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Afford Anything

The GameStop Revolution, One Year Later — with Spencer Jakab

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.63.4K Ratings

🗓️ 26 January 2022

⏱️ 73 minutes

🧾️ Download transcript

Summary

#361: Wall Street Journal columnist Spencer Jakab marks the one-year anniversary of that weird time when the subReddit Wall St Bets pumped shares of meme stocks like GameStop and AMC Theaters, triggering a short squeeze that forced several hedge funds to lose billions. What did we learn from that experience? And how do we actually take down Wall Street? How do we launch a truly effective financial revolution? We share those insights in today’s episode. Subscribe to the show notes at https://affordanything.com/shownotes Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

You can afford anything but not everything.

0:11.0

Every choice is a trade-off against something else and that doesn't just apply to your money.

0:15.2

That applies to any limited resource you need to manage.

0:17.9

Like your time, your focus, your energy, your attention, saying yes to something implicitly

0:22.9

means, saying no to all other options and that is terrifying and it opens up to questions.

0:29.4

First, what matters most?

0:31.6

Second, how do you align your choices around that which matters most?

0:37.2

Answering these two questions is a lifetime practice and that's what this podcast is here

0:42.7

to help you facilitate.

0:44.3

My name is Paula Pant, I am the host of the Afford Anything Podcast and this week marks

0:49.7

the one-year anniversary of the Reddit Take Down of Wall Street.

0:54.8

I'm using that phrase a little tongue in cheeky, you'll hear about it in the upcoming interview,

0:59.5

but you remember a year ago when a bunch of people in a subreddit called Wall Street

1:05.5

Bets decided to pile into a bunch of meme stocks, most notably GameStop but also AMC

1:11.4

theaters, Nokia, Blackberry and a few others, they decided to all pile into these meme stocks,

1:19.4

drive up the prices and squeeze out the short sellers which were these major hedge funds

1:26.0

that had taken short positions, meaning they made money if the stock went down.

1:31.6

It was heralded as the triumph of the average investor, meaning some 25-year-old and his

1:38.5

mom's basement, over the hedge funds who long have marshalled their data, their research,

1:46.8

their troves of information to be able to know things that the rest of us don't.

1:53.9

And so in the standoff between individual investors versus institutional investors,

2:00.2

i.e.

...

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