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buy buy buy. Bullish! Opinion: * RH will drag the industry to T+0 settlement, thus breaking wall street shenanigans with 100%+ short selling. Inevitable to see

buy buy buy. Bullish! Opinion: * RH will drag the industry to T+0 settlement, thus breaking wall street shenanigans with 100%+ short selling. Inevitable to see the merging of on-chain settlement with traditional stonks. * RH has the largest amount of Dogecoin AUM globally (8.7B $USD equiv) * RH has a lot of bitcoin, ether and other coins AUM. * RH will eventually be the biggest broker in the US (world)? * RH encourages dollar cost averaging and investing over time. * RH has lots of first time investors (18-24), who over time will grow to be big investors

pavlov 5y ago
> “ lots of first time investors (18-24), who over time will grow to be big investors” Or will be burned by the next prolonged downturn and exit the market permanently.
- toomuchtodo 5y ago
  Absolutely. Sofi is the smart play there vs RH. Getting HNW folks onboard with student loan and HCOL property mortgages, and then cross selling them deposit accounts and investing access. “Young Money” Fidelity or Schwab. (not investing advice)
  - rfd4sgmk8u 5y ago
    Getting young people to get into debt is a very different thing than getting them to build assets. RH gives (small) margin loans from trading, not (large) student loans for marginally useful university courses.
- jimbob45 5y ago
  "There is a famous story, we don’t know if it’s true, about how in the late summer of 1929, a shoe-shine boy gave Joe Kennedy stock tips, and Kennedy, being a wise old investor, thought, “If shoe shine boys are giving stock tips, then it’s time to get out of the market." Seems like I'm getting a lot of advice about the market from people with less knowledge about the market than shoe shine boys. My mom and my sister are invested in Dogecoin and neither can explain what a cryptocurrency is or even what the doge meme was to begin with. Seems like the next prolonged downturn is right around the corner.
  - hef19898 5y ago
    Well, it was a shoe shine boy on wall street. So, especially back tue day, he should have been quite well informed!
    - rfd4sgmk8u 5y ago
      Yes, this apocryphal story sucks. Why wouldn't a shoe shine boy (or an uber driver -- for contemporary equivalence) not have insight from the many conversations he would have with informed people during their day? The casual throw away statement about business made during transit from a passenger might be important info. This story is just elitism, and exactly the argument Wall Street used against RH. "unsophisticated traders". Sorry Mr Banker, the market is made up of people. Claiming unsophistication is a projection of their own insecurities.
      - hef19898 5y ago
        There are two aspects to the story. One, the shoe shine boy probably heard a lot of stuff. Two, he definitely had no business in trading stock. And two is the important one, once "dumb money" shows up in droves it is maybe time to get out.
        rfd4sgmk8u 5y ago
        If that shoe shine boy (or uber driver) was alive in the mid to late 2010s, they would probably do trading business with RH. And that is why I am bullish on RH.
      - mym1990 5y ago
        Because 2 reasons: 1. Insight is great, but I would hope that there is underlying understanding of the field based on actual study and experience(assuming the shoe shiner is not in finance). 2. The shoe shiner or Uber driver likely has no idea who they are talking to, past the initial impression. I would be open to a conversation about finance with an Uber driver, but I would probably not rush home to put money on it.
  - 5y ago
- sfblah 5y ago
  Yeah. Hard to make predictions, but this sort of breathless enthusiasm seems worrisome.
  - mym1990 5y ago
