💸 How To Build More Wealth By Actually Doing Less

Today is your last chance to get in on our Trezor Model One Wallet giveaway to FIVE Daily Dough subscribers!

To participate, just refer a friend that could get value from The Daily Dough!

Each person you refer gets you one entry into the giveaway - So tell everybody you know!

Have them sign up with the link below and you’ll automatically be entered into the giveaway:

What’s on the Menu 🍴

Building wealth is all about taking a few well thought-out decisions…

Then waiting and not getting scared into sabotaging your plan.

Today’s newsletter is about helping you see through the hysteria, recognize innovation in motion, & learn a framework for building your investing muscle! 💪

• Remove That Tinfoil Hat - Part 2 (CoreWeave) 🕵️‍♂️

• London's Financial Giant Takes Blockchain Plunge 💂‍♀️

• How To Build More Wealth By Actually Doing Less 💸

• Staking Ethereum Without Breaking the Bank 💳

Today’s newsletter is a 5 minute read.

Remove That Tinfoil Hat - Part 2 (CoreWeave)🕵️‍♂️

On Wednesday we wrote about some common misunderstandings surrounding Blackrock, and why we don’t think they’d have any incentive to help Nvidia commit fraud.

Today we’re tackling the relationship between Nvidia and a company called CoreWeave, which conspiracy theorists believe is a sham company being used to commit fraud.

The source of angst stems primarily from this news release on August 3rd 2023:

Skeptics believe that Nvidia is somehow behind the formation of CoreWeave or at least heavily influencing CoreWeave to buy its GPUs so it can beat its quarterly guidance.

The huge amount of debt & equity raised by CoreWeave in 2023 for the purpose of buying GPUs should certainly raise questions about the business model of CoreWeave.

But the idea that Nvidia execs are spearheading this effort to commit fraud is absurd.

CoreWeave is a relatively young datacenter company. Here are some relevant milestones:

• July 2017: CoreWeave was founded by Michael Intrator, Brian Venturo, & Brannin McBee, three former natural gas traders. CoreWeave initially focused on Ethereum mining and selling excess computing power

• September 2020: CoreWeave joined Nvidia’s Cloud Service Provider Program

• November 2021: CoreWeave raised $50 million from Magnetar Capital

• December 2022: CoreWeave raised $100 million from Magnetar Capital

• April 2023: CoreWeave raised $221 million from Magnetar Capital, Nvidia, Nat Friedman, and Daniel Gross

• May 2023: CoreWeave raised $200 million additional Series B capital from Magnetar

• July 2023: CoreWeave announced they would open a $1.6 billion datacenter in Plano, TX by year end

• August 2023: CoreWeave announced a $2.3B debt facility collateralized by GPUs

Since 2017 CoreWeave has issued many press releases and disclosed its investment rounds. When Nvidia invested in the Series B round, it was disclosed publicly, though the exact amount was not disclosed (typical with minority private venture investments).

Nvidia’s investment shows up on its balance sheet in the “Privately-held equity securities” category within “Other Assets”

None of it has been hidden from public view. Nvidia’s CFO even commented on it this week.

Some other important points:

• Nvidia reported $13.5 billion of revenue in Q2 and is on pace to do $50+ billion this year

• CoreWeave’s debt facility was not yet funded in Q2

• Even if ALL of CoreWeave’s funding had already been spent on Nvidia GPUs, it’s not driving the bulk of NVDA revenue in Q2 or beyond

• Nvidia’s revenue expectations have jumped by $24 billion since May!

There is just no denying that demand for high end GPUs is insanely high right now, and statements from many large tech companies confirm that demand exceeds supply:

We can certainly wonder whether this frenzy of GPU buying is sustainable.

Here in the Daily Dough two weeks ago we stated our concern that “cloud providers and startups are frontloading demand for GPUs which will eventually result in a pullback”

But at least right now there’s NO INCENTIVE for those selling GPUs to fake the numbers.

You might ask why Nvidia would sell GPUs to CoreWeave with all this demand coming from other, more established companies.

Companies with large cloud offerings like Amazon & Google are working on their own chips to reduce dependence and compete with Nvidia in the future.

So Nvidia is countering by “arming the rebels” at CoreWeave and allocating GPU supply to a new cloud provider that isn’t trying to compete with them.

It looks like a pretty logical corporate strategy decision to us.

While the founders of CoreWeave might be opportunists who are looking to profit off the current GPU demand out there, there’s really no logical reason to suspect fraud.

Will CoreWeave be around in 5 years? Who knows! But we’re pretty sure Nvidia will still be selling many billions of dollars worth of GPUs as they enable the AI revolution!

