Deep Dive
Shownotes Transcript
Robinhood stock hit a new all-time high yesterday, $100 a share. They announced this week that they're expanding cryptos trading to all of the EU countries. The big headline is that they're going to start tokenizing U.S. stocks. So for the first time ever, U.S. stocks can be traded in Europe as a new type of crypto on their newly announced Robinhood blockchain. They say that they can actually tokenize any asset.
from real estate to private companies, which they did. And they gave away both SpaceX and OpenAI in token form to Robinhood account holders in the EU. This week's announcement follows their last event a few months ago, where they announced that they're launching banking services in the U.S. And of course, they also have their own prediction markets. They do futures. It's all a part of their overall master plan to ultimately be a part of every financial transaction that you make.
So clearly the market likes what it sees. So far, the stock is near all-time highs, but is it too high? Is this the top? The stock price has tripled in the last three months. They're now worth about half of what the big dog Schwab is with their higher value customers and massive assets under management. So today on Dumb Money, we're going to decide if now is the time for us to take profits in Robinhood, or maybe, just maybe, we should double down.
Race the rudders. Race the sails. Race the sails. Captain, an unidentified ship is approaching. Over. Roger. Wait, is that an enterprise sales solution? Reach sales professionals, not professional sailors. With LinkedIn ads, you can target the right people by industry, job title, and more. We'll even give you a $100 credit on your next campaign. Get started today at linkedin.com slash results. Terms and conditions apply.
Now more than ever, Lowe's knows you don't just want a low price. You want the lowest price. And with our lowest price guarantee, you can count on us for competitive prices on all your home improvement projects. If you find a qualifying lower price somewhere else on the same item, we'll match it. Lowe's. We help. You save. Price match applies the same item. Current price at qualifying retailers. Exclusions and terms apply. Learn how we'll match price at Lowe's.com slash lowest price guarantee.
This is Dumb Money Live. Hey there, Dave here along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder to smash the like button. The almighty algorithm needs all the help it can get as we head into a long 4th of July weekend. It just takes a second. It's quick. It's easy. It's free. Find a like button somewhere on the interface you're watching. Smash away. Chris, love the outfit. Before everyone heads out for the 4th,
That is amazing. Had I known, I would have worn my 4th of July costume as well. Is there a better, Dave, Jordan, is there a better stock to be talking about for the 4th of July episode than Robin Hood? Is there a better representation of American ingenuity, of American ambition, of
of American perseverance, of American creativity, of American aggressiveness in business. Founder. But it's a stock that's become one of my biggest holdings. And Chris, just a few days ago, I saw that you posted on X that Robinhood has become your top holding.
you know what? It grew into becoming my top holding. It's one of those. It's one of those. Yes. That just, you bought what you thought you needed and it just kept going up. Any stock that triples that you hold a lot of is going to end up being your top holding. Remember Robin hood was, I don't, it was floating between 17 and $26 a share and
And we would regularly talk about it someday being the biggest financial institution in the world, which at the time sounded clinically insane. Okay. And it sounds crazy.
A lot less insane today than it did just months ago when we were talking about it being the largest financial institution in the world. Now people, I think, are starting to see what we have seen for a long time. And those of you all that haven't been following us for 10 years, you might not remember the fact that we...
called every single series, I think it was series seed shareholder of Robinhood. This is many years before it went public because we had come to the conclusion that Robinhood was going to be a very big deal. We actually called them with one of our other partners and
and asked if they would sell us some of their shares privately. Every single one of them, including, I think it was Snoop Dogg. Snoop Dogg, yeah, we found Snoop Dogg shares that we were trying to get. They all said no. Everyone said no. There was one person left, and it was a guy that owned a winery outside of San Francisco. Our business partner, Smoot, called him,
And he said, "I'll sell you a million dollars of my Robin Hood." And so the four of us split that million dollar allocation. Now it still had to be approved by the general counsel. So we had the entire deal done.
