Ask An Advisor

Hello and welcome back to Ask An Advisor.

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- Bryce and Alec

This newsletter is sponsored by Australian Property Scout

The week’s question

"If I have $10,000 or $20,000 or even less, how should I think about splitting that across my investment options?”

- Bryce, from this Equity Mates episode

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: My counsel always is if you got a small amount use the same principles, but invest in options that are suitable for that smaller pot of money. Don't cut up your pie too thin. Think about good quality ETFs that have got good quality underlying assets and have a material amount of your pot of investments in those good quality assets. 

If you've got a small amount - less than $100 each time or less than $50,000 total to invest - you really don't want more than two or three lines of investments, to be honest, because you end up cutting up the pie too thin.

You end up having immaterial exposures that even if that exposure grows 100%, it actually doesn't change your life.

So if you've got $50,000 and you've got 20 lines of investments, you know, simple maths tells you you've got about two and a half grand or two grand or whatever in every investment. Even if that thing shoots the lights out, two grand turned into four. It actually hasn't changed your life.

You want a greater exposure or more material exposure to normal, good quality lines of investments and allow efficient market theory to do its job over the medium to long term. 

Alec: I can see Bryce tapping away on his computer. I think you might be selling a few lines of his investments right now. I do have many lines as well as all of course…

About Charlie Viola

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Keep learning

Podcasts

This week on Equity Mates Investing Ren made a big call about interest rates, Bryce discussed moving house, and Andrew Page is back for the final session of Mentored for 2023.

Online courses

The Rask Value Investor Program with Equity Mates, is Rask’s full online investor training complete with stock market valuation templates, Excel downloads, investing checklists, case studies and hours of HD video.