Story of The Week
New-brokerage-firm-kid-on-the-block, Robinhood, made news this week when a merry group of traders found and exploited a bug in Robinhood’s software allowing them to create infinite leverage in their accounts.
The forum, Reddit, where much of the discussion around the glitch has taken place — described the bug as an “infinite money cheat code.” How infinite is infinite? One user with $4,000 in their account was able to ratchet up their borrowing to $1,000,000. Robinhood has since been able to close the loophole, but now has drawn the ire of the regulators who are particularly unhappy about the prospects of individuals ratcheting up their borrowing to unsustainable levels saying, “Sorry folks, we only allow our government to do that.” (joke)
Chart of the Week: GOAT
Charlie Munger, Warren Buffett’s best friend and business partner, taught Warren that investing could scale. That’s how Buffett made >$100bn. Jim Simons never figured out how to scale Medallion (capped at $10bn). Simons’ returns are insane. But Buffett is still the GOAT for how long he’s been able to deliver, and figuring out how to scale. (Translation: Greatest Of All Time)
Our Top Picks This Week
The economics of an ageing (those crazy brits) population – (Podcast) Vox Talks — This one is really nerdy, but the stats are unbelievable
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