First portfolio edited

Two friends discuss their podcast and express gratitude for their listeners. They mention receiving questions from listeners and talk about a book recommendation called "The Expectation Effect". The book explores the power of beliefs and expectations on our health and well-being. They then introduce the topic of building a portfolio and discuss the first level, which involves hiring a wealth manager to manage investments. They explain the difference between traditional and digital wealth managers and mention the minimum investment amounts required. They acknowledge that this level may not be suitable for everyone. Hello Scott, hello Dave, how are you mate? Yeah I'm good thank you mate, I'm good, how are you? Yeah good thank you, a little bit tireder than normal, we normally record this a bit earlier but... Yep, another day, another podcast. Another day, another podcast, but yeah I'm excited for this one, I think it sounds like there's something that, some information that people will be able to really take away. Yeah I've tried to keep this one as practical as possible, it's actually a question that was sent in from one of our listeners so hopefully whoever you are, you're going to find this one useful and hopefully more people will also enjoy it, so yeah. Yeah and on that note, look it's not that many of you, yet, but I've been pleasantly surprised by the amount of listeners we've got so far and the support people are showing. Yeah, yeah, 100%, I just want to say thank you to everyone so far for listening. All three of you, you've been great, no honestly. And mum. Hi mum, it's been good, we've got a few questions now from people and we will try and address some of them, line some of them up. There's one about warm ups and cool downs which I'll try and address in another podcast, I think I want to quickly answer those questions. And there was one from Heaney1UK who said, why would we take financial advice from a man who describes a river as three foot tall? So that's also another question. I still stand by that. Cool, but yeah, should we get into it? Yeah, so I'll kick off with a health related, not fact this week, just a little recommendation actually. And it came from me listening to another podcast. The author of this book that I'm going to recommend has been on quite a number of podcasts. I've heard him a few times and enjoyed the things he's said. And I went and actually then read the book this time. So the book is called The Expectation Effect. Ooh, I haven't heard of that, no. So it's called The Expectation Effect, it's by a guy called David Robson. Again, I haven't heard of him. This is interesting because I'm usually quite good with my books. Yeah, and it actually addresses a lot of the topics that we will go into and have gone into and some of the research that we've talked about. So I don't think he actually talks about the study, but remember a few weeks ago we talked about the placebo pill and paying more for it. So the book's kind of based off a load of really good scientific studies that go into mechanisms like that. So essentially the placebo, a lot of data and research. Some of the studies are just mind blowing to me. So there's the placebo thing and things like people saying that placebos will cause pain relief and things like that. Sham surgeries, so when somebody goes in and pretends that they've done an operation, they don't get through ethics committees very frequently, but like two groups of people, one group have the surgery, the other group have a fake surgery. And they do better than people who, they're both groups do better than people who just do rehab alone. And it's like. So they'll still, both will end up with stitches, for example. Exactly. Yeah. So they open the skin up. Yeah. So they believe that they've had the operation and there will be a little bit of pain associated with that, but then they recover the same as the group that actually have the surgery and things like that. And better than people who don't have the surgery. And then he talks about the nocebo effect. I haven't heard that. So that's the opposite basically of a placebo. So placebo often being a positive effect from something because you believe that it's going to work. The nocebo being you think something might be negative and therefore it becomes negative. Okay. So he wrote the book because he's quite openly suffered with his mental health, started taking antidepressant medication and one of the potential side effects was headaches and he started getting headaches. Yeah. Okay. And that's actually what I think sparked his like interest in this whole field and topic. So yeah, nocebo is that kind of mechanism, placebo being the other thing. So yeah, it's all just about the mind and these crazy studies of how powerful beliefs can be, the expectation of certain things. There's this one study, I'm not going to talk about all of it. I'm going to let you just go away and read it. But a quick summary of the most crazy one to me was that some men that emigrated to Laos in Southeast Asia had a greater rate of nocturnal death. So more people died at night because they believed that there was this spirit that could come and kill them in the night and there was this huge increase in death and they actually attributed it to the expectation that they believed that people were going to get killed in the night. They died of cardiovascular events mainly because they were probably becoming insomniacs and not sleeping, becoming very stressed and those things obviously relate to negative cardiac events happening. So