With all that’s currently going on in the stock market, our FINRA expert Brandon Rith thought it might be helpful to create a video dedicated to the Gamestop situation. While a good chunk of the video describes and goes over the situation, he makes sure to highlight the lessons we can learn for purposes of FINRA exams like the SIE and Series 7.
This video is a bit more on the informal side, especially compared to our other videos. Hope you enjoy this video commentary on the Gamestop (GME) situation!
If you’re looking for a comprehensive course to pass the SIE or Series 7, check out Achievable’s modern FINRA test prep!
Full transcript follows:
00:00 let's talk about what's going on with 00:02 gamestop and 00:03 actually learn some lessons that we 00:05 could apply to finance licensing exams 00:07 like the sie 00:09 series 7 65 or 66. now before we get 00:12 started just a quick five second promo 00:14 if you're looking for tutoring services 00:16 on finance licensing exams check out my 00:18 company 00:18 basic wisdom and if you're looking for a 00:20 learning program for the sie 00:22 series 7 or 63 look for achievable the 00:25 links are in the description below 00:27 go check it out now back to gamestop for 00:30 the uninformed and for those of us who 00:32 have been living under a rock 00:33 uh not paying attention to the stock 00:35 market there's something incredible 00:37 happening in the market that we've 00:38 really never seen before 00:40 gamestop and yes this is the company 00:42 that you've probably seen in a strip 00:44 mall where you go buy video games 00:46 gamestop symbol gme 00:48 has risen from roughly 20 per share in 00:50 market price in early january 2021 00:53 to a high price as of today wednesday 00:56 january 27th 00:57 at 380 dollars per share that's 01:00 roughly a 1 800 return in less than a 01:04 month 01:05 incredible is not a good enough word to 01:06 explain what's going on with this 01:08 just to put this in perspective a 01:10 hundred dollar investment in gme 01:12 at 20 bucks would have bought you about 01:14 five shares and that total hundred 01:16 dollars that you 01:17 invested in early in january would have 01:19 turned into 1 01:20 900 today at its high it really is 01:23 difficult to explain 01:25 how big of a return that is but for 01:27 perspective 01:28 the s p 500 which tracks the market 01:31 prices of 500 very large us-based 01:34 companies 01:34 typically rises by around 10 percent on 01:37 an annual basis 01:39 10 so basically gamestop stock 01:42 just made 180 years worth of s 01:45 p 500 returns in less than a month now 01:48 is this the first time anything like 01:50 this has happened in the stock market 01:52 no it's not in any given year you can 01:55 find some stock that has performed 01:57 equally if not better than what we're 02:00 seeing currently with gamestop 02:01 usually you'll find these in the penny 02:03 stock market 02:04 and in case you don't know penny stocks 02:06 are unlisted stocks that means that they 02:08 do not trade on 02:09 a national big exchange like the new 02:11 york stock exchange or nasdaq 02:13 so there are unlisted stocks that trade 02:15 in the otc markets 02:17 below five dollars per share relatively 02:20 unknown or 02:20 financially distressed companies 02:22 typically make up the bulk of the penny 02:24 stock market 02:25 and yeah there's a lot of risk in this 02:27 market but 02:28 with risk comes return potential let's 02:30 look at two stocks from 2020 that 02:32 actually had better returns than what 02:34 we're currently seeing with gamestop 02:36 first let's look at vax art vax art is a 02:38 pharmaceutical company 02:40 that went from a low price of 30 cents 02:42 per share on january 3rd 2020 to a high 02:45 price of 17.49 on july 14 02:49 2020. now if you were somehow lucky 02:51 enough to buy at the absolute low price 02:53 and then sell at the absolute high price 02:56 that would have been a 5 02:57 700 return another example is novavax 03:01 another pharmaceutical type company 03:03 which went from a low price 03:04 of 3.65 cents per share on january 13 03:08 2020 to a high price of 189.40 03:12 on august 10 2020. buying at the low and 03:15 selling at the high with novavax would 03:17 have resulted in a 5089 percent return 03:20 incredible these are