fidelity.com.au and should be considered before making any investment decision. FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”) issues Fidelity’s managed investment schemes. To the maximum extent permitted by law, Fidelity Australia, its associates and related bodies corporate disclaim all responsibility and liability for any loss however arising in relation to this information which is solely for use by and distribution to the intended recipient.

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