Last weekend I spent all day Sunday watching the new Netflix limited series, “Inventing Anna”. What I thought would be a fun and entertaining show about some spoiled socialite, has completely left me on my head. If you have not yet watched Inventing Anna or even heard of Anna Delvey aka Anna Sorokin, she is a woman who fooled New York City’s high rollers into thinking she was a Germain socialite, daughter of a gangster/diplomat. In reality, she was just a regular girl who wanted to live the high life and thought the fastest way there was to literally, fake it till you make it. Her story is one that takes you on this incredible journey of ups and downs. At every corner there is a new reveal, often marred with deceit, lies, and sometimes a heavy dose of humor (in an incredulous sort of way). I highly encourage you all to watch the series-Julia Garner does an incredible job portraying Anna. You will certainly pick up on the finer things like the top designers, a few secrets of the ultra-wealthy, and where to vacation. However, there are also some financial lessons to be learned from Anna Delvey.
It’s incredible to think that all these ivy-league educated, Wall St titans fell for a 25 year old fraudster. This tale is one that proves that even those in high places don’t have a clue. Any time some “Wall St guru” tries to tell you they know where the market is going or can predict the next best stock, keep in mind that someone in his/her exact position also thought some 25 year old was going to start the next SoHo house. In fact, if you really want to have a good laugh, check out Jared Cummans article “Top 10 Hilariously Wrong Stock Market Predictions”. This gem includes Robert Zucarro’s prediction that the Dow would reach 30,000 in 2008 (a not so laughable prediction considering that 2008 started the worst financial crisis since the Dotcom burst). Building wealth is a process-one that takes commitment to long-term investing and a whole lot of patience. Attempting to pick out winning stocks and beating the market is incredibly difficult and can often result in more losses than gains. Many of these “gurus” will spout tips and tricks on the next hot stock and investment. In my own personal experience and after many years of observing others, the best strategy is one that you have the patience and tenacity to execute. In my case, I prefer a steady contribution to ETFs that deliver steady long-term growth.
In the series we meet Rachel, a woman who befriends Anna. Rachel we find out works for Vanity Fair. Rachel is your average person who may enjoy the finer things (who doesn’t) but is no where near Anna in regards to social or financial status. Nevertheless, she enjoys spending time with Anna and living the life vicariously through her friend. Throughout the series we see Anna very generously paying for things like personal training sessions, expensive haircuts, spa appointments, and shopping trips. However, all of this comes to a halt when Rachel gets stuck with a $60,000 bill at a luxury hotel in Morocco, assuming Anna would pay her back. Accepting a nice gift or allowing a friend to treat every once in a while is fine-but don’t get used to it. Their lifestyle is not your lifestyle. Do not allow yourself to become accustomed to a lifestyle you cannot afford. While I’m 100% team Rachel, she lost herself in a world in which she didn’t belong. Getting swept up in someone else’s life can get you a one way ticket to the poor house. Sooner or later the bill comes and it was time for Rachel to pay up.
This last one is more of a life lesson vs. a financial lesson but nevertheless it is probably the most important one of all. Her opulent display of wealth was all an act-one many very intelligent people fell for. Let this be a lesson to everyone-question everything and remember…there is no such thing as a free lunch. Always do your research and be informed before making decisions. There are plenty of great free resources-some of my favorite include these podcasts and books.