just two examples 03:23 of stocks that had a better return back 03:25 in 2020 than what we're currently seeing 03:26 with gamestop 03:28 so why is everyone talking about 03:30 gamestop why is it all over the news 03:32 while the incredible increase in their 03:34 stock price is certainly newsworthy 03:36 it's not just the increase we're paying 03:38 attention to it's the reason for that 03:40 increase that's really breaking news 03:42 right now now going back to vax art 03:44 vaxxart saw a high price in july of 2020 03:47 and 03:48 at the time there was a reason for that 03:50 increase it was because the us 03:52 government had just adopted their oral 03:54 covit vaccine to be a part of operation 03:56 warp speed 03:57 not only was the company in line to 03:59 receive a bunch of government funding 04:00 but this was also a signal that they 04:02 might have a vaccine that the private 04:04 markets 04:04 might want in the future this was huge 04:07 news at the time and the main primary 04:09 reason why we saw such an increase in 04:10 their stock price 04:11 and actually the same exact thing 04:13 happened in novavax as well 04:16 the important point that i'm trying to 04:17 get across here is that there were 04:19 legitimate fundamental reasons for a 04:21 spike in both 04:22 the stock prices and when i say 04:24 fundamental i mean characteristics or 04:26 information relating to the company's 04:28 business 04:29 fundamental analysis of any given stock 04:32 usually involves inspecting things like 04:34 product lines sales costs of doing 04:37 business 04:38 debt levels revenue growth and even 04:41 looking at the people running a company 04:42 and of course there were some really 04:44 good reasons that related to fundamental 04:46 analysis 04:47 that resulted in both those stock prices 04:49 going up 04:50 now quickly back to gamestop did 04:52 gamestop have some kind of 04:54 fundamental event that influenced their 04:56 market price because of something going 04:58 on with the company 04:59 not really there was one thing that 05:01 occurred that we could point to 05:03 now in early january it was announced 05:05 that ryan cohen who was 05:07 a co-founder of the successful company 05:09 chewie and also some other 05:11 former executives from the same company 05:13 they joined gamestop's board of 05:14 directors 05:15 after gaining a large position in the 05:17 company stock while it's always good 05:19 news to add 05:20 really smart intelligent people with 05:22 great business track records to your 05:24 board of directors 05:25 given that the board of directors are 05:26 basically responsible for the overall 05:28 direction of a company 05:30 that in itself is some news that should 05:32 influence the stock price 05:34 but things like this have happened in 05:36 the past to other publicly traded 05:38 companies and we typically see a 05:40 moderate increase in their stock price 05:42 maybe in one day 05:44 so while we might be able to attribute 05:46 some of the increase in gamestop's 05:48 market price 05:49 to the addition of those board members 05:51 there's no way that we could say it 05:53 solely because of that reason 05:55 in fact i would say it's a very very 05:57 small reason why we're seeing such an 05:59 increase in the stock price now beyond 06:01 this event were there 06:03 any other company specific things that 06:05 occurred that we could attribute to its 06:07 huge bull run here recently no 06:10 not really in fact gamestop honestly 06:14 seems like a below average company at 06:16 best at least from a fundamental 06:18 standpoint the company has a 06:20 ton of debt in fact they have twice as 06:22 much long-term debt as they have 06:24 equity meaning that they owe twice as 06:26 much money over a long-term period as 06:28 the current 06:29 net worth of the company they currently 06:31 are losing the equivalent of over four 06:33 thousand dollars per employee on an 06:35 annual basis 06:36 and yeah their revenue looks good but 06:38 remember revenue only 06:40 measures sales it doesn't factor in cost 06:42 of goods sold 06:43 operating expenses debt payments or 06:46 taxes 06:46 anything along those lines the company 06:48 doesn't even have a p e ratio which is 06:50 the price to earnings ratio 06:52 because the company doesn't have 