The secrets to investing success – from someone well on their way

For Richard Ye, investing isn’t just about building wealth. It’s his favourite hobby.

“Investing is my video game,” Ye says.

“Either you’ll be happy because you reached your goal, or you’ll tweak your strategy if you didn’t.”

But for the Melbourne-based, Chinese-born accountant and father, investing isn’t primarily about the money. For him, it’s a challenge and a constant work in progress – a mindset that drives him to reach and even extend his financial ambitions.

Richard enjoying the Formula 1 in Melbourne. (Supplied)

Experience matters

Ye had his first exposure to investing as a teenager, at around the same time China’s financial landscape was undergoing rapid change. That first experience shaped the way he has thought about money ever since.

“Although I decided to have a full-time job after I graduated, I’ve always kept my eyes on markets and would call myself a constant learner,” Ye says.

Five years ago, he picked up investing in the Australian market. While he wasn’t completely learning from scratch, Ye estimates he spent three years learning about the Australian market and its unique quirks, like dividend franking and hybrids.

Today, he holds a combination of hybrids, ETFs (both local and global) and shares. In total, his portfolio is worth $1.5 million and counting.

A plan keeps you accountable

Ye is the first to admit that staying on track as a long-term investor is not always easy – because emotions can have such a lasting impact on your financial decisions. In fact, when ASIC conducted a survey of young investors, nearly 50% of survey respondents admitted they invested in certain assets because they didn’t want to miss out.

“I’m not as disciplined as I want to be,” Ye says. “Don’t underestimate the human impact, you’re not a machine.”

“One very important thing I do is have a written plan in place.”

Ye recommends people share their plan with someone they trust – a partner, for instance – and suggests keeping it in a visible place. Additionally, he tracks his progress via a Morningstar portfolio tracking tool which, even for this accountant, is simpler than toying with an Excel spreadsheet.

Focus on consistency over holding out for a lower price

Ye also aspires to be a more consistent investor, recognising that a sense of “greed” – a temptation that arises from his continual efforts to buy at the lowest possible price – often influences his behaviour.

One such example of this principle occurred earlier this year.

‘Liberation Day’, declared by US President Donald Trump on 2 April 2025, marked the announcement of sweeping tariffs targeting nearly every major global economy. For Ye, it was a prime buying opportunity that he wishes he took greater advantage of.

“I have ‘greed’. But it’s not about selling greedy, I’m more about trying to buy low. I always try to buy low, like during Liberation Day. I knew it would be a great chance, but it passed too quickly. I didn’t buy enough in April,” Ye says.

But, as many investors can attest to, timing the market is always harder to achieve than it sounds. To help him stay focused and so he avoids second-guessing his investment timing, Ye uses Betashares Direct’s auto-invest feature.

“Automatic investments can minimise the fear and any human error,” he says.

Richard enjoying the Victorian seaside. (Supplied)

You’d rather test and fail, rather than not test and miss out

Ye’s next tip is the one that’s the simplest to say but may be the hardest to achieve in practice – test your theory.

“You have to learn. You have to test. You may make a mistake. But once you’ve tried something, you’ll know more about yourself and your investments,” Ye says.

One of his tests, and one that turned out to be highly successful, was investing in bank hybrids.

“I think the biggest risk for a lot of investors like me has been that you don’t dare to put a large chunk of money into an investment,” Ye says. “[But] hybrids have been a kind of gold mine for me.”

No new bank hybrids are being issued in Australia, and the remaining ones will gradually be phased out over the next seven years. Ye plans to hold onto his bank hybrids as they roll off, but thinks it will be a couple of years before he is able to find a suitable replacement.

The last Australian bank hybrids will be called in March 2032, ending a much-loved avenue for Australian investors who sought reliable, stable and homegrown income.

Success isn’t always material

Ye shares something in common with investing greats like Warren Buffett and Carlos Slim Helú – he knows that true success isn’t measured purely in material terms. Because of this, he says he’s always been a little more low-key than other investors his age.

“Since we came to Australia from China, I think relatively speaking that we are very low key. I never really buy things,” Ye says.

“I don’t think that I’d put my money into a boat or a new home. I do manage my spending very carefully.”

What Richard plans to do when he reaches his goals

When I asked Ye what he would like to do once he reaches his financial goal, his answer wasn’t a new car or a house. Instead, he would love to attend the Bayreuth Festival, an annual music event which celebrates the work of famed 19^th century German composer Richard Wagner.

“I would love to spend more time enjoying the arts in Europe. I especially have an interest in classical music and the opera,” Ye tells me.

He also wants to continue supporting organisations like the Melbourne Symphony Orchestra. It’s a reminder that, for him, investing is as much about the lessons he learns and the personal passions he wants to pursue as it is about the returns.