Pizza Making Forum

Reference, Questions and Help => Pizza News => Topic started by: Pete-zza on April 21, 2020, 03:41:29 PM

Title: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on April 21, 2020, 03:41:29 PM
Dave Portnoy of Barstool Sports has been day trading stocks during Coronavirus, and shows losses to date doing so. But we shouldn’t feel sorry for him or offer to buy him some pizzas. Get a gander at the value of the company and his net worth:

https://www.businessinsider.com/barstool-sports-founder-dave-portnoy-tries-day-trading-and-loses-2020-4

Peter

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: foreplease on April 21, 2020, 08:14:31 PM
That is wild. A bad combination of events, skills, and hubris.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pizza_Not_War on April 21, 2020, 09:07:23 PM
Very tough way to make a living. I'd bet 99% of all who try lose. I tried it for a bit and never made enough to spend all the time at it.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: norma427 on April 22, 2020, 06:54:14 AM
Dave has been trying frozen pizza's since the virus.  Maybe a forum members might send him one of their frozen pizza's.  :)

https://www.barstoolsports.com/blog/2314286/is-dave-portnoy-to-blame-for-the-united-states-running-out-of-frozen-pizzas

Norma
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: corkd on May 19, 2020, 08:44:47 AM
Dave Portnoy of Barstool Sports has been day trading stocks during Coronavirus, and shows losses to date doing so. But we shouldn’t feel sorry for him or offer to buy him some pizzas. Get a gander at the value of the company and his net worth:

https://www.businessinsider.com/barstool-sports-founder-dave-portnoy-tries-day-trading-and-loses-2020-4

Peter
The headline is funny- “switching from gambling to day trading”—- like they’re not pretty much the same thing?
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on May 19, 2020, 09:08:39 AM
Dave has been trying frozen pizza's since the virus.  Maybe a forum members might send him one of their frozen pizza's.  :)

https://www.barstoolsports.com/blog/2314286/is-dave-portnoy-to-blame-for-the-united-states-running-out-of-frozen-pizzas

Norma


That crossed my mind.  I've wanted him to try my pizza.  He's a horse guy and comes to Saratoga. 

Of the two companies I worked for since the mid '80s, one makes ventilators and the other is developing a vaccine.  I'm up 20% ytd.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: foreplease on May 19, 2020, 02:21:19 PM

That crossed my mind.  I've wanted him to try my pizza.  He's a horse guy and comes to Saratoga. 

Of the two companies I worked for since the mid '80s, one makes ventilators and the other is developing a vaccine.  I'm up 20% ytd.
Are you saying they are better off without you there?  :P


Seriously, that’s nice. Good for you.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on May 20, 2020, 06:52:34 AM
Are you saying they are better off without you there?  :P



For sure.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: HansB on May 20, 2020, 07:49:51 AM

  I'm up 20% ytd.

Yet no D-28?  :P
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on May 20, 2020, 12:06:26 PM
Yet no D-28?  :P

The lure of a j-45 is creating conundrum.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: HansB on May 20, 2020, 12:47:20 PM
Hmm. That is a tough one...
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: scott r on May 20, 2020, 12:57:16 PM
Had both, kept the j-45 because it sounded better... and the d28 was 1955!
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: foreplease on May 20, 2020, 01:36:07 PM
The lure of a j-45 is creating conundrum.
Either way, get the Diesel upgrade if they offer it.  :-D
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: HansB on May 20, 2020, 02:13:08 PM
the d28 was 1955!

 :o
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on May 20, 2020, 03:32:24 PM
I need to wait until I can go out and do some test drives.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: HansB on May 20, 2020, 03:41:11 PM
Exactly, several times when shopping for instruments what I thought I wanted was not what felt right.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Fiorot on May 20, 2020, 09:15:43 PM
I love the Guy just for telling Goodell his is an asshole.  And for the amazing effort to do pizza reviews.  Whether you agree with them or not
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Wushuliu on May 27, 2020, 01:36:54 PM
I wouldn't want to meet him in person, but I love his pizza reviews. He should be made an honorary Jersey citizen even though he's from Mass. cause he's so good at being 'that guy'. What guy? You know, that guy. You know, the *******. Oh yeah, that guy.

But those guys do know their pizzas.

Quarantine has short-circuited him a little though. And his frozen pizza reviews are all over the place.

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 10, 2020, 04:09:22 PM
Dave Portnoy has declared Warren Buffett to be a failure and an idiot because of his recent sale of the airline stocks that he had in his portfolio at Berkshire Hathaway. If the video is viewed, please remember that it has the equivalent of an X rating because of the foul language:

https://www.marketwatch.com/story/warren-buffett-is-an-idiot-says-investor-who-claims-daytrading-is-the-easiest-game-ive-ever-played-2020-06-09?siteid=yhoof2&yptr=yahoo

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: parallei on June 10, 2020, 11:27:38 PM
Dave Portnoy has declared Warren Buffett to be a failure and an idiot because of his recent sale of the airline stocks that he had in his portfolio at Berkshire Hathaway.
Peter