people actually dying because they believed they were going to die. That would be very scary wouldn't it? I might have explained that one badly. Again, I'll just let you crack on. And what's the book called again? It is called The Expectation Effect by David Robson. I have no association with him, other than he has a cracking first name. Okay, so the topic this week from you. So this week we are going to talk about how to build your first portfolio. So what you're trying to say is we need to talk about portfolio building first time? That'll do. Thank you. Scott, I'm really looking forward to this one. I'll tell you why. I think it's something that I know previously I wanted to know more about and so I can imagine there are a lot of people who will get some really useful information. It won't just be little facts, it'll be something that people can hopefully, if you're any good, take away with them and use. Fall at the first hurdle, which is not very good. I hope it's going to be as practical as it can be, less theory this time and more like real people can use. So yeah, I'm looking forward to it. I see a few people reaching out and saying, you know, I'm interested in how do I build my portfolio? These are actual real questions, not even made up questions. Yeah, from real people. This is a listener's real question, which is very exciting. It's the first one that we're actually going to do and it's about how you can build your first portfolio. But before we do get to that, because I kind of think that building your first portfolio is just like it's going right in at the deep end and it tends to be the thing that people just automatically jump to, but it's not necessarily the right place to go straight away. So there are levels to these things and we're going to start at level one. Okay, it's a good place to start. It's always a good place to start. Level one and we're going to go all the way through the levels. Tell me about level one of portfolio building. So level one, this is kind of like your Nando's lemon and herb, okay, in terms of spice level. So what you'd always order. This is my main order at Nando's. And the key thing here, it's going to, the key theme is going to depend on three main variables, which is going to be time, interest and knowledge. Okay, so remember these three kind of variables in your head about how you're going to choose which level is correct for you. When you say interest, you're not talking about interest as per your last podcast. No, that's a good point there. It's interest as in just generally. How interested you are in it. Yeah, exactly, exactly. So lemon and herb, here we go, level one is managed portfolios. Okay, so this is literally when somebody else manages your portfolio for you. And this will be good for someone who has a lack of time, low interest, really care, low knowledge. And it's basically hiring someone else to do this for you. And it sounds ideal. Yeah, it is ideal for that kind of person who just doesn't really care, but they know that they want to invest. And the way you can get access to this is through a wealth manager. So this is essentially why my bread and butter, really, what wealth manager will do or just it'll take care of all of your investments. And depending on what kind of level of service you need and want, they'll also look at more your holistic whole kind of financial life, if you will. So they might look at your estate planning, depending on where you are in your life. So whether or not you need to do some inheritance planning, that kind of thing. But for me and you, Dave, that's not kind of, so we need to really talk about and I don't think our listeners will care right now about that. But maybe in 50 years when we're still doing the podcast, we can start talking about that kind of thing. But there are two main types, I'd say, of wealth managers that I kind of put them into two groups. You've got your traditional wealth manager, who will provide quite a high touch service. They will be lots of face to face interaction. You'll get kind of an ongoing relationship manager with them. They do tend to charge more than what the second option is, which is a digital wealth manager, which I'll go into in a second. The fees usually around half a percent to 2% for a wealth manager who will kind of take care of your financial life. But they do tend to have minimum amounts. So it's kind of a rich person's game. Have you got a rough indication of where we're talking? Yeah. So depending on where you go, you're looking at a minimum investment of like between some say about 300 grand, some say 100 grand. And then you've got the top level, somewhere like Coutts, who would say a minimum investment of like a million. So it's big, big numbers. So not many of our listeners? We don't know. We don't know who's listening. Okay. I get it. So you don't have to do a lot with it yourself. You're handing the keys to someone else. Handing the keys over. However, you've got to be a rich person to go with them. Second option though is a digital wealth manager. And that's either more kind of come to light in the last say 10 years really, like most of tech. But they are way more cost effective and they're more for the everyday person really. So you're looking at your fees will be between sort of 0.45% to about 0.65%. The minimum amounts are even, I think when I was looking, some are like 500 pounds to get started. Some are about 5 grand, but it's very, it's a lot more accessible for the everyday person to get a very similar service, but you will, you completely lose the complexity of a