    Optimism > Enthusiasm > Exhilaration > Euphoria Hard to know exactly where we are right now, but certainly feels closer to the latter.
- drewburg 5y ago
  Does this remind anyone else of the high APR (20-30%) credit cards offered to college students? I remember a table set up outside the main dining hall where they pitched getting started building that credit history ASAP. Now it's about building that portfolio ASAP and offering it to the most risk-tolerant age demographic. Subtly updated buying whatever you want on credit and worrying about whether you could afford it later, to buying into whatever risky position you want and worrying about covering it later.
  - rfd4sgmk8u 5y ago
    No? Because high APR cards are a trap to leech money from the young -- eg debt. Investing in growth assets like stonks is building assets. Very very different things!
    - pavlov 5y ago
      If you’d bought a portfolio of the 2000 class of stonks, most of those equities would now be worthless or acquired for pennies along the way. There were very few Amazons in the mix, and very many Palms. Even a reliable blue-chip like Cisco is still underwater compared to its March 2000 price.
- rfd4sgmk8u 5y ago
  These people have no other option but to buy stonks and crypto. Their dollars lose value every year, and even a market downturn will look attractive vs fiat inflation. Bull market for the next 100 years!
fnord77 5y ago
the WSB crowd despises RH now
adam_arthur 5y ago
The biggest broker in the world? I use both Robinhood and Schwab, and the Robinhood app is absolutely terrible. The visual aesthetic is nice, but usability is awful... I don't really understand the hype. For example they have no dedicated orders screen to cancel limit order that I can tell. There's an "inbox" where your limit order will show up after some delay. I placed an order once and decided to cancel it, but the inbox message didn't show up for 5 minutes, so I had no way to cancel it. Also you can't see older than 5? years on stock charts. Or zoom or anything, only specific presets. Finally, I bought a small amount of crypto, and did a market order sell once, and my fill price was like 10% under current market value. Obviously market orders are bad, but most brokers have safeguards that prevent executing them at such a difference from last traded price. Anyway, bad experience all around. I imagine the only people who use it seriously are those that haven't tried more serious brokers, or that don't know any better. The idea behind Robinhood is good, but it could be done so much better. So many obviously bad design elements
- rfd4sgmk8u 5y ago
  Totally agree, I have multiple brokerage accounts and RH is the least feature rich. RH was my first, but I understood its limitations early. It did also allow free trades which was unbelievable at the time. It is the easiest to use and most approachable broker for new people, young people. The UI is kinda genius, really, for what it is. Most people will stop at RH, the idea of a complex brokerage account is beyond their comfort zone. They will not see the need to look elsewhere, as it has everything they believe they need in one app. These things are not about you or I, they are about the acceptability by the masses. And the masses love RH. You cannot dismiss the huge effect they had on the industry with their business model, and they have lots more things planned.
  - adam_arthur 5y ago
    Definitely the concept is great! However it can be done so much better. I only used the app for a few weeks and encountered so many problems. I'm even surprised people tout their UI as a pro. The visual flair/theme is nice, but it's quite poor from a UX perspective. Sidenote, I don't get why brokers don't offer a monthly payment to avoid having your order flow sold/provide better fills. Lots would take up on that

pavlov 5y ago

> “ lots of first time investors (18-24), who over time will grow to be big investors” Or will be burned by the next prolonged downturn and exit the market permanently.

toomuchtodo 5y ago
Absolutely. Sofi is the smart play there vs RH. Getting HNW folks onboard with student loan and HCOL property mortgages, and then cross selling them deposit accounts and investing access. “Young Money” Fidelity or Schwab. (not investing advice)
- rfd4sgmk8u 5y ago
  Getting young people to get into debt is a very different thing than getting them to build assets. RH gives (small) margin loans from trading, not (large) student loans for marginally useful university courses.
jimbob45 5y ago
"There is a famous story, we don’t know if it’s true, about how in the late summer of 1929, a shoe-shine boy gave Joe Kennedy stock tips, and Kennedy, being a wise old investor, thought, “If shoe shine boys are giving stock tips, then it’s time to get out of the market." Seems like I'm getting a lot of advice about the market from people with less knowledge about the market than shoe shine boys. My mom and my sister are invested in Dogecoin and neither can explain what a cryptocurrency is or even what the doge meme was to begin with. Seems like the next prolonged downturn is right around the corner.
- hef19898 5y ago
  Well, it was a shoe shine boy on wall street. So, especially back tue day, he should have been quite well informed!
  - rfd4sgmk8u 5y ago
    Yes, this apocryphal story sucks. Why wouldn't a shoe shine boy (or an uber driver -- for contemporary equivalence) not have insight from the many conversations he would have with informed people during their day? The casual throw away statement about business made during transit from a passenger might be important info. This story is just elitism, and exactly the argument Wall Street used against RH. "unsophisticated traders". Sorry Mr Banker, the market is made up of people. Claiming unsophistication is a projection of their own insecurities.
    - hef19898 5y ago
      There are two aspects to the story. One, the shoe shine boy probably heard a lot of stuff. Two, he definitely had no business in trading stock. And two is the important one, once "dumb money" shows up in droves it is maybe time to get out.
      - rfd4sgmk8u 5y ago
        If that shoe shine boy (or uber driver) was alive in the mid to late 2010s, they would probably do trading business with RH. And that is why I am bullish on RH.
    - mym1990 5y ago
      Because 2 reasons: 1. Insight is great, but I would hope that there is underlying understanding of the field based on actual study and experience(assuming the shoe shiner is not in finance). 2. The shoe shiner or Uber driver likely has no idea who they are talking to, past the initial impression. I would be open to a conversation about finance with an Uber driver, but I would probably not rush home to put money on it.
- 5y ago
sfblah 5y ago
Yeah. Hard to make predictions, but this sort of breathless enthusiasm seems worrisome.
- mym1990 5y ago
  Optimism > Enthusiasm > Exhilaration > Euphoria Hard to know exactly where we are right now, but certainly feels closer to the latter.
drewburg 5y ago
Does this remind anyone else of the high APR (20-30%) credit cards offered to college students? I remember a table set up outside the main dining hall where they pitched getting started building that credit history ASAP. Now it's about building that portfolio ASAP and offering it to the most risk-tolerant age demographic. Subtly updated buying whatever you want on credit and worrying about whether you could afford it later, to buying into whatever risky position you want and worrying about covering it later.
- rfd4sgmk8u 5y ago
  No? Because high APR cards are a trap to leech money from the young -- eg debt. Investing in growth assets like stonks is building assets. Very very different things!
  - pavlov 5y ago
    If you’d bought a portfolio of the 2000 class of stonks, most of those equities would now be worthless or acquired for pennies along the way. There were very few Amazons in the mix, and very many Palms. Even a reliable blue-chip like Cisco is still underwater compared to its March 2000 price.
rfd4sgmk8u 5y ago
These people have no other option but to buy stonks and crypto. Their dollars lose value every year, and even a market downturn will look attractive vs fiat inflation. Bull market for the next 100 years!

fnord77 5y ago

the WSB crowd despises RH now

adam_arthur 5y ago

The biggest broker in the world? I use both Robinhood and Schwab, and the Robinhood app is absolutely terrible. The visual aesthetic is nice, but usability is awful... I don't really understand the hype. For example they have no dedicated orders screen to cancel limit order that I can tell. There's an "inbox" where your limit order will show up after some delay. I placed an order once and decided to cancel it, but the inbox message didn't show up for 5 minutes, so I had no way to cancel it. Also you can't see older than 5? years on stock charts. Or zoom or anything, only specific presets. Finally, I bought a small amount of crypto, and did a market order sell once, and my fill price was like 10% under current market value. Obviously market orders are bad, but most brokers have safeguards that prevent executing them at such a difference from last traded price. Anyway, bad experience all around. I imagine the only people who use it seriously are those that haven't tried more serious brokers, or that don't know any better. The idea behind Robinhood is good, but it could be done so much better. So many obviously bad design elements

rfd4sgmk8u 5y ago
Totally agree, I have multiple brokerage accounts and RH is the least feature rich. RH was my first, but I understood its limitations early. It did also allow free trades which was unbelievable at the time. It is the easiest to use and most approachable broker for new people, young people. The UI is kinda genius, really, for what it is. Most people will stop at RH, the idea of a complex brokerage account is beyond their comfort zone. They will not see the need to look elsewhere, as it has everything they believe they need in one app. These things are not about you or I, they are about the acceptability by the masses. And the masses love RH. You cannot dismiss the huge effect they had on the industry with their business model, and they have lots more things planned.
- adam_arthur 5y ago
  Definitely the concept is great! However it can be done so much better. I only used the app for a few weeks and encountered so many problems. I'm even surprised people tout their UI as a pro. The visual flair/theme is nice, but it's quite poor from a UX perspective. Sidenote, I don't get why brokers don't offer a monthly payment to avoid having your order flow sold/provide better fills. Lots would take up on that