Gamestop (GME) Lessons for the SIE, Series 7, 65, and 66

Tyler York

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
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