traditional wealth manager, the service they can provide. So for non-complex situations, like to be honest, the majority of people, so I'd say 80, 90% of the population probably won't have these really complex financial plans that they'll need and especially at a younger age. So taking me and you Dave, if we have low interest, low time and low knowledge, we probably would go towards the digital wealth manager route. And the two that I'd probably recommend that I've signed up for and had a look at and kind of use their apps are Money Farm. And they're like, I think they're based, they're like a European based company, but like come over and they've got a cool, cool app and UI and all this kind of stuff. And then the OG is Nutmeg and Nutmeg was recently bought by JP Morgan, but they're still kind of for the everyday person. And they do very similar stuff, to be honest with you, you invest in it, you'll get, you'll be put into a certain risk portfolio. So as you, as you sign up, you'll go through this risk questionnaire to kind of determine where your risk tolerance is on the scale, and then different goals that you might have. And then you'll basically get allocated this kind of model portfolio based on based on these questions. And then the app does the rest for you, then the app will do everything for you. So all you have to do is either add money if you want to, if you just want to withdraw something, you can do it. That's kind of it, really. Do you get to have any input on potentially the type of companies that are invested in or the types? No. So this will be completely discretionary to the to the company. And that's what we call a model portfolio. So you are, you're kind of risk rated, and you'll be just slammed into whichever one they say there might be, you might get an option to say, invest in more of an ESG focused one, rather than like a traditional one. But like, all that's going to do is screen out some of the kind of bad companies in quotation marks. So you don't get a lot of say in it, you don't have a lot of control. But you know, for that type of person that meets those three variables, that's the perfect thing. You don't want any control, do you? So that's Lemon & Herb. So you've brought up to Nando's, and you can go one of two ways. If you're already pretty rich, you can go and get the first class service. You can get the waiter to pull the chair out and go and do the free roof for you. Or the other option, you sit down and AI does all the rest for you. You don't get a little personal touches of somebody filling up your drink. No, but probably more realistic for most people listening to this podcast. Yeah, exactly. Exactly. Cool. So, Lemon & Herb. Is there any sides on that? No, no, it's just, you've got me there. Okay. Take some time. Yeah, I'll think about that as we go along. Yeah, have a read. Yeah, no, it'll be there. Okay. So what's level two? Okay, so level two, your medium spice. This will be you, right Dave? Yeah, a bit of medium. Yeah, sometimes. Sometimes, you know, if I'm trying to impress people. Oh, you go, you go. I regret it, in reality. Too rich for my eyes. But yeah, I'd say I'm a medium man. Fair. So extra medium sometimes. So level two is target date funds. Okay. So this is for people who still have lack of time, have low interest in investing, low knowledge as well. And what they actually are, and it kind of says what it is on the tin kind of thing. So the target date funds will automatically reduce your risk as you get towards the end date of the fund. So the fund will have a specific date on it. Okay, so say you being 28 and you want to retire in 20 years time. Yeah, casual, retire before I'm 50. Absolutely. Goals, right? Not in the video, mate. That's not happening. I'll be going to 104 if I live to 104. Okay, so keep the math easy. So in 2043, okay, you could buy a fund with that specific day on and as you get towards that date, the risk level of that fund will be slowly inching its way down and your safer assets will be going up. So what that means is if you split it between say equities being your risky stuff and bonds being your safe stuff, as you get towards your target date, your end date, your equity portions say it starts at 80% that will be slowly going down. Maybe it goes to 70 and then the bonds start at 20 that goes up to 30 and you can kind of see the dials like slowly move. So you don't actually have to do anything. It does it all for you or automatically. The main kind of pro of doing that is that it's kind of like your set and forget investment. So you invest in it and then you can keep adding to it as you go along. But you haven't got to do anything to it. It's literally similar to like a managed fund, but it's a lot cheaper. So you don't actually have to pay a company to do it for you You have to pay a company, but you don't have to pay like a specific manager to do it. It's kind of all done automatically. So your annual fee on average is like around 0.25%. So it's almost half of what the digital wealth manager would be. But it's still on the slightly expensive side compared to if you're going to do it completely on your own. So looking at like an index fund or something like that. So what makes this more medium? Why is this harder to do? So it's harder because you don't have anyone holding your hand essentially. So you've still got to do this yourself and you'll do it through a broker. So you've got to go and buy the fund and there's no risk questionnaire. So you haven't got someone kind of putting you into this investment. So where a wealth manager is very