TGA Core Concepts- The Investor Frame (CCA)

Jan 4, 2023 | The Vault

What if there was a framework you could utilize to help you decide with your own logic, reasoning, and evidence whether or not something should be apart of your life? You’re in luck, in this TGA Core Concept training we’ll be going over The Investor Frame, a principle taken from the CCA and Dan Nicholson’s book, Rigging the Game.

Listen: Apple Podcasts | Spotify

Table of Contents

    What We Know Up To This Point

    If you’ve been following along the syllabus and gone through the foundations and other core concept trainings, so far this is what we have covered:

    1. Appreciate when bad things don’t happen (Bumpers).
    2. Don’t waste on energy on things that violate your economic and personal principles.
    3. The biggest key to resource allocation (at this point): Stop making bad decisions (decisions that violate your personal and economic principles).
      • To be clear these decisions are not objectively bad, but bringing it back to DALA, these are bad decisions when they get you further away from what you say you want.
    4. “Most prefer the certainty of misery to the misery of uncertainty.” -Virginia Satir.
    5. Resources are not unlimited.

    The Uncomfortable Reality

    Staying in a bad situation is the same as making a new bad decision every day.

    You can recapture and reallocate all of those resources from a bad situation to stop violating your own economic and person principles with the Investor Frame.

    The Investor Frame- Given what i know today, would I opt back into this situation?

    If yes, you are NOT violating your current economic and personal principles.

    If no, you ARE and must ask: “What would need to be true for me to say yes?”

    Practical Example

    Should I stay in this relationship?

    Given what you know today would you opt back in to your relationship that hasn’t been working for the last 5 years?

    “They could still change.” Have they though after the last 5 years? Given what you know today would you start this relationship again?

    If No, it’s time to make a change.

    If Yes, even though you might be upset about something you’re not violating your own personal and economic principles. Often times people will let emotions get the best of them, driving them out of good situations. Had they simply zoomed out and utilized the Investor Frame they might have seen something different.

    Home or Rental Home?

    You have a house and you decide to buy a new house to live in. What do you do with the old one? You come to the conclusion about renting it out, but let’s run it through the lens of the Investor Frame.

    Your old house is worth 2 million dollars and given what you know now would you pay 2 million dollars at this point to have this house to rent it out?

    If No, you are violating your own principles and your resources are being misallocated. You could sell the house for 2 million dollars and allocate those funds to something that funds a priority of yours.

    If Yes, then rent it out.

    Bitcoin or Stock/Investment

    You purchased $100,000 worth of BTC (or insert other investment vehicle) and it is now worth $50,000. To note, there will most likely be a massive loss aversion here.

    If someone asked you “If you had $50,000 what would you do with it?”

    If your response was “Well I’d buy BTC”.

    There is your answer, you are not violating your own personal economic and personal principles. You’d purchase $50,000 of BTC and you own $50,000 worth of BTC.

    If your answer was: “No, I’d buy land”. Then you would sell BTC and buy land.

    This is a big problem often seen in Web3 communities, people who want to defer the responsibilities of their investment decisions to someone else. You don’t run to other people and ask them what to buy. Instead now you’ll be able to use the Investor Frame to make these decisions with your own logic, reasoning, and evidence. You can use the Investor Frame in every part of your life to recapture and reallocate and replace things that are violating your principles with things that are not. While everyone is trying to figure out ways to push harder on the gas, having this in your tool box is like taking your foot off the brake. Put it to use and see what you come up with, afterwards drop your six word update below.

    6WU- Wisdom Comes From Multiple Perspectives

    Can you summarize what you’ve learned into six words? Share them on the thread below so that others can also benefit from your wisdom. After you’ve shared be sure to read through what others have said as well to see what you can take away.

    Live to Learn. Give to Earn.

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    DISCLAIMER: These articles are for educational purposes only. Nothing in this article should be construed as financial advice or a recommendation to buy or sell any sort of security or investment. Consult with a professional financial adviser before making any financial decisions. Investing in general and options trading especially is risky and has the potential for one to lose most or all of their initial investment.