Episode One: Janene Murdoch of Educated Investor Bookshop

Transcription of above

Simon:

Hi everyone, this is a special subscriber interview with an amazing lady, Janene Murdoch, who runs the Educated Investor Bookshop and has been doing so for 25 years.

So Janene, we've been chatting for a while, and we both love what each of us does. We thought we'd get together and have a bit of a chat. What better way to start the conversation than by telling us about your favorite investment books at the moment?

Janene:

Thanks so much, Simon. I appreciate the opportunity. These are five of my all-time favorite books.

Our best-seller every year for the past 25 years has been Top Stocks. Top Stocks is now in its 31st year of publication, which is quite a record for an Australian book. It's a great source of reference.

Martin has a set of fundamental analysis criteria that he uses to filter the market to find quality stocks. Only those companies that meet that criteria actually make it into the book. The number of companies listed fluctuates each year based on that.

It also includes charts. If you're a bit of a technical analyst, you can use your fundamental filter alongside the technical one to decide if you want to invest in a company. That's actually an absolute best-seller.

Then there's a quirky little book by Australian author Rob North, called Understanding the Investment Clock. It's a tiny book, not expensive, but packed full of information. It looks at historical events and how the market reacts to financial and global experiences such as recessions, and it gives you guidance on where we might be in the investment cycle. It might be time for a bull market or a bear market - it helps you understand that.

Again, I've gone for something really simple for people - perhaps younger people or those thinking about entering the share market - and it's called Shareplicity by Danielle Ecuyer. She's written a great little book covering all aspects of entering the market: fundamental analysis, technical analysis, risk management, money management - basic things you need to understand if you're going to put your well-earned money into the share market. That's a great introductory book for any age group.

One of my absolute favorites is by Colin Nicholson. He’s written a number of books, but this one is called Building Wealth in the Stock Market. Colin is a fundamentalist, and he loves looking at his fundamental analysis, ratios, and so on. He’s got his filter in the book to help you identify potentially good-value companies, particularly blue-chip stocks.

But Colin also believes in technical analysis. Once you've done your fundamental filter, you can put those companies on charts and use technical analysis to confirm whether they’re a good investment.

It's a best-of-both-worlds situation, combining the two approaches. You can filter stocks using technical analysis, and then filter them again using fundamental analysis.

Colin is also very focused on the psychology of the market. Let's face it, we're all driven by fear and greed. You really get to know yourself well once you enter the stock market, and you’ll understand if you're risk-averse or a more gung-ho investor.

Simon:

So true.

Janene:

I highly recommend Colin's book. We touched on it, but psychology is incredibly important if you’re thinking of entering the market. You’ll really get to know yourself. If you have fear or greed, that’ll come up.

Another great Australian book is by Evan Lucas, called Mind Over Money. I think if you're seriously considering entering the market, you really need to understand yourself - what your risk tolerance is and how you feel about risk.

It’s a basic book, not filled with too many technical terms. The language is very relatable, and I think it’s a great way to ease into understanding the psychological aspect of investing.

All of these books have similarities, but they also deal with different aspects of investing and come at it from different levels of understanding.

My years in the bookshop have taught me that there's no one right or wrong way to trade or invest in the share market. It's all about finding what works for you.

Simon:

It sounds like there's a great toolkit there for people getting started or wanting to upskill. For those struggling with their strategies, it could help them think differently about things.

And that complements what we're doing with the investment newsletter group on TINGLive.com, where we've covered nine major newsletter services in Australia. As you're saying, there are many different styles and personalities when it comes to investing. Using your books and our resources, hopefully, subscribers and investors can figure out what works for them, especially since so much of it is psychology.

It's really about finding the right investment approach and sticking with it, even during tougher times, since that's usually the worst time to bail out.

Janene:

Exactly. And it's nice to have a newsletter like yours to help guide people because it can feel daunting and challenging, especially when money is involved. It’s reassuring to have something to help you feel like you're heading in the right direction - or, if not, help you make adjustments.

Simon:

Yes, so true. Speaking of heading in the right direction, how can people find you? What's the best way for them to get in touch with you, check out your books, or access resources?

Janene:

I have a website: www.educatedinvestor.com.au. I had a physical bookshop for over 15 years, and I still have customers who call me for advice, which I’m more than happy to give. We can guide them in the right direction if they have a particular question or problem.

All of our books are listed on the website with good descriptions. If anyone has questions, they can reach me by email at janene@educatedinvestor.com.au or my mobile number is also listed on the site.

Simon:

Fantastic. It's great to have an open-door policy.

Janene:

I think so. After 25 years, you create relationships, and it’s clear people have been successful in the market with the help of the books and resources. That tells me they’ve had a great deal of success.

One thing I will say is, they’ve invested in themselves. They used newsletters, attended meetings, and immersed themselves in it. It’s not easy; it takes work. But if you’ve worked hard for your money, you don’t want to give it away.

Simon:

That's right. It's like people spend more time planning their holiday to Bali or Fiji than they do on their investment strategy, and for practitioners like us, that just sends chills down your spine, doesn't it?

But we can lead a horse to water, but we can't make it drink.

Janene:

Exactly.

Simon:

Thanks again, Janene. It's great to have all these amazing resources available for our subscribers and yours. We’re really helping people.

For our viewers, you can visit educatedinvestor.com.au and also our website, TeamLive.com.au, where we offer a lot of great resources too. It can be a lonely journey, so use all the support you can.

Janene:

Thanks, Simon. I appreciate it.

Simon:

Awesome. Thanks for your time today, Janene.

Janene:

Thanks so much, Simon. Take care.