06:53 earnings earnings are another way of 06:55 saying net profits 06:56 so basically gamestop is making revenue 06:59 but the cost of running their business 07:01 is so high that they're actually losing 07:03 money 07:03 now could we attribute some if not most 07:06 of those losses to kovid 07:08 i think you can make that argument right 07:09 i mean fewer people are going out to 07:11 stores and buying things in stores and 07:13 you know a brick and mortar store like 07:15 gamestop is gonna hurt from something 07:17 like that 07:17 but let's be honest with ourselves brick 07:20 and mortar stores 07:22 across the board have been losing a 07:24 significant amount of market share 07:26 to the digital marketplace although 07:28 gamestop has been 07:29 attempting to build an internet presence 07:31 the reality is their current business 07:33 model is primarily focused on those 07:35 in-store sales 07:37 and that's why they're hurting even 07:38 before kovit i mean 07:40 i don't know about you but i haven't 07:41 been to a gamestop in over a decade 07:43 and yeah that's anecdotal but you know i 07:46 it feels like to me like this is a 07:47 business on the decline 07:49 i could be wrong so bottom line my 07:51 analysis of gamestop is 07:53 it's a decent company at best that's 07:56 trying to modernize their business model 07:58 in the midst of a pandemic that's 08:00 currently destroying their profits 08:02 does this sound like a company that 08:03 should be seeing a 1 08:05 800 gain in its stock price in less than 08:08 a month 08:08 not by any historical means or measures 08:11 doesn't make any sense 08:13 now game stops rise is all about market 08:16 psychology 08:17 at the end of the day there's really 08:18 only one thing that drives stock prices 08:21 and that's demand if market demand for a 08:24 specific stock increases 08:26 so will its stock price no matter how 08:28 silly or foolish it might seem on the 08:30 surface 08:31 traditional wall street players like the 08:33 hedge funds melvin capital and citron 08:35 research had recently been 08:37 waging a short sale war on gamestop 08:40 for good reason in case you don't know a 08:42 hedge fund is like a mutual fund but for 08:44 really wealthy investors 08:46 it's basically a big account that's 08:47 managed by seemingly smart managers with 08:50 tons of experience and knowledge and 08:52 they take their wealthy investors money 08:54 and put it into the market 08:55 and typically they they approach the 08:57 market from a pretty aggressive 08:58 standpoint 08:59 and a short sale is when an investor 09:01 borrows a security 09:02 immediately sells that security and then 09:05 buys it back in the future 09:06 let's see if we can put short sales in 09:08 context so that you understand it a 09:10 little bit better 09:11 especially if you're struggling with it 09:12 right now let's assume a hypothetical 09:14 hedge fund 09:15 shorts gme stock in early january when 09:17 it was roughly 20 bucks a share 09:19 they would have to find a source to 09:21 borrow a ton of shares from 09:23 sell those shares immediately at 20 09:24 bucks and effectively bet on the 09:26 company's market price falling 09:28 dramatically 09:28 and if they were right they could make a 09:30 considerable profit let's say 09:32 in a parallel universe somewhere else 09:35 that gamestop stock instead of going up 09:38 went down in fact let's say it went all 09:39 the way down to a dollar per share 09:41 to close out the short position the 09:43 hedge fund would have to buy those 09:45 shares back and give those shares back 09:47 to 09:47 the broker or financial institution they 09:49 originally borrowed their shares from 09:51 and that closes the position short 09:53 selling is basically 09:54 backwards investing where you're selling 09:57 first and buying back later but at the 09:58 end of the day we always want to buy 10:00 low sell high that's how we make money 10:02 in finance 10:03 let's keep going and assign some numbers 10:06 to this example so that we can better 10:08 understand the profit potential for a 10:10 short sale let's assume our hypothetical 10:12 hedge fund 10:13 sold short a million shares originally 10:15 at that 20 10:16 price that would have resulted in 20 10:19 million dollars in what we call 10:21 sales