Hubris Comes From Ancient Greece

English picked up both the concept of hubris and the term for that particular brand of cockiness from the ancient Greeks, who considered hubris a dangerous character flaw capable of provoking the wrath of the gods. In classical Greek tragedy, hubris was often a fatal shortcoming that brought about the fall of the tragic hero. Typically, overconfidence led the hero to attempt to overstep the boundaries of human limitations and assume a godlike status, and the gods inevitably humbled the offender with a sharp reminder of his or her mortality.**

** Merriam - Webster
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on June 11, 2020, 12:26:47 AM
It's obvious that Dave has been drinking a lot lately... He's just clowning around.  🤡
Was drunk and slurring yesterday on his lil blog.
I like him...
One bite, everyone knows the rules.🍕
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Quebert on June 12, 2020, 12:12:37 AM
Dude's pompous and a huge douche, I remember one of his pizza reviews he had Bobby Flay on. And he was trying way too hard to act like he was the mega star and Bobby was beneath him.  I get he's a youtube celebrity, but he's no Bobby Flay lol.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Fiorot on June 12, 2020, 10:15:11 AM
I think he is funny and creative for sure.  He is smart and I love his politics! And Bobby Flay is not a pompous ass?
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on June 12, 2020, 11:30:44 AM
Dude's pompous and a huge douche, I remember one of his pizza reviews he had Bobby Flay on. And he was trying way too hard to act like he was the mega star and Bobby was beneath him.  I get he's a youtube celebrity, but he's no Bobby Flay lol.

Bobby lost me when he cheated on his wife.  I have zero tolerance for that sort of thing.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on June 12, 2020, 04:42:15 PM
I think he is funny and creative for sure.  He is smart and I love his politics! And Bobby Flay is not a pompous ass?
   I believe Flay is the originator of the pompous ass tv food guy persona, no?  🤡
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Quebert on June 12, 2020, 07:07:56 PM
   I believe Flay is the originator of the pompous ass tv food guy persona, no?  🤡

Nah, I've heard stories he's like that in real life, but on TV he's personable and comes across as a pretty likable dude. Gordan Ramsy, now there's a pompous asshat. Dave's much closer to Ramsy than Flay. Now in real life Flay might be as bad as either, but if so Food Network hides it in his shows.

But maybe I'm wrong about Dave, in his defense I've only seen maybe 5 of his videos. One of which he was trying hard to play alpha male with Flay next to him, and one he was reviewing 7-11 pizza on a street corner and trying to be critical of it lol.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: wotavidone on June 13, 2020, 09:46:54 PM
Very tough way to make a living. I'd bet 99% of all who try lose. I tried it for a bit and never made enough to spend all the time at it.
I see now that my recent new thread about the Barstool Sports guy was superfluous, as plenty had already noticed his antics.
All BS aside about whether you like the bloke or not (which I'm sure he couldn't care less about.  ::) ), I do want to comment on making money in the share market.
It is indeed a very tough way to make a living.
Day trading by yourself is gambling, pure and simple.
You're up against the dark pool, and the high frequency traders with their algorithms, their hot wired servers and their super fast execution speeds.
You cannot possibly do enough research by yourself to pick winners consistently.
I day traded for years. Made some, lost some, missed great opportunities due to cold feet, selling too early, etc.
I now consistently make money.
I started making that consistent money when I started paying a professional advisor.
The man is a Buffet fan, and doesn't condone or recommend day trading at all.
Like Buffet, he says pick good companies with good prospects and buy at fair prices.
You need a professional researcher to get that right.
He sends me one recommendation a month. If I have spare cash, I invest and hold.
Accept, too, that unless you are a full time investor, the goal should just be to get a better return on your money than you can get at the bank.
Unlike Aussie banks though, there is no capital guarantee.
So the last point is: don't use money you can't afford to lose, even the pros get it wrong sometimes.

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: rlslmshdy on June 13, 2020, 10:55:24 PM
Dude's pompous and a huge douche, I remember one of his pizza reviews he had Bobby Flay on. And he was trying way too hard to act like he was the mega star and Bobby was beneath him.  I get he's a youtube celebrity, but he's no Bobby Flay lol.
I love Dave and his pizza reviews. No offense but if someone thinks he's a douche. They just dont get him and need to work on their sense of humor.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: rlslmshdy on June 14, 2020, 05:07:26 AM
Hes made an internet star from Uber Debbie. His Uber driver when he was in Connecticut doing pizza reviews. He flew her down to the Daytona 500. Hes let her do one bite frozen pizza reviews during the pandemic. I'm betting Dave has helped change her life for the better.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jkb on June 16, 2020, 10:13:20 AM
I see now that my recent new thread about the Barstool Sports guy was superfluous, as plenty had already noticed his antics.
All BS aside about whether you like the bloke or not (which I'm sure he couldn't care less about.  ::) ), I do want to comment on making money in the share market.
It is indeed a very tough way to make a living.
Day trading by yourself is gambling, pure and simple.
You're up against the dark pool, and the high frequency traders with their algorithms, their hot wired servers and their super fast execution speeds.
You cannot possibly do enough research by yourself to pick winners consistently.
I day traded for years. Made some, lost some, missed great opportunities due to cold feet, selling too early, etc.
I now consistently make money.
I started making that consistent money when I started paying a professional advisor.
The man is a Buffet fan, and doesn't condone or recommend day trading at all.
Like Buffet, he says pick good companies with good prospects and buy at fair prices.
You need a professional researcher to get that right.
He sends me one recommendation a month. If I have spare cash, I invest and hold.
Accept, too, that unless you are a full time investor, the goal should just be to get a better return on your money than you can get at the bank.
Unlike Aussie banks though, there is no capital guarantee.
So the last point is: don't use money you can't afford to lose, even the pros get it wrong sometimes.

