081: Building Wealth Safely: The Power of Diversification in Shares and Investments with Terry Tran

The quest for financial security and abundance often leads to exploring various options, with shares and investments emerging as popular choices. However, in the ever-evolving landscape of finance, individuals and investors are constantly seeking avenues that build wealth while minimising risks. 

In this episode, we speak again with the founder of The Freedom Trader, Terry Tran and discuss how to build wealth safely through the power of diversification in shares and investments.

The volatility and uncertainty inherent in financial markets make it essential for investors to employ strategies that can safeguard their wealth. One such strategy that has stood the test of time is diversification or spreading investments either in property portfolios, market shares, exchange-traded funds (ETFs), and more. 

By allocating investments across a diversified portfolio, investors can reduce the impact of adverse events that may affect individual assets or sectors.

If you’re a business owner, it’s crucial to learn the lifetime skill of investing and being able to diversify your investments. Eventually, you will recognise that different asset categories perform differently over time, and by having varied portfolios, you reduce risks and ensure business wealth safely.

IN THIS EPISODE, YOU’LL FIND OUT…

• Why it’s important to create wealth and investments outside your business (02:40)
• The three levels of financial freedom (03:59)
• Case study: how farmers build their wealth through shares (06:42)
• Why you need to get yourself educated about how to invest (09:33)
• The significance of a 30-minute routine looking at trading opportunities (13:20)
• How often do you need to check the market for sales? (19:49)
• Why you should learn the skill of investing to become a freedom trader (23:22)
• The most challenging part of investing and building wealth in shares (27:33)
• Getting clear on how an individual portfolio should look (31:03)
• The average timeframe to start investing (36:43)
• Terry’s 500k, 750k, and 1 million benchmarks of financial security and abundance (40:25)
• The advantages of property portfolios (43:30) 
• Learning when to sell and buy shares (52:05)
• The average percentage to get strong returns (54:35)

QUOTES

• “The main thing is that as you’re scaling, you can still comfortably sleep at night. There’s no point in investing when you worry about your portfolio and business every night.” -Terry Tran
• “As individual investors, we’ve got a massive advantage. But we’ve got to take advantage of it because a lot of people with fear and greed will eradicate that advantage.” -Terry Tran
• “If the sun is shining in your business right now, make hay and celebrate, but don’t get complacent.” -Carl Taylor

Resources

FREE Live Online Stock Investing and Trading Masterclass

Entrepreneurs Rising episode 060: Making Money From Outside Investments with Terry Tran

Get In Touch With Terry Tran

• Website: www.thefreedomtrader.com 
• Facebook: https://www.facebook.com/TheFreedomTrader
• LinkedIn: https://www.linkedin.com/in/terrytranlinkedin/ 
• Instagram: https://www.instagram.com/thefreedomtrader/
• YouTube: https://www.youtube.com/c/ThefreedomtraderTerryTran 

ABOUT TERRY TRAN

Terry Tran is the founder of TheFreedomTrader.com.  

A place that drops all the BS and hype, and is dedicated to helping you create financial, time and location freedom outside your business through safe, consistent investing and trading in every market condition, even if you are a complete beginner. 

TRANSCRIPTION (AI-Generated and may contain inaccuracies)

Terry Tran Snippet (00:00):

It sucks that business, right? If something works, you’re gonna scale it. Like if you’re doing ads, whatever, if something’s working, why not scale it and add more to it. Of course, of course, you always start small, no different to investing. It’s exactly the same thing, you start small. 

And then when it works, you scale up, everybody’s different. So it’s important that you feel comfortable of how you’re scaling. The main thing is that as you’re scaling, you can still comfortably sleep at night. That’s the main thing is there’s no point in investing, and you worry about your portfolio every night, whilst also worrying at business, then you’re gonna have now a double headache.

Carl Taylor (00:43):

Welcome to another episode of Entrepreneurs Rising, and it is an absolute joy to be able to bring you a very special guest for the second time, Mr. Terry Tran. Hey, Terry, how you doing?

Terry Tran (00:54):

Very welcome, and always a pleasure to be

Carl Taylor (00:57):

Yeah men. I’m excited for this combo, because in last conversation, we had to kind of just stop, we could have probably kept going for a couple more hours really with where we were going. And I just It’s always such a great time just chatting to you and your your wealth of information. And obviously, we both are quite passionate about this topic of wealth building. And so for those listening, if you do not know who Terry is, firstly, listen to this episode. 

But then if you’ve enjoyed it, go back and listen to our first episode where we talk all about kind of the starting phases of investing specifically in the share market as a business owner, that’s what Terry does. So Terry is the founder and lead investment mentor, if you like at the freedom trader.com The freedom trader.com. 

And effectively, he helps business owners just like you to figure out how to actually make money in the share market and do it in a way where you know, if you’re familiar with share market trading, you’ve got people who are more passive investors, which is what I’ve typically done where you know, you just stick things into ETFs maybe have a couple of specifically selected shares, but you’re more of a buy and hold kind of guy, whereas Terry teaches you Yes, well how to do that in your portfolio, but also how to be a little bit more active, not crazy day trading, active, but just a few key specific, well thought out trades. 

And that can give you a far greater return. And that was one of my biggest takeaways from our first conversation, Terry was how you were getting around and aiming for around that 15 to 20, maybe 25% kind of returns in a year. And it really got me thinking because I was like, Yeah, I’m passive approach is great. 

But I’m getting say eight to 10% returns, if I move to be a little bit more active, not majorly day trading, because that’s not me. But if I just go a little bit more active, if I could be getting the same kind of returns as Terry, that’s really appealing. 

So I thought today, we get you back, we’ll just see where our conversation goes, because we have such great combos, but I really thought if we could dig into the nuts and bolts of some scenarios of business owners, you know, obviously we can talk about our own experiences. But I know you’ve helped, I don’t know, hundreds of people now to build start building wealth outside of their business through the shares. Yeah, but let’s just kind of go from there. I don’t know. Like, firstly, anything you want to say before we dig in?

Terry Tran (02:56):

No, I think it’s important that like what we said from our first you know, conversation that it is important for business owners to always think about investing and create wealth creation, outside business, no matter what then that way one, it gives you that stability factor where you know, things don’t go always right. 

And as business owners, we know that things don’t always go right, when you face challenging times, etc, then you’ve got that asset portfolio to take you through those tough times. And on the other hand, the other thing that I think is that’s even more important too, is because you’ve got something else that’s sitting there and growing, it gives you also a great mindset that if you want to test out new ideas within the business, and you know, inject a fair amount of say, capital into this new idea that may or may not work out, you don’t have that fear, because you know that even if it doesn’t work out, I’m fine financially, because my family is still okay, I’ve got food on the table, I still pay the bills, etc. 

So just frees up your mind to actually run your business like you should, rather than sort of having that fear that, oh, if this goes wrong, it has to go right. And things just can’t go wrong of testing new ideas. So I think that’s really

Carl Taylor (03:56):

is there really is something right about having that safety blanket if you’d like that security, when you hit that level of I think of financial freedom in three levels, you got kind of financial security, where just your basic necessities are being taken care of by these passive or semi passive sources, then you’ve got financial freedom, where your necessities and your luxuries, your lifestyle costs are being covered. And then you’ve kind of got what I call critical mass where you basically got double your lifestyle costs and necessities coming in. 

And I think when you when you first hit that financial security as a business owner, because for most of us, we’ve never known financial security, right? Like you’re being your own business. You’re like, Yeah, I’m in control of my finances, which is really exciting and empowering. It’s also scary as hell to because it’s truly within your control and the control the market. It’s not always in your control, the market can change, things can happen. 

And so knowing that if everything goes bad in business, that there’s at least something and I want to talk specifically quickly to the Australians listening because I know in my conversations with a lot of Aziz is usually when you’re in business, you’re not paying yourself superannuation or only a very small amount of stupid tuition. And so it’s even more important if you think about your friends who are employed. 