much hand-holding, this is you're getting someone to create and build the portfolio for you, but you've got to make those decisions on yourself, which one you're going to go into. So you're kind of, it's slightly above that level one. It's all passive as well, which means that you're going to be investing in a index fund, which is a low cost fund. So there's, and you'll basically be tracking the market. Okay. So let me explain. So if, for example, this fund was built of equities and bonds, your equity might be made up of a index, which could be the MSCI world, which essentially is a, an amalgamation of all the world's countries. And it kind of proportions it out for you. And then the bonds would be like the Barclays global lag, which is just like another bond index of loads of global bonds that you can buy. And it, what it basically means is that you're not going to get outperformance above the market because you're only ever going to get the market rate of what's going. Okay. So it's passive. It's basically what that means. So that's level two, that's your medium. And, and is there a, you know, you use 20 years as the example. Could you set that at any number of years? Yeah. So there's, there's loads of choice for any kind of age. So, you know, we could, we could be speaking and we could both be 50 right now. And we're looking at, obviously you're a retired, I'm still going, but still going on this podcast. I, but yeah, you could buy one that you want to retire. You could say you want to retire at 70, for example. Or you could do it for a lot longer. You could buy a 40 year one and it is back yourself. It's yeah, exactly. It's traditionally, it's a retirement product and it's very similar to what your pension will be invested in. So if you've got like a workplace pension or a pension, the pension provider it'll be a very similar product, but this one you can just put in, in your, you can put your kind of your taxable money into it. Got you. Okay. Okay. So let's keep with our source levels and stepping up that little bit of a gear. Things are beginning to get a little bit spicy now. I'm starting to get excited, Scott. This is when the mayo starts coming out. Cause my tongue's, my tongue's on fire. Keep your oil there, a glass of milk. Tears coming down my face. Yeah. Yeah. Okay. I'm ready. I'm ready for it. So we're into level three now. This is, this is the hot, hot level. And this is DIY passive. Okay. So it's do it yourself, but we're sticking with passive investments. So we're not going, we're not going the whole hog right now. Okay. And this is good for someone who has still a lack of time, but now you've got a bit of interest. So I'd say medium interest and a bit of knowledge as well. So you want to, you want to do your research on this. You don't want to just go in blindly. But as I say, it's still going to be passive. And again, to do this, you can invest via a broker. And that can be someone like you just Google brokers UK, and you'll see like Hargreaves Lansdowne or AJ Bell, one of the, one of the main kind of brokers on the internet. And it's basically a cheap way for you to invest in the market and get a broad exposure to, to the investment market. So what you can do, and you can almost create your own target date fund in a sense, but the key differences will be that you'll have to do the rebalancing. So your risk isn't going to slowly go down over time. Okay. But the benefits of this is that it's a slightly cheaper way of doing it. So on average, you're looking at paying between 0.1 to 0.2%. So you're saving a little bit on cost on the annual charge there. And again, the way you want to do it is kind of split out into what your risk is going to be and what your safe assets are going to be. So as I mentioned, you could put say, based on your age, Dave, you could go say 80% into your risky bucket. And that would be invested in something like the MSCI all countries world. So that's literally like investing into all of the countries. It's again, an amalgamation of all the companies and they're spread out into different regions and sectors, all done for you. You don't have to worry about that stuff. And it's very cheap. And then, as I mentioned before, the Bloomberg or the Barclays Global Ag, which is an amalgamation of bonds, which again, is done by country as well. So don't have to worry about that stuff. It's a cheap way of getting exposure to the market, as I said. However, you're going to have to manage your risk on this one, because over time, your risky bucket, so your equities are going to grow and your safe bucket, so your bonds, they're going to get smaller just by the nature of the portfolio. So you do have to manage and monitor the portfolio and manage that risk, because if you want to say, in two years time, you're thinking, okay, I'm a bit older now, I feel less risky, I feel like I've got a lower risk tolerance, you can actually want to start trimming that and then putting some into the safe bucket. So there is a bit of hands on approach to this one. But as I say, it's still passive. So you're not going to outperform the market, but you're also not going to underperform so much unless you do some weird stuff. So it's kind of like your, it's what you'd call your tracking error to your benchmark, it's going to be quite minimal. And that's kind of what you want. Okay. And we'll go into that in a little bit more in the next one. But it wouldn't be something to go in blindly on? No, you want to have a bit of, you want to have a bit of knowledge about how to do it, what you're going to invest in, because