I've always gone for low P/E value stocks.  Whenever there's a downturn, that's where people move their money.  In 30 years,  I've never done worse than 7%.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jsaras on June 16, 2020, 10:53:47 AM
Portnoy is currently up 400%, so he’s had some good days at the casino.  As for me, I’m a Boglehead investor.  No need to beat the market.  I am the market.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Rolls on June 16, 2020, 08:40:55 PM
I am the market.

This reminds me of the phrase, "L'État, c'est moi" attributed to the Sun King, Louis XIV of France. :)


Rolls
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: punkrockchris on June 18, 2020, 10:54:49 AM
Had both, kept the j-45 because it sounded better... and the d28 was 1955!

Wow, I have a Gibson I'll never part with, but D28's are so even.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 20, 2020, 11:35:21 PM
Portnoy is currently up 400%, so he’s had some good days at the casino.  As for me, I’m a Boglehead investor.  No need to beat the market.  I am the market.

except for bets on two tech stocks that I thought couldn't miss (google and facebook), I've been index-fund only for 25 years. I've performed several consulting projects around performance and performance attribution for large, well-known asset managers and I find it hard to believe that anyone here, or their professional advisors, can select individual securities whose aggregate return beat index funds over a long period of time.

I understand Portnoy's sense of humor, have found a couple of his videos mildly amusing, but mostly can't stand his shtick.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on June 20, 2020, 11:56:25 PM
except for bets on two tech stocks that I thought couldn't miss (google and facebook), I've been index-fund only for 25 years. I've performed several consulting projects around performance and performance attribution for large, well-known asset managers and I find it hard to believe that anyone here, or their professional advisors, can select individual securities whose aggregate return beat index funds over a long period of time.

I understand Portnoy's sense of humor, have found a couple of his videos mildly amusing, but mostly can't stand his shtick.
ok... So what index funds?
I got out of TRBCX in early March... Got back in at beginning of the V.... I'm up 37.0..  I think there's a bit left before the start of the W..  but unsure where to go to pick up the last lil scraps
Any help?  🤫
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 21, 2020, 02:46:33 PM
Bob, no one can consistently time the market, I suggest you choose a vanguard retirement fund with the year of your retirement and be done with it. on a risk-adjusted basis, the fund will outperform the vast majority of active funds and any sort of tinkering you can do around choosing index funds and timing the market.

If you want to be a little more hands-on, take a look at this:
https://www.bogleheads.org/wiki/Three-fund_portfolio

you could also take a look at paul merriman, I beleive peter uses his investment philosophy:
https://paulmerriman.com/

Interestingly,  I don't recall meeting one person on wall st who had heard of bogleheads/merriman or used passive investing. I was able to use this lack of knowledge to my advantage: I have a yearly dinner bet with the former coo of a large brokerage that the broad Russell 2000 will beat any investment strategy he chooses. He's bought me dinner every year for the last five years....

best,
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 21, 2020, 04:04:42 PM
Bob,

QD makes several good points. However, if you have a portfolio of investments, your next steps should take your age into account to be sure that you have the right asset allocation for your age and your financial needs and your risk tolerance. Remember also that people in general are living longer, so that has led some experts in investing to suggest increasing the stock part of one’s portfolio.

Peter

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 21, 2020, 07:22:34 PM
Bob,

  peter's advice about looking at individual investments in the context of age and overall asset allocation is spot on. The beauty of the vanguard retirement funds is that you choose a retirement age and vanguard manages your investment and asset allocation as you age:

https://investor.vanguard.com/mutual-funds/target-retirement/#/

I use a 40-60 fixed income to equities allocation with five percent rebalancing bands. I sell equities when they exceed 65 percent of my portfolio and buy equities when they comprise 35% of my portfolio or less. This results in taking profits when equities are high and buying low, the opposite behavior of most of retail investors.

best,
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 22, 2020, 03:55:07 PM
QD,

I have noticed that there have been quite a few articles and blog posts, both recently and also last year, about the future of the classic 60/40 portfolio (e.g., see https://awealthofcommonsense.com/2019/10/a-eulogy-for-the-60-40-portfolio/). And today I read an article where Burton Malkiel was asked about the future of the 60/40 portfolio, especially at this time where bonds have ended a 40-year boom (a view also recently shared by Jeremy Siegel in a podcast at https://www.bloomberg.com/news/audio/2020-06-19/jeremy-siegel-on-the-stock-market-and-covid-19-podcast). The article by Malkiel, which also covers a lot of other interesting information, is at:

https://www.marketwatch.com/story/investing-legend-burton-malkiel-on-day-trading-millennials-the-end-of-the-6040-portfolio-and-more-2020-06-22

As you will see from the Malkiel article, he favors including defensive stocks that have good yields in lieu of bonds with low returns. In that vein, today I saw the following article from Alliance Bernstein that advocates a similar approach but in the context of target retirement funds:

https://blog.alliancebernstein.com/library/how-target-date-funds-can-use-equities-for-stability?mid=corpblog001&seg=65

Vanguard tends to favor the inclusion of bonds in one's portfolio, and especially for retirees but I have never been a proponent of that method even though I have owned bonds from time to time over the course of my investing career. Bonds do provide stability in down markets but the durations of the bonds has to be carefully managed to avoid sharp drawdowns in the bond part of the portfolio. For now, I would rather hold cash instead of bonds. I don't worry about the loss of purchasing power. My personal CPI is a lot lower than the CPI reported by the U.S. Bureau of Labor Statistics.

