Meet Stephanie: At only 19, she's cashed up and ready to capitalise on investment opportunities

Stephanie has only been investing for a year but already has her strategy down pat. At just 19 years old, the Melbourne-based university student is ambitious and outspoken, steadfast that a life well-spent is one tackled head-on. 

About Future IM/Pact

As part of our partnership with Future IM/Pact, Livewire is interviewing the two winning students from its annual investment competition. Future IM/Pact targets 18 to 25 years olds either in university or in the first stages of their careers. The program provides students with a deeper insight into what a career in finance would look like, introduces them to high-profile role models, runs investment competitions, and gives them the platform to demonstrate their skills to potential employers (so they can actually land jobs). You can learn more about Future IM/Pact here.

Livewire investor profile

• Name: Stephanie Liow 
• Age: 19 
• Employment Status: Student
• Years Investing: 1 year 
• Investment goals: To develop my skills as an investor and save up for my first home. 
• Products used: ETFs and shares
• Biggest portfolio holding: Cash

How old are you and how long have you been investing?

I am currently 19 and I have only been investing for a year. One of the most rewarding decisions I've made thus far has been participating in the Future IM/Pact National Investment Management Case Competition in 2022. Although I was just a first-year university student at the time, I decided to join after seeing a Facebook event for the competition. While the experience was incredibly challenging and required me to quickly learn new skills, it provided invaluable insights into the work of an investment analyst.

Winning the competition was a huge accomplishment, and the prize was a summer internship. I interned at Cbus Super in its investments team, spending time with both the Asset Allocation and Australian Small Cap Equities teams. This experience further cemented my passion for funds management.

What is your objective from investing?

While I'm saving up for a down payment on my first house, I still like to keep things interesting by exploring growth stocks and industries. However, I do not want to take on too much risk, so I tend to keep my portfolio well-diversified. Overall, I think it's important to strike a balance between taking calculated risks and playing it safe.

What products do you use to execute your strategy?

Thematic ETFs are my preferred investment vehicle for several reasons. As a young investor, I'm working with a relatively small portfolio, which means that brokerage fees can significantly impact my returns. Therefore, actively managing a diversified portfolio of individual stocks would likely be unprofitable.

However, if I'm genuinely excited about a company's long-term prospects, I am willing to buy individual shares and hold them for an extended period. But, in general, I prefer ETFs because they allow me to invest in a specific industry or theme without the need to monitor individual stocks constantly.

How would you describe your strategy?

My investment strategy is primarily focused on the long-term, with a macro-driven approach. I tend to make investment decisions with a minimum time horizon of three years, and I'm always on the lookout for areas with significant potential due to macroeconomic or geopolitical factors. My long-term perspective helps me to have a stable and consistent investment strategy without worrying about short-term market fluctuations.

Could you please share your top holdings in % terms and tell me a bit about why you hold each of these positions?

Global X Semiconductor ETF (ASX: SEMI) - 10%

Semiconductors are a critical component of modern technology and will remain pivotal in the future. I hold this ETF primarily due to the escalating geopolitical tensions between the US and China, which has contributed to a heightened focus on developing advanced semiconductor technology in both countries. Given that the semiconductor industry is considered a national security priority for both countries, the industry is likely to benefit significantly from the increasing competition between the US and China. As an investor, this presents an attractive opportunity to capitalize on this trend and potentially generate positive returns.

A few years ago, Liberty Media acquired Formula 1, and they have been implementing some significant changes to the direction of the sport. I am particularly excited about their recent efforts to expand the F1 viewership beyond its traditional audience, targeting new demographics such as women and the US market. These strategic moves have the potential to generate increased demand for sponsorship, TV rights, and other revenue streams.

Global X Battery Tech & Lithium ETF (ASX: ACDC) - 5%

This investment represents a compelling opportunity for me as it's both a technology and decarbonisation play. Lithium and battery technology will play a vital role in supporting the shift toward renewable energy and electric vehicles. As the world increasingly moves toward sustainable energy sources, the demand for lithium and battery technology is expected to grow significantly. By investing in this area, I hope to contribute to the development and adoption of sustainable technologies while potentially generating positive returns for myself.

Could you tell me about your worst investment?

My worst investment decision was not investing soon enough. For a long time, I was content with simply accumulating savings without considering how I could make my money work harder for me. For too long, I let my savings accumulate in a low-interest savings account, missing out on opportunities to generate more significant wealth through investment.

I have since learnt that investing is not just about accumulating money, but also about growing and maximising the value of your savings over time. This realisation has prompted me to take a more proactive approach to investing and to seek out opportunities to generate higher returns on my savings.

Is there a lesson you’ve learnt as an investor that could potentially help others?

A lesson that I have learnt and that may benefit others is that, while cash may not be the most glamorous or exciting investment option, it can be a valuable asset class to consider.

Cash is often viewed as a low-return asset class compared to stocks, bonds, or real estate investments. However, in times of high-interest rates, cash can become a more attractive option as it provides a relatively safe and stable return.

Additionally, cash can provide a source of liquidity, which is especially important during periods of economic uncertainty or market volatility. Having cash on hand can enable investors to take advantage of opportunities that arise in such situations, such as buying stocks or other assets at discounted prices.

Can you share a personal passion or ambition you have for your future?

I am deeply interested in finance and investments, and working in funds management is a professional goal of mine. There's something very fulfilling about helping people reach their financial goals, and I love the fact that the industry is always changing and presents new challenges.

Besides finance, I am also interested in global politics and Formula 1. Although Formula 1 may seem unrelated to investing, it has become an increasingly attractive investment opportunity as I explained earlier.

Similarly, understanding political trends can help me to identify investment opportunities or risks. For example, changes in international trade agreements, economic sanctions, or political tensions between countries can have a significant impact on certain industries and markets. Staying informed about these developments can help you make informed investment decisions. For instance, I have invested in the global semiconductor industry to capitalise on the escalating geopolitical tensions between China and the US. 

The connection between these seemingly unrelated interests has shown me that there may be more than meets the eye in the world of funds management. I am excited to pursue my career in this dynamic field and see where it takes me.

Would you be interested in being profiled in our Meet the Investor series? 

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