Good w/ Money Workshop
& overconfidence is the ultimate detriment to wealth
:::Issue #6. Why are you receiving this? You want to be in a good place. This is where I share educational content and practical tips on personal finance, so you can get to your good place, wherever that maybe:::
👋 Hello wealth builders!
Welcome to the 6th issue of the hellogoodplace newsletter.
The 6th issue is a little late because I wanted to share an exciting news. My cohort-based live workshop to help YOU built wealth is finally live! But first…
I took a writing class last year called Write of Passage. It’s actually where I learned why I should write online, distribute it through a newsletter, and how to set it all up. It was such a transformative experience that I decided to return this year to cohort 6. But unlike my first time around, I came in confident like a veteran WoP’er.
And I got steamrolled.
I thought I could take it easy this time and didn’t dedicate as much time or mental bandwidth. I missed mentor sessions, didn’t finish any assignments, and lost the opportunity to make as many meaningful connections with other students. I was overconfident.
Confidence is one of the key ingredients to success, but overconfidence can ruin you.
Ruin maybe too strong of a word for my WoP6 failures, but overconfidence in finance can do serious harm, even for billionaires.
Archegos Capital Management has been in the news a lot lately as the latest hedge fund to lose billions in a matter of days. How does a $100 billion dollar hedge fund go bankrupt in a few days? Overconfidence.
Archegos made bolder and bolder bets using leverage, or borrowed money. You see, if you invest $100, it takes a 100% drop to bankrupt you. But if you take $50 and borrow $50 to invest $100, it only takes a 50% drop to bankrupt you. Archegos apparently often borrowed $85 to invest $100.
With the stock market hitting all-time highs this week, I’m seeing a lot of Archegos-esque, overconfident investors that are taking increasingly aggressive measures to boost returns. Watch out for overconfidence aka Mt. Stupid in your portfolio.
It’s hard to sit on a diversified portfolio when it feels like everyone else is making money faster than you. Just remember that growing wealth is a long-term game, and it’s not who can run the fastest that wins, but the one that finishes the race.
What I’ve been up to
“Your Instagram posts looks like powerpoint presentations.” - my friend
That’s not a compliment. I was off the gram in March but I’m back. I’ll be posting short 1-minute videos instead of my boring af “powerpoint” slides for April. Got a question you want me to answer? Respond back to this newsletter!
👨🏻🏫 UC Berkeley Extension Courses
I just signed paperwork to teach two more sections of the Employment Benefits and Retirement Planning class at UCBX for 2021. Well… I docusigned the paperwork which doesn’t have the same feel as Apple Pencil to iPad. In addition, I’m picking up another course called Stock Compensation and Concentration Management. Unlike contracts for things like an apartment lease, I enjoy signing UCBX contracts because it makes me feel like a superstar athlete.
Good w/ Money Workshop
It’s obvious that Dak does not need help making money. But there is a big difference between making money, and keeping & growing money.
Making money is action.
Keeping money is behavior.
Growing money is knowledge.
I can’t help with action, but I can help share knowledge that can grow your money, and hopefully influence your behavior.
I’ve compressed a ton of information into the Good w/ Money workshop, and it is designed to equip you with the core knowledge of building wealth in just one weekend. But understanding how to build wealth is not enough - so I’ve designed the workshop to be hands-on, and by the end you will leave with an automated wealth building system that I call GP$.
A personalized approach for teaching finance is difficult, so I’m limiting participants to 10 people (or couples).
The first cohort will run May 1 - 2, Saturday & Sunday, 10:30am - 2:00pm (PST) with a 30-minute break each day.
I’m planning to set the course at $1,000, but it will be discounted to $500 for the first cohort. For the first the first 5 people that sign-up, I will discount it further to $250 (use code EARLYACCESS).
For more information and to sign-up for the first cohort, click here!
To being in a good place,
Daniel