Peter



Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 24, 2020, 09:48:40 AM
peter,

  thank you for the links. I've never been a believer in a one size fits all, 60-40 portfolio. imo, aa should be based on age, risk, and ability of the investor to behave rationally in the face of market retreats. I'm currently at 40-60, equities to fixed income, and to your point around the current interest environment, the majority of our fixed-income allocation is in a cd ladder and some tips.

Our investment philosophy has been heavily influenced by Bill Bernstein:
A lot of people had won the game before the [2008] crisis happened: They had pretty much saved enough for retirement, and they were continuing to take risk by investing in equities. Afterward, many of them sold either at or near the bottom and never bought back into it. And those people have irretrievably damaged themselves. I began to understand this point 10 or 15 years ago, but now I’m convinced: When you’ve won the game, why keep playing it?

How risky stocks are to a given investor depends upon which part of the life cycle he or she is in. For a younger investor, stocks aren’t as risky as they seem. For the middle-aged, they’re pretty risky. And for a retired person, they can be nuclear-level toxic.

====

over the course of my investing lifetime, I've heard again and again "this environment is different" as a rationale to choose new investment approaches. the wealth of common sense article in declaring the death of the 60-40 portfolio states:
60/40 was 91 years old and lived a long and prosperous life, returning more than 8.1% a year. This nearly matched the return of 60/40’s best friend, the S&P 500 (9.5%) but it did so with 40% less volatility.

to my eye, it seems ludicrous to declare the 60-40 portfolio dead, a strategy which the author states has succeeded for 91 years, due to a 1-3 year outlook on bonds.  I do agree the vanguard target retirement funds use bonds and there are valid concerns around bonds in this environment. However, I believe the average investor would be far better served with a target-date fund as opposed to market timing/choosing individual securities.

best,

 
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 24, 2020, 10:00:38 AM
QD,

I agree with everything you said. I am also a fan of Bill Bernstein, and was influenced by his book The Four Pillars of Investing, about which Jack Bogel said:

"A TRIUMPH! It is my candidate for the best investment book of 2002."

If you are interested, Ben Carlson of the Wealth of Common Sense interviewed Bill in April at:

https://www.youtube.com/watch?v=3GzkxkOEcWc

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 24, 2020, 11:51:44 AM
Peter,

  thanks for the link, I thought it a wonderful interview. Interestingly, it's the first time I've heard Bernstein (obliquely) recommend a rising equity glide path when he talked about funding expenses with the fixed income portion of the portfolio. I've read articles by pfau and kitces on the subject:

https://www.kitces.com/blog/should-equity-exposure-decrease-in-retirement-or-is-a-rising-equity-glidepath-actually-better/

but I'm still processing what that means for us in terms of risk tolerance and behavior. Luckily, I've discovered some unexpected human capital in the form of 20 hours a week of remote cloud consulting and that has covered our expenses to date. But we'll have to make a decision on adopting the idea sooner rather than later...

best,
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 24, 2020, 04:01:55 PM
Peter,

  thanks for the link, I thought it a wonderful interview. Interestingly, it's the first time I've heard Bernstein (obliquely) recommend a rising equity glide path when he talked about funding expenses with the fixed income portion of the portfolio. I've read articles by pfau and kitces on the subject:

https://www.kitces.com/blog/should-equity-exposure-decrease-in-retirement-or-is-a-rising-equity-glidepath-actually-better/

but I'm still processing what that means for us in terms of risk tolerance and behavior. Luckily, I've discovered some unexpected human capital in the form of 20 hours a week of remote cloud consulting and that has covered our expenses to date. But we'll have to make a decision on adopting the idea sooner rather than later...

best,
QD,

In my experience, the sequence of risk situation most often arises as people are about to retire or are newly in retirement when the stock market drops significantly, as in a recession or bear market. But what might have helped many people is if they had a bucket portfolio that was created before retirement. For years, I read about the bucket approach to investing, as promoted, for example, at Morningstar, under the tutelege of Christine Benz. To show you what I mean, I did a Google search to find a typical article by Christine on the subject. Here is one such article:

https://www.morningstar.com/articles/840177/the-bucket-approach-to-retirement-allocation

I think it helps to know that it is usually people who have a decent net worth that can most benefit from using the bucket approach. At the moment, the average net worth of someone in their 60s is around $1,122,000. That amount is amenable to using the bucket approach. Unfortunately, the median net worth for that age group is only around $222,000. That limits the ability to do much in the way of retirement planning. Yet, it is still possible to take withdrawals from the retirement account to help cover day to day expenses. That is what my cousin does for whom I created a portfolio at Vanguard.

