Talk investing with Waikato entrepreneur Riki Manarangi and one word comes up often: innovation.
“I look for investments that are something new to be involved in,” he says, “quirky or different.”
“Life is too short to just do boring.”
Indeed, Riki Manarangi is something of an innovator himself.
He got into investing while a student in the early 2000s, using one of the first DIY trading websites.
“I’m always keen to try new opportunities and platforms and I thought this is quite fascinating, and an opportunity to move money out of a generic model, into something I thought was innovative.”
More recently he started Lonelyseat.co.nz, which connects motorists with people needing deliveries.
And it’s there that much of his efforts are currently focussed.
“You only get a limited amount of widgets to play with,” he laments.
He has KiwiSaver and owns property too, but right now is most excited by cryptocurrency.
“I find it a fascinating opportunity,” he says, “because it’s a worldwide phenomenon and there’s a lot more information about it, a lot more awareness, which creates more engagement and investing by others, and with that comes more opportunity to have informed discussions about it.”
He says mitigating risk means having a diverse portfolio, and “not putting all your eggs in one basket.”
Not that he’s averse to risk. In fact, he encourages more investors to take it, especially if they’re young.
“The biggest risk is not taking any,” he says, quoting Facebook founder Mark Zuckerberg. “That applies to people with term deposits earning less interest than inflation. It makes no sense but they’re so scared of risk that they’re losing money, which is a greater risk than investing!”
“When you’re younger you have more time to counter any stuff-ups. If you’re younger you should use that opportunity to touch the flame and get burnt, because the learnings you get from taking those risks will prove invaluable later on.”
He encourages people to try out the new generation of DIY investing sites.
“Technology has made investing so much more accessible and people really should leverage that.”
But his key piece of investing advice is to talk with others before even considering a certain pathway.
“The best advice I've received to date is to continually get advice. That’s why I’m a member of the New Zealand Shareholders’ Association, because it gives me access to that wealth of knowledge from a roomful of investors who can test your thinking, give you their views and help you find the patterns.”
“It’s good to learn on the hoof, but better to learn from other people’s mistakes.”
And once bought, he says assets should be viewed with your head not your heart.
“Investments should be seen as just numbers on a spreadsheet,” he says. “If you attach sentimental value, it skews your thinking – it’s no longer an investment.”
“My view is that if there’s something I find interesting, something others are talking about positively, then I’ll review my entire investment portfolio, and look to reassign my widgets.”
*The views and opinions expressed above are those of the interviewee and do not necessarily reflect the views or official position of the FMA.
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