Video | Robinhood Founder: The Real 'Smart Money' is Actually Retail Investors

On July 6, Robinhood co-founder Vlad Tenev stated during The Master Investor podcast that an increasing number of people are beginning to realize that retail investors may be the true "smart money." He believes that institutional investors often focus too much on macro indicators such as taxes and interest rates, and may even sell fundamentally sound companies during portfolio rebalancing. On the other hand, retail investors' logic is more straightforward— they assess whether a company's management is improving, if its products are excellent, and whether revenue and profits are growing. It is for this reason that retail investors sometimes withstand short-term volatility better and seize opportunities that are mistakenly discounted during market panics.