For those listening who not from Australia. Superannuation is basically like think of it like the Americans called I think an IRA or I guess, correct IRA. Basically, it’s like the government enforced that a certain amount of your salary gets invested into this type of fund. And so employees get that, but a lot of business owners don’t put themselves through the books as an employee all the time, meaning that they’re not, you know, they’re saving themselves the cash, but they’re not actually building up any wealth outside of the business. 

So that’s why if you’re in that situation, you definitely want to be paying attention. And then as something else, you said, that really came to mind and reminded me of the saying of Make hay while the sun shines, and I know you work with a lot of farmers. So this could be a good segue to talking about some businesses, but I’ve been in business for a long time, Terry, I know you’ve been in business for a long time, I’ve had businesses that have done exceptionally well. And then I’ve had businesses that have gone really badly. 

Some businesses I sold, other businesses I’ve shut down, and the saying of like, basically, if the sun is shining in your business right now, make hay, that’s amazing, we celebrate, but don’t get complacent to go. 

Because I’m successful. Now, I’ll always be successful in business. I’ve seen it happen to myself, I’ve seen it happen to others who are really amazing at what they do. And then they kind of sell that business and go to the next business expecting to succeed in the same way that they did in their last business. 

And they get humbled when they realize that, oh, there’s a whole lot of variables that are different. And I’m not I don’t have a golden finger that just makes everything work. Let’s segue man, let’s talk about I know you work with a lot of farmers, why don’t we start talking about a farmer and how they go about building wealth outside through shares? Sure. So for farmers

Terry Tran (06:32):

is even more different and even more in a way even more risky as a business because, you know, as business owners, we’ve already got a lot of variables, like you see where things can go, right. And things can go wrong out of control. And, you know, while you’re saying that straightaway, my first order was, you know, only a few years ago, when we had COVID. And a lot of business owners that had the on the retail in, especially read restaurant tours. 

And I spoke to my accountant, which deals with a lot of big businesses that run multiple restaurants, and they were in very tough times, you know, thinking of, you know, how do you survive this thing, how much staff have to cut off etc. 

So those events, you know, uncontrolled, they do happen, farmers on the other end also have a lot of what we deal with, but then on top of that they’ve got the constant weather issues, is there going to be good weather this season, not good weather, flood, bushfires, droughts, etc. 

So they’ve got even added issues on top. And then on top of that, they’ve got even more potential geopolitical risks of, you know, trade, sanctions, etc, which every time things go wrong, there’s trade issues between US and China, for example. And then at the same time, commodity prices changing. 

So there, they’ve got just a myriad of issues. So these farmers, very tough people and very smart people to not only run the business, but also survive. So I just find it very, I guess, nine fun, but also inspiring, see how they run their business, but also very grateful that I can actually help them create that portfolio to survive these type of periods in terms of the number of farmers that we’ve helped, and a number of them had been nice enough to be interviewed, in fact, go on a phone interview to show share literally been, and you can check that on our websites, go onto their farm and see what they’re doing. 

And also share with him their daily what they’re doing on the farm, but also what they’re doing investing outside after we’ve showed them how as well, I guess an example. Yeah, give me

Carl Taylor (08:09):

an example. Like, how do they like, how do they how do they like there’s two questions, I think we got really good to focus on. How do they start, right, because most people listening have got a business have been in business for a while they potentially got some cash flow, it might be a lot might be a little bit and they’re just like, yes. How do I start? What does that look like? 

And then the second thing, I guess, is how do you balance? Taking that money out of the business to put in investment versus keeping to reinvest back into the business? Right? What have you seen? When either what do you recommend? or what have you seen, and let’s just quickly write out at the beginning of this, and we’ll make sure we say it again, at the end. 

This is not personal advice. This is sharing our experiences and general advice. Please seek your own personal advice before you action, anything you hear, yeah,

Terry Tran (08:51):

no good. So in terms of you know how anybody starts really, in the end, it’s especially knowing what you’re doing just at least get some form of basic education, either they’ve gone to our blogs, whatever, and find out how to invest, you know, take the time you need learn, and invest in a way that is right for you. 

Because not everyone has one. It’s all about time commitment as well, because like you said, some people are totally passive investors, which they might just be more towards, say, exchange traded funds. ETFs. And if that works, then that’s fine. At least you’re doing something or some other people don’t know I totally don’t not interested in this. I just want at least having investments in the background, maybe speak you know, speak to a financial advisor or planner. 

But I always say that you have your own at least know what even if you give it to them know what they are doing as well because it’s not good just to blindly trust someone because in the end, you know, blind faith that hopefully everything goes well. So how you start definitely some form of education, at least the basics, and then literally start small. 

I always tell people no matter how much you have no more than you know people say Oh, I can afford to this is what I typically ulterior. I can afford to risk five or $10,000 You know that saying I’ll invest the amount when you start off With what you can afford to lose, I always say, yeah, don’t ever do that, because it’s a silly idea. Sounds prudent, but it’s silly, because why would you want to even lose that anyway, so that seed capital should never be lost. 

Because if you lose that one, you’ll lose confidence that, oh, this really doesn’t work for me. And the other party is not ever really starting again. And that’s even worse, because you’ve got so many more years to live, and then you lose that compounding. And the longer you wait, the less compounding time you have. 

So just start small. And I always say even if other people who complete our program, I say, you know, they might say they’ve got hundreds of 1000s dollars, I always say no more than 10 20,000. At the most. The reason being is that it’s important that you understand the process, follow a process, a proven process that works, but not a process that someone says that it works I need that tells you that your works, show yourself that you can follow the process. 

But then I always say this is a very black and white game, within its three to four month period, you’ll easily see results on a percentage wise, dollar wise, it’s not gonna change your life, because you’re this morning, starting with a small account, you’ll make some money, but that’s not the issue. It really what you want to do is prove to yourself that the process works. 

And you’re going to see percentage returns. And when you see that naturally, as human beings, we’re going to go, oh, this actually does work. Now, we want to throw Well, naturally great, yeah, it’s okay. It works. It sucks that business, right? If something works, you’re gonna scale it. 

Like if you’re doing ads, whatever, if something’s working, why not scale it and add more to it. Of course, of course, you always start small, no different to investing. It’s exactly the same thing. You start small. And then when it works, you scale up. And everybody’s different, like so also, when should I get to six figures or whatever, everybody’s different. So it’s important that you feel comfortable of what how you’re scaling. 

The main thing is that as you’re scaling, you can still comfortably sleep at night, that’s the main thing is there’s no point in investing, and you worry about your portfolio every night, whilst also worrying business, then you’re going to have a now a double headache. 

So business is tough enough, have this side of things that just runs in the background without much thought, of course, you’re thinking about the investments. But during that half an hour a day, you think about that, and then let go of it, do the investments, and then go back to your main cashflow source, which is the business. So the investments large should never in a way take over the business, but also take over your time as well and plus family. So it’s sort of a side thing.

Carl Taylor (12:15):

Can we quickly jump on that there too? Because you talked about there about 30 minutes a day? Is that Is that what you think truly is required every day to be able to have 30 minutes? And what are you typically doing in that 30? mins? Do you actually placing trades? Or is it just action? You’re just looking at what the markets happening in the market? Like? Yeah,

Terry Tran (12:33):

yeah, great that you asked that because so firstly, you have to have a systemized process. If you’re just willy nilly reading Wall Street Journal financial Australian Financial Review, here’s the 30 minutes we’ve taken up by doing that by just reading headlines and wondering and guessing what’s going on around the world. And it’s important that we look at the data. 

So if you’ve got a process to know what data is sought through how to also set up the systems that now scan through the stocks that fit a certain criteria, fundamental analysis, which is strong companies that meet certain Guide Financial guidelines, like our business, you know, if they meet them, then those paths for the next phase of valuation. 

And so when I say 30 minutes, it’s 20 to 30 minutes, but that’s an average, some days, it may be five minutes, if there is no low hanging fruit, no opportunities, forget it, but don’t force it, the market will give you what it gives you don’t just go in there and try to force an investment or force a trade when what I call nothing’s on sale. So we want to make sure that we find things that are on sale. In other words, bad news about the economy, about certain industry about a company is actually good use for good long term smart, intelligent investors. 

