Welcome to another issue of Net Interest, where I distill 25 years of experience investing in the financial sector into a weekly email. If you’re reading this but haven’t yet signed up, join over 20,000 others and get Net Interest delivered to your inbox each Friday by subscribing here:
What is Robinhood?
Last June, I wrote a piece in Net Interest called The Stock Market as Entertainment. It explored the explosion in retail trading activity happening at the time and suggested that one cause for renewed interest in the stock market was the cancellation of sport:
… a pivot from sports is a compelling explanation. The demographic of Robinhood’s customer base is similar to that of a sports bettor. Men aged 25-34 are the segment most likely to bet on sports on a regular basis. According to Deloitte 43% of North American men aged 25-34 who watch sports also bet on sports at least once per week, and that’s the same group that has flocked to Robinhood. The median age of a Robinhood customer has …