WALL STREET LOSSES! - The TRUTH Behind GameStop, WallStreetBets & Robinhood | Kevin O'Leary

everybody had just completely discounted thought it didn't matter and the robin hood investors ah we don't care about them they're too young they have no money well that's not how it is i can't stand the arrogance of sophisticated wall street investors what a load of crap that is those guys just got blown up [Music] okay going out for a cruise um great time to talk about the economy i'm on your bike why not but before i go into the sunshine here in miami i got to put on a little s listen it's really important i use the am or tiege hanley why because it's spf 20 keeps the dome from getting damaged you don't want to damage the dome the dome of desire has to stay in perfect shape so a little am spf 20 that's what i'm talking about um very nice then of course safety first got to put on the helmet here also i'm a fashionista so i want to look good and then of course need some shades because we're in miami right that's what i'm talking about all right so uh you ready to cruise all right we're gonna take a cruise here let's go [Music] you think of you know your basic company in america let's say 50 of its sales go through retail i'm talking about consumer goods and services which is about 65 of the economy so 50 go through retailers like walmart target bed bath and beyond that kind of thing and then you got about another 40 going through amazon that's how big amazon's becoming when you sell it through a retailer like walmart you make about 50 cents on the dollar you sell it through amazon you do a little better you make about 60 cents on the dollar however you don't have the benefit of getting the customer's name that's the big thing about amazon and then most companies have 10 from their own websites to consumers okay you got that now here's what happens retail shuts down last march the companies that made it all did one thing very successfully they basically went online they set up their own website so they standardized on shopify then they standardized on docusign then maybe for security they standardized on crowdstrike basically they were using technologies like wix.com to enhance their whole platform their video their product support pictures stories animation graphics all that stuff they were basically doing this because they wanted to entice people to buy direct from them and those companies they went up in value like crazy even the middle of a pandemic look at what happened to a zoom stock or shopify stock you get it but they were empowering america to go digital that's exactly what was occurring now think about it this way instead of selling something through walmart or target or bed bath and beyond where you made 50 cents in the dollar you're now shifting your sales direct to consumer will you make a hundred cents on the dollar so people say to me why is the market exploding why is it going up in value well the market sense is a new america a digital 2.0 america an america where it's very productive and where a lot of products are being sold direct to consumers at very high gross margins that is something brand new really new and very interesting and so it's not just small companies big companies are doing the same thing nike 50 of his sales direct consumer all around the world this is a global phenomenon that's occurring it's amazing what's happening and as a result we've accelerated the digitization of our economy but while that was happening something else was occurring that's incredibly cool too social media kept getting more and more powerful storytelling more and more powerful animation graphics video you name it became more and more important to any company who are trying to figure out how to tell their story something happened recently that really shocked everybody you know people keep talking about sophisticated investors on wall street the little guy doesn't know what's going on not anymore here's what happened you know the crowd basically led by reddit and wall street bets which everybody had just completely discounted thought it didn't matter and the robin hood investors ah we don't care about them they're too young they have no money well that's not how it is they ganged up and went after hedge funds who had done big short bets on companies like start engine and amc and american airlines and guess what they became the new force on wall street the little guy crushed the hedge funds it forced them to lose billions of dollars on their balance sheets as they were caught with their pants down as all these tiny players are mashed together like a flock of swallows and became really powerful now who's the sophisticated investor on wall street it's the little guy and now if you're a guy that's shorting stocks or a hedge fund manager think you're so sophisticated and using all the ai technology and black boxes and algorithms and all that crap if you get targeted you get screwed and that's what's happening the crowd roams at night looking for opportunities in the markets and strikes in the morning and you see it happen every day and it's a new force that's not going away it's power to the people baby and i love it i think it really democratizes the market you know what i really really like about it more than anything else financial literacy it used to be and you know we've got 100 million americans that do not have anything put aside for their retirement because they were never taught how to do that in high school and everybody's saying well you know we teach them sex education geography math reading yeah we do all that but why don't we teach some financial literacy well along comes robinhood a platform where you can have 200 bucks and invest it and start to learn the ways of the market and how to put money aside and how to invest and how to buy a stock and how to sell one that's financial literacy and millions and millions and millions of people started opening those accounts and wall street never cared about them because they didn't want an account with 200 bucks in it they couldn't make any money off you they want a hundred thousand two hundred thousand minimum well robin hood said hey for everybody else wear your platform and bingo it becomes a massive force in the market incredible also very good so in a matter of just 36 months 16 million plus accounts with power to change the market direction do i love this stuff oh yeah i totally love it i can't stand the arrogance of sophisticated wall street investors what a load of crap that is those guys just got blown up by who 25 year olds how cool is that you gotta just love that so what's really going on is the democratization of the entire global stock market you know and the way to really make this fair for everybody big or small is total transparency if you're short the stock and maybe make the rule five percent of the float you gotta post it and then everybody that's cruising around looking for you is gonna find you it'll make you think twice before doing that good or bad it's transparent that's what matters but the power of the little guy now has been proven and the way you prove power on wall street is money when you force a firm to lose billions of dollars you've got power baby that's exactly what you've got and that's exactly what happened millions of small guys ganged up on the big guys and wiped them out i still get a kick out of it i think it's just fantastic this is really the power of social media and why we should protect it it just shows you it gives prior to everybody it's democracy it's a voice it's a chance to shine even if you're a single candle that's what the whole deal is about and together it's a bright light that's the whole that's the whole deal right there let me give you some investing tips i've learned over the long period of time it's very simple you know what happens in the market when you get a crazy week like last week when the market goes up 10 down 10 percent you never know when that's going to happen so you have to stay invested all the time because last year during the crazy pandemic period the majority of the returns came in just 19 days you just didn't know which 19. so if you're trying to time the market by buying and selling in the ups and downs it's really hard to make dough really hard there's nothing wrong with day trading that's fun but you got to take a portion of your profits and put them aside and i was involved in an app called bean stocks to help people do that it's not day trading it's long-term investing but listen you got to take a little powder keep it dry you take 10 of your profits every time you trade stick it into beanstalks download it check it out i tell all the day traders you guys have power but you've got to take care of yourself long term take 10 of your winnings park them aside for yourself let it grow in the market over the time between now and 40 years from now when you retire they'll have over a million bucks if you just park a hundred dollars a side each week most day traders can handle that if you like that video where did you see my next one don't forget to click right over here and subscribe