So when there’s no bad news, and everything’s all up in the eyes, and everybody’s all in euphoria of the next best thing, type thing, stay out of it, because that is priced. Yeah, it’s overpriced. And you’re getting into what you may be actually buying at the top of the market, taking it off someone who’s smart enough to actually sit back and basically steal off to you.

Carl Taylor (13:56):

So I remember I remember a mentor of mine once said it was about real estate but I think it’s true in just all investing in general. Yeah. Because like when you get in the taxi and you taxi drivers telling you about all these investment properties bought that’s when you want to get out of the market you know, a crash is about to come. 

I think I think it’s true like when you just when you see that like it’s headlines constantly talking about all the successes the wins the new highs, and I’m thinking about cryptocurrency now too, I know a lot. straightaway, right? Yeah, you know, you know that you’re at the top of you know that something, you might not be at the top but you’re heading there, you’re getting towards the ready for the next drop. 

And it’s a cycle and that I think one of the biggest things for me when it came to investing in shares, but investing in anything was actually the realization that it’s the market is cyclical, and meaning there’s actually multiple markets usually going on too. So it’s not just there’s one market everyone thinks, Oh, there’s the share market or the property market or it’s like no, there’s actually multiple markets within the markets but there’s a cycle they all follow this consistent kind of cycle. And when you understand that you can start to be like, Okay, well when it’s down if it’s a good fundamental products. 

And that’s where you know, Terry, I know in your training you teach how to understand those fundamentals how to identify is this a good long term kind of business? And then how do you know it’s on sale? Because, you know, people freak out and go, Oh my god, the shares are down, I’m gonna cash out I’m gonna sell. It’s like, no, no, no, check. Is it still a good long talk long Hold Value business? 

Well, now you might have bought it $100. Now it’s $50. I’m just using easy numbers. What that means it’s on sale. It’s like you going to your favorite clothing store and seeing a shirt that you bought yesterday for $100. Now on $50, you can just go well, I’m gonna buy three more shirts. Thank you very much. You’ve got more bang for your buck, because it was still a good shirt yesterday. So it’s still a good shirt today.

Terry Tran (15:40):

Exactly. Yeah, exactly the same principle pretty much. Yeah. So it’s just that thought process of you know, and that’s why I said that. Some days, it’s literally five minutes, and you’re done. And then other days, especially when there’s a market correction or market crash, when everybody’s all panicking. 

Like you said, you might need to spend about an hour and a half, two hours now, because there’s just so many opportunities that flood the market, when the recent US banking crisis occurred about a month and a half ago, that was awesome. 

Generally, when I when we talk about investing, right, every 10 investments we make in the long run, and I’m talking about when I say long term, I’m talking about over 1520 years stretch that I’ve done this 25 year stretch. Now every 10 investments we make eight and nine will make money one to two will not make money, no matter how much research I do. I’ve really pushed the boundaries as much as I can. I can never get everything right. 

No matter what, please also, don’t expect to get everything right, we won’t. But if you’re getting 80 to 90%, you’re fine. You’re going to do very well, in fact, right?

Carl Taylor (16:29):

So it’s even like I mean, yeah, incredible. The idea, the idea of that is great. And I think the value there though is it can be easy to go okay, well, I’m gonna buy this one share, and it didn’t work out. 

So therefore share trading doesn’t work as opposed to I’ve identified 10 opportunities. I’ve invested in all 10. And I’m hoping I mean, even if only five of them worked out good, you might still find that overall, you’re in a net positive position just from those private. Well,

Terry Tran (16:54):

yeah, and then just gathering from just going on to that to people to also understand even the big fund managers, and I speak to a lot of fund managers, analysts, if they get more 55 to 60% of their cause, right? It’s a very good for them. And if as individual investors, if we’re getting at 90, why are we kicking ourselves and saying I got one or two wrong, and we just focus on that. 

So in actual fact, fund managers love that. The thing is, these guys are so big, they can’t get it all to the 80 90%. The reason being is that they can’t move as because of their size. So these guys have to always be as also a mandate, they have to keep up to sometimes 90 95% being invested in the Fund, they tend to keep it in cash. 

Whereas we as individual investors have that big advantage where we are far more nimble. If we see something go wrong, we can sell it and he takes us literally a second to get rid of it. And we’re done. These guys, if they’ve got $100 million position, or $200 million position, they can’t get out of $200 million, within a few seconds, it might take them a week to get out. So they’re slowly selling down or buying up to not affect the stock market prices too much because of demands. 

Yeah, so as individual investors, we’ve got a massive advantage. But we’ve got to also take advantage of it. Because a lot of people again, fear and greed will eradicate that advantage that we already have as well.

Carl Taylor (18:02):

And you mentioning the idea, one of the things coming up is you know, I know in the past you talked about like it’s not about day trading, and yet I’m hearing like you’re spending 30 minutes a day. So it might not be day trading, but it’s requiring my attention every single day. 

Yes. How do I differ between that and like how I’m spending this time every day, because like, let’s be different, we’re busy, right? are busy. Business owners are busy, too. You know, half I’m speaking for myself, I don’t even necessarily find time to exercise every day, let alone the idea of cool, I’m gonna now and look at my investments every single day. Yeah, you get resistance from business owners about that, like, totally resist that. Yeah.

Terry Tran (18:36):

And you don’t have to because I say that if you don’t have that, then at least spend half an hour to an hour a week. The reason why you if you don’t even want to do that, then it may not be for you, you’re better off than just putting into the ETF or give it to an advisor, let them deal with it. 

The reason is, you don’t do that. It’s just like, you know, when you go to Coles or Woolies supermarkets, and if you go into a store, and of course you know, you see sale items, etc. And you get oh my god, my favorite coconut waters on sale, I’ll buy a bundle this week type thing. 

So if you don’t go and check it out, you will always miss out the sales, that’s just the truth, you will always go in the wrong, you know, once a month, especially than at full price, I’ll buy it at full price. So if you’re happy with that, then so be it. So you do need to check in the market just as though is there on sale or not. And that’s the time that you were using to check things out on sale. So systemize the process to do that. So shrinks down to time. So it’s a more of a think amount of priority. 

Do you see this as an important thing that you know, you’re talking about the eight 9% return or 789 percent return on passive right? If you triple that to 20 You people go you know, human mind, you go oh, it’s triple the returns, but I’ve got to spend so much time, but if you stretched out 25 years, that seven 8% compounding to 20% it’s 20 I think 22 times the ultimate end result. 

So now you got to ask yourself, is it worth spending half an hour a day, which is not very much in actual fact, that’s what two and a half hours a week, that hourly rate when you start small doesn’t feel like much but believe me when you get to seven figures, your hourly rate is now in 1000s per hour. So you got to ask yourself,

Carl Taylor (20:03):

I think that’s an important part right is in the beginning, if you’re, you know, and I liked that advice of what you said is like you don’t put invest what you can afford to lose, you actually do even smaller sample of that just to get yourself in the market to learn and to prove to yourself that you have a system, you can follow the system and that it can work. 

And so in those early days, I mean, you know, military, I’m all about, you know, return on time. And so in the early days, or return on time is probably actually quite low. It easily. Yes. If you think about, I’m just justifying to myself, I think about that return on time being low. 

As I’ve got my training wheels on, I’ve gone back to being an apprentice, you know, I was, I was apprentice a long time ago, in the Australian market, as an apprentice, you earn very little money, and you do a lot of hours. And so I think if you think of it, that is like you’re doing your apprenticeship and learning this with the idea that you’re then going to scale up because yeah, the bigger bigger numbers, those percentages, you know, an extra 10% on $1,000 may not really seem like it for the our investment, but an extra 10% on a million dollars or even $100,000 starts to become a far bigger conversation. 

So yes, that’s helpful. And so I mean, you mentioned that, okay, it might not be for you. But let’s talk about that. Like, because someone listening might be going okay, well, is Terry’s approach, right for me, or am I better off just being more that passive? Because I know there’s a lot of people in my world and I’m sure quite a few of you are listening, who you just kind of go Yeah, I’m easy with just buying VDH GE in the Australian market to Vanguard. 

