Time to buy stocks? Xero’s AI move, and your questions answered

In this Australian Investors Podcast episode, your hosts Owen Rask and Drew Meredith are back for 2 Sense. Invest with Owen: https://bit.ly/R-invest Rask financial planning: https://bit.ly/R-plan – Buying falling stocks vs chasing winners – Designing the perfect ASX ETF – Xero’s AI deal with Anthropic and what it means – CSL, inflation risks, and market concentration concerns If you love learning about long-term investing, ETFs, and portfolio strategy, subscribe to the Australian Investors Podcast on Apple, Spotify, or YouTube. Topics Covered 💡 Falling knives vs momentum winners – Would you invest $100k into a stock down 40%… or up 40%? – Drew leans toward “falling knife” investing, betting on mean reversion – Owen highlights opportunities in high-quality growth at discounts – Key takeaway: valuation + time horizon matter more than recent performance 🧠 Designing the perfect ETF – What would you do with $50M to launch an ETF? – Drew’s idea: a “falling knife ETF” buying beaten-down stocks – Owen’s idea: a high-growth, founder-led strategy inspired by venture investing – The big insight: 👉 Blending styles (value + growth) may outperform either alone 🤖 Xero + Anthropic: AI meets accounting – Xero partners with Anthropic – AI (Claude) will integrate directly into Xero’s platform – Potential impact: Real-time financial insights Automated invoicing and bookkeeping “CFO-like” functionality for small businesses – Big question: 👉 Does AI enhance Xero… or eventually replace it? 📉 CSL: from premium darling to “cheap”? – CSL now trading ~15.5x forward earnings – Facing: US competition pressures China regulatory changes Strategic pivots and cost cuts – Key debate: 👉 Is this a rare opportunity to buy a world-class business at a discount? 🌍 Markets, inflation & concentration risk – Inflation concerns rising again (Middle East conflict impact) – Fuel excise cuts may actually increase inflation – Top 10 ASX stocks now ~49% of the index (huge concentration) – Key idea: 👉 “Safe” isn’t always safe — concentration risk is growing 🧠 Is investing just storytelling? – Markets often move on narratives, not fundamentals – Example: coal stocks rallying on energy disruption stories – Insight: 👉 Investors must separate signal vs narrative hype Listener Questions Answered 🧾 Investment bonds for kids (The Frugal Farmer) – Tax-paid structure with 10-year rule – Useful for: High-income earners Intergenerational wealth – Not always the best option — depends on tax situation 🏠 SMSF + property advice (Deer in the Headlights) – Using advisors within property/SMSF firms = potential bias – Key takeaway: 👉 Seek independent financial advice for major decisions 💰 LICs vs ETFs (AFICionado) – Australian Foundation Investment Company DSSP can defer tax – But ETFs still often more tax-efficient than people think – Drew’s view: 👉 Prefer flexibility over automatic reinvestment 📊 Too defensive for growth? (Goosebump) – Portfolio includes cash, credit, and gold ETFs – Likely too defensive for someone in late 30s seeking growth – Key idea: 👉 Defensive assets = optionality, but may limit long-term returns Final Thoughts This episode is a masterclass in how to think, not what to think: – Markets are noisy — stay focused on fundamentals – Blending strategies beats extremes – AI is reshaping entire industries (fast) – And your biggest advantage? 👉 A long-term mindset and disciplined process Resources for This Episode Learn more about portfolio strategy & investing: – https://www.rask.com.au/rask-invest – https://www.rask.com.au/education – https://www.rask.com.au/investing-guides ~~ Rask Resources ~~ Explore all Rask services – https://bit.ly/R-services Get Financial Planning – https://bit.ly/R-plan Start investing with Rask – https://bit.ly/R-invest Access Show Notes – https://bit.ly/R-notes Ask a question – just select the Investors Podcast – https://bit.ly/R-quest Follow us on social media: – Instagram: @rask.invest – TikTok: @rask.invest DISCLAIMER This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. You should consider if the information is appropriate for your situation before acting on it. If you’re unsure, consult a licensed financial planner. The Rask Group is NOT a qualified tax accountant, financial adviser, or tax professional. You can access The Rask Group’s Financial Services Guide (FSG) here: https://www.rask.com.au/fsg #Investing #Finance #AustralianInvestorsPodcast