a lot of people say to me, oh, yeah, just go into the S&P 500. Okay, which historically has done really well, like, you're earning on average, like, nine, 10% a year on it. But when you actually break down what you're invested in, you're invested in the top 500 companies in a specific country. And then when you look deeper into that, that index is usually driven by like, the top 20% of these kinds of those companies. So it's heavily tech, it's heavily all those big names that you might know, like Amazon, Google, all that. And I'm ignoring that. And, and so your diversification from that point of view is actually a lot lower than you might think. So you want to do a bit of research about what you're invested in, where you're, how your money is spread, spread into different geographic regions and different sectors as well. So, yeah, there's a little bit of research goes into it. Okay. That makes complete sense, Scott. So we've gone through three levels now. Yeah. I'm not sure I'm ready for level four. This is I think I need a break. Yeah, no, go on. Tell me a little bit about, about level four. Extra up. All right. So this is DIY active. And this is the thing that I kind of started with. This is what people tend to go straight in with. But it's, it's the top level. Okay, so it's not necessarily where people should start. And it's great people who have lots of time, who have a high interest in it as well. You've got to, you've got to be reading the news, kind of keeping up with markets, keeping up with what's going on in the world. And also a decent amount of knowledge as well. You can't just go kind of blindly into building a portfolio because there are lots of kind of, there's lots of theory behind it and there's lots of stuff that goes, goes with it. So, yeah, my advice is if you, if you meet all those three, then yeah, crack on. Um, and so what kind of things, if I were to be interested, um, what kind of knowledge would I have to be ascertaining? Would I have to be reading? What, you know, what stuff am I looking out for? So I would say that, I mean, the easiest thing to start with is just reading news or watching some like Bloomberg or something like that, just to get an idea of like what's going on in the world. Potentially, potentially if you can find, if you can find someone who's decent. Um, but yeah, start with just general financial news. Then I would say buy a couple of decent books and then try a, I mean, Investopedia is a really good place as well. Um, just to give you kind of like definitions. That's like a free online. It's a bit like Wikipedia, but it's for finance. You know what? We're finding something out here. Yeah. There's a Physiopedia. Oh, is there? There's probably a Pedia for everything. There's like a little Physiopedia, free access. Yeah. Yeah. Generally, generally. Yeah. If you, if you're, you know, we've gone off track here, but it's still relevant to our podcast. You know, if you're generally, you've maybe got a diagnosis from somebody and you're, you want to know a little bit more about it, it's, it's, it's one of the best places to use it. References, research papers, and it it's, it's written by people with knowledge rather than just kind of random as on the internet. Okay. Yeah. We've got our Pedias. We've got the Pedias. Um, and then just a bit of like, there's, there's portfolio construction theory, which is a kind of a, a key topic, I guess, that you, you would learn about if you got into the industry. Um, that's why you learn kind of efficient market hypothesis and all this kind of stuff. But if you're interested, I'll let you go and do that. I'm not going to speak about it now. Um, so yeah, it's building your own portfolio obviously gives you loads of flexibility in terms of how you want to build it, what you want to go into it. Um, and it also gives you the opportunity to earn higher returns than the market. So there is a bit of active management going on in here. Um, and it is also again, similar to if you'd have paid a wealth manager to do that, they have portfolio managers who will be trying to beat the market as well. So it's an active, passive kind of mix to build this portfolio. Um, so the pros of doing this is, as I say, you can exclude certain investments such as like, you know, if you're really against the porn industry, you can't, you just get rid of any companies that are in that or could be anything. And Dave smiled at me now. Just the way your eyes looked up and said, porn industry. I know you keep it in. We don't have to go there. Um, and it's a cheaper alternative to using a wealth manager cause you're doing it yourself, obviously. Um, but the data does show, so this is kind of a caveat to it. The data does show that the average DIY investor underperforms the market. Wow. Okay. Okay. By a fair chunk, I think it's like 5% annualized. So that's to be, that's something to be aware of. But I think that's a product of the fact that people just jump into level overconfidence and they don't necessarily reflect on what stage they're at. So obviously it's an average, we love averages. So some are going to be outperforming, some are going to be underperforming, some are going to be in the middle. Um, but yeah, that's a six foot man in a two foot. We're not going into that. Um, so that's, that's your pros and cons of it. If I was going to give some advice on how to start and how to start thinking about building one, this is where I'd start. So step one is determine your risk level. Very similar to what the wealth manager would do. Take a risk questionnaire. You can find one