Meet Lel: The self-taught investor with a diversified portfolio

Lel Smits landed her first job at the Finance News Network when she was studying at university, and since then, she hasn't looked back.
Ally Selby

Livewire Markets

Like many of Livewire's readers, investing isn't in Lel Smits' blood. She doesn't come from a long line of financial advisers, fund managers, or brokers. Her family were Latvian immigrants who arrived in Australia with nothing but a suitcase.

While today, Lel's passion is financial literacy, it has only become so thanks to chance. While studying for a Master's in Journalism, Lel landed her first full-time role as a reporter - in finance, as luck would have it, although that wasn't her original goal. 

Back then, she'd scour the ASX for announcements, and write up to 12 stories a day. She'd dissect reports for the news that investors actually cared about, and in the process, she fell in love with investing too. 

Before long, she moved to New York - where she would report from Wall Street at the New York Stock Exchange and NASDAQ - a "dynamic" experience but a relatively short-lived one, as she soon blew through all her savings. 

Moving back down under, Lel and a friend in investor relations decided to start their own business. This was back in 2016, and before long, the business started to grow and expand. Today, looking back, she's worked with more than 500 companies and thousands of executives, helping them better communicate with investors. She's also a director of the Australian Shareholders' Association - and is dedicated to helping improve the financial literacy of new investors and minority groups. 

"Most Australians, whether they know it or don't, own shares through their superannuation and many, I would say, don't have the understanding or engagement with their investments that they should have," Lel says. 
"Empowering individuals, in particular minority groups and disadvantaged groups, with financial education, empowers the entire fabric of society. Every individual deserves financial literacy." 

In this Meet the Investor profile, Lel shares some of the highs and lows of her investing journey so far, outlines some of the top positions in her portfolio, and shares some of her plans for the future. 

Investor Profile

  • Name: Lel Smits
  • Job: Managing Director of The Stock Network 
  • Years spent investing: 12 years 
  • Biggest investment: 4DMedical (ASX: 4DX)
  • Secret or not-so-secret talent: Jazz singing. It was my passion before journalism came calling
  • Guilty reading or viewing pleasure: Finance YouTube videos - I love watching top creators communicate edutainment. Creators such as Erika Kullberg are leading the game, serving up short, snackable and actionable content.
Lel with her Latvian Grandmother. (Source: Supplied) 
Lel with her Latvian Grandmother. (Source: Supplied) 

1) Can you share how you started investing and what your first investment was?

My grandparents were all refugees and arrived in Australia with nothing but a suitcase. While I sadly didn't grow up with financial literacy, I fortunately was raised with a strong focus on education - "the one thing no one can take away from you". While studying for my Masters in Journalism at UTS, I surprisingly landed my first full-time role as a broadcast finance journalist and was forced to quickly self-learn.

On an entry journalist's wage, I saved up over months to buy $500 of BHP (at around $30 per share) and $500 of Lynas Corporation (at around $1 per share). Devastatingly, when I went to check up on my investments I learnt my small, or "unmarketable", parcel of Lynas shares that had fallen had been reclaimed (after which the shares rose considerably). Regrettably, with address changes in the period and no email notifications, I missed notifications but gained a big lesson - make sure to actively manage and monitor your investments.

While I'm now a Director of the Australian Shareholders' Association and part of the nation's largest shareholder group, I still acutely remember the challenges I faced as a new investor, and am driven to support independent education and advocacy to keep markets safe and accessible for all.

Source: Supplied 
Source: Supplied 

2) How would you describe your strategy and your investment goals?

Diversifying my investments to target steady returns is a core strategy in my investment approach. By spreading investments across various asset classes, sectors, and geographic regions, I'm focused on mitigating the risks associated with market volatility. 

As a former financial markets journalist, I would write up to 12 ASX-listed company stories a day and have reported from inside the ASX, NYSE, Nasdaq and LSE. Though I still find myself looking for 'the next trend', I choose to invest because I have long-term conviction.

This strategy aligns with my investment goals of preserving capital, achieving long-term financial stability, and generating a reliable income stream. I believe that a well-diversified portfolio not only reduces exposure to individual asset risks but also enhances the potential for steady returns by capitalising on different market opportunities.

Lel reporting as a broadcast journalist from the NYSE. (Source: Supplied) 
Lel reporting as a broadcast journalist from the NYSE. (Source: Supplied) 

3) Can you share your top 5 holdings in % terms and why you hold these positions?

