My Biggest Aha Moment: The Power of Due Diligence

My biggest aha moment came when I realized that a skill I had developed for investing and managing money could also help me build wealth: due diligence.

Now, this may not be the most exciting skill. I'm not talking about public speaking, product development, or coding.

I'm talking about due diligence.

I can almost hear your enthusiasm waning, but bear with me.

Due diligence is a superpower that, when applied to trading time for equity compensation and investing, will compound your ultimate returns on time invested.

By mastering this singular skill, you'll become proficient at making and managing money.

Learn this skill to optimize both your time and financial investments!

What is Due Diligence?

Due diligence is primarily used in investing to identify risks within a potential investment.

Once risks are identified, you, as an investor, can determine if they meet your criteria. If they don't, you can walk away before investing any money.

Why is Due Diligence Necessary in Investing?

Due diligence is crucial because it's a structured process.

It contains clear steps, tasks to be completed, and results to be presented. It's designed to be emotionless and to extract data objectively.

As investment opportunities arise and emotions run high, a solid due diligence process will extract information to show whether an investment is right for your portfolio.

How Can Due Diligence Make You Money?

I wouldn't have been able to work for three companies that went through IPOs without a solid due diligence process.

It removed emotion from selecting companies with the best equity compensation.

Due diligence can work the same for you in your quest to trade time for equity compensation. With a clear process that aligns with your risk profile and goals, you're set for success.

This is the ultimate skill to stack.

Learn to Perform Due Diligence

Over the summer, I published podcasts and articles on due diligence that are excellent starting points.

Let's review these valuable resources so you can develop your due diligence criteria for working for equity.

Remember, by executing due diligence, you'll become a great investor of your time and money.

Resources to Get You Started:

1. Article: "5 Benefits of Due Diligence That Will Save Any Tech Employee from Regret"

- Start here to understand what not to do. Many times, knowing the path not to take is the best place to start.

- Link: TEMN 36: Due Diligence Game-Changer

2. Podcast🎙️: "Public Company Due Diligence for Tech Employees with Brian Feroldi"

- Learn the details of public company due diligence from a financial educator who was a tech employee. Brian Feroldi gives a master class.

(Listen or read the transcript for a masterclass in evaluating public tech companies)

- Link: TE&MT 065: Public Company Due Diligence for Tech Employees with Brian Feroldi

3. Podcast🎙️: 5 Private Tech Company Traits Every Future Shareholder Should Evaluate"

- With more risk involved evaluating private companies requires a due diligence process with different techniques to get the information you need.

This podcast gives the exact criteria I used to work for 3 private companies that went IPO.

- Link: TE&MT 066: Guide to Building Wealth with Equity Compensation for Private Companies

Don't Underestimate Due Diligence

While it may sound boring, due diligence is an amazing skill that you can gamify over time.

It creates a great sense of satisfaction when you find excellent investments of time or money.

The resources provided will help you get started.

More than anything, I want you to feel prepared to make your most important career and financial investments.

Mastering due diligence will equip you to navigate the complex world of tech equity and personal finance.

Until next time, happy investigating!

Tech Equity & Money Talk is a Weekly Podcast that explores the process of building wealth with Tech Equity and managing the money that comes with it.

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TE&MT 071: 🎙️ 5 Lessons in Managing Wealth Effectively After Leaving a Tech Career

Financial Independence is the goal for many; however, how do you make the shift from money maker to money manager?

In this episode, I break down the biggest lessons I learned from managing my money in Financial Independence.

Are you curious what it takes? Listen now! 👇️ 

My recommended short videos are from the YouTube channel.

Tech Equity Strategies for Career Triumph (5:09)

5 Must-Learn Money Lessons for Tech Workers (10:05)

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Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.