online, just Google it and it will give you an idea of what level you're going to be in. Um, and it, it's, I can't actually remember, but I think it's like level one to seven. A lot of it's got weird, weird. Yeah, yeah, I know. Um, but yeah, once you understood what your risk tolerance is, that will really help you then start thinking about how are you going to put together your portfolio number two. So step two is going to be choosing your benchmark. And this is really important because if you don't have a benchmark set in place before you start, you're not going to know how well you've done. Okay. So when you say a benchmark, can you kind of clarify what you mean by that? Yeah. So choosing a benchmark and it will be very similar to the previous index funds that I mentioned. So you want to choose something that's, that's going to represent a market that you're trying to beat essentially, or compare yourself against because if you don't have anything to compare yourself against, as I say, you, you're not going to know if you've done better or worse, ie the market might've been up by, or you might've been up by 20% and you're like, yeah, smashed it. But if the market's up by 40, you've actually lost out on 20% there. Um, so it's really important to know where you are essentially. That, that makes absolute sense to me. I think that's a super obvious point, but I think you could get very carried away. You know, let's say you've just started investing and you, you've read a few things and you invest some money. I can, I can literally picture someone doing it and you've invested some money and you go, wow, I must be a real genius or here and things just because the overall markets have jumped up quite a lot. And you go happy days. I'm up 20% but actually the mark, the benchmark's gone up 25%. So you were actually underperforming. Yeah. And that was such a, a kind of a trend in COVID times when basically the market was just going up and no one could basically lose money. Um, and everyone thought, I'll be honest, I did it like, as in I started investing a little bit around that time and I looked at how well everything started to go. I was literally, I started to do like pre-calculations in my head. Like if I carry on investing like this, I'm going to be a millionaire by the time I'm 35. Yeah. So wow. Okay. Um, but once you have chosen it, step three will be building your long-term asset allocation. So I like to think about this as you're now putting the kind of the foundations in the, the, the big sturdy blocks or bricks that are going to hold up the house. So it's nothing too fancy. It's going to be your low cost, again, passive index trackers. And what you're going to do, you're going to, what I would do would be trying to almost replicate what your benchmark is to start off with. So you'd have a look at MSCI world, for example, and say it's 60% of the U S you would allocate 60% into the S and P 500 as a U S proxy. Then if it's 5% in the UK, I'd go 5% in the FTSE and you'd kind of work your way down and almost build the benchmark yourself using these blocks and try and make it as low cost as possible because cost is a big factor. Um, but once you're, once you're happy with this kind of, once you feel as though you've got a sturdy portfolio and you kind of go through this all the way, all the way up and not just an equity. So then you'll build some diversification in there and different asset classes. So you might look at some, as I say, fixed income stuff. So into bonds, you've got some corporate bonds, um, and then also some alternative investments. So you might be looking at some commodities like gold or, um, some, you can buy like a hedge fund or a fund of funds, um, as well as funds of funds, um, as well as property and infrastructure. And it might sound a lot, but again, go on to the broker. You can start typing this, these names in and you can find a property fund. You can find all this kind of stuff. Um, but word of warning, like not all funds are made the same. So you do want to do your research into what funds you do build your portfolio with. Um, once you've got that in place and you've got the decent amount of diversification within there, and you're happy with the risk, risk level that you've chosen. And it's kind of similar to where your benchmark is. This is when we move into step four and this is when it gets a little bit spicy. So step four is choosing your tactical asset allocation and tactical asset allocation is your short term bets. So this is where you're going to really start making small, small bets where you're deviating away from the benchmark. So for example, you might say that you think the U S is going to do really well this year for whatever reason, you might've read something, you see some macros and you're like, Oh yeah, that's good. Like backgrounds looking good. And as a result, you're now going to say, I'm going to allocate the benchmark is 60%. I'm going to allocate an extra 5% of my, my risk budget here into the U S. So I'm putting 5% extra, but then I'm going to have to take it from somewhere else because you don't want to increase your whole risk here. So you kind of have to do almost what you'd call a relative value trade. So you would put 5% in the U S because you think it's doing well, but you might say, Oh, emerging markets are rubbish because of FX stuff going on. It could be any reason. And you're going to decrease your allocation to emerging markets. So you're taking benchmark bets here. And with the goal is that what your theory actually comes out to is correct. And U S does do