Yep, basically kind of everything encapsulated, simple. And that’s the dollar cost averaging into that. And then a few people who were like, I’ve got a few ETFs and I dollar cost averaging into and then like, that’s their strategy, and they’re happy with it. So if they’re listening to this, though, going, well, do I want to do more? How would you identify? So it’s like they’ve got to be willing to put in at least ideally 30 minutes a day, but at least 30 to an hour a week,

Terry Tran (21:48):

I would say no, I’m here, sort of, I won’t even say 30 or 30 minutes, you know, just going back to the difference as well of day trading the 30 minutes. As a day trader, you actually will spend more than 30 minutes you’d be sitting in front of a screen staring at the screen trying to time and buy buy or sell and you’re literally with your mouse and staring at a screen like religiously

Carl Taylor (22:04):

checking the price your trade now you’re like, Oh my God, what’s happening? Yes,

Terry Tran (22:09):

yes. And then also off market, you’re probably like a friend of mine who were on holidays together. He’s literally flicking on his phone. I’m saying do what he’s doing. He’s checking his phone, I bet the stock the last year he was trading crypto, trading, checking the crypto prices day in, day out, like we’re at Ayers Rock, and I’m like, What are you doing in the middle of nowhere, enjoy the rock, enjoy where we are, but he’s checking. 

And so I’ll do it. I’ve just made whatever, I’ll do it I’ve just lost so much. So it’s taken his life. That’s not what we want. We want that’s why hence the freedom trader. Freedom from that. So that half an hour. What it is, is we research off market, so the market is closed. 

All we’re doing is doing our scans our processes, so there’s no emotion, the market is closed, you can’t do anything. It’s just that off market, you do your business, run the business, find this but the the time that you have that you think okay, I’ve got this 15 minutes half an ounce to do the scans. It’s already systemized, identify what’s that’s popped up, it’s on sale, this drop 20%. I’ll now spend that extra five minutes against systemized process to make sure that the numbers make sense. I know what the company does, and I’ll get ready to buy it. 

That is what it is. And then that order process is literally a two minute process, go into the broker login, place the order. And let’s say because I deal with the US market, my order is getting done while I’m sleeping. So I really put a price and I don’t have to wake up a certain time, whatever. 

Especially with daylight savings now gone. I literally just put in the order. And the order is actually getting done while I’m sleeping. So in actual fact, it’s not much if at all from that point of view. 

But the effort is, I think the biggest effort is actually putting yourself out to learn this. It is a new skill, but it becomes a lifetime skill. And like you said, you know, Kyle, let me ask you when you started, forget about the apprenticeship when you started business. Don’t tell me you’re straight up go. I know exactly what I’m doing 100 grand in a month. And you made that?

Carl Taylor (23:56):

No way. Really sure that would make 100 grand in a year for probably, I think the first five years in business because I started when I was 15. So up until I was about 20 I don’t think I ever took any money out like business paid little bits and things in my life. But I don’t think I took a cent from memory in over that year, I guess. 

Oh, definitely. Yeah, I couldn’t tell you what my revenue is. It’s too long ago now. But I definitely was not making lots of money. So your point point is taken that you know, the beginning we put in that effort. And you know, it’s a new skill.

Terry Tran (24:28):

And you know, this surprisingly, this ally rate compared to business at the very start is actually in fact higher. Because you’re gonna get eight out of 98 and nine out of 10. Right. So you in fact will see money just on a very small scale. 

So in actual fact, you will actually be a return wise better than starting off in business which could take a year or two, just to get the ball rolling. This won’t take you a year and a half to get the ball rolling. It’s seriously three months, three to five months and you’ll see the ball already rolling.

Carl Taylor (24:56):

Yeah, so would you say what would you say is the hardest part about If you’re investing in building wealth engineers, would you say it is getting the initial capital to invest? So you’ve got the money to put into get the return? Would you say it’s the learning the time required to learn the system? Practice the system, kind of get those early rungs on the board or something else?

Terry Tran (25:15):

Okay. I think it’s the, it’s, you know, like a, like a rocketship trying to take take off from gravity. I think it’s just getting, just having that mindset to go to decide, yes, I want to do this. And I want nothing about the process or anything, but what’s the end result Do you want. So if you have a clearer picture of what is it, you want that you want to make sure, you know, the goal is usually it’s like I’m growing my business. 

But I want to, I definitely want to take care of my family have a portfolio that looks after me no matter what, that is the biggest decision you need to make. So I think that’s the hardest part. And so the side, and then in the VT side, you know, one more way to make some time and I’m not talking eight hours a day, I’m talking about that 2030 minutes, it’s not a lot of time, then decide on that money wise, it’s definitely important. 

But however, even if you don’t have a lot, you can treat it like a savings plan, because we’ve got university students that do the program, and even what 15 year olds that are sons and daughters of my students that are doing that they’ve done their program, and they’re investing their KFC money. 

So you can’t say you don’t have enough money. These guys are putting what at $90, find one undervalued chair for that week that they got paid, they’re living at home. So they’ve got no expenses, they’ve also got no excuse. And rather than going out there and buying bubble tea, and spinning and blowing it out on whatever they’re doing these days, you know, buying an avocado smash that lunch, that money just goes across, buys, undervalued share, and then that they hold it passive investing. That’s it. So I’ve seen kids already doing that as well. So really, as business owners, you can’t say you don’t have enough money. 

So you somehow you do I mean, of course, if you’re a startup and you need every center startup, you’re not ready for this, it is vital that if you’re in startup mode, concentrate on the business first, don’t have another diversion, get the startup up and running. 

But when one is when you’re six months, in a year in you feel like you now you’re stable, and you’re able to at least pay yourself and you’re not so you know, wanting to go Oh, where’s my next pay gonna come to pay my next bill, you’re not ready for investing.

But if you’ve got that covered, or the basics, then you are ready, just allocate a certain amount, even if it’s 100 bucks, like a part time student do that, and you get started. And then when you see it rolling, the momentum kicks in. And when you see returns, percentage wise, you’re gonna go Oh, my God, my banks give me two or 3% for an entire year. I just made 5% In a week, why would you not? And that’s my own

Carl Taylor (27:29):

experience in starting to invest in when you’ve started, you know, especially when particularly when the dividend checks started coming in back when you’re getting checks before it was straight into the bank like, Oh, yeah. Oh, okay. This is nice. Oh, how do I get more of that share? I want more of this. Yeah, it’s time it does. Start

Terry Tran (27:44):

USAA is pay every six months strength shares pay every six months you issue is paid every three months. So every three months, you’re getting passive income on top of your capital gain. 

So when you see that rolling in, you’re gonna go Oh, my God, this is only with, you know, 1000 bucks, and I’m already getting this now I really want more. So you then you have that momentum and or that desire to even kick in more capital. And there’s really no difference to your business where when something’s working, you just put more money into that and making sure that you scale up and making that work as well.

Carl Taylor (28:12):

And so I guess, again, I think about people who are starting out, or even maybe somebody, maybe you listening, you’re like, well, actually, I’ve got like a portfolio like me, I’ve got a portfolio and as in mine is quite passive, and it’s a decent size. We’re talking, you know, over six figures, multi six figures, yeah, portfolio in the share market. 

And so, you know, it’s, you go on, okay, well, I’ve got this money there. Do I shift? What do I do? And what is the goal of it? Because you said, All people need to get clear on the goal? Is it generally do you find the clients and the people you work with? Is their goal, a certain amount of income? They want to take out like they’re looking for dividends? Or are they thinking dividends? They think in capital growth? What is the spread look like? And how does someone decide that?

Terry Tran (28:51):

I think there’s, there’s a difference between individuals, business owners, and even farmers, for example. So let’s talk about farmers first. So a lot of farmers their generational farm. 

