“The best time to invest was yesterday, and the second time was to invest now"
Heney @DreamingMoor
I'm 24 years old based in Auckland, and I work at the hospital as a human resource administrator.
What is your background story? When did you first start trading or investing?
I've had lots of different investments like term deposits in the past and my dad gave me bonus bonds as a child and stuff like that. I know bonus bonds are not very good, but I used to have those. I still do peer-to-peer lending, but for the stocks, I started probably just before the COVID pandemic. It was done out of boredom at first and then I got more interested in it.
At first, it was mainly stocks, but I'm investing in mostly index funds and ETFs now.
Where did you hear about Tiger Trade and what are some of the features you like?
I saw it on a Facebook advertisement and my friend also referred me and I thought, yeah, I might as well give it a go because I was looking for an ETF to use for part of my portfolio, and I thought, Tiger Trade looks like a good app to use. I do like the detailed analysis of the graphs and stuff. You can also see the dividend yield and the P/E ratio of the stock or the ETF you’re interested in. That's always useful to know. And then for the ETF, you can check the profile usually, and you can see the different companies that make up the ETF. So that's always useful.
What is your Tiger Brokers portfolio size?
Tiger is probably at about NZD2,000 at the moment, but I'm planning on adding more over the course of time, until retirement, pretty much.
What's in your Tiger Trade portfolio right now and why did you invest in these specific companies?
So basically, at the moment, I'm only investing in small cap value ETFs, that's just companies with a low PE ratio, PB ratio, and price-to-sale ratio. And the smaller companies also provide a bigger return over the long term generally. The value of the companies also generally provides a better return over the long term. So, I'm just aiming for that stock-wise, and I’m also looking for like, stocks of low PE ratios too.
I'm more like a value investor, to be honest. I'm a mix because I originally had a large group of ETFs, I've stopped investing in that. I'm just keeping it parked. So, the ETFs I’m mainly investing in at the moment is SLYV - it's a SPDR S&P 600 small value ETF. So that's one of them, and then I'm looking at one that's called AVUV, that's the Avantis small cap value ETF.
I've got Macy's (M) as well, and then Rocket Lab and Virgin are the other two ones on my Tiger account.
What are your investing styles or strategies?
I like to listen to the Rational Reminder Podcast on Spotify. I'm also just more of a buy-and-hold investor, so I don't like swing trading or anything like that. I just buy it and then hold it for the long term.
How are your returns so far?
My SLYV is doing well at the moment, it's up like 4%, but it goes up and down quite a lot. It's quite a volatile ETF, but, yeah, the returns are doing well so far. Then I hope that the returns will keep continuing to go up.
If you could go back to when you were younger, what would you tell yourself about investing?
I guess you want to start investing as soon as possible. There's a quote saying, ‘the best time to invest was yesterday, and the second time was to invest now’. So, it’s more encouragement, I guess not advice, but what I would do is try to invest as much as possible. When I had money in the bank that was just sitting there not doing anything, I should have just put it into a broad-based, low-cost index fund or ETF that would have been the safest bet.
What stocks or options are you watching right now? Why?
I'll be honest, I'm not really looking at any stocks at the moment. I'm just focusing on my one ETF and index fund.
I'd probably invest in the tech industry, but it's just more of a fun and not really a long-term investment. I've got NIO stocks and Tesla stocks, but that's just still sitting and holding.
I think maybe in the future I'll look at Berkshire Hathaway (BRKB) or add that to my portfolio. So maybe in the future, I'll invest in that because it's a pretty solid stock, I mean it's just a strong financial stock. So it's got, obviously, Warren Buffett as the head of it.
What are the characteristics of your ideal stocks?
I guess when I did it two years ago, I did it on stocks that I used to like, for instance, McDonald's and I thought Pfizer was good at the time and that successfully that went up quite a bit and then I sold that off. Yeah, a low PE ratio and PB price-to-sell ratio too is important in a stock, I believe. I think it should be relatively ethical also, that’s a significant part of a stock to an extent, I think.
The small value cap ETFs have a lot of financials and industrial companies, I think. Usually, financials are the main sector though, and the small value cap ETFs and obviously the broad-based ones are just large growth companies. So there’s like a lot of tech industry as well in large broad-based ETFs or funds. I probably say I like them both equally. So strong financial companies and tech companies.
I guess you can say I'm interested in passive investing, so I am probably also a passive investor instead of an active one.
How do you balance between working and investing?
When I was doing individual stocks, I would just do it before I go to work. So, I would sit in the car for half an hour analysing the news and looking through everything. But now, I'm not really looking at the short-term noise, to be honest, I’m just making regular payments into my ETF and index fund, so I'm not really focusing on the short term.
What are your opinions on global stocks in the next few months?
As no one can predict the market, I can't give an analysis on that, but obviously, in the past, the market has increased due to technology and everything moving on. So, I believe that the market will go up and most companies will continue to go up, I guess. I know you can really be like, past performance doesn't guarantee future returns, but, when a whole global market goes up you believe in that, or you want to believe in that.
Are there any memorable achievements that you have made in your investing journey?
What did you learn from them? Yeah, I guess during COVID, obviously, everything crashed, and I was thinking, well, I think Pfizer will make a vaccine eventually, so I put a bit of money into Pfizer. I put some money into Pfizer, and then, like, half a year later, I sold that off, and then, yeah, I guess I was proud of that- my profit almost doubled. I could predict something like that, but obviously, you're not going to win all of them.
Are there any mistakes you have made in your investing journey and what did you take from them?
I guess the mistake is don't always listen to your friends all the time because sometimes, they tell you when the stock is going up and people are already exited. Or just don't always, get advice from YouTube and stuff, I guess because usually, they tell you stocks that they've already exited out of and then sometimes they just crash -pretty much just hype stocks.
What's your investment goal for the remainder of 2022?
My goal is to keep going with dollar cost averaging on my ETFs & index fund and trying to invest as much as I can pretty much into the two ETFs- I'm focusing on at the moment. And maybe I'll just have some leeway or some play money, maybe like 5% or so, just to have some fun or try something new. Because obviously, it gets a bit boring having just two things you're investing into.
“This information only represents the interviewee's opinion and experience, and should not be regarded neither as advice on acquiring or disposing certain financial products nor an endorsement on Tiger Broker’s products or services. Some of information being published here may involve paid or sponsored content by Tiger Brokers, its affiliates or business partners. The information presented should be only for your reference. Tiger Brokers assumes no warranty or responsibility for the accuracy and completeness of the information. Investors should do their own research and seek professional advice before using the services of Tiger Brokers and making investment decisions.”