Interview with William Rhind

Automatic TRANSCRIPT

The welcome to the breakfast leadership show where we interview global thought leaders on business leadership in life. Here's your host keynote speaker bestselling author and chief burnout officer of the breakfast leadership network. I go eleven. Welcome back up yet. We'll ride on the line. We'll how are you very well. Michael very well. Thank you great to have you on the shore and talk some investing today and all kinds of different things and we talked a little bit in the pre show about the timing of this recording is right after the. Us presidential election and at this moment in time. We still don't know who actually is going to be declared but eventually get there but we talked about how situations like this can make the market a little volatile in when investing. Let's one thing you're kind of afraid of or you can look at as an opportunity but before we jump into that too much share with the audience a little bit about you and how you got into this role and then we'll dive right in show no happy to so founder of a company called granite hsieh's and we're an asset manager but we specialize in a particular type of fund golden exchange traded fund. So simply assistant. An investment fund bat is listed on the stock exchange and you buy a shares off just as he would buying jazz apple or any other company so we offer a number of different types of exchange traded funds. Anything from goals to launch capac weddings. The film is based were based out of new york city. That saw headquarters. But i've been doing this for about twenty years. Although this is the this is now my own business The asset management industry for the last twenty years so the building imagine businesses within the exchange on space. And it's a it's a great field and a lot of people aren't necessarily familiar with these funds. And how they are made up of because even this morning you know looking at my own investments. I'm looking at biotech. I'm looking at healthcare looking at infrastructure and manufacturing a lot. You know these are areas where going okay depending on who ends up being named president and assuming everything gets sorted out and that person also gets to be president on january twentieth world's funding place. We don't know but all depending on who ends up being president in will dictate and one what industries may see a rise in investments and. That's why i was looking at some of those things in you know. Etf funds or are definitely in to do it so your share a little bit more on on the exchange traded funds in in specifically you know what kind of makes them up because a lot of people say well you know what what what stock do i buy if i wanna get into biotech or healthcare. Show i look at this or any of those things and these funds are actually in my opinion anyway. Just my opinion not giving any financial advice. Just my opinion is a good way for people to get into some sectors and then of course as they get more familiar with investing in investing wisely I don't know if anybody's ever smart investing but the the wise tends to be the thing works for me but it's a good way for them to get into a particular way of investing in a particular sector sectors that they like and then get a little bit more knowledge so sure sure we should know about that. I mean just to rip off bats. Wed is going to start. Is the people that may or may not have a very specific view in terms of a particular company that they want to buy a deaf with investment company because like the the prospects of the company they know the brand whatever the reason is but i am the best snapped company now for a lot of people. They don't ca specific view on walk. Company is going to do well. What what stock should i buy. And so they might have a view of what particular segment of the market. I think might do well or in your case for example you. Would you mentioned biotech. So view the biotech sector that could be beneficial of Know which particular goodbye. An exchange traded fund is a good option for that investor. Because you're buying fund that has exposure to a lot of different biotech stocks in that particular sector in that phone and therefore you don't have the deal with the will be cool to stop. Specific risks of betting on one particular company. Bus is another. And that's really. The beauty of the concept of exchange traded fund with a lot of people will be familiar with mutual funds. And of course the accident. My view century funds. Maya kind of a new technology That are replacing the mutual fund. And they have the same sort of construct terms if you get exposure to fund Bought it has a lot more flexibility. Because it's listed on stock exchange you combined sell whenever you want at tend to be Costs than mutual funds from a management fee perspective and more tax efficient as well so these are all benefits that that clearly resonate with a lot of investors and that's why to six trillion dollar industry now globally and so forth that. You're the rambo gives you exposure to all sorts of different join says which investors also like. So you know it can be by. Attack can be gold. It can be a particular basket of bombs that can be all sorts of anxiety sectors themes and. I think that's kind of a cool. I'll be appeal. We talked a little bit in the show to about volatility. And and that's one of those things where it's opportunistic in a way because if the markets are volatile than you can you look at those things and i think with the shane traded funds. And i love the brought in mitchell funds. A lot of people will think what sounds like a mutual fund but again. You've got more flexibility with it and you know. There are several exchange traded funds within sectors. You know and you can really get quite granular about it. Go i wanna go in this one or this one seems to be performing better over a period of time and again it gives you as an investor a little bit more hands on approach. Because i've always felt that mutual funds. And yes you can go in and you can change your risk aversion type of portfolio. Move a little bit from this to this. But i've always looked at those as kind of a static. Here it is. This is our bucket. These are what we have in here. Where an exchange traded fund. You may move some things around a little bit a little bit more quickly than you would see in a mutual fund type of environment and the other thing that's changed. Michael is that You know nowadays the way people access investments is a lot different. The way they asked us the best is twenty years ago and so even ministers evolving all the time obviously but just in the last few years the rise of investment trading applications such as robin hood. Such a robo advisers. No such as Adamant well