470- FROM THE VAULT: GameStop and Short Squeezes

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.6 • 1.6K Ratings

🗓️ 14 June 2024

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

The market is a thrilling arena for investors in the internet age. Due to the previously unimaginable connectivity afforded to the public by the internet and social media, we’ve seen coordinated efforts by online investors who’ve used message boards to engineer short squeezes against hedge funds, like with the highly-publicized story surrounding GameStop. A short squeeze occurs when investors betting on a stock's decline are forced to buy shares to cover their positions, driving the price up further. This phenomenon was vividly demonstrated with GameStop, causing substantial losses for hedge funds and prompting a regulatory response. In this week’s throwback episode, we check back on the early days of the ongoing GameStop/Reddit saga to see where it all began. To discover your investing weaknesses and learn how to manage your money smarter, click here to take the Rule #1 Investing Personalities Quiz: https://bit.ly/468F8eW Topics Discussed: Reddit GameStop Robinhood Shorting stocks SEC regulation Resources Discussed: Chamath Palihapitiya interview Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:26.0	Hi everybody and welcome to Invested. I'm Danielle Town.
0:30.0	Here's a short vault episode. We're going to be back next week and hope everybody's doing great. Enjoy your investing practice.
0:40.0	Hey everybody, this is Bill Town and this is Daniel Town. Welcome to the
0:47.1	invested podcast where we talk about how to really invest I mean according
0:52.3	at least to the best investors in the world the ones
0:54.3	that have made the most money over the most time over 90 years in a tradition started by
1:00.4	Ben Graham and then followed by Warren Buffett, Charlie Munger. And the thing is,
1:08.2	that's not how everybody does it. How we teach you ain't how everybody does it and there are some guys out there right now who have
1:17.4	made millions of dollars in just a matter of a few days and we want to talk about that.
1:24.7	Everybody's talking about it so we have to talk about it because it's the biggest thing
1:30.5	happening right now in the markets and so many people don't really
1:34.2	get what's happening so I think we should talk about kind of the basics of what's
	...

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