One big investing lesson: 'Don't use leverage if you don't need to'

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34 segments

0:00

The main takeaway is don't use leverage

0:02

if you don't need to. And I think it's a

0:03

good lesson because, you know,

0:05

situational awareness, the directional

0:07

bets were correct. And I think last time

0:08

we talked about this, and I'm sure we're

0:10

going to get into it in earnings, but so

0:12

long as you aren't levered, you can

0:14

weather those dips and just be smart.

0:16

>> If you're Citadel, you buy the dip. I

0:18

want to quote from a friend of the show

0:19

here, Steve Sausnik at Interactive

0:21

Brokers. Yes. Writing to his clients

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this morning, and I quote, "For those of

0:25

you who might be concerned about the

0:27

welfare of the fund's wonder kid

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founder,

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>> sometimes nothing helps a hedge fun

0:31

reputation more than a spectacular

0:34

blowup."

0:34

>> Very true.

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>> I mean, he like we said, he's 25. He's

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going to be fine. He's got a long he's

0:39

marrying the chief of staff to Dario

0:40

Amadai. And it's it's another reminder

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this world of AI is very small at the

0:45

top. This is 300 people maybe. It's very

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very small. They're all very connected.

0:50

He's going to be fine. His fund is still

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up 80% on the year.

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>> Yeah.

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>> But for the tech industry watching the

0:56

trade, this was I think a really

0:57

momentous moment. Yeah.

Interactive Summary

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The main lesson from the discussion is to avoid using leverage unless absolutely necessary, as it allows individuals to endure market dips. The conversation highlights a situation involving a young 'wonder kid founder' whose fund experienced a 'spectacular blowup,' yet he is expected to be fine and his fund is still up 80% for the year. The AI industry at the top is described as very small, with around 300 highly connected individuals. This event was considered a significant moment for the tech industry.