Share Club #3—Frances Cook and Pattrick Smellie

We held our third Share Club on 28 February at the NZX, who kindly hosted us for the evening.

Frances Cook—How to ride the sharemarket rollercoaster

Frances Cook, who hosts the personal finance podcast Cooking the Books, spoke to us about the roller coaster that is the sharemarket. She encouraged us to remain investing in the market, even when it’s down, and to use dollar-cost averaging as a technique to develop your wealth.

In terms of investing, doing less is actually going to provide a better result in the long term than fiddling with your stocks on a daily or even weekly basis. According to the Wall Street Journal, in 2016 “between 71-93% of US mutual funds were beaten by the closest comparable index fund”. In other words, passive funds, like the ETFs on the Sharesies platform, perform better than funds actively managed by a person.

So in short, do less, and start as early as you can. As Frances said, the two best times to start investing are when you’re young, and NOW!

Pattrick Smellie—The big influences that shape the world economy

Pattrick Smellie is one of the founders of BusinessDesk, and has a long journalistic career writing about the economy and finance. He spoke to us about the big influences that shape the world economy—global debt, population growth, materials consumption, and climate change to name a few.

A few takeaways:

  • The New Zealand economy has performed strongly compared to other markets

  • Despite the political turmoil in the USA and their massive debt burden, their economy will continue to perform

  • Mogadishu will become one of the most populated cities in the world by 2100

  • The two engines on an A320 travelling to Auckland uses enough energy to power the city of Hamilton!

Thanks to the NZX for hosting us, and to Six Barrel Soda for the drinks. And thanks to the Samba dance group who danced through our Share Club presentations.

If you’ve got any feedback, we’d love to hear from you—especially if you have suggestions for speakers and topics. Send an email to [email protected].

Keep an eye out for the next Share Club, coming to a centre near you!