Lessons for Advisors from the GameStop Saga
About This Episode
Over the last two weeks, we have seen how a cadre of retail traders on Reddit can lay siege on a group of hedge funds that had shorted the stock of the retail company GameStop. We saw the price of GameStop rise from about $20 at the beginning of the year to a peak of $347.5 on January 27. Yesterday, on February 4, it closed at $53.50. This is a brick-and-mortar company that sells video games and lost about $20 million last year. Today we will explore deeper issues surrounding the GameStop saga.
About Our Guest
My guest, Larry Swedroe, is the chief research officer for Buckingham Strategic Wealth and Buckingham Strategic Partners. Larry holds an MBA in finance and investments from New York University and a bachelor’s degree in finance from Baruch College. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, The Only Guide to a Winning Investment You’ll Ever Need. He has since authored nine more books and co-authored seven books on investing and financial planning. Larry is a prolific writer and contributes regularly to Advisor Perspectives.
Here is a link to purchase Larry’s book, The Incredible Shrinking Alpha, on Amazon. Here is a link to a story about a “day trader” who committed suicide. His family is suing Robinhood based on wrongful death.