And everything was ready to go. And we sent all the paperwork to the Robin Hood General Counsel who never signed the deal. Two and a half months later, we didn't know what to do. We kept pinging and pinging and he just wouldn't respond. So I had met Vlad many, many years earlier at social, no, Stock Palooza, Howard Linsen Stock Palooza in San Diego when Vlad,
was originally pitching Robinhood before it was even a real company. And at the time, Howard Linzen, I think was the first check into Robinhood. And I was invested in the fund and I went up to Howard and said,
This is the dumbest thing you've ever done. You're going to lose our money with this one. Cause I heard Vlad speak and I was like, this guy is out of his mind and this is never going to work. Like just, I was a non-believer, non-believer early on. Okay. How, how things change.
But I had a few conversations with Vlad back, Jordan. Remember when we had ticker tags and we had a big deal working with Vlad and Robinhood and we were going to do this big integration? And we just both got distracted and it never materialized. But because I had those conversations with him back then, I had an open door to communicate with him. So I emailed Vlad and I said, listen, we are not short-term shareholders, right?
We're going to buy this stock and we will not be selling it before the IPO. We are believers. Can you please get your general counsel to sign off on this share transfer? And the next day...
The next day we got the call and it was signed and we became owners of Robinhood. Now somewhere I still have they sent like a certificate form of the share in a PDF that I printed out. Like, how is this even a way to transact shares?
Tokenization makes so much more sense. Yeah, well, it was so complex. But then Robinhood IPO'd and a lot happened during that time. Remember, like if we're going back, remember we did the big Robinhood episode when they got in trouble with GameStop. And we were angry with Robinhood. And we were shareholders, but still did not like the decision that they apparently made, maybe forced into making. Yeah.
But I also thought, even though like I w I thought the company was being irresponsible to put itself in a situation where that could happen. It was a lot of brokers and I did not think that they deserved, uh,
what they received in the marketplace. I just thought that Vlad at the time, quite honestly, it was a terrible communicator. Um, and I defended the company and our audience went nuts on me, like start, like basically, uh,
started to drop dumb money, made me pull off my Robin Hood shirt on that episode. Remember I had to pull it off mid episode? - Yeah. - It was a low moment for me quite on. It might've been one of my lowest moments in all the years that we've been doing dumb money.
And I always hope that at some point in the future, the world would move on beyond that. It was a low moment, not just for you, but for Robinhood. I think it's kind of come full circle, right? Because what nearly took them out, they're now battling back against using tokenization, right? Using what?
tokenization oh oh oh you're right using to no you're totally right because look the the antiquated clearing system for stocks is kind of what almost took them out um and they want to they want to push back against that and i you know i i think that's a good idea
Well, that's a great way of thinking about this, is if tokenization was the standard back then, that might not have ever happened. The whole GameStop fiasco at Robinhood might have never... That's right. It's just this antiquated way of dealing with funds and...
custody of stocks that really, I mean, you know, everybody's mad at Robinhood, but it wasn't really their fault. I mean, you could make an argument that they needed to have more funding to
To avoid situations like that, but really it's just a... That was such a low odds situation that they were put into. Yeah. But, I mean, the backlash was huge. There's a whole movie about it. We're in the movie. And if you don't recall, the reason that everyone was pissed off at Robin Hood is because you couldn't...
you couldn't buy the stock. You could only sell the stock, right? And so GameStop was this fast-moving stock that was going hyperbolic, but then started to tank.
And nobody was allowed on Robinhood to buy. They deleted the buy button so that you couldn't buy shares. And Dave, that wasn't just Robinhood. That was like a dozen other random brokerages were in the same exact situation. And it was because there was too high of a concentration risk around getting like a backup behind one stock of shares that it takes a while to clear. And you just cannot have...
That big of a backup. Anyway, this is fascinating because on the IPO, if you remember this, I shortly after the IPO, when I was able to legally do so, as soon as I was able to sell, I sold my Robin Hood. And I was like, this is going to be a hangover for this company for a while. And also the regulatory environment was not...
really in the favor of a team like Robin Hood that wanted to be aggressive. And I just, it was not a good time to be in Robin Hood. I sold out. I did not get back in. Here's the stock chart from IPO day, shot up, and then basically just fell off for years and just was kind of stagnant.
