Investor stories: Meet Saul Barnett

By Vanguard

Investor stories

 

As other investors panicked in 2020, Saul decided it was time to invest.

Global investment markets fell sharply in 2020 as the onset of the COVID-19 pandemic induced widespread panic among investors. For Saul, then aged 21, it was the perfect opportunity to make his first investment on the Australian share market.

Now, several years later, Saul is following a regular investing strategy using exchange traded funds (ETFs) as the core of his portfolio and a number of smaller holdings in individual companies as his satellite investments.

Here’s Saul’s investing story.

Why did you start investing?

I was studying civil engineering and finance at university at the time and was also earning a little bit of money as a high school maths tutor. I was lucky to be living at home and not paying rent, and I wanted to do something with my money so I could actually make more money and ultimately save up for a house.

 

When did you start investing?

I started investing during COVID in 2020. My mum had worked as a stock market companies analyst for about 20 years and together we decided to invest in a company that we thought had very good upside potential based on its financials. That’s basically how I started off.

 

What does your investment portfolio look like now?

So, my portfolio now is mostly comprised of a Vanguard ETF which tracks different stock markets. I have a few other investments, but I put most of my earnings every fortnight into the ETF using the Vanguard Auto Invest feature. That way it can keep growing and I don’t really need to think too much about it.

 

What are some of the things you’ve learned?

The main thing that I’ve learned is the difference between an active and a passive portfolio. Active portfolios are actively run by managers. However, these often don’t actually provide the results that they claim to provide. Passive portfolios normally provide better results because they’re actually tracking an index of the stock market, and they also have very low management fees.

 

What advice would you give to other people your age?

So I think people should start trying to invest as early as they can ,within reason. If you’re my age and you have a lot of disposable income, you’re still living at home and you’re not paying for utilities or food, then try to invest most of your money in a portfolio. The earlier you start to invest, the more your money will compound over time.

 

Do you feel confident about achieving your long-term financial goals?

At the moment I am pretty confident in achieving my investing goals. I’ve got a pretty stable source of income and I’m investing most of that. If you look over the over the long term, the average stock market return has been about 10% per annum. So, I’m pretty confident I can make a decent return on my investments. Ultimately my goal is to afford a house, especially in about five to six years’ time, and also to create some passive income to last me for the next 10 to 20 years.

 

^{This publication features the personal opinions and experiences of retail clients of Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263). These views are presented for informational purposes only and do not constitute financial advice. Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) does not endorse or guarantee the accuracy of the opinions expressed in this publication. Readers are encouraged to conduct their own research and seek professional financial advice before making any investment decisions.}