#159 – Richard Craib: WallStreetBets, Numerai, and the Future of Stock Trading

Feb 7, 2021

Richard Craib, founder of Numerai, a pioneering crowdsourced AI hedge fund, shares his insights into the WallStreetBets phenomenon and the GameStop saga. He discusses the ethical dilemmas of short selling, contrasting 'evil shorting' with 'chill shorting.' Craib explores innovative investment strategies, the importance of community-driven data in finance, and the future of stock trading through AI. He also reflects on the evolving significance of wealth in cryptocurrency and the personal journeys that shape entrepreneurial ambition.

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ANECDOTE

Learning from the Youth

Richard Craib learned about GameStop from a 21-year-old at a party who predicted a 100% increase in one day.
The young man's correct prediction and subsequent enthusiasm highlighted the power of decentralized coordination.

insights

INSIGHT

Galaxy Brain Strategy

Buying a bad stock like GameStop is unusual but becomes clever when considering its high short interest.
This allows retail investors to trigger a short squeeze, forcing hedge funds to buy the stock at higher prices.

insights

INSIGHT

Positive-Sum Game

Short squeezing isn't a zero-sum game; retail investors collectively profit by forcing hedge funds to cover their shorts.
Some Redditors might lose, but the group as a whole gains.

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Sponsorship Highlights: Audiobooks and AI Solutions

02:27 • 2min

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Advancements in AI for Business Optimization and Vision Tracking

04:47 • 3min

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The WallStreetBets Phenomenon

07:48 • 15min

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Shorting Unveiled: The Good, the Bad, and the Hedge Funds

22:26 • 8min

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Navigating Leadership Dynamics

30:04 • 7min

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Revolutionizing Hedge Funds: The Power of Open Data in Trading

36:58 • 2min

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Innovative Investment Strategies in Stock Trading

39:07 • 20min

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Trading Transformations: Numerai vs WallStreetBets

59:24 • 18min

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Redefining Wealth and Innovation

01:17:39 • 19min

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Navigating Finance and Innovation

01:36:36 • 14min

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Exploring the Meaning of Life Amidst Daily Distractions

01:50:29 • 2min

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Reflections on Mortality and Ambition Amidst Isolation

01:52:20 • 3min

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Richard Craib is the founder of Numerai, a crowd-sourced, AI-run stock trading system. Please support this podcast by checking out our sponsors:
– Audible: https://audible.com/lex to get $9.95 a month for 6 months
– Tryolabs: https://tryolabs.com/lex
– Blinkist: https://blinkist.com/lex and use code LEX to get 25% off premium
– Athletic Greens: https://athleticgreens.com/lex and use code LEX to get 1 month of fish oil

EPISODE LINKS:
Richard’s Twitter: https://twitter.com/richardcraib
Numerai’s Twitter: https://twitter.com/numerai
Numerai’s Website: https://numer.ai

PODCAST INFO:
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OUTLINE:
Here’s the timestamps for the episode. On some podcast players you should be able to click the timestamp to jump to that time.
(00:00) – Introduction
(08:12) – WallStreetBets and GameStop saga
(22:25) – Evil shorting and chill shorting
(24:31) – Hedge funds
(30:04) – Vlad
(37:00) – Numerai
(1:04:16) – Futre of AI in stock trading
(1:09:55) – Numerai data
(1:13:37) – Is stock trading gambling or investing?
(1:17:32) – What is money?
(1:20:49) – Cryptocurrency
(1:24:06) – Dogecoin
(1:28:36) – Advice for startups
(1:44:27) – Book recommendations
(1:46:29) – Advice for young people
(1:50:30) – Meaning of life

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