I started to buy back in, I think it's $17 a share, $16, $17 a share. I got in really, really heavy at about $20, $30 a share. That's when we went all in on Robinhood and we started doing our Robinhood episodes last year. And it was really the primary thesis that we had around Robinhood at the time was that Robinhood, Vlad and his team were
were going to be the biggest beneficiaries of a deregulatory Trump administration. That was our ultimate thesis. And all of the things that Robinhood had always dreamed of doing, that they were stuck the last few years, they were going to come out like animals during the Trump administration and just do it all. They launched the prediction market in anticipation of Trump winning, saying, oh, we're not going to get in trouble. We'll just launch the prediction market and predict the presidency.
So all of the things that you've seen Robinhood do, this has been in planning for a long, long time. And I'm going to tell you something right now.
This is just the beginning. There are so many other things that this company wants to do, intends to do. And I actually think that they are going to shove all of those new projects into the next two and a half years. Okay. Like I think three and a half years, whatever, while this administration is still in control. I think we are going to see three of the wildest years we've ever seen in the
creative financial assets and structuring just because of what Robinhood, they're going to push. They are going to push the limits of this administration. Yeah, so your idea is that the DOJ is not going to be pushing back on banking regulations and things like that.
Jordan, I'll give you one example. Because that has been a legitimate concern by the way. The SEC Chair, Paul Atkins,
was hailing tokenization as an innovation and vowing to put an end to regulation through enforcement by making clearer rules. What is the one thing that every financial institution has asked for forever? All they've asked for is give us rules. Yeah. Give us the groundwork. Right. And we'll follow them.
Allow us to operate around clear rules that you set. If you tell us what we can do and what we can't do, we will figure out a way to do things legally. Okay. The issue is this damn government has never set the rules. They've just said, well, we're not going to tell you anything. And then as soon as you do anything, we're going to go after you, which is, which is insane. It's not the way. Yeah.
It's kind of like the tax code, Jordan, right? Right. I mean, they kind of said- Oh, the tax rules. We know exactly how much you owe, but we're not going to tell you. You just have to guess. Send us what you think you owe. And if it's not enough, we're going to penalize you and put you in jail. Yeah. So getting to the question of this episode, because I've received so many DMs, so many texts from friends. Because listen, if you're in my-
sphere of friendship, you were in Robinhood because this is all we talk about is Robinhood and NVIDIA during our free time. They've all been asking me, what do we do? What do we do? Do we sell? Do we continue to buy? I had one of my buddies text me, Eric, literally an hour ago and his text was
Almost feels like Hood is a buy right here. We'll just watch the episode in 45 minutes. I'll take this moment to remind everyone we're not financial advisors. We're just joking around with what we're actually doing, what our thesis is. We are shaming.
extremely risk tolerant and your risk profile is very different from ours. So do not copy our trades or our thesis. Just use this as idea generation. But to answer the question of the title of this episode, it sounds very much like you're not selling Robinhood. You're doubling down.
Well, it's not necessarily that I'm doubling down, but I am not selling one penny of my Robinhood. I haven't even thought about it for one second, but I'll give you the why behind that. And first of all, to be fair, it's my number one position. It's my largest position. So for me to double down in Robinhood would be a really big deal. But I am not selling my Robinhood and here's why.
I think that what we just saw with the tokenization of financial assets sounds like a really big deal, and it is a really big deal. But I think the more important storyline is what got Robinhood to that point, and it's what we've been saying.
I think that Vlad and his team have plans to take over the entire financial world. And this is just one piece of it. I do think that they are going to try to accomplish as much of that as possible in the next three years. I think Robinhood is going to do things that are going to stun you. I think they are going to get into real estate like we've talked about in the past, right? Like I think they're going to try to get into markets where no other,
traditional, like a financial broker would even attempt to get into. But I think Robinhood is going to be so aggressive the next few years that I can't even imagine not having a big stake in this company because there is no other financial institution that I'm even aware of that even has a plan to attempt to do the things that I think Robinhood is going to attempt.