proceeds buying back the stock at 10:23 a dollar per share 10:24 would have resulted in a million dollars 10:26 being spent on that stock 10:28 or another way of saying establishing a 10:30 million dollar cost 10:31 basis once you have the cost basis and 10:34 the sales proceeds of any given 10:35 investment you can figure out what the 10:37 profit or loss is 10:38 and in this example the hedge fund would 10:40 have made 19 million dollars 10:42 on their investment that's a huge return 10:44 hedge funds have been performing trades 10:46 like this for decades and 10:47 and sometimes they make some pretty 10:49 incredible returns 10:50 on aggressive moves like this but you 10:53 and i know that's not what happened 10:55 so let's go ahead and wipe our 10:57 hypothetical example 10:58 and let's actually talk about what 11:00 actually happened to gamestop stock 11:02 well their stock price didn't fall you 11:05 know i'll quote read it on this 11:06 it blasted to the moon it reached a high 11:09 price of 380 dollars per share 11:11 as of today and we can mostly thank 11:14 reddit for that push 11:15 if you haven't heard of reddit it's 11:17 basically a big message board where 11:19 people post articles and comment on 11:21 those articles etc and 11:23 r wall street bets is a subreddit within 11:26 the same website that's dedicated to 11:28 discussing 11:29 stock market investments that are 11:31 usually ultra aggressive and risky 11:33 and the general sentiment on wall street 11:36 bets was they were taking it pretty 11:37 personal 11:38 that these large hedge funds were 11:40 betting heavily against gamestop 11:42 this entire trend started with a random 11:45 reddit user back in 2019 11:46 and it culminated in basically an entire 11:49 internet movement filled with tweets and 11:51 memes and even some comments from elon 11:53 musk 11:54 somehow a seemingly organic online 11:57 movement took 11:57 off and people across the internet began 12:00 piling money into gme stock and the 12:02 higher the stock price is gone 12:04 the more excitement that's built around 12:06 this stock and of course 12:07 this resulted in the price absolutely 12:10 skyrocketing from a low of around twenty 12:12 dollars per share 12:13 earlier in january this month to three 12:16 hundred and eighty dollar high 12:17 today january 27th now let's go ahead 12:20 and frame this 12:21 to better understand how much say a 12:24 hypothetical hedge fund could lose if 12:26 they were 12:26 short this stock let's again assume that 12:29 our hypothetical hedge funds sold short 12:31 1 million shares at 20 per share this 12:34 again would result in 20 million dollars 12:36 of sales proceeds 12:38 let's assume unfortunately for the 12:40 hypothetical hedge fund 12:42 that they bought back the stock to close 12:44 their short position 12:45 when it reached its high of 380 dollars 12:48 per share 12:48 this would have resulted in a 380 12:51 million dollar cost 12:53 basis and let's go ahead and compare the 12:55 two numbers together sales proceeds of 12:57 20 million 12:57 cost basis of 380 million that's a 360 13:01 million dollar 13:02 loss from their original 20 million 13:04 dollar short position 13:06 and if that hedge fund continued to hold 13:08 the stock and it continued to rise 13:10 that loss gets bigger and bigger and 13:12 bigger now with all that being said 13:15 let's take five lessons away from 13:17 everything that's been happening 13:18 related to gamestop the first lesson for 13:21 us the dynamics of short selling 13:23 selling short involves borrowing shares 13:26 and selling those shares 13:27 and hoping that the market price falls 13:29 so that you can later buy it back at a 13:31 lower price 13:32 and make a profit of course you can lose 13:35 an incredible amount of money as the 13:36 market goes up because yeah you have to 13:38 buy that stock back in the future 13:40 the higher the market goes the more 13:41 losses you have in front of you 13:43 and that is unlimited lost potential 13:45 bottom line 13:46 short selling is a very risky investment 13:49 strategy 13:50 if a suitability based question pops up 13:52 on a 13:53 finance licensing exam short selling 13:55 could actually be a part of that 13:56 question 13:57 be sure you know an action like this 13:59 should only be