front. They've really improved the access. That investors have to mock. It's and made it a lot easier and simpler now obviously for robin hood. Centra you get access to etf. Because e t ap suggests trade stock exchange these apps and not necessarily providing access to mutual funds in a way that The kind of old school way of investing did and so again it's adapting with the times that is not just about the the actual product itself but the way we access financial services is also changing and that benefits. The new technologies in the mock. It's yes in the fact that it's a you know. He said six trillion dollar industry. And that is just gonna continue. Because again and again i love the you mentioned the accessibility. Were you know. Got investment apps on my phone i can. I could be anywhere. And so you know what i'm going to buy this. Etf or i'm gonna buy shares of this particular stock because I heard somebody say something about our. Our orders are going through the roof for this particular thing and like ok. Well who makes the stuff that makes the stuff is i forget who told me that tip a long time ago but this okay if somebody will will pick on twitter for second. I didn't wanna get into you know individual stocks. It's like okay twitter. What platform do they use to run twitter. Will you find that out and go. That's the thing that makes the thing and go get in you find out. And there's even there's a software that i got or A stock that. I picked up a while ago. That more or less as the back end of pretty much every game that's on smartphones will. Yeah they're going to do. Well i so again giving stock tips but it's like as an investor. You be a little bit more aware of what's going on around you because there's monetization possibilities and investment possibilities if you just think about who makes us or sales of this are going up a whole who makes that. What are they selling. Best buy is going gangbusters. Start what what is what they sell all right. Well then you can drill down all of a sudden you can start building a folow or etf. Way i find is a great way to do it because that way. It cuts down on the work. Because if you if you're buying two hundred shares or two hundred different stocks trying to manage that care. How good your added excel or using any type of software platform. That's a lot of work. But if you have exchange traded fund in the sectors you're interested in you can look things up. Okay well good. It's there's a little bit of a dip today. Well you know it's like by the dip. Sell the rip. It's like all right. Let's let's go ahead and buy by some of that because that's at a price that's good and it just gives it's fun i mean i i find it fun. I know a lot of people probably lose their while. I lost my hair for some other reasons. But i know a lot of people fuller hair out because they're trying to figure out the market which is a lost cause and many cases but over the long term it does create. So where do you see. Exchange traded funds going over the next five to ten years. What would we see anything new on the horizon coming up with them other than obviously more awareness for people that are just getting into investing. The industry will continue to grow. Because what's really been happening is. They've been taking market chef for traditional mutual funds. And that's really the trend. Since i started in the business now kind of twenty years ago and so that will just continue as people realize that. There's no need for the legacy technology and people one more choice. They want lower costs. They want more transparency more flexibility. So i think in that sense it will grow. Obviously the the number of funds all the strategies that are offered through the actual grow as well as market conditions change because as you rightly boats out earlier you have. Volatility volatility creates opportunities within the market. And so the the economy's always changing. The market's changing than so the investment opportunity set is also always changing and the way that technology for example is changing so rapidly that that will inevitably be different investment opportunities in five years. Time than there are now Maybe those will be more attractive. Less doesn't really matter but the point is that will be different things to invest in different periods known as the economic cycle progresses. A right now. We're overseeing an environment where we have ultra low interest rates again we have arguably a dollar that's weakening and we have a fiscal and monetary environment that favours stimulus in other words. Score a government spending money printing through the central bank and so that sort of trifecta of events leads to sun investment outcomes and oversee of interest rates which arise or if government spending was the become back will central bank to pull back on stimulus programs. That were change And the be different set investment properties. So i think the key is the you go joyce flexibility and it's something that i think we'll continue over time and i love the flexibility of them to you said something just a second ago that a lot of people don't necessarily grasp as markets go up by can go down a little bit but not everything is down there sectors that do well. There are sectors. That will maybe not do as well. You know when you talked about Again i think in the in a pre show probably should record the second. We started because i started saying all kinds of fun stuff but depending on how the outcome of the us presidential election comes. There's going to be certain sectors. That will get some significant investment. Not only from stimulus but just initiatives and projects and plans at the state local and federal levels in the us and internationally as well I remember you know. There's close to three hundred countries on this planet and some of them are doing some amazing things impact the work. That's being done in the us and anywhere else in the but that's the thing like you might be for example like in tech sector okay and you're like okay. Well the tech sector goes up and down like a yo-yo and even a couple of weeks ago when it was earning this week Kind of like shark week but earnings week. Who was just like okay who isn't reporting their earnings. Today it was nuts. Most of them you know blew out the door. And had you know beat estimates speed everything in their stock went down and as a novice investor. You're going wait a minute. what is this all about. Well everyone the world was worried about the coronavirus cases and then of course. We didn't have the election yet. But everybody's worried about that so it's it can be volatile when it comes to things like that but again with investment. It's a long term thing but again going back to exchange traded funds. Yes long-term