to do. I think Robinhood is going to be very much like Amazon. Remember during the last 15 years when Amazon would get into an industry? It's like, oh my gosh, they're going to take over that industry? This bookstore is going to now sell
toys yeah like Amazon's gonna sell drugs now like you're gonna get all your prescriptions from Amazon or Amazon's gonna do this or that it's like whoa what is Amazon not going to do I think we're going to see a similar setup with Robin Hood over the next few years where they're going to plant themselves into different industry sectors until someone says
Now you've gone too far. Okay. You've gone too far. I don't know that anyone's going to say that the next few years. And that's okay. So to play devil's advocate here, are you at all concerned about their current valuation compared to competitors? Schwab is the one that obviously comes to mind. I don't think you can compare them to Schwab because the growth projector and growth rates are totally different.
What if Schwab, okay, so if you think about Schwab, Schwab used to be a, you know, an online broker that charged for trades, and then Robinhood came along and they had to offer free trades. What's to prevent, I'm not investing in Schwab, I'm investing in Robinhood. I'm just trying to ask the question,
what is to prevent Schwab from saying, oh, well, we can do prediction markets. We can do tokenization. We can do these things. Once Robinhood gets in trouble or doesn't get in trouble, they've laid the groundwork. We'll just do what they do. I think they ultimately will do a lot, not everything, but a lot of the things that Robinhood is doing, but they're going to do it
way later, way slower, in much more of an antiquated way. And they are not going to capture the minds of the customer set. Meaning that if you are a young-ish investor, you do not want to be sitting with
a grandpa company like Schwab because it's not fun, it's not interesting. You're always gonna be years behind in what you're able to do. Like if Robinhood can somehow pull off real estate, like we've been talking about, if Robinhood can figure out a way to tokenize real estate and to actually be the company that helps facilitate those transactions, as well as all other financial transactions in the world,
that's a company that you're going to want to be with. Otherwise, you're waiting years and years for your financial institution to catch up. And quite honestly, the majority of young accounts are- Yeah, I just think Schwab has just missed the boat on this younger generation by not having crypto and all these things just default in their iPhone app. You can't, I mean-
how do you come back from that well dave we've all worked listen when we were younger we all worked at huge incumbent companies you spent a decade of your life at yahoo is there was there any way
Even if you had people at Yahoo back in the day that saw something and said, we need to jump on this quickly. It's like three years later before they actually do. And then they do it in a worse way. Right? You know. There were people jumping on things all the time, but actually pushing it to the finish line and launching it as a product became...
It just became such a, it's like trying to move through molasses. You can't do it at a big company. And that's where I feel like companies like Google, we've been talking about Google and the AI race. I feel like Google is actually doing more than we would have expected, but
considering how big and slow they are. But yeah, I just don't see Schwab being able to, you know, put it into high gear and launch innovative products fast enough to get a younger generation that, you know, all these, you know, I just think it's true. I just think they've already, you know, they've already missed that customer. Do you know what I think is the biggest white flag on Robin Hood?
Something that I thought was stupid, really stupid, but it was a big white flag. The fact that they came out, you remember when they came out a few months ago and announced that they were going to deliver cash to you if you needed cash? That was a dumb thing. I don't really understand it. But the fact that someone said, this would be cool. Let's float this. Let's just see if it works. And the company said,
Let's deliver cash to people. Could you even imagine? Could you even imagine a scenario where a Charles Schwab or any other financial institution in the world. That conversation happening within the walls of Charles Schwab or Goldman Sachs or, you know, that product ever make it to the light of day. Never that one product. The fact that the CEO came out and said, well,
hey, we're just going to start delivering cash to you, not knowing if it would be the dumbest thing in the world, if anybody would use it, or it would even still be a product in six months. The fact that this company is willing to take a risk on something as stupid as that, now you know they're going to take the risk on other things that have potential to be multi-deca-billion dollar industries if they work. That's what I love. That's why we're doing this episode on the
the 4th of july weekend right like this is what america is all about taking huge risks to do great things things that are so wild and so creative that nobody anywhere in the world in their right mind would ever even consider doing anything like this the spirit of american entrepreneurial like like
Like, this is it. This is what this company is all about. This is what Robinhood is about. Like, this is why they're in my number one position because I would rather roll the dice with this company and take a chance that they might be a little bit overvalued right now based on what they've currently achieved than
I do want to bring up one thing that people are bringing up in the chat, and that is... Ryan Reynolds here from Mint Mobile. With the price of just about everything going up, we thought we'd bring our prices down. So to help us, we brought in a reverse auctioneer, which is apparently a thing. Mint Mobile Unlimited Premium Wireless. How did it get 30, 30, how did it get 30, how did it get 20, 20, 20, how did it get 20, 20, how did it get 15, 15, 15, 15, just 15 bucks a month? Sold! Give it a try at mintmobile.com slash switch. Up
Upfront payment of $45 for three-month plan equivalent to $15 per month required. New customer offer for first three months only. Speed slow after 35 gigabytes if network's busy. Taxes and fees extra. See mintmobile.com.
