'1st-time traders are buying the sh*ttiest stocks! Everyone is getting rich!'
Robinhood offers commission-free trading through its mobile app with a videogame-like interface.
It opened three-million new accounts in the first quarter of 2020.
Half of its new customers are first-time investors.
“These brand-new stock traders have been buying the shittiest, most beaten-down stocks they can find. And all of them have been going up! By a lot! Every day!” says Paul Theron, the potty-mouthed MD of Vestact Asset Management.
“Everyone is getting rich and having a great time.
“Cowabunga!” exclaims Theron with sarcasm dripping.
A word of warning from Theron: “A large body of historical, well-researched, empirical evidence confirms – day traders lose money!
“Those that start well get overconfident and then really blow out.”
Stock market moves over the short-term are, mostly, completely random, said Theron.
They spoke mostly about Tesla, but also a bit about Robinhood.
I’m a significant Tesla shareholder… Elon Musk is coining it! … There’s a bubble, potentially… Musk is crazy, but he’s built a great team… He’s an inspirational figure… The space programme stuff is sexy…Paul Theron, MD - Vestact Asset Management
Governments are keen to ban internal combustion vehicles…Paul Theron, MD - Vestact Asset Management
Tesla charges quietly – in countries that don’t have load shedding…Paul Theron, MD - Vestact Asset Management
There’s a rabid group of short-sellers that hate Tesla…Paul Theron, MD - Vestact Asset Management
The Robinhood phenomenon is relatively new… it’s a fun story to talk about, but it isn’t really the main market for these stocks.Paul Theron, MD - Vestact Asset Management
I’m not a seller of Tesla stock I’ve been accumulating for years… I think it’s going higher. But I won’t be surprised if it goes lower first…Paul Theron, MD - Vestact Asset Management
Listen to the interview in the audio below.
Watch Theron shoot from the hip in the video below:
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