Trading app Robinhood is going public, and its future depends on whether it can evolve to empower fledgling investors to find their inner Warren Buffett or trap them in an unhealthy obsession with speculation and risk. As an individual investor considering the pros and cons of Robinhood’s initial public offering (IPO), proceed with the utmost caution. Between 2018 and 2020 users in aggregate earned solid returns, suggesting that the greenhorns had not been a soft target for sophisticated professionals. Here’s another key part of the story: Robinhood is part of a fiercely competitive market, and its competitors aren’t going anywhere. Robinhood hasn’t proven capable of dealing with that eventuality, which means the prudent investor might minimize their exposure to the company.

Source: Forbes March 15, 2021 12:00 UTC