Make your next move with American Express Business Platinum. Earn five times membership rewards points on flights and prepaid hotels booked on amextravel.com. And with a welcome offer of 150,000 points after you spend $20,000 on purchases on the card within your first three months of membership, your business can soar to new heights. Terms apply. Learn more at americanexpress.com slash business dash platinum. Amex Business Platinum. Built for business by American Express.
this private, you know, where you can invest in private companies via tokenization. They distributed OpenAI shares and they distributed SpaceX shares. And you sent the text, you know, a little bit before the episode that OpenAI has come out and said, we didn't approve any of this. So I want to talk about that because this is part of the moving fast, breaking things,
Is this a big problem that they say they can deliver this and...
Tell me why. I've got thoughts on this. Okay, so I think before we talk about what they're doing, I think let's explain to everyone how this works. So in secondary markets, a lot of the companies, this was started by Elon Musk and then copied by Sam Altman. They have extraordinarily strict rules on transfer of private shares. So they technically have rules that they do not understand.
allow you to sell your shares to anyone. Well, that's what we were talking about earlier when we were trying to buy Robinhood shares. It literally had to be signed off by the general counsel who let it just sit on his desk for months. Because when we did that transaction, people would only do transactions in the right way. Years later, we...
or I acquired, I think you guys might have acquired them as well, I believe so, Coinbase shares before they went public. And the way that a lot of people were transacting Coinbase shares because those were not approved to trade either privately is you would actually do...
you would actually do a forward contract with an employee. So you find an employee, you do not transfer the shares, right? The shares are not transferred. You get into a private legal agreement. It costs about $5,000 of legal. And that employee, you have to trust them, basically commits legally to sell you those shares at a set price once the shares are public.
and they're capable and legally able to sell you those shares. Yeah, which by the way, most of the pre-IPO stocks that I've invested in is via this method, right? So via the SPV, it's an agreement that you get those shares whenever the employee, you know,
has access to them, then they can transfer them to you. Yeah. So this happens. So there are actually many different creative ways. And this is why you have all these secondary market brokers now that are trading shares, buying and selling shares, even though it is not permitted. It's a gray area. So the question you have to ask- So it's a gray area, but I think, look, so this is the way that I think about it.
I think it's fine as long as it's disclosed what the status of those shares are. And so if you're going to tokenize OpenAI shares, I think it just needs to be disclosed that these aren't actually shares. These are a promise to shares via some SPV agreement or whatever. And it just needs to be disclosed.
Yeah. And there is, there is finance, there is risk here. There's legal risk that someone like an Elon or Sam Altman, someone can sue Robin hood for helping to facilitate, uh,
in action, which is not permitted. I think the opposite side of that story is these CEOs are focused on a lot of things. They don't like this. They might sue someone, but they have way more important things than, you know, someone trading secondary shares. But who hates it more? Do you think the CEO hates it more or do you think the VC firms hate it more?
I don't think anyone likes it, the VC or the CEOs. And by the way, I'm glad you brought that up, Jordan, because I talk about this all the time. What's happening right now in private company financing is that traditionally companies would be reliant on the venture capital network to raise funding. That is breaking down.
What's happening now is individual investors, whether it's high net worth, family offices, guys like us that want to acquire shares of Andral or any of these hot companies in the private market, we are now going direct to that company through a random SPV provider that says, you know what? Give me $25 million. Give me $50 million. Like our guy that got us into Big Ear.