I believe in the diversification of assets and personally hold property, cash, cryptocurrency, private, and public investments and invest in my own company. I would love to invest in more alternative assets in the future, such as art, but that's a long-term goal, as I've committed to only buying what I understand.

For now, when it comes to the stock market, I'm pleased with a diverse selection of stocks including:

1. 4DMedical (ASX: 4DX) - 23%

4DMedical is my largest single-stock market investment. I purchased the stock before I worked for the company for two years. We have a policy of not purchasing stock while working for a company. I was initially impressed by the company's proprietary world-first lung imaging technology meeting the global demand for digital health solutions. My conviction increased further after working for the company as an investor relations adviser for two years and witnessing first-hand the leadership, board, advisors, expertise, passion, dedication and technical excellence driving the company's US expansion plans.

2. Apple Inc (NASDAQ: AAPL) - 20%

I purchased the stock some time ago as it met a lot of my investment criteria. Specifically, my familiarity and long-term usage of the product gave me confidence in the company's commitment to innovation and R&D investment, supported by global reach, customer base and alignment with an increasingly tech-reliant future.

3. Xero Limited (ASX: XRO) - 20% 

For similar reasons to Apple, I was compelled to buy Xero because of its strong market position, customer loyalty, innovation and expansion upside. As a business owner, I've also witnessed first-hand how it has transformed our financial reporting and consistently hear only positive feedback from local accountants, making me positive about Xero's growth prospects.

4. Australian Ethical Investment Limited (ASX: AEF) - 20%

I've always believed in investing for good and that societal and financial prosperity can coexist. As a pioneer of ethical investing, I like that AEF goes beyond environmental, social and governance (ESG) and screens for both ethical and investment merits, in addition to donating 10% of profits (after tax and before bonus) each year through the Australian Ethical Foundation.

5. Commonwealth Bank (ASX: CBA) - 17%

As above, my familiarity with Commonwealth Bank services gave me confidence in the business, backed up by its dominant position, strong financial performance, stable dividend yield, and robust capital management. The bank's commitment to digital innovation and customer-centric services enhances its competitive edge and there's nothing better than being a happy customer and shareholder. 

Source: Supplied
Source: Supplied

4) What investment is on your watchlist? (i.e you don’t currently own it)

I have been watching imaging provider Pro Medicus Limited (ASX: PME) for a while, heard the founders' compelling presentation, read the upbeat commentary and am excited by the company's prospects. I can't, however, find the conviction to purchase at current levels, so have my hopes with fellow imaging provider 4DMedical (ASX: 4DX) for now. 

5) What has been your worst investment and what has been your best?

My worst investment was Magellan Financial Group Limited (ASX: MFG). Having interviewed its founder Hamish Douglass when the company IPO'd in 2004, I had long followed the stock, bought at the highs and sold as it fell.

All my best investments were purchased in March 2020. Being a finance journalist gives you a nose for maximum fear on the streets and I took the opportunity to purchase blue-chip stocks I'd always wanted to own such as the then-oversold Commonwealth Bank (ASX: CBA).

6) Are there any lessons you’ve learnt during this journey that could help others?

  • Record everything - You can’t manage what you can’t measure
  • Invest in yourself - Your network supports your net worth
  • Resist FOMO (Fear Of Missing Out) - Focus means saying no

And, keep your feelings in check. There is a big difference between a casino and an investment. Investing well means work and patience. It should feel boring at times, but deeply rewarding when done well.

7) Can you share a personal passion or ambition you have for the future?

I have a mission to make stock education accessible for everyday Australians. Having grown up with no knowledge of stocks, and a fear of finance, I want to help break these barriers for future generations. I'm working on an early introduction to investing for children, including stock certificate templates to help children visualise investments, and have several projects focused on adopting a fresh approach to financial and stock literacy.  

Source: Supplied 
Source: Supplied 

Want to share your story like Lel?

Livewire is looking for investors who would like to share their stories and investment journeys with our audience. If you are interested, head over to this link and let us know

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies (“Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

Ally Selby
Deputy Managing Editor
Livewire Markets

Ally Selby is the deputy managing editor at Livewire Markets, joining the team at the end of 2020. She loves all things investing, financial literacy and content creation, having previously worked for the likes of Financial Standard, Pedestrian...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment