PHOTO: Brooke Roberts – SHARESIES. YOUTUBE
Brooke Roberts believes that people with $5 to invest should have the same opportunities as those with $5 million. She shares this vision in RNZ’s series RICH: The Meaning of Wealth in Aotearoa.
In 1986, at age 11, Roberts’ teacher, Miss Edmonton, introduced the class to stock market investing through newspapers, picking shares as a financial literacy exercise. This was thrilling for Roberts, especially as the shares kept rising daily, reflecting the stock market boom following the Lange government’s free-market reforms. However, the 1987 stock market crash wiped out many “Mum and Dad investors,” shaking public confidence in share investments and pushing Kiwis toward real estate as the preferred way to build wealth.
Now, nearly 40 years after the crash, the tide is turning, with platforms like Sharesies revitalizing interest in share investing. Sharesies, launched in 2017, is a digital investment platform that allows users to buy and sell shares with as little as one cent. This democratizes investing, giving everyone, regardless of financial background, a chance to participate in the stock market.
Roberts, 37, co-founded Sharesies with Leighton Roberts, Sonya Williams, Ben Crotty, Martyn Smith, and Richard Clark. She notes that when they first launched, the majority of shareholders were older men in Auckland. Today, the platform has users ranging from 0 to 97 years old, representing diverse genders and ethnicities.
Roberts emphasizes that Sharesies was designed to make investing accessible to a new generation, many of whom feel shut out of the housing market. “Sonya had the idea behind Sharesies, wishing she could invest $50 in something meaningful,” Roberts recalls, referencing the media’s portrayal of millennials as irresponsible with money. Sharesies now boasts around 700,000 active users in New Zealand and Australia, who have collectively invested over $5 billion.
Roberts and co-founder Sonya Williams, pictured in 2020. Photo: Supplied
Roberts acknowledges that many new investors may lack deep financial knowledge, but the platform is designed to build financial literacy through small investments. “It’s not the people’s fault; it’s the system’s fault,” she argues, highlighting the structural issues that have historically made finance inaccessible to many.
While small investments may seem trivial, Roberts stresses the power of consistency and compounding interest. She encourages building habits early, such as setting aside affordable amounts regularly, to grow wealth over time.
Investing always carries risk, as history shows, but Roberts ensures that users are educated on the risks involved. Sharesies provides tools to help people make informed decisions, and the current stock market is far more regulated than it was in the 1980s, thanks to oversight from the Financial Markets Authority.
Roberts’ entrepreneurial journey has been swift. Hailing from Wellington, she previously worked in finance at KiwiBank and Xero. The idea for Sharesies emerged from a hobby investment club among the founders, and they tested the concept through a business accelerator program. The company quickly grew, and by 2021, it was valued at $500 million after raising $50 million in capital.
Roberts attributes part of her success to her entrepreneurial mindset, which she developed in high school. Her grandfather’s hardware store and tuck shop in Manurewa may have influenced her drive.
Sharesies is a certified B-Corp, which means it meets high social and environmental standards. Roberts is proud of their broader mission to do good, stating, “We’re not just here for shareholders, but for stakeholders.” While Sharesies doesn’t limit investment options to ethical companies, it does provide users with a wide range of choices.
Looking ahead, Roberts envisions potential shareholder activism on the platform, where users might band together to influence company decisions. She highlights Air New Zealand as an example, where Sharesies investors already form a significant part of the shareholder base.
Though Sharesies is still in growth mode, with some parts of the business not yet profitable, Roberts believes in reinvesting for future success. She’s also grateful for the supportive community of founders she’s part of, where collaboration and mutual support are key.
For Roberts, wealth isn’t just about money. “Health is the biggest wealth,” she says. “Financial health creates opportunities, but wealth should also enrich society as a whole.” She believes that more people having access to opportunities to grow wealth will ultimately benefit the entire economy.
SOURCE: RNZ