Correct. You know, we went through, you know, one of those people when we acquired figure years ago, we were actually transacting this way for Aptronic. Like like we raised, you know, I raised, you know, well over 100 million dollars for Aptronic doing something similar. And so this.
is the new way to raise funding. And you do not need to rely on a VC to be like, thumbs up, thumbs down. Right. And then you don't get bullied by the VC either when you can find a guy
That has access to so many investors. You can get the money without the same terms. But here's the thing, Jordan. It's no longer about the guy. The guy is a middleman. That's what I'm saying. Because what you're really doing is... Okay, so Andral is a great example of this. So Andral was on like 60 Minutes, I don't know, a month ago, five weeks ago. Every single day.
I get a call from a random person in my network, a high net worth person that says, Chris, I know you're invested in Anderle. Can you help me get in? And I'm like, well, I got in through this person. Let me see if they're still doing a fundraise. But the thing is, the end investors are actually seeking those shares. So there's all these marketplaces like Hive and Forge where you could actually place bids.
for shares that don't even exist yet. Right, and that way Forge knows like, hey, if we can get this, we've already got 50 guys that'll throw in, you know, 100K a piece or whatever it is. Yes, and what's happening is beyond those big like,
the big brokers that you see like Hive and Forge, there are a hundred big SPV guys that are doing the same thing with their network. So they're calling their guy saying, Hey, I want to buy 5 million of Andoril, 10 million of Andoril. And then the guy's like- Or just email. I get emails from these guys all the time. And they're just telling me what the current, what they're working on. Yeah. But then once they get 20, $30 million of demand, they then either call the company or
They will contact shareholders. They will say, hey, I got this ready to go. And the company's like, dude, there's like 100 million of demand right now for our shares. Let's just do a fundraising round. And we don't have to have a single VC involved if we don't want to. But by the way, what happens is once that happens, the VCs end up backdooring in
last to the transaction. So this is wild. It used to be that you needed the VC thumbs up first, and then you could backfill with these random other investment vehicles. Yeah, no, now the CEO can go to the VC and say, these are the terms you want in or out? Yes.
And tokenization almost creates a new era of liquidity for this type of thing and will, I think, make private companies rethink the restrictions that they've put historically on their pre-IPO share. Well, they don't have to give up board seats to VCs and all this stuff if they don't want to. I think it's a better situation. Well, correct, but the
the v what they don't like what the ceo does not like is this are the secondary transactions that happen after the primary because they want all of the demand to then bubble up bubble up bubble up until they could do another primary transaction yeah the liquidity kind of drains the you know drains some of the hype um
Well, I mean, listen, they would prefer that once you buy your shares in that company, you now have to hold those shares until an exit down the road, like a,
an IPO or something, right? Or an acquisition. They would love you to only get to buy, but never get to sell. So that's what the CEOs- Well, but technically you haven't sold, right? And that's the weird thing here. If you haven't sold your shares, you've sold rights to your shares. And that's what's getting traded on these secondary markets. They're rights, they're not shares.
But Jordan, the problem is it creates sell pressure. Hey, I know it's market forces, right? Yeah. But that's why the CEOs don't love it. Here's the thing. Actually, there is regulatory risk globally here, right? Especially Europe. There's regulatory risk for Robinhood. And that's something that every investor in Robinhood needs to understand right now is massive amounts of regulatory risk. There is also lawsuit risk.
coming directly from the companies that can say, you know what, we're just gonna sue Robinhood because you're facilitating this stuff that we have not approved. So that's a real risk factor, but you know what?