recommended to your most 14:01 sophisticated 14:02 clients who hopefully know what they're 14:04 doing and can fully understand the risk 14:06 they're getting into 14:06 in fact i'd go as far to say that making 14:09 a recommendation of a short sale is 14:10 probably going to be a wrong answer 14:12 99 times out of 100 but there could be a 14:15 situation where recommending a short 14:17 sale to the right type of investor 14:19 could actually make sense lesson number 14:21 two short squeezes 14:23 now just so you know on most fenra or 14:25 nasa exams the term short squeeze is not 14:28 going to show up on your exam 14:29 although it's technically possible 14:31 however some things related to short 14:33 squeezes and 14:34 understanding the general dynamics that 14:36 occur with a large short position 14:38 all that is potentially testable a short 14:40 squeeze occurs when a number of 14:42 investors with short positions 14:44 are effectively forced to buy back their 14:47 stock 14:47 short positions always have to take 14:49 place in margin accounts 14:51 which are accounts that involve 14:53 borrowing capital of some form 14:55 in the case of a short sale investors 14:57 are borrowing shares of stock that they 14:59 must 14:59 buy back and return in the future when 15:02 an investor holds a margin position 15:04 you better believe the brokerage firm 15:06 holding their account will 15:07 pay close attention to the gains and 15:09 losses in particular the losses of that 15:12 account if they occur 15:13 think about it this way if i were to 15:15 sell short gme stock 15:17 and i borrowed that stock from you you 15:20 might be concerned about the 15:22 prospect of never getting that stock 15:24 back from me 15:25 now of course we have an agreement i 15:27 borrowed shares i 15:28 sold those shares and i have to buy 15:30 those shares back and give those shares 15:31 back to you at some point time in the 15:33 future 15:33 but what if i run out of money what if i 15:36 go bankrupt 15:37 well that's a huge problem for you in 15:39 that case you 15:40 lent me shares that rose significantly 15:43 in value 15:43 and i was unable to give you their 15:45 shares back these are the concerns of 15:47 financial institutions and brokerage 15:49 firms when they lend out securities to 15:51 their customers 15:52 whenever a brokerage firm is concerned 15:54 about something like this 15:55 possibly occurring they are likely to 15:58 institute a margin 15:59 call margin calls typically require 16:01 investors to do one of two things 16:03 either to deposit more cash in the 16:06 account to prove that they can continue 16:07 to withstand the losses they're seeing 16:09 or to close out their position so these 16:12 hedge funds that were shorting 16:14 gamestop stock they were assumptively 16:16 losing millions if not 16:18 billions of dollars on the price rising 16:20 and the financial institutions 16:22 lending them those shares i assume sent 16:24 them a margin call 16:25 if those hedge funds don't have a bunch 16:27 of money lying around that they can post 16:29 to their account to show that they can 16:30 withstand those losses 16:32 they would be forced to buy back the 16:34 stock and close out that short position 16:36 and you might already be thinking this 16:38 but the repurchase of those shares 16:40 introduces additional demand for that 16:43 stock in the market 16:44 the additional demand added fuel to the 16:46 fire and we saw 16:48 gme stock price skyrocket even further 16:50 this leads us to lesson number three 16:52 which is 16:53 short interest theory short interest is 16:55 a measurement 16:56 of the number of shares that are 16:58 currently being sold short as compared 17:00 to the shares outstanding 17:02 as of december 31st 2020 102 17:06 of game stops outstanding shares or over 17:09 200 of their float have been sold short 17:11 for purposes of finra 17:13 or nasa exams you don't need to know the 17:16 specifics about these numbers or 17:18 or how more shares can be sold short 17:20 than there are actually outstanding 17:22 shares 17:22 don't worry about that all you need to 17:24 know is that is a crazy high 17:26 short interest and for context let's go 17:29 ahead and look up 17:30 apple's short interests look at that 17:32 less than one percent 