Summary of Spencer Jakab's The Revolution That Wasn't

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 In 2021, a financial wellness expert named Keith Patrick Gill testified before Congress about the dangers of the stock market. He had become rich by betting on the stock of a single company, and he had modern social media and trading apps to thank for it.
#2 The hearing was a solution in search of a problem. It was a missed opportunity to expose how a hugely profitable business makes its money from the savings of novice investors. For decades, Americans have been forced to navigate a confusing maze of slick marketing messages from companies seeking to help them invest their money.
#3 The committee hearing was to check how much of the stock market’s return was going to the public, and how some of the men testifying that day had become rich. But Americans are largely on their own when it comes to financing retirement and education.
#4 The financial crisis made hedge fund managers like Gabriel Plotkin, founder and chief investment officer of Melvin Capital Management, out to be cartoon villains. He made part of his money by betting certain stocks would fall, and he was caught up in a securities fraud investigation.

Sujets

• Financial services
• Industrie

Informations

• Publié par: Everest Media LLC
• Date de parution: 20 mars 2022
• Nombre de lectures: 0
• EAN13: 9781669355472
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Spencer Jakab's The Revolution That Wasn't
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9 Insights from Chapter 10 Insights from Chapter 11 Insights from Chapter 12 Insights from Chapter 13 Insights from Chapter 14 Insights from Chapter 15 Insights from Chapter 16 Insights from Chapter 17 Insights from Chapter 18 Insights from Chapter 19 Insights from Chapter 20 Insights from Chapter 21 Insights from Chapter 22 Insights from Chapter 23
Insights from Chapter 1

#1

In 2021, a financial wellness expert named Keith Patrick Gill testified before Congress about the dangers of the stock market. He had become rich by betting on the stock of a single company, and he had modern social media and trading apps to thank for it.

#2

The hearing was a solution in search of a problem. It was a missed opportunity to expose how a hugely profitable business makes its money from the savings of novice investors. For decades, Americans have been forced to navigate a confusing maze of slick marketing messages from companies seeking to help them invest their money.

#3

The committee hearing was to check how much of the stock market’s return was going to the public, and how some of the men testifying that day had become rich. But Americans are largely on their own when it comes to financing retirement and education.

#4

The financial crisis made hedge fund managers like Gabriel Plotkin, founder and chief investment officer of Melvin Capital Management, out to be cartoon villains. He made part of his money by betting certain stocks would fall, and he was caught up in a securities fraud investigation.

#5

Hedge fund managers are supposed to have an edge, but this hasn’t always been the case. For example, the performance of Melvin Capital, a hedge fund run by Cohen and Plotkin, wasn’t that different from the market overall.

#6

Ken Griffin, the founder of the hedge fund Citadel, was the most influential person to testify at the hearing. He had made $60 million in personal political donations in 2020, including to several Republican members of the committee questioning him.

#7

Before the GameStop squeeze, Griffin was already one of the most prominent people in the financial world. He was barely known outside it, but he was the focus of social media-savvy traders’ ire when it was revealed that he had halted trading in meme stocks.

#8

The most popular and viral posts are rarely the wisest or best-informed ones. And even if that whole class of professional investor had been permanently disadvantaged by the meme-stock squeeze, it wouldn’t be to retail investors’ benefit.

#9

The public was largely against the trading halt, and politicians echoed those suspicions. However, they had been backsliding on protecting poorly informed retail investors for years, and in 2012, Congress passed and Obama signed the JOBS Act, which lowered disclosure requirements for many companies.

#10

The only retail investor who testified was Gill, who was ignored by the committee. He was the only one who shared the risk appetite and playfulness of the young people heavily invested in the meme stocks.
Insights from Chapter 2

#1

The board was full of people doing reckless things in the market with their money, but one user, DeepFuckingValue, had made a $53,566. 04 all-or-nothing wager on a single stock. He was annoyed that the unexpected arrival of a big name had forced him to pay more for his investment.

#2

Gill was extremely self-confident, and he showed great sophistication and politeness on the board. He never mentioned his credentials, but his approach was almost a textbook case of how not to influence people online.

#3

The GameStop trade was the first successful meme that gained social media attention, and it was all thanks to Gill. His gains were almost 100,000 percent at their peak.