I'm willing to take on that. But I think you have to let the courts decide, right? And see how it shakes out, right? But there's something else happening here, even with tokenization I want to talk about, because no one's talking about this, right? This is the next thing on tokenization. So once you start to tokenize all of these assets globally,
next big thing. Okay, so guys, do you know where all the crypto and all the Bitcoin transaction volume is going right now? Where like the massive amounts of volume is going? It's all going to perpetual futures, right? These basically futures where you can get 3, 5, 10x leverage without having to like pick a
a specific future and then trade in and out of it. They're just always going and going. So if you just want to always have 3X or 5X or 10X on Bitcoin, there's a way to do that with perpetual futures. Now, the problem is those perpetual futures are only with like certain crypto exchanges where most regular investors don't trade. So one of the things that Robinhood is trying to do is bring those kind of perpetual futures to crypto markets
uh,
on Robin Hood. But what they're not talking about, because I'm in conversations with another private company that's looking to do exactly what I'm about to talk about, basically perpetual futures for equities to where anyone in the world that wants to just be levered in Tesla or levered in NVIDIA or levered in Robin Hood, and they just want to have a three, four, five, six X leverage, but they don't even live in America. They might live
halfway around the world, they could actually do that through perpetual futures that are based on a crypto backbone. Okay. A tokenized backbone, which is what Robinhood now has for equities. So the concept of perpetual futures is quickly going to come to equities this next year. Okay. And let me tell you something about perpetual futures.
I can't even imagine how much money the company that brings this to the market is going to make every time you trade up because these are leveraged complex vehicles in the background. Yeah. Okay. So you're going to pay a pretty penny to be able to trade perpetual futures in Tesla from Saudi Arabia or from the UK or from Brazil.
Okay. And so there is so much Vlad knows that he sees this, right? There is so much. He sees it in crypto. The existing crypto that has perpetual futures available and Robinhood just announced they have up to 3X leverage in, I believe, just the EU that they're bringing perpetual futures to existing crypto. But when they turn that on for US equities,
The fee structure for trading a U.S. equity, there's so much liquidity that they barely make any juice on the spread there, right? The spread in these derivative products is huge.
And it's huge. And so actually, Meet Kevin did a really good episode, I think maybe yesterday or a couple of days ago or maybe a few days ago on right after the Robin Hood event, basically breaking down everything that was announced. And and why it's so important is because the more illiquid an asset class, the more money
is made by the financial institution that enables that asset class to be traded. So once you get into stuff like perpetual futures, which we already know is one of the hottest trends
things in the entire world. So, you know, someone said here, hyper liquid does this for crypto. That's why hyper liquid so hot. Oh, once you, once you bring that to market, the amount of juice you make as a financial institution is massive on the backend. So if you think people are getting excited about Robin hood, simply allowing the trading of equities, um,
Wait till they start to bring these levered products to the entire world, because the reality is I think most people are wanting to do this with like 10 or 15 stocks as well as U.S. indexes. So you'll trade perpetual futures on indexes and all the big U.S. stocks.
And maybe some foreign stocks as well. So this is what I'm excited about. I'm excited about the next product. I'm excited about them getting involved in real estate transactions and that tokenization. I
there are, and the other five things that Vlad hasn't even told us about that they'll be announcing a year from now and two years from now. So I just think this is a very special company. I'm not selling one share. And, and the one thing that is difficult for me about Robinhood right now is timing. It's really difficult for me to assess
Like, when do I want to be levered in Robinhood? When do I not want to be levered? And so unlike Nvidia, where I've been trading massive amounts of call options every week for the past seven, eight weeks, it's been one of my biggest trades of the year. I'm not, at the moment, I'm not trading hood options. I just have a massive equity position in hood. And I'm just going to let it
Let it roll. Just let it roll. Yeah, you can let it roll. What I do is I, you know, like yesterday when it's super green, when it's up, you know, however many percent it was up, you have 8% yesterday. I sold a little.
And then today, when it's red, I bought a little. The last time Jordan said this... This is not rocket science, Chris. You just sell a little and then you buy a little. It's so much fun. But then you might miss that 40% run-up. No, but you always have a position...
You just sell a little. And then you buy a little. And then you sell a little. But you did this on NVIDIA a couple episodes. And right after you said you sold because it was up a little bit, then it went up a lot right after that. Yeah, but then it dropped down again. And then I bought a little. It's great. Fine. I'm not going to do that. Guys, I have to hop in a few minutes. But I want to talk about something real quick and see if people would be interested in this. So Jordan...