Obviously, people with substantial net worth, say, above a million dollars, have a different set of options available to them. And when they reach the age where their tax-deferred accounts are subject to the RMD (required minimum distribution), they will have a portion of the RMD in their personal accounts (money market funds) from which they can spend as they like, including covering expenses.

In my own case, I did not need a bucket approach because I retired with a pension and that was later supplemented with Social Security. I also had dividend income. But, collectively, I had enough to more than cover my expenses. In a sense, that is what is happening to you at least in part by the remote consulting income you are generating. But having adequately covered my day to day expenses as mentioned above has allowed me to take greater risk with my tax deferred accounts (IRAs) by leaning more to the stock side. At one point, I had about 80% of my tax deferred accounts in stock related funds. The rest was cash. But since the passage of the Secure Act, which did away with stretch IRAs, which would have benefitted my son and potentially even his own heirs for their lives, I have had to give a lot of thought as to where I go next. I say this because my son and his wife are not interested in stocks or bonds or the like. They prefer real estate.

But one thing that is clear is that I will not be buying individual stocks. I have never been good at that. What most people do not realize is that about forty percent of stocks disappear over time, because of closure, bankruptcy, merger or acquisition. But for folks like Dave Portnoy, trading stocks is a gig that he can afford to do without harm to his overall net worth.

Like Bill Bernstein, my focus at this juncture of my life is not on my personal needs but rather on where my assets go upon my death. So, I will have to come up with a plan that works not only for me during the rest of my life but is also a good plan for my son and his family upon my death. My attention to my family is not anything new. For years, I have given annual tax-free gifts to my son and his family. I started with my son in 1990 and continued that practice to the current date for my son and his wife and daughter.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 24, 2020, 09:58:27 PM
peter, thanks for your well thought out post. One of my last projects was a dodd-frank stress testing project for a large bank so it was natural for me to adopt that framework to guide our asset allocation. I created a couple of scenarios around steep market decline coupled with assumptions around long life expectancies and complete loss of human capital. I also modeled to some extent Bernstein's four horsemen of deep risk identified in his book Deep Risk, How History Informs Portfolio Design: Severe and prolonged high inflation, Prolonged deflation, Confiscation, and Devastation. One can never be sure, but we really should be fine.

my original thinking around consulting was that my mind seemed a little fuzzy (perhaps too much time on the PM forum!) and in need of fresh challenges. However, now that we can't travel due to the pandemic, it has been nice to have the opportunity to bolster our portfolio.

best,
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on June 24, 2020, 11:14:56 PM
Are you old dudes gonna tell us how to make some good ole fashion moniez?!!  🤠
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: wotavidone on June 25, 2020, 04:49:27 AM
At the moment, the average net worth of someone in their 60s is around $1,122,000.
'kin 'ell. is that all? Even allowing for the exchange rate, I'm worth more than that in my late 50's
I always knew I was above average.  ;D


But one thing that is clear is that I will not be buying individual stocks. I have never been good at that.


Had a decent conversation at work with a young fella today, at the behest of an older colleague. Young fella is very talented engineer who is just completing an MBA.
Discussed money management, investing, shares (what you guys call stocks), etc.
I told him I never made money picking individual shares (stocks) by myself.
You either get paid advice or buy ETF's/LIC's
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 25, 2020, 10:11:41 AM
'kin 'ell. is that all? Even allowing for the exchange rate, I'm worth more than that in my late 50's
I always knew I was above average.  ;D

congrats! Unfortunately, here in the US, the average is probably not enough to fund a long retirement though it really depends on expenses.

Had a decent conversation at work with a young fella today, at the behest of an older colleague. Young fella is very talented engineer who is just completing an MBA.
Discussed money management, investing, shares (what you guys call stocks), etc.
I told him I never made money picking individual shares (stocks) by myself.
You either get paid advice or buy ETF's/LIC's

take a look at this:
https://freakonomics.com/podcast/stupidest-money/

"Stephen J. Dubner reaches a well-reasoned conclusion – backed by financial industry immortals – that the money spent on fees is a waste when compared to the strategy of the passive fund that tracks a market index. He cites a study where only the top 2% to 3% of active fund managers had enough skill to cover their cost."
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 25, 2020, 02:14:21 PM
Most of the people I know with serious money to invest tend to go to places like Fidelity, Schwab and Vanguard and have them manage their accounts for a fee. For example, in the case of Vanguard, which I know the best of the three, will manage accounts of $50,000 or more for 0.30%. I once mentioned that as an option to my cousin who also has an account with Vanguard. I mentioned it because she is very heavy with stock funds in her portfolio, which is fine when the market is doing well but when recessions hit a lot of damage can be done, like the 78% peak-to-trough decline that took place when the dotcom boom ended and the roughly 54% decline of the Great Financial Crisis in 2007-2009. Whenever we meet or talk or exchange emails on the subject, I remind her of the risks. She acknowledges the risks but prefers to keep her account as is. Actually, her portfolio has done well, and performance wise has done better than I have done because my portfolio has a fair amount of cash. In the meantime, she is content to use the proceeds of the RMD and other periodic withdrawals to help with expenses. To make matters even better, I do not believe that her total income is high enough for her to pay much in federal income taxes. My cousin also has a money savings account outside of Vanguard that she does not touch for investment purposes. That is really her "emergency bucket".

