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the solution to this is more transparency on the institutional side not less access and ability for retail but i'm telling you these kids are catching up fast because they know what they're doing too and the reason they know what they're doing is because of companies like google and things like the internet that just make every piece of information available they give you access to compute resources you could be a kid sitting at home writing models into google cloud that give you the same compute power as the best hedge fund as the best investment bank and this is what i'm trying to get across to you guys is we are leveling the playing field so this morning i woke up after spending all time all last night in wall street bets reading about all of this stuff um i ended up closing out my position this morning and i wanted to announce that i'm taking all the profits that i made plus my original position so i'm going to take 500 000 and i'm going to donate to the bar stool fund for small businesses i think that what you're seeing is um essentially a push back against the establishment in a really important way you have a lot of people and i would encourage anybody who is dismissive of this thing to go into wall street bets and actually just read the forums and i think that you're going to see three kinds of posts the first kind of content are a lot of people doing some incredible fundamental diligence on companies trying to think about long-term value and in my opinion many of them are doing as good and frankly a better job than a lot of hedge fund analysts that i work with the second are a lot of people who believe that you know coming out of 2008 what happened was wall street took an enormous amount of risk and they left retail as the bag holder and a lot of these kids were in grade school in high school when that happened they lost their homes their parents lost their jobs and they've always wondered like why did those folks get bailed out for taking enormous amounts of risk and nobody helped and showed up to help my family and then the third thing is a realization that instead of having idea dinners or you know quiet whispered conversations amongst hedge funds in the hamptons these kids have the courage to do it transparently in a forum and i'm not saying all of it is perfect by any means but i think it takes um an enormous amount of faith in the system to be that transparent to talk about things and then for each individual to make their own mind up and to do things whether it's to buy and to sell and i think that what it proves is this retail phenomenon is here to stay there are 2.7 million people inside of wall street bets i think that they are as important as any hedge fund or collection of hedge funds there are fundamental momentum investors in the market that are organized capital i.e hedge funds and disorganized loosely affiliated capital i.e wall street beds and i think what you're seeing is the push and pull of that and the realization should be that if every person was forced to publish their fundamental research it would be hard to distinguish the best version of research from wall street bets and the best version of research from a hedge fund they don't have an edge let's look at tesla who was right on tesla i'll tell you who was right every single retail investor i was right elon musk was right let me tell you who was wrong every single hedge fund name after name when it comes to innovation when it comes to growth when it comes to people trying to do fundamentally useful things in the world if it doesn't fit into the mold that wall street wants they try to organize against it and there has been pushback after pushback after pushback in individual names and this is yet another form of pushback why is it allowed for somebody running a hedge fund to basically claim that they are market neutral but be levered up they take a 10 billion dollar fund and their prime brokers allow them to run a hundred billion dollars notional exposure who thinks that that's fair it's not fair to the retail investor because when that blows up and a 100 billion dollar hole exists in a fund which by the way this is exactly what happened in 2008 the government bails him out who is the government all of us it's allowed to happen so that hedge funds can charge 2 and 20 to their limited partners independent of consequences i'll tell you another way that it's allowed to happen hedge funds are allowed to take their money go to a prime broker and all of a sudden get 10x multiplication on that money that's the problem you have trillions of dollars of notional being traded by these organizations you have maybe billions of dollars being traded by retail when i saw that article in the wall street journal i had no idea about melvin capital really i had no idea about wall street bets really i had no idea about gamestop except that it had been mentioned to me in a couple of tweets throughout the year so i tweeted out after i read the article hey folks tell me an interesting trade that i can put on tomorrow for a few hundred k so i can learn basically that that tweet got 10 million impressions and 13 000 comments and when i went through there a lot of people pointed to gamestop and pointed to wall street beds and when i went in there and started to look around what i thought is my god here is a dynamic about trading about momentum about stocks about short interest about gamma squeezes these are not things that i know a lot about and so i put in a small position to learn and what i learned is that people can do fundamental research come to a point of view that's diametrically opposed to organized capital and they can be right idea dinners that concept has existed for decades on wall street where people get together in closed rooms behind closed doors and usher around names of companies and they coalesce and decide to cooperate together the guys on wall street bets just do it in the public completely transparently in my opinion that takes a lot more courage if you are going to so massively oversell a company to the extent that you're selling 40 more shares of that company that don't exist and all of a sudden other folks are like hey wait a minute this is gonna get squeezed and they buy it that's just a smart trade retail saw it wall street missed it and they paid the price so maybe to your point scott what regulators should do is say hey wait a minute how can we allow companies to be 140 short that doesn't make any sense you're really discounting how smart so many of these people are okay and all i would encourage you to do is spend a little time in these forums go into the discord server and you're not going to hear a bunch of bros just sloshing around you're going to hear a bunch of really really smart people talking about things in fundamental ways there is a small part of momentum there is a part that's fundamental analysis and then there's a part that's just taking it to the man i'm not taking you away from that but the reality is it's all allowed in a free market and all of a sudden if you start the gate decisions by individual people all you're going to do is systematically lock in institutional ways of making money for institutional clients and i don't think that's the solution if you want to go and address the solution fix how risk-taking happens at the institutional level fix the precondition fix the ability for these stocks to be so massively shorted in the first place for example why isn't there more transparency in the reporting that hedge funds have to make every long position every short position and all the leverage they're taking every day why don't we do that so if you want to fix it i think you got to go and ask for the same transparency because you can't all of a sudden have your cake and eat it too let's have hedge funds operate in the shadows but let's then basically land bass wall street vets because they actually have the courage to wipe their stuff down publicly where anybody can see it you have to be cognizant that we are moving to a world moving to a world where normal ordinary folks have now access to all the same information as institutional organized capital and they will come to many of the same conclusions sometimes at the same time oftentimes faster and sometimes to the opposite conclusions the solution to this is more transparency on the institutional side not less access and ability for retail if you want to make the system better and healthier force more transparency on the institutional side gary gensler should get these guys to be just like what kathy wood does at arc it's so healthy for the ecosystem what am i buying what am i selling every day what are my risk limits just make it transparent but i'm telling you these kids are catching up fast because they know what they're doing too and the reason they know what they're doing is because of companies like google and things like the internet that just make every piece of information available they give you access to compute resources you could be a kid sitting at home writing models into google cloud that give you the same compute power as the best hedge fund as the best investment bank and this is what i'm trying to get across to you guys is we are leveling the playing field you have to understand and believe that there is so much information out there that people can be on a level playing field and that the most important thing we need to do now is shine the light into the corner of the market that is still opaque and there is only one area companies are forced to publish every single thing about themselves transparently every quarter okay etfs publish their positions every day in some cases retail talks about what they're doing with transparency every minute but institutional capital can still hide [Music] you