better than expected. And you, you outperform what your benchmark is. So you make that extra little bit of, um, on top of, of what your, yeah, what you can get, but you're not throwing a lot. I like the term bets that, that kind of, I can visualize that quite well. So you're, you're maybe putting a little bit extra of your portfolio as a whole on something, maybe from a hunch or something you've read, but you're not throwing everything on red. You're not, you're not just going to fall down on that. Exactly. So you still want to, you want to still manage your risk with this. Um, and to do that, yeah. It's about being mindful of where your deviations are and also knowing that if they're not playing out, kind of almost put a time limit on them as well. So these are more short term bets, if you like. And when I say short term, we're talking like maybe six months to a year. Um, it's not, I'm not talking day trading or anything like that. That's completely different. Um, but it's, yeah, it's, it's looking at different fundamentals in the market. So, and it could also, it's not just looking at increasing, say a certain region. So you could dive even deeper in there and say, Oh, the U S looks good, but specifically healthcare in the U S U S looks really good. So you might try and find maybe a couple of direct stocks in healthcare industry that you really like, and you could increase your allocation to those. Um, and there's, I mean, there's loads of ways of doing it and you could start adding some active funds in here. So that's when you pay a fund manager a fee. So it's not passive anymore. So the fund managers already built a portfolio for you and you can get that into your portfolio. And that tends to be like, again, loads of choices. So it could be a global fund manager. It could be a specific sector where they focusing just on using healthcare as an example, um, or even specifically in UK. So you could buy like a UK smaller companies fund, um, where you've got a professional who are picking these companies for you. Um, and then that can just go into your portfolio, but yeah, it's being aware where your bets are, I think is the key thing there. Um, and then to find it finally, just to finish off step five is monitoring and rebalancing. And this is really important because if you just leave your portfolio as it, as it is a portfolio, it's a very dynamic thing is changing every single day. As soon as the market's open, you need to be on top of where your desired asset allocation is and where you currently are. And if you're breaching certain constraints, I you've gone over, say your, your equity budget was 60% overall, and now you're at 62, you're now taking more risk than you actually intended to. So you need to work out that I'm going to trim some from that. And you need to find out where are you going to trim it from? So where is that outform has come from and then redistribute it into somewhere else in the portfolio that's actually underperformed. So it's really important from a risk management point of view. And that's kind of it, to be honest with you, without without going too deep. I think we've covered all the Lando sources. Yeah. I hope it's been useful. No, absolutely. I think as we, we say to each other, after recording this, or it's hard when you're when you're a professional, to keep things brief sometimes, because you feel like, oh, you're doing it a disservice in a way. But definitely is an initial starting point for most people. I've learned a lot through that. I think my key takeaways are before starting a portfolio, obviously not jumping the Lando source idea I really like actually about think of, okay, I get what the different levels are. And I get the lower you know, the less spicy it is, the more money I might have to pay to someone to take the ease out of it. And those three terms, let me try and remember them. So interest, time, and knowledge. I would want to evaluate, okay, where do I sit? And I think each, you know, each of the listeners can be self reflective, and go, how much of each of those commodities do I have, and then set the level. And then on each level, mate, I know that there will be a lot more depth to each of them. But, you know, for me, with somebody with really super limited knowledge around all this stuff, I think it's good to be to be aware of the different options you have. Yeah. And I think that's, if you're going to take away anything from this, it's about self reflection. I think that's going to be the key thing of today. Yeah, is is just stop, work out where you are, and then go into it. And you can do your own. And I really like that. And that's that that most people that they go in, you know, super cocky about it, and think that they can beat the market, in the long run, underperform it. That's, yeah, the truth. That's quite interesting. And it just makes you stop and think, you know, do I have the same in my world, you know, do I have the knowledge around injury and rehab, to risk doing this myself, I might be able to rehab this injury myself, am I going to waste a shed load of time and money in the long run doing it? Or just pay someone. Just pay someone, get an answer quickly. And get it sorted quicker. You might go, it's a bit of money, but yeah, interesting. No, thank you. I think, honestly, you know, I've let you kind of talk, but actually, super interesting. So thank you, Scott. Thank you, Dave. Do you want to sign us out? Yes. So obviously, everything today was my own opinion. And if you do want some more advice on this topic, I'd always say, seek professional help.