As for some interesting statistics, at Fidelity the average account balance for IRAs and 401(k)s as of this past February was around $112,300. That number can double or even triple for investors who are 65 and older. But the median numbers can be quite poor--about half or less than the average numbers depending on the class of investors by age and the like. To be sure, Fidelity definitely has its shares of millionaire accounts. Out of about 27.2 million accounts at Fidelity, 441,000 IRA or 401(k) accounts it manages had balances of $1 million or more as of a few month ago. The number of million dollar plus accounts represent about 1.6% of all the accounts.

I haven't seen comparable recent numbers for Vanguard but it has a class of investors known as Flagship members who have from 1M to 5M to invest. As of this time, Vanguard has about 30 million investors, and of those about 70,000 have Flagship accounts. So, while there really aren't a lot of high net worth people at Fidelity and Vanguard, they should be safe in retirement. As best I can tell, the average and median account balances at Vanguard are similar to the numbers at Fidelity.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 25, 2020, 06:42:00 PM
This afternoon, I got an email to a blog post that discusses the 60/40 portfolio and what its future may be. The blog post is at:

https://theirrelevantinvestor.com/2020/06/25/the-new-60-40-portfolio/

I tend to agree with what the blog post says about the 60/40 portfolio, principally because of the decline in bond rates over the last 40 years. As shown in the graphic below, at one time bond yields for 10-year Treasuries were as high as 15%. I remember that well because I put my parents into such bonds, but of a shorter duration (principally T-bills) than the 10-year Treasuries. Also, at the time, I was in the process of moving from Massachusetts to Illinois and mortgage rates were around 16%. The company absorbed all of that above 9% when I bought a new place in Illinois. After 40 years, there are bound to be a lot of new things happen that influence bond rates and yields. For the reasons mentioned before, I am inclined to avoid bonds at this point, even though bonds can and do offer some downside protection during down markets. I might add that I am not the only one leaning on cash. There is about 8 trillion dollars in cash sitting on the sidelines. That is almost a quarter of the value of the US stock market, which is 30 trillion dollars. That actually bodes well for the stock market going forward although some may use the money for other purposes.

I had to laugh when I read in the cited Bloomberg article that CALPERS in California is considering going to private equity in lieu of bonds. Most pension funds need annual returns of around 8% (which some pensions have dropped to around 7%) in order to meet the pensions obligations that were essentially guaranteed to its retirees. They have been far from 7-8% so they are upping the ante in search of higher returns by going to private equity even if the risks are much higher than bonds. Interestingly, Ben Carlson, who was the interviewer of the Bernstein video that I cited yesterday, and who started out his career with an institutional investment consulting firm developing portfolio strategies and creating investment plans for various foundations, endowments, pensions, hospitals, insurance companies and high net worth individuals, seems OK with the move toward private equity. Ben is a good and capable guy so I respect his opinion.

I might mention that the author of the above cited blog article, Michael Batnick, is a co-worker with Ben Carlson. They are both with Ritholtz Wealth Management, which is a registered investment advisory (RIA) firm in New York City focused on providing financial planning and wealth management services to its clients. I mention this because the other day Barry Ritholtz said that his firm is moving away from the 60/40 to a 75/25 stock-bond portfolio for its clients.

Peter



Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: corkd on June 26, 2020, 08:05:10 AM
Had both, kept the j-45 because it sounded better... and the d28 was 1955!
I really lucked out on reverb earlier this year and got a sweet j-29 at a great price. Still had the plastic on the pick guard, and the seller had added Grover locking tuners.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 27, 2020, 02:11:24 PM
peter,

  responding to your two posts here. We did an interesting wealth management project for the ultra-high net worth segment. As you might expect, financial advisors have some unique challenges servicing this segment and, in some cases, the line blurred btw personal assistant and financial advisor ("get me a reservation at 11 madison tonight"). Traditional portfolio management and valuation systems didn't work well for this segment due to the broad, esoteric and unstructured nature of the asset classes they held. What made the project especially challenging was that the company fiercely guarded the privacy and the asset classes of their 1000 or so clients. So when we asked which asset classes they were hoping to capture and model, the answer was "anything you can think of". In the end, we didn't feel totally comfortable with our ability to succeed and walked away from future phases of the project. Still, it made for an interesting glimpse into the lives of the utlra-rich.

  Many of the people I worked with on wall st eschew vanguard, fidelity, etc. for private bankers. As far as I can tell, the only "benefit" is that, after signing several disclaimers around risk and lawsuits, they allow their clients to participate in risky asset classes with opaque fee structures and the possibility of greater returns. Despite my advice to the contrary, one of my partners purchased a number of equity-linked notes from his private banker. I've been reticent to ask him how they fared in the latest market downturn.

the batnick article is interesting, he seems to present nominal returns rather than real returns. I'm not sure how one can present past or future performance analysis without some context around inflation. I suppose the same could be said for the graph of 10-year treasuries you posted and anecdote around 15% return for your parents.