So these farms, some of them have, you know, they’re quite young, they’re in a 3540. And that was the one of my biggest surprise, five years ago when I started with taking the farming, because like, oh, in my mind, I always thought they’re very old, much older generation secret, but they were young, because I will pass down. So what a lot of farmers do now is that their goal is to create that portfolio that allows them to therefore not have to sell the farm when they retire. 

And they can pass on the entire farm and let that intergenerational wealth creation continue on with the farming side. But what happens is without a portfolio, they have to sell a part of the farm divided by different children except for a number. 

But when they’ve got this portfolio, they can divvy it up, that the farm can go towards the children part of the portfolio can then go to another child, for example, etc, if they’re not interested in farming, so and then they’ve also got a portion to also retire on as well, very comfortably. 

So that’s one a bit that their main goal for say, farmers, business owners, depending again, is that a business that you’re going to run for, that you want to pass on to next generations and then again, also have a portfolio to look after you in retirement, or is it more of just, oh, there’s a certain stop point that I’m done with business. 

And therefore I need this amount of capital to retire off plus, have a great lifestyle, travel around the world, etc. Everybody’s got dreams, they’re all different dreams. So, again, everyone’s different. 

And if that’s the case, you know, you got to ask yourself, How much do you need or your family needs as a couple that you can live life like you want is that 150, grand, 200 grand, and then reverse engineer to go, Okay, if I need, say, 200 grand, and I can do say 10 Make it easier 10% per annum, that means I need a $2 million portfolio to get 10% per annum. 

And that’s also very similar to a lot of employees who hate probably hate their jobs, and just need to want to get out, or if they get sacked, or have a creative crisis and want to change, most of them are stuck there because they don’t have, oh, crap, if I don’t have a paycheck, I can’t afford my rent. 

So now, that’s another difference where they should have their portfolio, at least can survive them for 612 months, while they’re freely finding what’s their real passion to Job business or going to entrepreneurship, etc. To give them choice. Yeah,

Carl Taylor (31:06):

yeah, that’s something that, you know, absolutely makes sense. Something that popped when you were saying that, that I thought could be relevant to someone, because people when they feel like, I don’t know what I’m gonna do my business, some people, you will shut down your business, I’ve been there, I’ve done that. 

Generally, though, even if you shut down your business, there is going to be some assets of some value, whether it’s an email database, whether it’s a web address, like there’s usually something like not huge money. 

And I was thinking about this, as you were speaking, just going well, if I’ve done my apprenticeship, while the cash, you know, while the sun is shining, and the cash is flowing in my business, and I’ve done my apprenticeship, learning how to do some investments and figure this out. If then, if the business shuts down, and I sell a little bit, or you exit your business and sell it for millions of dollars, you know, whatever the dream is, you then going to have a huge amount of capital, you get to decide what you’re going to do with it. If you’ve gone and learnt the skills. 

Now, you potentially have the opportunity to really scale up I love your analogy of like, just like ads, you know, you start with a small budget and then figuring out what’s works. And once you kind of get the system and you see the numbers working, you then scale up those ads, and you can monitor as it goes. 

And so all of a sudden, if you’ve been learning on a smaller amount of money and just figuring it out, and then you’ve sold your business and you got a huge amount, you’ve got the ability to then go, I’m going to put more in the share market or you split across different assets, or you’re going to do it into another business. 

And like we said on our last episode that we did together, where we talked about the skill of learning how to evaluate a good business in the share market helps you evaluate whether a good it’s a good business in the private market to so even if you were then go, I’m gonna go buy another business or I’m going to start another business, you’re going to be better. 

And let’s be honest, traditionally, most business owners, we got into business because we were good at the thing, or we had an interest in the thing not necessary. Because we’re good at numbers and math and the finance of business.

That’s a skill we usually learn in the throes of business or we abdicate and delegate to someone else. And I do not recommend that learning how to evaluate the share market, you’re going to learn those same skills to be better business owner in whatever your next thing you do to yes, let’s kind of go a little bit more.

You know, we’ve talked about the idea of okay, we don’t need a huge amount to start. And we start small. And then we scale up. We talked about what we’re looking for. And if you go I want a set amount of cash. You talked a lot about people retiring. Yeah. What is the average timeframe? 

Like you’ve worked now with hundreds of people, as you said, from university students? And kids is yeah, we’ve been to farmers, like, what is the timeframe that people start investing to before they actually start to maybe spend? Or that is everyone reinvesting their money? Or like who’s actually start spending this extra cash coming in? Right?

Terry Tran (33:30):

Okay. I mean, we’ve thought about because I’ve been teaching for eight years now, we’ve actually just almost actually over 1300 students already. So go through the whole program. 

So I’ve got quite a lot, you know, in a way I treasure trove of data of people of all different ages, age groups, all the way to retirees, I think my oldest is 85. My youngest is actually nine, so a daughter of one of my students. So it’s a it’s quite a big mix. 

And in terms of the you know, how long it takes, this now depends on the amount of capital that they have. So if they’re just starting out, and literally just building it from like a savings plan, of course, it’s going to take a lot longer, but then they scale up. And then depending on how far they scale up, what I say is that the critical mass is at least half 1,000,500. 

Because that 500 If you’re on a you get, let’s say at least say 10%, which is not hard, that’s 50 grand to 20%, that’s 100 grand. That’s a lot of that’s, in fact, more than most people’s salaries, that’s, you know, doing their work, right. 

But then I say the next step that you’d want to get to is the critical mass of the other seven figure of 1,000,007/51 and then 1 million, then once you get to 1 million, it’s almost like a little snowflake going down a mountain. You won’t stop now. It just rolls and rolls because unless you’re a you want to Ferrari every single year, which I’m pretty sure most business owners do not and you live still quite like quite well, but not ridiculously, you know, just going out there and just spending every cent you have right. 

So at a million now a 10% is 100 grand 20% is not 200 grand, and you’ll probably spend half part of it say half of it and the other half you just reinvest it Unless, of course you’re in the retirement phase, which you need to draw down the entire capital. 

So what I think it’s important is that you get to a critical mass where what you spend down a track is only the basically the interest or the the game that you’ve made. So that capital always stays intact. Yeah. And that’s what I think. What’s that?

Carl Taylor (35:18):

noise this is and that that’s exactly what I think about when I talk about those levels of getting to critical mass, I love that you’re using the same analogy, because that critical mass is really at that point where now, ideally, because double your living expenses is coming in, you can spend 50%, and you’re investing 50%. 

And so you know, you’ve just got that snowball of it just basically can’t run out of money unless you ridiculously increase your lifestyle. And again, and one of my mentors, you know, he said, Because he drives, he likes to drive around in a Lamborghini, and he does these videos on social media, but he’s like, he said this in a few of his videos, he’s like, you’re looking at someone like me and going, I want that and you’re trying to buy the toys, you don’t realize that I buy the toys with passive income, I’m buying this, you know, I’m buying the toys, after I’ve already hit the critical mass where I can’t run out of money. 

Yeah, that’s when I went and bought the toys. I didn’t buy the toys until I got to that point. Yes. And I think it’s very easy for people to go, I want to live like a rich person. Yes. And they don’t realize that just because they’re now making a bit more cash in their business or whatever, that they’re not set up like that rich person probably is who can truly afford it. 

But we’re not going to talk about the people who buy the fancy cars and the whatever else you can’t really afford it. So I love that you just kind of have that same analogy of critical mass. And so just to rehash what you said, you think about these three different levels of you want to try and get to the 500k like the half a million mark. Yeah. And then

Terry Tran (36:39):

that 500 will, you know, you talked about the the three levels of financial security and freedom, that’s pretty much it that 500 will now the passive income often would be well, financial, you weigh more than enough to be very comfortable, your bills are paid foods on the table, etc. 

So that’s it. And then when you get to seven 750 to 1 million, then that’s on the next level, where it’s taking the freedom now, you could now go on holidays, etc. And then of course, going beyond that, it becomes financial abundance, where now really you can truly afford business cars, airfare etc. And that’s all been paid for by you know, from the passive income.