17:34 obviously there aren't many people 17:35 betting against apple at the moment 17:37 probably for good reason the super high 17:40 short interest on gamestop can be 17:42 related to a theory 17:43 and that's the short interest theory 17:45 short interest theory is considered a 17:46 type of technical analysis theory which 17:49 only focuses on the dynamics of the 17:50 stock market and generally speaking 17:52 ignores company fundamentals 17:54 the theory states that the higher the 17:57 short interest on the stock 17:58 the more bullish an investor should be 18:00 on that stock 18:01 and normally this is a pretty 18:03 counter-intuitive theory right 18:05 why would anyone be super bullish on an 18:08 investment 18:08 that has a large number of investors 18:10 betting against it well 18:12 gamestop is the perfect example as to 18:14 why 18:15 eventually all those short sellers will 18:17 be forced to buy back their positions 18:20 which will introduce more demand to the 18:22 market resulting in a higher market 18:24 price 18:25 and the repurchase of those shares can 18:27 be accelerated due to a short squeeze 18:29 if there's a massive increase of the 18:31 stock price on its own 18:33 the same gamestop investors are already 18:35 looking at other opportunities 18:37 by seeking out companies with high short 18:39 interest and that's 18:40 maybe why you've heard a little bit 18:41 about bed bath and beyond recently 18:44 all right lesson number four the market 18:46 is driven 18:47 solely by demand while investors 18:50 traditionally seek out 18:52 successful companies with growing 18:53 revenue and good business models 18:55 we are quickly entering into a new era 18:57 of investing 18:58 gamestop seems like a pretty bad 19:01 investment through a traditional lens 19:03 but at the end of the day does it really 19:05 matter 19:06 no if the market is overwhelmed by 19:08 demand stock prices will rise 19:10 no matter what no matter how much debt a 19:12 company has 19:13 no matter how much money they're losing 19:15 no matter how bad the situation might 19:17 look for the company 19:18 if there's more demand to buy the stock 19:20 than the supply out there to sell the 19:22 stock 19:22 then hey stock price is going up that 19:25 simple 19:26 and now to our last lesson lesson number 19:28 five 19:29 the stock market can be extremely 19:31 volatile 19:32 now this isn't always the case on any 19:35 given day 19:36 the stock market is usually fairly flat 19:38 and 19:39 not so exciting however volatility 19:42 meaning 19:42 wild swings in price both upward and 19:44 downward this can happen at any given 19:46 time 19:47 just to prove this let's jump into a 19:49 made up time machine and go back to 19:51 january 1st 2021. 19:53 did you have any idea that gamestop 19:55 would be going through this 19:57 of course there are probably a small 19:58 number of people especially on wall 20:00 street bets that had 20:02 suspicions or hopes that this would 20:03 happen but i can tell you as someone 20:05 that studies the market on an everyday 20:07 basis 20:08 i had no idea this was right around the 20:10 corner and i would assume that's the 20:11 case from the majority of americans 20:14 the volatility we're seeing with 20:16 gamestop is benefiting smaller investors 20:18 which 20:19 is great in my opinion hedge funds 20:21 historically have been making 20:22 millions and millions of dollars for 20:24 their wealthier investors so this 20:26 definitely is a win for the small 20:28 investor 20:28 however volatility usually works against 20:31 not only the small investor but most 20:34 investors there have been two 20:35 big events in recent history where we've 20:37 seen volatility levels go 20:39 off the charts and that was the great 20:41 recession 20:42 caused primarily by the real estate 20:44 market back in 2008 and in march 2020 20:47 when we saw the 20:48 covid stock market crash in both 20:50 instances the stock market 20:52 experienced incredible levels of market 20:54 risk which is the risk that an 20:56 event or circumstance drives the prices 20:59 of generally speaking 21:00 most things in the market downward from 21:02 october 2007 to march 2009 21:05 the s p 500 lost almost half of its 21:08 value 21:08 due to the housing crisis and from late 21:11 