Best Moments From The GameStop Congressional Hearing (Reddit vs RobinHood)

for example one of our witnesses here mr mr gill or should i say roaring kitty uh turn 53 000 into almost 50 million dollars and that's what you would call some deep you know what value at a time but there is an innate conflict in your model let's imagine right now that we are today's version of our parents i'm nervous i think that an exposure and i call your helpline now let's call and let's listen in the time we have remaining to what i'm going to hear on the other end of the phone thanks for calling robin hood please visit us at robinhood.com or on our app for support if you have an urgent creating needs please make sure to include details of your order when reaching out thanks and have a great day mr griffin in 2020 citadel citadel is now on 20 citadel violated citadel is now i understand that you made your position known on gates gamestop as far back as 2019 and are lauded as a diamond hands hero by wall street vets uh community have you ever previously experienced or observed the type of restrictions robin hood and other applications performed on january 28th taking congressman no i have not thank you is the robin hood customer getting as good a price as the fidelity customer mr griff so congressman i i believe that's an excellent question the execution quality that we can provide as measured in terms of price improvement is heavily related or correlated to the size of the order that we receive so if i were to speculate i i didn't don't don't tell me that it's that there are other factors involved and take us down another road i'm asking you a clear question assuming same size of order one comes in from robin hood one comes in from fidelity uh is it not true that one is going to be a enhanced uh best execution and the other one is just going to get best execution so as as i was trying to explain because the robinhood order comes from a community a community of traders who tend to trade in smaller size that isn't my question sir you're evading my question by making up other questions let me repeat two identical orders come in same stock same quantity one's from robin hood one's for fidelity what happens the quality of the execution varies by the channel of the order this is a commonly understood phenomena in economics that channels matter so for example when you go get a mortgage a mortgage from jp morgan to their clientele has a different rate of interest okay reclaiming my time sir who gets the better deal one that comes from a broker who is uh paying uh being paid for order flow and one not can you testify that that on balance there is no difference assuming the same size of the order so as i said earlier size of the order is only one factor you are doing a great job of wasting my time you should if you're going to filibuster you should run for the senate uh everyone else i've talked to in this industry says when you pay for order flow you get a uh when your broker is being paid for order flow you get a worse execution uh and uh uh otherwise you're in a peculiar circumstance where you're making um more money on a fidelity transaction than a robin hood transaction so mr tenef my question is for you you quoted a 35 billion dollar number as what i interpreted to be uh profits in excess of deposited funds and securities if you just look at your customers who traded in gamestop over the period of its increase and subsequent decrease mr tenef how did your customers in the aggregate do did they win or did they lose thank you congressman for that question i i don't have that particular cut of the data top of mind so maybe we can get back to you on that one all right you don't have that so you do have a 35 billion dollar figure the figure doesn't mean a lot to me because it's just a dollar number help me convert that to a a rate of return uh first of all is that 35 billion dollars is that gross or net in other words is that actual profit or does it include margin shares other forms of leverage that may actually not belong to the account holder it does include congressman unrealized gains so um it's uh the value of assets both including uh positions in uh securities and cryptocurrencies all right okay i i get that i i get that but again 35 billion doesn't mean anything to me unless you can convert that into a rate of return so do that for me what is that on on what asset under management number is that 35 billion unrealized against the the asset under management number is not one that robin has publicly shared um okay but you can't share 35 billion dollars sorry mr tenef i just don't have a lot of time 35 billion is a meaningless number i need to know what that is in terms of return so convert that for me into rate of return so i can compare it to treasury so i can compare it to the s p 500. congressman with respect i think the proper comparison is to customers not investing at all much of our customers are investing for the first time and are taking money that they otherwise would have spent or consumed and putting mr turnip again i don't i don't want to be rude but but it's it's my time again you you offered up the 35 billion dollar number which as you and anybody else schooled in finance knows is meaningless unless you convert it into a rate of return so just please convert that 35 billion number which to the folks rising at home watching at home sounds like a lot of money but what does that actually convert to in a in terms of rate of return which is what matters congressman uh 35 billion dollars is indeed a large amount of money especially for our customers who are mostly small investors it's more than most corporations nearly all of them again i don't i don't don't make me be rude here you and i both know that 35 billion dollars of unrealized gains if that's on a base of 100 billion dollars that's a 35 percent of return if that's on under a trillion dollars it's a radically different rate of return so what i what i'm trying to get at mr kenneth here is you threw out the number of 35 billion dollars i actually think the right comparison is what if your clients had simply invested in the long run in an s p index fund would they have would that number be more than 35 billion or less congressman with respect i don't believe the right comparison is investing in an s p index fund i think uh the right comparison is not having invested at all and having instead spent that money and consumed it no no it's it's most certainly not uh it's most certainly not mr tennant and so i'm gonna ask you i'm out of time but again you put out the 35 billion dollar number so i think it's only decent because you and i both know that a hard dollar number is meaningless unless you can convert it to return so i'm going to ask you to convert that obviously i'm out of time so you recommended uh gamestop uh before would you buy their stock now at roughly 45 it started at 48 earlier today you were talking about buying it and being happy when it hit cross 20. so are you buying that stock today well let me just say that investing can be risky and my particular approach to investing is rather aggressive and may not be suitable for anyone else but for me