Dave and I used to get together before we had Dumb Money Live in the late 2000 teens. And we did a show called Dumb Money, which is still out there. We did like 50 episodes. It was fully edited, three camera episodes.
paying the butt to do. You're not recommending I do that again, are you? No, no, we're not doing that ever again. But we would visit with founders when we were doing a ton of startup investing. And we had these episodes where we took you through the entire sequence of how we meet with founders, how we make decisions on private early stage investments. And we would always do this over barbecue. So we'd meet the founder, we'd take that, you know, we do the interviews and we'd film it and then we'd have barbecue. So we just started this thing where we're
We did Tex-Mex Friday for the first time. Me and Dave have done it a couple times, but Jordan joined us. By the way, I had so many of those white peach margaritas. Dude, I think Jordan might have had like nine of them. I think I for real had five.
We probably almost got kicked out of that restaurant. We were getting dirty looks from like half the table. Were we loud? We were almost in like our own private room, but there were several other tables in there. And I can only imagine the volume of our table compared to all the others. We were twice as loud as all the other tables combined. But we had some awesome investment combo that was great. And we were like, dude, we wish we were filming because it was like...
really off the rocker type stuff but we might we might take we might go live with one of these if you guys want us to go live with one of these i don't expect friday production wise how are we gonna how do we mic that we can't have cameras in a restaurant just we've done it before dave
What? No, we don't need to do the big camera. Can't we just stick an iPhone and three mics? Yeah, yeah. We could definitely record to iPhone for audio, but I just don't know how we're going to live stream multiple cameras of video from a restaurant while drinking margaritas. All right. Well, if we could figure it out. We can do an audio version for sure. Tex-Mex Friday. And because we have so many Tex-Mex places, we could probably hit up a different one every week for two years. Yeah.
in Dallas and never run out of Tex-Mex. Yeah, it was good. Jordan, did you get the Wagyu fajitas? Is that what you ended up getting? No, I got Wagyu tacos. They were good, right? They were good, yeah. Not as good as those margaritas, though. Dude, the peach. The peach margaritas at... I told Adrienne about that, by the way, and she was like, you...
You white girls getting peach margaritas. They're so good, though. They're so good. For the record, I switched to traditional margaritas after the peach margarita initial. Oh, not me. I think I switched. We had way too many. Chris drove us there and then had to leave his car there and we Ubered home.
I lifted there and back. I knew it was going on. We were standing in Chris's front yard, and I think we ended up talking for another hour because your neighbors kept going by and like, you guys are still here? We were very responsible. If I had more than one drink, put me in an Uber or eventually a robo-taxi. You know what my limit is? Zero. If I have one drink, I do not drive.
One drink. Me too. Well, I will have one and drive. Yeah. One. I will have one drink and drive. Anything above one, I'm not. Listen, happy fourth, guys. Again, America, what a great time to be an investor,
in American assets like this NVIDIA. What a run. By the way, I am going to chill out on NVIDIA starting next week. I had at one point, guys, yesterday, I had 1,600 call options in NVIDIA.
I've cashed out of all 1,600. I've had between 500 and 1,600 calls every single week for the past six, seven, eight weeks on NVIDIA. And I am chilling out now. I rolled those calls. I only have 400 for next week. And I might downsize that on Monday because you can't go from like 1,600 to nothing. You have to like...
Otherwise, you start getting anxiety that you don't have enough, right? So I'm down to 400. I just rolled them. I only have 400 for next week. And thank you, Jensen. Jensen, you have made my month. You have made my year. I still have a lot to talk about when it comes to NVIDIA. We should probably do another NVIDIA episode soon.
But guys, I don't want to think too much about stocks this weekend. Have a great fourth, guys. Everyone that's been watching, I think everyone needs to enjoy what has happened the last couple months in the market. Like, stop stressing out about the next money you want to make. I bet you almost everybody watching has had a damn good last couple months, right? Sometimes you just got to, like, enjoy it and just chill out and just not think about it.
it was it was hard not to make money this past month or so yeah it's very hard not to i feel bad for you if you're not if you're not crushing it right now anyway happy fourth guys happy fourth everyone we'll see you next week