Carl Taylor (37:10):

Yeah, I love that. And so I’m guessing that until people get to this point, you’re generally the recommendation is keep you know, whatever your let’s say, you’ve got 500k, you’ve got 50 grand cash, you’re not going to go and spend that you’re actually putting that back into if you don’t need it back into the portfolio to try to get to that next level faster to get to 50.

Terry Tran (37:29):

Yeah, and I always say to, to get to that next level, too. If you’re worried you want to speed it up, and you’re still run your business, right? There’s still cash flow, how I see a lot of our business owners and farmers what they do is they set aside every quarter after they’ve done their best they go all they know roughly, farmers is a bit harder, because it’s quite lumpy, depending on harvest, etcetera, seasons, but with most business owners, as long as you set aside with a mindset, either every month or every quarter, you set aside a certain amount you go, I can afford this doesn’t mean you can’t bump it up or pull it down. 

But that’s sort of a number that you want to set aside all time. And then every month you sort of inject more capitals word. So that speed of going from 500 to 1 million actually doesn’t mean that you have to compound it to get there. It just means that your business owners with cash flow, we can control the good thing is we can control how much depending on how business goes right. We can control that to pump more into it, and speed the whole process up as well.

Carl Taylor (38:21):

Huh, yeah. Because if people are like me, you know, you especially as you start to see these rungs, you get impatient I get I definitely get impatient. I look at my investments and go cool. Well, you know, I’m making traction, but I want to move faster. I want to move further. Like how do I make this faster? You know, again, this is when I last? If you haven’t heard the last conversation that Terry and I did. We talked a bit about well, do you ever take debt? Do you leverage do you borrow to invest in this? 

And, Terry, my memory of what we talked about was you’ve tried it, you don’t recommend it? Yeah, if you recommended anything, or if you’ve what you’ve seen as less risky is when people have got maybe some capital and equity in their home. And they draw on that at the lower interest rate without all the risks. And they use that in the share market. 

That’s a different story. And I agree, I think that’s, that’s that’s a far more less risky way to go about it. Yeah. And so I just really liked this the 500k, the 750, the mill, and then it’s kind of like these are like your benchmarks of how do I get there? And what do I do? Now? I know you’re more of an approach of like, the share market is all there is do any do you find that any of your clients that you’re working on this? They’re also building property portfolios, they’re doing?

Terry Tran (39:28):

Loss? Yeah.

Carl Taylor (39:29):

Yes. Have you found how does that kind of bounce out for

Terry Tran (39:32):

people? Yeah, no, no, no good question. A lot of people think that I’m the CHE guy so I’m all about nothing but shares and that’s the only thing Don’t ever touch a property etc. don’t own it. Own your own house have a couple investment properties. There’s nothing wrong with that. All I’m just sharing with people is I’ve got that as well. So I know exactly what our students feel because I’ve got that and it just comes to a stage where you go with property right? It is a hard asset. 

A lot of people are very comfortable with it. I believe in only if you can afford it, you have your own house. It is up comfort factor for the family, you’re not forced to leave etc, if you’re renting, etc. So that’s definitely that. And if you’ve got one or two investment properties, you’ll probably already know that it is a hard asset where it’s tangible, you’ve got rent coming in, but you’ve also got a massive mortgage debt, you probably, it’s unlikely that you paid a million dollar house, you just had a million dollars in cash in a suitcase, and you just go there and just give it to them and biding time how to suffering. 

So it’s also the other thing too, is, besides the debt levels you accumulate by amassing a property portfolio, the other thing too, is that the illiquidity of it, so if you need to sell your take you agent, etc, plus the cost, you know, by time you find someone settlement, etc, in negotiations, probably six, nine months before you get the money. And if you don’t need the million dollars, after you sell or MLM hat, for example, these days, you can’t just say you need 50 grand for a business or for any reason, you can’t sell a bathroom, you need.

Carl Taylor (40:52):

So that’s the big thing about the difference between shares in that liquidity between properties, you can’t just go I’m going to sell off that bathroom to get that amount of cash, whereas your shares, you can just go cool, I’m just gonna sell this amount of the shares. So I’ve got that cash that I need. Yeah, and definitely a liquidity.

Terry Tran (41:06):

Yeah, and the money’s in your account within seriously, within 48 hours, it’s sitting there ready to go for you to do and the you’d have to talk to anyone, you just do the analysis and just wait for the time pressed the button on a mouse. And it’s done within literally 30 seconds, and the money. 

And that’s difference before you know compare that but do I not like probably no, not not all, I think it’s just diversification, I in fact, have a ton of we help property developers and builders, and tradies and plumbers. 

So these guys know the property game. So I’ve got probably about 300, building, trading students in my community as well. And they’ve never touched a share in their life. But they’ve got multiple properties, in fact, because that’s what they do. 

And what they found is they’ve also part on a ton of debt, and they’re getting comfortable. So they’ve wanted this liquidity. And they saw me as a diversification strategy, not a replacement strategy. 

So they still do what they do, I think over time, they realize, oh, the returns are actually higher and leveraged. So they might start, oh, I’ve had enough debt, I will slow down, take the time to slow down a property release, you know, pay down more debt, for example. 

But they will still have both, they’re not necessarily going to go all in getting rid of all the properties and then going entirely to the shares. I don’t recommend that at all, I think it’s prudent to have both, as you said, different asset classes grow at different times. So therefore, you’re having both eliminates risk, but also gives you the stability as well over the overall portfolio.

Carl Taylor (42:30):

And in the Australian market. This was the thing that took me a long time, because only more recently got into property investing in like the last three, four years, everything before that I was all I was all in shares, I was like shares makes more sense. 

And then the realisation in the Australian market. It’s different overseas, the only thing banks will really take as collateral and borrow against truly is property, like you know, you’re gonna have this huge, huge share portfolio and in the US, I know that you can borrow against it. 

But in Australia, the banks are just gonna like, Well, that’s nice. You’ve got a million dollars in shares. That’s cool. Yes, sir. Where’s your where’s your property pleased that I can secure this loan against? Yes. So yeah, that’s, that’s one thing that was one of the biggest like, oh, I need property just so I have the ability to borrow. That’s the real number one reason that I need property.

Terry Tran (43:12):

Yeah, and and that’s why when you asked me about the leverage that is a lot of people do have, especially farmers, they’ve got a lot of land, but unlocked on locked equity. So a lot of us a part of that farm, not to buy. 

And what they used to do is buy next door neighbor, and expand their farm constantly use equity by another tractor. So they will be expanding by more and more of or nothing but farming. But now they’ve got another ideas like Oh, use some equity. So now go into the share market as well. 

So while they’re investing in land, they’re also investing on the liquid side as well. And even some of our interviews actually says that the farmers actually said it doesn’t have to be all this literally what they say it doesn’t have to be all land. The share market is something I’m actually also now interested in as well. So that’s actually

Carl Taylor (43:52):

you got me thinking like, you know, there are business owners out there that that you know, they’re not buying land of the lady next door neighbor, but they might be buying up competitors. They might be someone who goes and does acquisitions. And so they’re borrowing against their property, in their personal names or in whatever structures they’ve got. 

They’re borrowing that to then go to go Yeah, I’m going to reinvest this back in my business through an acquisition and unless you’re someone who’s really experienced in acquisitions, and you know, you can get returned you could probably take that same risk and put that into the share market and diversify that that risky asset too. 

So that if you’re listening and that’s someone that’s something that you do or you think about I’m going to borrow more money so I can buy another restaurant or I’m gonna go and buy another competitor and roll it up into me because you’re looking for that one big payday when you sell the big group and don’t get me wrong that’s there’s this strategy and if that works for you go for it. I think the biggest messages that we want to get across in this episode is the power of diversification. 

Yep, shares is really liquid. And the I guess the thing that I find quite unique about what you say Terry is most people think if I need to try and make big returns in the share market, I need to be doing day trading. 