"So what is an investor to do? You can consider stocks that haven’t performed as well, like value, emerging markets, or foreign developed countries. You can consider other asset classes like gold, commodities, or bitcoin. You can consider other strategies like venture capital, private equity, or private real estate. You can try to outperform the index."

 I'm not sure who his target audience is but it seems to me, he could have connected the dots a little better for his readers:  changing investor expectations around the 4% withdrawal "rule" comes to mind. Also, if one believes social security will be around, to my eye, delaying until max retirement age makes more sense in times of low expectations around performance.  Personally, given the prediction that the U.S. GDP will be overtaken by China and India in the next 10 years, we've increased exposure to our international (ex-US) index fund while maintaining our overall exposure to equities.

As for Ben Carson being OK with Calpers exposure to private equity, while I respect your assessment of Ben, I'd guess his background disposes him towards a positive assessment of the strategy.  Personally, I think it an absolutely terrible idea.

best,

ps
 "I mention this because the other day Barry Ritholtz said that his firm is moving away from the 60/40 to a 75/25 stock-bond portfolio for its clients."  it seems absurd for Ritholtz to make a blanket statement around asset allocation without regard to age?
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 27, 2020, 04:13:25 PM
QD,

In my posts, I had people with moderate incomes and wealth profiles in mind, the kind of people who cannot manage their own money (which is really the majority of the population) and need help at a reasonable cost. Hence my reference to outfits like Fidelity, Schwab and Vanguard. This would preclude investing in private equity, venture capital, IPOs and other exotic investments.

With respect to your comment about inflation at the time that 10-year bond rates were at stratospheric levels historically, inflation was also at very high levels, as shown in the first graph below. Eventually, Fed Chairman Paul Volcker took the unpopular step of drastically raising the Fed funds rate to 20% in March of 1980 and kept it above 16% until May, 1981. The second graph shows the pathway of the Fed fund rates during the 1970s and 1980s.

I agree with you that Batnick and Carlson and Ritholtz are having a hard time being specific about the proper course of action to take in a climate of low interest rates. They are groping but what they have been saying has been resonating with many others in the financial arena. In Ritholtz's case, I believe his comment about the 75/25 stocks/bonds was in relation to the 60/40 combination and how they might alter that ratio. As money managers, they are well aware of the usual factors that are considered in advising their clients, including their ages and also their risk capacity and tolerance and income needs.

With respect to the 4% rule, that rule has come under attack in recent years. And this past April, Wade Pfau was interviewed on this matter by Christine Benz and Jeff Ptak at Morningstar, at:

https://www.morningstar.com/articles/980620/wade-pfau-the-4-rule-is-no-longer-safe

See, also, this series of articles (registration may be required) on the subject:

https://www.morningstar.com/articles/988953/morningstars-guide-to-setting-your-withdrawal-rate

I also agree with you that delaying taking Social Security later rather than sooner is a good idea. I'm not worried about its future because no politician will dare touch changing it. At least at the moment, proposing changing it is considered political suicide, on both sides of the aisle. The latest projection has the combined Social Security trust funds that pay retirement and disability benefits running out of cash reserves by 2034. Even if Congress does nothing to shore up the system by 2034, such as increasing the age of recipients (remember that in the 1930s life expectancy at birth was only 58 for men and 62 for women) or means testing the program, Social Security will be able to pay out 79 percent of promised benefits until 2090. In my case, I took Social Security early because I retired several years early and felt that it would be a reasonable supplement to my pension income. But if I were counselling someone taking retirement at normal ages, I would say delay taking Social Security as long as possible.

I am personally also in agreement with you on the idea of pension funds dipping into the private equity market, hence my having laughed when CALPERS said that it was seriously considering private equity as an investment. However, since Vanguard is proposing to add private equity as an investment at their company, I am waiting to see the particulars of how that will be done, including whether that option will be available to individuals.

Since the matter of retirement income has been discussed, I noticed yesterday that Paul Merriman authored an article recently for Market Watch that discusses a way of improving portfolios to produce better outcomes for retirees. The article is at:

https://paulmerriman.com/retiring-in-bad-times-dont-worry-about-your-investments/

When I saw that Merriman proposes to add four specific funds to a basic S&P 500 fund, that proposal prompted me to revisit my cousin's portfolio that I put together at Vanguard to see if those funds were included. The answer is yes. But she also has international funds that parallel the domestic funds, both in blend and value. She also has a REIT (Real Estate Investment Trust), primarily for income, and the Vanguard Health Care sector fund, which has been a good performer so far this year, and even more so historically. Owning foreign funds and value funds has penalized my cousin over the past several years, much as it has penalized me over that time period, but because she has a fair amount in growth funds, which includes the likes of Amazon, Apple, Google/Alphabet, Facebook, Microsoft and Netflix, that has mitigated the harm done to the foreign and value side of her portfolio. But should reversion to the mean return for international and value stocks, as it has done historically, and the FAANMG stocks start to falter, then those parts of her portfolio should do much better.

