I'm headed into the HOOD...

Investments in Play #309 | December 9-13, 2024

It's time to add another new position to the flagship portfolio, one that I've been eyeing for a long time: the upstart crypto and stock trading platform, Robinhood (HOOD). Full disclosure: I've been a user of Robinhood since originally starting Get Irked way back in August 2018 where I used them as the brokerage for the Speculation in Play portfolio.

With its revolutionary commission-free trading and lower options fees, Robinhood was an excellent solution for a speculative portfolio. However, back then, their web interface was downright terrible and the focus on app-based trading was the antithesis to my investing discipline.

Once all brokers adopted commission-free trading, there was nothing distinguishing the company from traditional brokers like Schwab (SCHW). Robinhood came public on July 29, 2021 at $38.00 and rocketed to an all-time high of $85.00 in a matter of days before imploding -91.99% to its all-time low at $6.81 in June 2022.

Since then, Robinhood has revolutionized itself. By offering significant transfer matches, methods of obtaining substantial interest rates, incredibly reason margin costs, and expanding their offerings into offering retirement accounts, Robinhood has amassed nearly 25 million funded accounts (as of August 2024).

Robinhood has pushed itself into the same level as more reputable brokerages like Schwab and Fidelity. Since its bottom, Robinhood's stock has rallied nearly 6X and is currently trading around its IPO price at $38.00.

Since I already own a position in Schwab, my primary broker, I would like to add Robinhood, my secondary broker, into the Financial Assets Basket. Accordingly, I intend to open a position in "the HOOD" with a buy target at $34.25 where I plan to buy 50.80% allocation, saving the remaining ~50% to buy in stages should Robinhood pull back even further.

What do you think of Robinhood as a financial investment? Are there other investments you prefer?

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Read on to discover the week’s biggest winner and loser in the Investments in Play portfolio as well as all the moves I made this week in addition to my future buying and selling price targets for the positions that saw changes over the week.