Most of us have heard a lot about the GameStop stock frenzy over the past few weeks. A group of individuals on Reddit banned together to put their money into GameStop and raised the price of the stock to historically high prices. This even got the attention of Congress, with executives from Robinhood and Reddit testifying in front of The House Financial Services Committee. The power of individual investors to influence stocks has gotten many young people interested in investing like never before. That includes me and my family and friends. But to be honest, we don’t know where to begin. So I sat down with Jasper Smith, the founder of the Build Wealth movement, to get advice on how young people can get started investing.
This interview has been edited for clarity and length.
Nina Roehl: Folks are still trying to wrap their heads around the GameStop story. Can you in simple terms explain what happened and why that story was so significant?
Jasper Smith: So there are people, almost two years ago, who were watching this GameStop story because of the numbers of the company. The financials looked like it shouldn’t be priced at such a low stock price. [Then] there’s this Reddit group who understands the market and what some of the bigger players do. And so they said, “You know what? Let’s try to use their game against them.” And it worked. They knew that all of these big hedge funds were shorting