In this episode of Keep the Change, Coco sits down with Kate to break down what due diligence (DD) really means: learning how to research opportunities, spot red flags, and make grounded decisions instead of emotional ones driven by FOMO. They open with an investment loss-and-recovery table to show why protecting capital matters like how a 50% loss requires a 100% gain to break even, and a 90% loss requires 900% and why understanding your downside tolerance humbles you, stabilises your emotions, and protects your long-term compounding.

Coco and Kate explain how “fantasy vs nightmare” thinking can distort judgement, why time and a second set of eyes help make blind spots conscious, and why you should never feel pressured or “bamboozled” by complex language or sales pitches. They share two real examples: a fund marketed as delivering 20% p.a. from Australian shares, and a leveraged crypto trading fund promoted by influencers claiming 12% per month. For the Australian share fund, Kate outlines practical DD checks: unclear strategy descriptions, guaranteed returns, missing ASIC licensing/registration, investors owning units in a structure rather than the underlying shares, liquidity realities of the ASX (especially for small caps), and a major red flag when the referrer said they “got in trouble” for questions. They also discuss incentives—referral fees, what’s “in it” for the person selling it—and why being told not to ask questions is a deal-breaker. Coco notes ASIC later froze the fund’s assets and alleged it may be a Ponzi scheme, with some investors reportedly putting 100% of their self-managed super into it and losing everything.

In the crypto example, they describe how leverage and a lack of stop-losses led to an intraday volatility event that wiped accounts to zero, with some investors adding more money only to lose it immediately. They highlight behavioural warning signs: inflated hype, promises of replacing income easily, and marketing-driven “instant riches” narratives.

The core message: emotions and money don’t mix; preserving capital is the first job of an investor; ask hard questions, trust your intuition, diversify, avoid guaranteed returns, and walk away when things feel off. They encourage listeners to bet on themselves, move steadily over time, and not let losses destroy confidence and compounding. They invite DMs for questions, ask listeners to share the episode, and emphasise getting more money into the hands of women who are educated and wise about money for community ripple effects.

00:00 Welcome to Keep the Change + What ‘Due Diligence’ Really Means

01:29 Why Losses Hurt More Than Gains: The Investment Loss & Recovery Table

03:54 Staying Grounded: Emotions, ‘Fantasy vs Nightmare,’ and Avoiding FOMO

07:28 Make the Unconscious Conscious: Blind Spots, Second Opinions, and Taking Time

08:53 Real-World Cautionary Tales: Two Investments Going Wrong (Setting the Stage)

11:18 Case Study #1 The ‘20% p.a.’ Fund: Website Hype, Jargon, and Guaranteed Returns

16:27 Regulation & Control: ASIC Licensing, Ownership Structure, and Who Holds the Assets

20:30 Don’t Go All-In: Position Sizing & Capital Allocation Rules

21:32 The Liquidity Reality Check: Why 20% p.a. on Aussie Shares Can Be Impossible

23:53 Due Diligence Pushback: ‘Stop Asking Questions’ as a Major Red Flag

26:31 Structure & Security: Unsecured Investments and ‘Bet on Yourself’

27:55 Follow the Incentives: Referrer Fees, Pushiness, and Conflicts of Interest

29:55 ASIC Steps In: Fund Frozen, Ponzi Allegations, and the Human Cost

32:44 Wrap-Up Principles: Ask Hard Question

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