Why Robin Hood may not be who you think he really is.

ABOUT THIS EPISODE

What is Robin Hood and what does it do? Should you join in or be cautious? Is it a fad or a long-term play? Listen today as financial planning expert John Browning explains in common language what this is all about and how it applies to you and your portfolio.

Welcome to the build your life podcast with John Brownie. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a freak copy mild right to your door. I'm Michael Dlan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Well, John Browning, how are you doing this very, very fine day? Doing Great, for getting ready to fire up the grill tonight and have a little little grill out. Not Not really out, as too cold for that, but we're gonna we're going to grill, even if it's cold, and have some good food later on. So I'm look forward to that. That said, but you, Hey,...

...you know, I'm doing very well. Things are good and just I was going to share with you recently. We don't grow out very much at our house, but what we do is watch movies. I've got, you know, a couple of girls at home, twelve and ten. We're still in too, like cartoons and different things like that, and we watch one of my favorites the other day, Robin Hood, the cartoon, you're right, with Prince John and all that and made Marian and it was just great. We love that whole movie. And a couple days after watching that movie I started hearing about Robin Hood in the media and I was like, why is going on? Because you, as you know me, John, I'm not like steeped in the media and everything. So I'm this Robin Hood thing. I've heard little bits and pieces, but I really I don't understand it and I thought I would have like my financial guru guy, John Browning. Hell Man, if what it? Who is this Robin Hood Guy that everybody's talking about? Well, it's not a guy actually, it's a it's a firm. And so of late the reason that they've been in the news is because...

...they've gotten more and more popular with a callum beginning investors and especially during the pandemic, there's been a frankly, a lot more people with a lot more time on their hands. Unfortunately, and also some people who have been concerned about their financial futures and they've taken to this Robin Hood App. There's an APP for that right. And so it allows smaller invest generally, smaller investors to buy and sell generally stock and have their own account that they can create it and, you know, very discounted prices and get, you know, you know, allegedly good execution on those trades and get good prices and all that. I have. I've talked about a lot of people who use it and it can be good and bad, I've heard. I've heard both sides of it. I don't use it. We have we have another platform that...

...we use for professional investors. But really the reason you've heard a lot about it is this whole situation that has recently occurred with game, stop, bed bath and beyond and some of the other securities that have gone up in value, you know, hundreds of times. And why has that happened? And so a little bit of background is important to have maybe before we explain that fully. So think of it this way. With a certain security, not everybody has it. It's not an unlimited supply of stock in an individual business that's out there so if say you just got off of a hike with a group of twelve friends and you walked into a convenience store and there were five bottles of water. That's all those left. Everybody's dehydrated. How expensive is that bottled water likely to get when all twelve of you not just want you...

...need it? Hm. That's kind of what happened over the past weeks. There became this frenzy and it was more of a social media type thing. You know, some smaller investors hit twitter and and others who you know rss feel the feed that many of them use, and many of them, not all of them, but many of them, were using robin it to trade these securities and suddenly it's just euphoria over a particular security. Happen and and it just went to the moon. Now background on this. So hedge from the managers, and these are the guys who say we're going to make money for you when the stock market goes up and when the stock mark goes down because, well, we're just smarter than you. Essentially, that's what they say. So kind of the average every day investor kind of kind of doesn't like these guys. Right, it seem as the arrogant and they get on. They a lot of times I'll get on, you know, the CNBC...

...here or another news network, and they'll say, Oh yeah, I hate the stock, I hate the stock, all the while they they own it right. They kind of out their position and so to kind of get back at them, these group of small investors kind of did the same thing to them. So the problem with that, of course, is that a lot of people don't understand what's happening and they start piling in, piling and piling in. Then then Fomo, if you're missing out hits, and more and more people pile in and and this the particular security gets way overvalued and then it's a game of musical chairs, who's left holding the bag, and then a lot of people end up, unfortunately, getting hurt. Okay, that don't have good, you know, advice. You know, they're just trying to do this on their own. So that's kind of what has happened. It's not that the Robin Hood APP is a bad or evil place, but you know, one point they restricted trading on that, leaving some people who realize, oh no, I need to get rid of this stock. While then they couldn't write they couldn't trade the stock. Yeah, they set it...

...down because it just got out of hand. So that's really what happened over the past few weeks and it continues to happen. They've did it with silver. So they're getting into the commodities now, and I think the key thing to remember for the long term investor is what we always say a guardian rock wealth, is that we don't invest necessarily in stock or securities. We invest in good, solid businesses and no matter what happens, we believe that they are going to continue to be good businesses into the future. If we saw one of our securities go up by six hundred percent, we would take a profit. We might not take the entire profit, but we would take some of it off the table, and that way your portfolio doesn't get out of balance, which is something that we've talked about in some other episodes as well.

Yeah, and again I always say you never go broke taking a profit, but there is something to be said for letting your stocks appreciate. But some things you need. It's time, and this is what the financial advisor the value they provide, is when is it time to sometimes take some of that profit and when is it time to sell and when is it time to just let the volatility happen, to the downside and stay true to your long term plan and be consistent. Yeah, so that's the value of having a professional financial advisor. That's awesome. That's great. Thanks for that inside on Robin Hood. That that helps me out a great deal. Thank you. It's a layman's understanding of it. I'm a commoner in Sherwood forest, right. So that that really helped me understand and just you know what do. What tells me is, yeah, for me, don't be greedy, right, stay the course. Have somebody who can help you and hey, yeah, when you what's your what's your phrase about profit? You never lose by...

...taking a profit, would you? What do you say? Yeah, you never go broke taking a profit. Never go broke taking a props. That should be like on your website. That's great. You never go broke taking a profit. Reach out to John Browning and Guardian Rockwell and learn about you can learn about Robin Hood and probably some other cartoons as well, but because he's raised a bunch of kids. But but talk to about your life, your plan, what you're wanting to achieve and he can help you build a life, not a portfolio, because he wrote the book on that and that's the title of John's book. Can get a copy of a Guardian Rock wealthcom, reach out to John and just have that conversation so he can help you really get your financial life in order. John. Thanks. Thanks for enlightening me and for helping US learn more about finances and life and how to live it to the best of our belthy. Appreciate it, man. All Right, I love it and you have a good week. Thanks you too, buddy. B Bye. Money really is a big part of our lives and...

John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that could help you build the life that you want. If you'd like John Emilie a free copy of his book build a life, not a portfolio, go to John's website, Guardian Rock wealthcom, and click the contact us link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day.

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