but you have the flexibility to move things around and play with it and take advantage of what sectors are doing so if there's a big influx in healthcare dollars you're like oh where do i go look for the healthcare s and in invest in some of those. If that's where you wanna go population's getting older healthcare is going to be around. There's going to be investment in. It doesn't matter what party ends up winning There's gonna be dollars. Spent there but i guess for for investors and i think seeing some audience are probably novice really novice or may haven't done anything in this are some i don't want i want you to you. Know pinpoint specific funds or anything like that. But where some common ones do you see. A lot of new investors. Go to kind of go across the board but is there any ones that they tend to go to any particular sectors that they tend to gravitate to when they come to talk with you and your organization and i think The way that we think of it is again. It's just for obviously simplicity's sake trying break down such but typically investors need no one of these either one of these cool three things. All all of these three things Which is they need diversification. Which means that they need different strategies. Different investments that. Don't move in the same way. And they need diversified portfolio They need income and they need longtime capital growth and typically those kind of the three week old building blocks or three pillars of most investment philosophies. Now some people. If you're young you might not necessarily prioritize incomes. That might not be as important to you as someone who's older for example but those are kind of three pillars and so what we try to focus on a granite says providing solutions to those so we have solutions for diversification for income amfar long-term capital growth. But i think stepping back maybe a second to your question directly which is what funds the typically would people by the cleared the most common ones in terms of you're talking about the largest from an asset management perspective that by far and away the largest one would be the s. and p. five hundred. Now we don't offer that particular fund but you could imagine that that's clearly a popular vehicle for a lot of people specifically investors who investing for the first time. Where you know. They're just buying getting exposure to the stock market more. Broadly don't have a view on which stock his best buy which sector is best to invest in just a view that potentially the stock market could go off over time and therefore just want to station to that. That's my far and away the most popular. Bend anything you have other ones such as their the nasdaq one hundred. Also very popular benchmark will be benchmark index. Which is followed. By loss of people that's typically synonymous with more technology focused companies But again that's that's very popular also fixed income side the bond side you have. You know bombed diversified bond portfolio's bone disease which also popular so. I think it's probably not surprised that the the most popular. Ats will be those major national benchmarks or indexes that get talked about on the news media etc. That people familiar with. And you know that that's really sort of where a lot of people look to invest particularly people who are best into the first time in then as you get better at it than you can start realizing that you know i'll pick on. I'm not gonna name or stocks but you a lot of people say we'll buy this particular stock has it's going like gangbusters this year and you buy it and it's four hundred dollars a share and it ends up being you know getting up to like four fifty four seventy five. So you're making fifty seventy five bucks share not bad or if you buy a stock that you debuted it twenty and you bought a bunch of shares of that and it jumped up to four five hundred well. Needless to say Same share price. But what you got is a lot different. So a lot of people say well. I gotta own tesla. I gotta get zoom. I you know all these big players like what's your goal you know and again i'm not an investment advisor at all but i you know i talked to people and ask your adviser to ask you. Where s yourself. What is your goal with this. What do you want to do. He just doing your board. You want to play around with stocks and you've got some play money find gopher investing for your future goals work backwards. A steve jobs told us okay. Then you need to adjust accordingly and figure those things out and get you know. Take some time to get some understanding on working with individuals like yourself to get a better understanding of what the options are because everybody goes to the shiny object of the nasdaq or the smp or the down dow jones industrials. Were up this. Everybody thinks the whole market was dead. We dropped everything and like you. You look at some investments. Allow one of my one of my investments was up a ten percent today. You know chicken little screaming over here. And i'm like oh that was a good day but it's just the diversification like you said is so important. Don't put all your eggs in one basket because if a particular sector oil and gas for example that that's not an investment. That looks really good at this particular moment. Time based on what's happened not to say that it won't look good later don l. but again when you diversify it. Minimizes those you know. Kick in the teeth type of Events when the market does you know. Have a large drop in investments. And and by all means if you're in this for the long haul don't worry about a day drop or a couple of days drop because the roller coaster will drive you batty if you if you look at it every day awesome so well enjoyed our conversation today in love talking about investing do that all day and i wouldn't say what should we do that. That's for people to reach out to you and talk about. So where can people find out more about you in this awesome organization. Yes yes so. People can reach out to us The website is greenwich hsieh's dot com just as it sounds granite like the stone or the rock. A shit has as much as those talks greenwich calms at websites. You can see what we do. The funds we have available and you can contact us directly. Draw contact us page onsite perfect. I'll definitely have that shutout. So we'll thanks again for the saas mark that you do and continued success with the investments in navigating through this ever changing world. Michael thanks so much having me on the show. It's been a pleasure thank you. Thanks for listening to the breakfast. Leadership heart of the breakfast leadership network visit breakfast leadership dot com for tips on empowering your business and your life.

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