So convinced was he that stocks go only in one direction - upwards - that Dave Portnoy took to pulling scrabble letters out of a bag and buying a stock that corresponded to that letter.
While initially they focused on firms like Netflix, Amazon and Zoom - stocks that were poised to perform well in lockdown - more recently they've turned their attention to 'less-loved' stocks.Wallsreetbets - a community of around 4.5-million-day traders on the social media site, Reddit - has been well known among sections of the investment community for many years.
The Reddit users were intent on teaching a lesson to those - mainly hedge funds - that they believed were seeking to profit on a brand that was struggling against the backdrop of a pandemic that had shuttered bricks and mortar retailers. In a phrase that's entered modern day investment lexicon, they've become known as 'meme stocks' - loosely defined as stocks that see dramatic price increases, mostly fuelled by people on social media.Admirable as that sentiment is, stock prices are supposed to be broadly reflective of a company's worth and its growth potential.
That was the car rental company Hertz, the share price of which rose by 900% as investors snapped up stock after the company had filed for bankruptcy protection."The 'little guy' gets wiped out," he explained. However, according to Peter Brown of Baggot Investment Partners, it's not just hedge funds that will end up eventually taking a loss on this episode.
So a stock needs to reflect the real value of a company you say. What about the fraud and manipulation by hedgefunds to drive prices down (as a way of business, not just meme stocks)? Is that too deep a dig for you or too close to your pay cheque?