february to march 21:12 2020 the s p 500 lost nearly 34 percent 21:15 of its value during the initial stages 21:17 of covid 21:17 whether it's gamestop the housing crisis 21:20 or kovid 21:21 these are events that seemingly came out 21:23 of nowhere for the most part 21:25 stock market volatility is something 21:27 every investor with a position in the 21:29 stock market 21:30 must contend with and eventually embrace 21:32 that's why we consider it unethical 21:35 for you as a financial representative to 21:37 recommend significant investments in 21:39 stocks to older investors or those 21:41 looking to avoid risk 21:43 additionally that's why many investors 21:46 and advisors 21:47 utilize the rule of 100 when determining 21:49 a portfolio's allocation 21:51 you take a person's age and subtract it 21:53 from 100 and that'll tell you what 21:55 percentage of their assets 21:56 should be dedicated to the stock market 21:59 for example 22:00 a 20 year old could put 80 percent of 22:02 their portfolio into the stock market 22:04 and this would be considered suitable 22:06 for an average person at that age 22:08 now honestly you know a 20 year old that 22:11 has anything in investments probably has 22:13 their entire 22:14 portfolio in the stock market and that's 22:16 to be expected 22:17 now let's compare that to the average 70 22:19 year old which 22:21 using the rule of 100 should allocate 22:23 somewhere around 22:24 30 percent of their portfolio to the 22:25 stock market with the other seventy 22:28 percent of their investments going into 22:29 safer investments like fixed income or 22:32 cash 22:32 if you were seven years old retired 22:35 living on a fixed income from your 22:37 retirement plans 22:38 or social security would you want to get 22:40 caught up in this mess 22:41 while gamestop's stock price is 22:44 skyrocketing and 22:45 and all their investors owning stock are 22:47 feeling great right now 22:49 here's a reality check eventually the 22:52 excitement 22:52 surrounding gamestop will subside and 22:55 its price will come down considerably 22:57 and a large portion of current gamestop 23:00 investors 23:01 are going to lose a considerable amount 23:03 of money when that occurs 23:04 if they stay in the investment too long 23:07 and if you're older and don't have a ton 23:08 of time to make up 23:10 significant investment losses you should 23:12 stay far away from investments like 23:14 gamestop 23:14 you might have all the fomo in the world 23:17 but high levels of return 23:19 are really only capable when you're 23:21 embracing high levels of risk 23:23 and that's how the stock market works 23:24 all right those are your five lessons 23:27 that we could take away from everything 23:28 going on with gamestop you know thanks 23:30 so much for watching this video that 23:32 this is definitely kind of a break away 23:33 from what i normally do 23:35 i'm sure it feels a lot more informal 23:37 than my normal videos and i'm interested 23:39 in your feedback 23:40 if you like this video and feel like it 23:42 helped you connect some of these 23:44 kind of more obscure ideas and the 23:45 material to what's actually happening in 23:47 the real world i i would love to make 23:48 more videos like this 23:50 please give me feedback whether you like 23:52 it or you don't whatever 23:53 leave a comment you can go to my website 23:56 basicwisdom.net and and get my contact 23:58 information through to those means 24:00 any of that stuff works also as a 24:02 reminder my partners and i are offering 24:04 achievable which is that learning 24:05 program for the sie series seven and 24:08 will soon have a program for the series 24:09 63. 24:10 i have lots of examples and the reading 24:12 materials for 24:13 achievable that relate to the real world 24:15 just like this and anytime i see that 24:17 there's an opportunity to connect 24:19 the difficult things that we have in the 24:21 material to some more understandable 24:23 things that are happening in the real 24:24 world 24:24 i think that's a great opportunity to 24:26 help people connect ideas 24:27 so if this is the way you learn check 24:30 out achievable 24:30 again the links are below in the video 24:32 description thanks so much for watching 24:35 i appreciate it and i'll see you next 24:44 time