personally yes so yes or no are you buying the stock and for me personally yes i do find it's an attractive investment at this price point quick question uh did you invest in game stock because you were not aware of the uh of payment for order flow that's one of the accused people into this because they don't know that sorry could you repeat that question did you buy gamestock because you were not aware of the payment for order flow my investment in gamestop was based on the fundamentals okay i think that that answers it i believe my time has expired miss velasquez you're recognized for five minutes thank you chair uh chairwoman mr t we dreamed of making investing more accessible especially for people without a lot of money the stock market is a powerful wealth creator but half of us households participated i would like you to use your limited time to talk directly to what happened january 28th and your involvement in it certainly madam chair madam chair the witness has the opportunity to to to give their own testimony excuse me you are not recognized oh in january 2021 a group on reddit began to make posts about melvin's specific investments they took information contained in our sec filings and encouraged others to trade in the opposite direction many of these posts were laced with anti-semitic slurs directed at me and others the post said things like it's very clear we need a second holocaust the jews can't keep getting away with this others sent similarly profane and racist text messages to me in the frenzy during january gamestop stock rose from thank you chairwoman waters ranking member mchenry members of the committee i am happy to discuss with the committee my purchases of gamestop shares and my discussions of their fair value on social media it is true that my investment in that company multiplied in value many times for that i feel enormously fortunate i also believe the current price of the shares demonstrates that i've been right about the company a few things i am not i'm not a cat i am not an institutional investor nor am i a hedge fund i do not have clients and i do not provide personalized investment advice for fees or commissions i'm just an individual whose investment in gamestop and posts on social media were based upon my own research and analysis i grew up in brockton massachusetts my family was not wealthy my father was a truck driver and my mom a registered nurse i was one of three kids and the first in my family to earn a four-year college degree when i graduated from stonehill college in 2009 that was not a good time to be looking for a job from 2010 to 2017 i worked a few startup companies but there were significant periods when i was unemployed i took an interest in the stock market and even though i had very little money i used those times to educate myself and learn more about investing in 2019 after nearly two years unemployed i accepted a marketing and financial education job at massmutual my wife caroline and i were thrilled that i had an income and benefits my job was to help develop financial education classes that advisors could present to prospective clients i was not a stock broker or a financial advisor i did not talk to clients and i did not recommend stocks for them to buy before and after i joined mass mutual i studied and followed stocks one of those was gamestop early june of 2019 the price of gamestop stock declined below what i thought was its fair value i invested in gamestop in 2019 and 2020 because as i studied the company i became more and more confident in my analysis two important factors based entirely on publicly available information gave me confidence that gamestop was undervalued first the market was underestimating the prospects of gamestop's legacy business and overestimating the likelihood of bankruptcy i grew up playing video games and shopping at gamestop and i plan to continue shopping there gamestop stores still provide real value to consumers in reliable revenue for gamestop second i believe that gamestop has the potential to reinvent itself as the ultimate destination for gamers within the rapidly growing 200 billion gaming industry gamestop has a unique opportunity to pivot toward a technology driven business by embracing the digital economy gamestop may be able to find new revenue streams that vastly exceed the value of its business i am hardly the only person who has advocated these points i wrote and spoke about gamestop and social media with other individual investors our conversations were no different from people in a bar or in a golf course or at home talking or arguing about a stock hedge funds and other wall street firms have teams of analysts working together to compile research and analyze shares of companies individual investors do not have those resources social media platforms like reddit youtube and twitter are leveling the playing field the idea that i use social media to promote gamestop stock to unwitting investors and influence the market is preposterous my post did not cause the movement of billions of dollars into gamestop shares it is tragic that some people lost money in my heart goes out to them but what happened in january just demonstrates again that investing in public securities is extremely risky as i said earlier i consider myself and my family fortunate with our investment when the stock price broke 20 in december i knew my investment was a success i was so happy to visit my family in brockton for the holidays the money will go such a long way for us we had an incredibly difficult 2020. most difficult was the tragic and unexpected loss of my sister sarah in june i am grateful to be in a position to give back to and support my family as for what happened in january others will have to explain it it's alarming how little we know about the inner workings of the market and i am thankful that this committee is examining what happened i also want to say that i support retail investors right to invest in what they want when they want i support the right of individuals to send a message based on how they invest as for me i like the stock i'm as bullish as i've ever been at a potential turnaround for gamestop and that remain invested in the company thank you cheers everyone thank you mr gill ms ashraf

Channel: Gucci Town

Views: 379,537

Rating: 4.9416709 out of 5

Keywords: gamestop hearing, gamestop government, deepfuckingvalue, dfv, wallstreetbets, wallstreetbet, wsb, r/wallstreetbets, reddit traders, reddit investors, stock market, amc, gamestop, gme, roaringkitty, best moments, robinhood, robinhood ceo, citadel ceo, citadel securities, melvin capital, melvin CEO, melvin capital ceo, vlad tenev, alexandria cortez, investing, trading, stocks, rh, robinhood traders, robinhood investors, wallstreetbets yolo, wallstreetbets trader, gamestop trade, GME YOLO

Id: r4Vi4apeS5w

Length: 15min 21sec (921 seconds)

Published: Thu Feb 18 2021

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[u/Ok_Technician_5797]

Yes. Congress will get to the bottom of things. It's happened once before. Right? I mean it must have happened at least once

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WHO ARE YOU AND WHY ARE YOU HERE!?