Channel: Kevin O'Leary

Views: 767,212

Rating: 4.9033666 out of 5

Keywords: Kevin O'Leary, Kevin O'Leary interview, Kevin O'Leary speech, Kevin O'Leary top 10 rules for success, how to become a millionaire, how i became a millionaire, how to make millions, money, wealth, cash flow, entrepreneurship, entrepreneur advice, success tips, success habits, millionaire habits, millionaire tips, how to make money, how to invest, shark tank Kevin O'Leary, ask Mr. Wonderful, wall street bets, gamestop explained, robinhood gamestop, wall street gamestop

Id: PfMxIIdsxGU

Length: 9min 40sec (580 seconds)

Published: Tue Feb 02 2021

Reddit Comments

[u/markthemarKing]

No one is taking down wallstreet.

Some hedge funds got blown out and took huge losses on this, but others made billions and will continue to by front running the flows from retail. All of the retail transactions are low cost now and its because Citadel and others are paying the brokerages for their order flows.

[u/ringingbells]

How come my other post was taken down?

Post: Mark Cuban did an AMA on /r/WallStreetBets and this is what he said.

• Taken down this morning here at /r/JoeRogan at top post spot with almost 3 hundred upvotes and 2 awards in less than an hour. Joe is talking about it on every podcast, how is this not related or breaking subreddit rules? I seriously don't understand why that post was taken down. Clearly, there's fuckery afoot.

[u/[deleted]]

Kevin O'Leary is a douchebag but I love how he sticks to his libertarian guns. You'd think he was pro high finance but he understands that the game is rigged and government is colluding with big business to make an unfair, monopolistic market which is completely against the spirit of pure capitalism.

By the way I see why Florida is one the epicenters of coronavirus in America. Like 90% of people in the video without masks smh.

[u/OskeeWootWoot]

A Canadian baby boomer living in Florida? Unheard of!!!

[u/devonthorton]

Cool but why is this on the Rogan sub ??

[u/redeyejedi86]

What happened to his wife after she was drunk boating and killed someone ?

[u/FlynnMonster]

Whoa did NOT expect to see him with a Tax the Rich shirt based on comments he’s made in the past.

[u/BOBASA]

Kevin OLeary is exactly the type of person that represents wallstreet and the suits...

How do people not see this?

[u/dankmemesDAE]

why is this on the Joe Rogan subreddit?