Otherwise, you’re getting returns like me, that’s why Let’s just go simple math 10% average returns, and we’re talking over decades, you know, some years you do better and others like you, but we’re talking about long periods of time. And so people go cool, I’m just going to do that. That’s simple and safe and easy. And where’s you’re talking about this 15 to 20 25% returns are possible. With just a little bit more a little bit more activity and what I would probably consider,

Terry Tran (45:19):

I think, I think more more concentration of just spending that time to know what you’re buying, not activity, we’re actually not very active. But this week I bought, I literally bought two companies. One was an Australian bank, NAB. And because it’s dropped, ex dividend drop, it’s down by about 15%. So within a week, and then the other one was a healthcare company in America. 

So I only bought two shares literally, so very inactive. But I was very active, when the US just going back to the US banking crisis happened, I was very active, because that week, the whole market drops, it was like an open lid, everyone is dropped 15 23%. And like Jesus, everything’s so many things are now undervalued. 

And when they’re undervalued, when you’re buying into it, you know, for a fact that there’s a base value, it’s undervalued, and there’s a what I call a margin of safety. So there’s, there’s actually the risk is so low, even though Everyone’s panicking, the risk is very low buying those. And the return, which I normally don’t make this type of return in that short amount of time. 

You know, I talked about having eight or nine out of nine out of 10. Correct? In the long run, right? Like we did about 35. All of them made money. Wow. 100%. And the return range from I think three and a half 4% For one month hold to 30 plus percent from one month. Hold on. Wow. And this is what I like about

Carl Taylor (46:33):

this is like, typically people think to try and get those kind of returns, I gotta be doing options. I’ve got to be doing CFD, like I’ve got to do something higher risk. Where’s your just, well, we

Terry Tran (46:40):

bought all we know, we bought ran household brand names. And I’m talking about the Googles of the world. When I rattle them off, you’ll know what they are, there’s Johnson and Johnson’s. We use their products. 

So we they’re not small companies. They’re not spec companies, not they’re not mining companies. 

They are big household companies that we use every day, their products, and they all dropped 15 20% And you just see the value and the I Will salivate when they happen. I’m like, this is incredible. And they’re the times we want and they give you the the outperformance when everybody else is really key as well. So, yeah,

Carl Taylor (47:16):

we’ve talked a lot about buying like every time you talk about like, are you spending these 2030 minutes a day to be looking at numbers to figure out by are we doing in that same time and we also looking at signals to know if we should be selling off anything that we own as well? Is that what’s happening?

Terry Tran (47:29):

Great? Yeah, from I always say every quarter if you can, or at least every half year, just reevaluate what you currently hold. Because it’s important to have that mindset where this is when I talk go back to sleep at night factor as well. 

As you grow your portfolio from five figures that one could still sleep, then when you get to six figures, what a lot of you know, we’re talking about the difference between a trading where you’re looking at stock charts and cetera, and you don’t even know what you own. 

To be able to sleep well at night, it is very important that you know what you own, that comprises the portfolio and then allows you to sleep well but also scale without without losing on that sleep. So if you’re owning a diversified portfolio of really great, great companies, it does allow you to sleep because you know they’re going to be in business the next day, because that’s what shares up their shares of businesses.

Carl Taylor (48:14):

Do you keep a rule of, you know, keeping it simple, in my head is like if I all of a sudden had 100 shares, and I was trying to keep track that seems too crazy to do generally keep to people, like you know, you can eventually figure out like there’s these 10 that you focused on or do Is there no rules to quantity, it’s just about

Terry Tran (48:30):

wanting to be wise, I always say there is no I must get to my 30 level I must get to my 50 level, etc. There’s no rule that says that because depending on opportunities, if there’s nothing on sale, I can literally only own two shares. So there’s nothing on sale, I’m not interested. 

So let the market let you know what is on sale. But I’ve never owned, for example, at any one point in time, even after 25 years, and being quite active. I’ve never owned 100 shares, for example. It doesn’t it doesn’t happen because there’s never 100 shares on sale only to buy 100 shares. 

I generally have about on average about 35 probably 30 to 35 On average, going all the way to say 50 During US banking crisis. But then within within the the three week period most was sold down because they they went had a V shaped recovery. 

Now they became overvalued, so it’s like I’m done. I’m not greedy. I’ve done my going onto a capital gain within a month I’m happy that go them because they’re really overvalued and the high probability that they’re going to drop back down already. So except that sorry, Scott, I sort of lost part of your question.

Carl Taylor (49:31):

Oh, no, that that’s perfect. Because I guess it brings me to the question of okay, like, we’ve thrown around some percentages of like, like 15 to 20 25% Sure. And part of me is like okay, Terry is amazing. 

He’s clearly been doing this for years. Yeah. What let’s talk about percentages of average li across your students. Yeah. Are they getting similar kind of return? Yeah, percentages. Like if someone was to do like, let’s do a little plug here. 

If someone was to go, you know, I’m gonna sign up like Sally Terry, if I sign up I do your training. Yeah. Obviously you can there’s never any guarantees in life but with a strong correlation of here’s who we were, what would you be saying? Is these the kind of returns you could potentially expect if you follow this program?

Terry Tran (50:09):

Sure. I actually, this is sort of, it’s done these podcasts that I talked about these percentages, I actually never, when I even go have a chat with a with a potential student, I actually never tell them about my even though I’ve done this for a long time, I’ve got great returns, I don’t promote my own returns I’m not interested in what I’m more interested in is how can what returns they can get. 

So that’s hence why I’ve got so many, I guess, reviews, hundreds of them, and even face to face live video ones. So they share their results. So on a passive site is about the 10% mark. So that’s a passive, and some retirees even talk about, they don’t talk about returns, what they talked about is they actually need for you to that interview, they actually say they were doing some part time work. 

And they can replace that now, so that he didn’t have to do any part time work at all. So that’s incredible. Then there’s others that go all the way to 20 25%. And they share that inside the videos. 

So I probably say, across the board, I’d probably say about 15. If you just do a very good average. And whenever people say come to me and say, Oh, Terry, I love your 25% return, I want that. I will say no, no, no, that’s not what I can probably help you get I probably unlikely if of course, we’re lucky enough that you’ve just joined after a market correction, you’re going to have a 50% return the next year. 

Yeah, that’s not that’s rare. That doesn’t happen. It happens every cycle, like you said, a cycle. And when there was a GFC, like, post GFC I had sort of that 30 35% For three years straight year after year. 

But I will never say the cow. Let’s do it will not happen. It’s like it’s it’s postcrash post COVID. Same thing. They’re incredible returns your biggest returns are always post crash when everybody panics. 

But on a normal scale, I probably say 15% 15 If you’re doing more than 20 or 20, you’re doing very well, basically. Yeah. Yeah. And whenever. Yeah, and another thing I think it’s important to how is whenever I get more than 30. I don’t just go Pat, myself and back. That’s great. Let’s get get four more, I actually reassess and go. 

Did I actually take extra risk, which I should not have taken to get that? And then reassess it if I didn’t pat on the back? Great. Terry, the market gave it to you be happy with it. 

But if I actually somehow did extra positions on something or added more funds into a stock? I should not have I broke my rules, then. No, that’s breaking the rules. It’s a no, no, I really should be more happy with getting a lower return. But at least I’m following the rules. And no matter what happens with the world, it’s the decisions are not going to crack

Carl Taylor (52:41):

like that. And it’s those rules. You know, we haven’t mentioned it. And in either of these episodes we’ve done together, but share in the share market in particular, it really comes down to having rules and following the rules, right? 

Yeah, sorry to hear that you might go have I broken my rules, because let’s be honest, we’re human. It’s very easy. I’m speaking from my own experience here. Very easy to write rules and say, here’s what my rules will be. It is a lot harder to actually follow your rules, especially in the heat of a moment moment when emotions coming up at all. This looks like such a good opportunity. And

Terry Tran (53:14):

yeah, and and you know, Carl, you’re not you’re not what’s made me even follow my rules even more now is because I’ve got 1300 students watching me because I share my investment, my portfolio, so they know how to build it, we show them when I bought when I sold. So I share that. 

So they will go out. And if I know I broken a rule, I actually openly gone to the Facebook community. So guys, I actually made a stupid mistake, I rushed and I accidentally bought double of what I needed today because I accidentally miscalculated. 