London's Financial Giant
Embraces Blockchain 💂‍♀️

The London Stock Exchange Group (LSEG) has been seriously exploring the benefits of blockchain technology for financial transactions.

Though they've made it clear they're not diving into cryptocurrencies yet, the focus on blockchain is a significant move for traditional finance.

Murray Roos, the Head of Capital Markets at LSEG, indicates that the intent is to streamline transactions to be faster, cheaper, and more transparent.

Regulatory alignment is also on their agenda, with active discussions involving government bodies like the British Treasury.

While LSEG isn't making any immediate commitments to cryptocurrencies, their interest in blockchain technology could be a sign of broader acceptance.

It logically follows that if mainstream financial institutions find value in the technology behind crypto, then they might eventually embrace crypto assets themselves.

This isn't a flash-in-the-pan announcement; it's a substantial development.

For investors keen on spotting trends early, the LSEG's interest in blockchain may signal opportunities in your own portfolio.

If traditional finance is beginning to adopt blockchain, could this be a trend that extends to other sectors?

How To Build More Wealth Doing Less 💸

Are you an active trader or investor in the financial markets?

Do you feel like you’re not making enough trades in your portfolio? Hate slow markets?

Good news… you’re likely better off financially by trading LESS.

In fact, study after study shows that the majority of traders lose money.

So… why is this and how can you not be one of them?

The more engaged with the markets you are, the more enticing it becomes to make trades.

It’s like putting a kid in a candy shop. They’re going to want the candy even if you tell them too much of it will rot their teeth.

It’s not natural for traders to watch the markets and NOT want to frequently participate in everything they see.

You may be thinking, “The whole idea is to make money right? How will I do that by making LESS trades?!”

Instead of thinking of yourself as a skeet shooter, you need to think of yourself as a hunter.

Here’s the formula for trading success:

1. Be regularly engaged in the markets: It’s pretty important that you have your hand on the pulse of the markets. Some of the best trading and investing opportunities take time to evolve. You want to be aware and ready when it’s time to strike. Being too disconnected will affect your chances of nailing the right trade at the right time. (This applies to an active strategy, not passive).

2. Be comfortable NOT being in a position: Flat is a position too when it comes to our active capital. We call this in the business “sitting on your hands”. Capital preservation is just as important and the best traders are comfortable here.

3. Only take positions on A+ trades: This is key… you have to grade your trades and take action on the best and sit on your hands for the rest. The key here is being patient like a hunter for HIGH-PROBABILITY opportunities. You have to figure out your strategy and system to know what’s worth your capital and what isn’t. This takes screen time (see #1).

Putting it all together, successful traders are able to have the discipline to be constantly engaged in the markets, while only actually trading when the best high-probability opportunities arise.

We like to say, the reality is 80% of your time should be hunting and research, and 20% of your time actually pushing buy and sell buttons. If it’s the other way around, you should take a close look at your strategy and win rate.

So next time you’re wondering if you’re trading enough… remember that doing less could lead to higher win rates in your portfolio.

It’s about quality, not quantity.

Looking to join a community of active traders and investors on the hunt for wealth building opportunities? Check out our Wealth Building Community.

Staking Ethereum Without Breaking the Bank 💳

What is staking? Well, staking is the “eco-friendly” cousin of mining in the crypto world.

By staking your crypto—Ethereum, in this case—you're essentially locking it up to validate transactions and secure the network.

In return, you get a nice little interest in the form of more Ethereum.

Staking comes with risks: You're putting your Ethereum in someone else's hands, so to speak, and there’s a chance that you could lose some or all of your stake if the network is compromised or if the staking platform faces issues.

Ever looked at the 32 ETH requirement for staking Ethereum and thought, "Well, that's enough to be a semester's worth of tuition at an ivy league university"? 

Well, DeFi platforms like Lido are like scholarship programs for the financially challenged crypto enthusiast.

Lido serves up "Liquid Ethereum Staking" with a palatable 3.7% APR.

How they do it: They pool your funds with other under-capitalized buddies, run the Ethereum validators, and then share the love (and by love, we mean interest). Want out? Sell your staking tokens and hit the exit, earnings in hand.

This is big, people. Lido lowers the financial drawbridge so you can waltz into the Ethereum castle without emptying your coffers.

Time to pull that Ether out of the sock drawer and make it work for you!

Delicious Bites 😋

• The most extreme car price cuts ever

• Is Airbnb financially motivated to fine homeowners?

• 28 European routes where you should take a train instead of a plane

• How Much Does it Take to Be Wealthy in America?

Food For Thought 🧠

"I don't look to jump over seven-foot bars;
I look around for one-foot bars that I can step over."
- Warren Buffett

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.