So you’ll see that and so because people are watching me, I’ve I’m actually even better than because now it’s not a supervised. I’m actually all these eyes are watching me and go, I’ll tell you how many you bought at this date that you shouldn’t have, etc. So I get I’ll get caught out right. So I really follow my rules now.

Carl Taylor (53:57):

Alright guys, this is the secret for all of us is that you want to follow your rule you announce what your rules are on social media or publicly and then you publicly show what you’re doing. I’m not I’m not actually that you shouldn’t do that. But like there’s something in that of going that a bit of extra that accountability. Really, to help you go I’m gonna get called out I’m going to be seen. Yeah,

Terry Tran (54:16):

because I’ve got I’ve got so many civil engineers. I’ve got engineers, electrical civil engineers that attention to detail a follow rules. And I can tell you that they are very precise. They go Oh, Terry. Yeah, you know, and I’m sharing like, oh, yeah, you’re right. Actually broke my rules here by a TED by day. I shouldn’t have gone in. I should have gone out. So they pick it out too. So they were Yeah. Yeah.

Carl Taylor (54:38):

I love that. Look, I think I think we should start to bring this to a close. You know, we’ve gone in all sorts of directions, which I knew we would because it’s love our conversation. So my hope is if you’ve been listening to this, the goal of these episodes and bringing Terry on is like, I like Terry. 

I haven’t personally done his program, but I gotta say after these conversations, I’m extremely tempted. I’m putting it out there. I know a lot of people who have done his program I’d known Terry for or we figured it out last conversation I think was over 10 years or about 10 years. He’s amazing human being. And so look, I’m saying, take a look at his program, not saying do it program, I can’t tell you my experience cuz I haven’t done it. 

But take a look at the program, if you’re interested, I definitely will be. But also really just to help expose you to the idea of because there is this really strong passionate argument for shares strong, passionate argument for property, especially in the Australian market. And you know, they’re both right. That’s the thing. There’s no actually right or wrong. Both are right. 

And so just really helping expose you, as a form of education be exposed to know what questions to ask. If something starts to pique your interest, dig into it, and check out Terry’s blog posts, find other people on YouTube or whatever, don’t action, but at least expose yourself to information that you heard here to get yourself thinking continue to listen to our podcast. But yeah, if you want to learn more, and potentially even go through Terry’s program, Terry, where did they go? And what is the process kind of look like right now?

Terry Tran (56:00):

Yeah, go to the website, the free www dot the freedom trader.com. And you’ll see a link where in actual fact, there’s a part where you can get your first point of call, it’s probably download the checklist. And you’ll see that so download and I did that

Carl Taylor (56:14):

after our last conversation, I download the checklist, I took a look at it. I was like, Oh, this and this, like, Guys, this is actually really fun. Like, it’s not just like, here’s a checklist of things to look at. It’s like he had go and use this tool. Do this. Like it was very, very useful. Very

Terry Tran (56:26):

Yeah, it’s a little booklet that actually shows you where the free tools to actually use to set the criteria there the the various criteria. And then the next step is if you don’t if you think that this is something that you may want to explore, then come to the weekly masterclass and just attend it’s free. 

And then you’ll know it’s a workshop. It’s not me just teaching I actually teach you but then I have you do it as well, then just to know whether you can do it or do you like doing it in that way, then you go yep, if this job’s with you, then maybe then we can have a chat.

Because I’m also very careful that I want to make sure that it’s the right, you’re I can help you if I can’t help you, I’ll just put you in the right direction. But then come to the next month, the maths class and learn literally just learn and even that alone is I always say at the end, I say if it’s not right for you, I can let you know now, you are easily now after the maths class in the top 5% of the population in terms of share investing, because if you went out there and ask people, these criterias, whatever, most people have no idea what you’re talking about. 

So just attaining that will make you a ton smarter, but at the same time by attending that you also know you know with all these scams and Bs out there, you will know what’s real and what’s fake. So just knowing that you’re going to easily spot out all the all the rubbish out there as well by attending that.

Carl Taylor (57:37):

Yeah, I love that. Oh, yeah, that’s that definitely sounds like a good thing to do. Go and attend that. Get some training, as you said early up, and if you like you’d like and Terry style in checkout, potentially doing his program? Dude, I really, I could keep going again. 

But I think we should always go here. Let’s call it here. Appreciate you appreciate all the insights and knowledge that you bring. One final thing I guess is your program. If someone’s listening going, I recently was looking at the stats on my podcast. And I was surprised at how high the percentage is in the US. 

I was not aware of just how high the percentage of listeners so thank you to listeners from the USA who must like my Australian accent. And the guests who have been primarily oh, these don’t worry, there are some American and other global guests coming soon. We are you adjust for Australians do you have do service all around the world? Like, all right,

Terry Tran (58:28):

don’t we have fun if I never, you know, just making us 90% of our portfolio is a US market. So the reason being is that they’re all the global companies not I live in Sydney, but the global companies are listed there. 

So if you’re all the name brands, or the Nikes, the Johnson and Johnson’s or Pfizer, they’re all listed there. So if you really want to get the returns, we have to go there. So firstly, it’s that five 10% is in the Australian market. But in terms of our students, the majority of our students are streaming. I’ve also got a United States students as well, because that’s actually where my first students came from the West Coast California. And because I wrote a blog and they got popular there and then that’s how it I started back in the United States. 

Funny enough, even though I live here. And then we’ve also got European students well, so the reason why I’ve got European student is because I’ve got a lot of our pilots and students and therefore they travel around the world and they naturally spread the good news for me to their family and friends overseas. And then that’s why I’ve got people from Australia, UK, etc. 

And then of course, the Southeast Asia, Singapore, because I was teaching in the major banks institutions, therefore two years prior Priya right COVID. So I was teaching their clients. 

Yeah, they asked me to go back go back every quarter to teach their students and their clients. I’d say my students teach their clients and their staff funny enough on risk management and how not to lose money. It wasn’t about making money. They just liked the way I was. How not to lose money. That was the priority because that’s always been my priority not to lose money first. Making money is great, but don’t lose what you have. And then that’s the second priority making money. Yeah, love that.

Carl Taylor (59:59):

All right, well, you heard it here, go and check out the freedom trader.com. Also, follow Terry find him on social media and consume his stuff. Obviously, if you’ve enjoyed this podcast, or as you’ve heard Terry or myself talking, maybe you know, a pilot, maybe you know, a retiree, maybe you know a nine year old who’s showing interest in share trading, if there’s someone that came to mind while you were listening to this episode, and you’re like, wow, I really wish they heard this, now is your opportunity. 

If you haven’t already, find the Share button in whatever you’re listening to this on, unless you’re in the car, and share it to them, send them a link to this podcast so that they can have a listen, because they came to mind for a reason. Whether they listened to it or not, is out of your control. 

But you can at least be like, Hey, I was listening to this and you came to mind, I reckon you should check it out. That’s the best you can do. So share it on, get it in front of them, because you may just change their life by exposing them to this information. 

And secondly, if you’re liking the show, you’ve been listening to a number of episodes, I’m always grateful for a review, let’s click the stars and leave a rating or leave a comment. I’d love to hear it. 

Also, if you have a guest that you would like to have come on the show someone you know who you think would be really good and really aligned for the topics we talked about, or you yourself go I would love to be on this show. Hit me up. Rising dot show is where all the show notes and everything else are. And that’s also where you can click the Contact button to reach out to me in the podcast production team. And we’d love to hear from you and potentially get you or if you can connect me to the person that you’d like to have on the show.

 I’m happy to have a conversation and see if it’s a fit. So that’s it for me. Until the next episode. Keep up the journey. Thanks, Terry.

Carl Taylor Outro (54:49):

You’ve been listening to Entrepreneurs Rising. Thank you, dear listener for tuning in. I appreciate your time and look forward to connecting in future episodes. If you would like show notes or any resources from today’s episode, you can find them at rising.show rising.show. You can find a show notes for this episode and all other episodes as well as links to socials and or the ability to reach out and connect with me make your suggestions for future episodes. Until next time, keep up the journey.

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