As I have mentioned, my cousin is very low on bonds. And because she has so little in bonds, there is no need to do rebalancing between stocks and bonds, although there could be rebalancing between domestic and international. I tend to view her portfolio as an "all weather" portfolio but without much in the way of bonds that does not require a lot of attention. All of her funds are Vanguard funds, variously held in a personal account, IRA accounts and a Roth account (they were cobbled together from accounts that my cousin held at different times and places in her work career). Many of her funds are index funds. The RMD does not apply to the Roth account. With her permission, I track her portfolio on a regular basis and it usually is at a high whenever the market is at a new high.

Peter



Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: foreplease on June 27, 2020, 11:28:34 PM
Peter,


I understand and have seen reversion to the mean from both sides. It seems easier to find things that decline to the mean than it is to find things that increase to the mean. Something to do with a stock that falls 50% needing to increase 100% to get back to where it was - call that the personal mean, average purchase price, break-even point, etc.


In my mind I have to think of it as revert to the mean for declining prices and progress to the mean for increasing prices. Do you or QD know of a relationship between 50 & 200 day moving averages and ‘the mean’?
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 28, 2020, 11:11:16 AM
Do you or QD know of a relationship between 50 & 200 day moving averages and ‘the mean’?
Tony,

No, I am not aware of such a relationship.

But what is clear is that there are some who believe that value stocks are dead and will remain so, despite the fact that the gap between value and growth is at record high levels on a historical basis covering many years. The pundits attribute this gap to the strong performance of growth companies such as the FAANMG companies, and signs that the performance of these stocks going forward still looks very good. Also, some are giving credit to technology that is disruptive in nature, as reflected, for example, by IPOs that have done extremely well in the stock market despite having no profits and, in some cases, no sales. These companies have attracted the day traders also, as part of the Dave Portnoy phenomenon that has taken hold.

I read an interesting article recently on some of the above factors, at:

https://blog.evergreengavekal.com/no-revenue-no-profits-no-problem/?pdf=10539

The relevant portion of the article starts at about page 3 (bitcoin is covered at the beginning of the article).

I should also mention that earlier this year I took a subscription for a monthly report on disruptive technologies and stocks. I did that for strictly learning purposes. But since then I have gotten emails almost daily from some of the authors of the reports, and others under the same ownership, trying to entice me to sign up for their services. To do this, they have cited examples of their great success stories in the market. I have concluded that the services best appeal to those who want to trade. So I have not opted to sign up for their services (in some cases the fee was about 2K and, allegedly, that is a reduction from their normal fee). I should add that over the past year I have seen many other examples of people offering their "get rich quick" services to the public along the lines of the example discussed above. And in some cases, well known personalities have been drawn into the process, such as Bill O'Reilly formerly of Fox. There are links all over the Internet to get rich quick schemes that are being peddled to the public. To me, that is ominous. No thank you.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: foreplease on June 28, 2020, 11:52:42 AM
I prefer to think certain industries or even sectors are and may remain stagnant, but not dead; saying that value stocks, which could encompass many sectors, are dead or even stagnant seems too general to me. It ignores fundamentals and company stories.


I feel that way about the term IPO too, though as you say many have huge losses. One recent IPO that is not a new company and has substantial earnings is RPRX , Royalty Pharmaceutical.


In the end much of this stuff is cyclical and I believe we have been fooling ourselves wrt defining our cycles. Any of the following can be expected as it has been a long time: inflation, higher taxes, higher interest rates, and unemployment, which spiked with the Covid shutdown.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 28, 2020, 05:42:46 PM
Tony,

Here is an example of an article where small cap value stocks are deemed to be in trouble:

https://www.morningstar.com/articles/988237/small-value-stocks-peril-and-opportunity

In my own case, in the past I have owned small cap value funds, with good results, but no longer do. My cousin, however, does have a couple small cap funds. Small caps are a favorite of Paul Merriman, based on the long term performance of that sector. He will often pair a small cap value fund with a target date retirement fund for young investors who are just starting to invest.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 28, 2020, 07:23:24 PM
Peter,

  Based on the portfolio constituents you mention in your post, it seems like you may have created the Merriman ultimate buy and hold portfolio for your cousin. While I applaud Merriman's mission, I'm a little skeptical of his method of portfolio construction. It's been a couple of years since you mentioned him but I recall reading on his website that the portfolio was the result of a giant fund screen with the goal of optimizing return and volatility. To my eye, that approach simply chases past performance, and, to wit, I believe he's changed the portfolio constituents/weights over time (not entirely sure, my memory these days is fuzzy on just about everything!)

  In the end, if you believe as I do that the U.S. market is hyper-efficient, Merriman's portfolio would cause the market to arbitrage away any advantage the strategy may have conferred. I believe this point is still playing out among academics and practitioners around the "Fama/french" size and value constituents of Merriman's portfolio.  In fact, using Merriman's own methods shows that from 2000 to 2019, an investor could simply have simply chosen the wellington or Wellesley fund and enjoyed superior returns with significantly less risk.

 There is a scenario I may have mentioned in another post that may put these factors back in play. I was working on a project for an information provider of equities indicative data to the buy-side. I asked the product manager how he hoped to succeed since, to my eye,  penetrating the marketplace made the data less and less valuable. He agreed and it turns out the company attributed the ebb and flow of their subscription base to this dynamic.  I remarked that it was like the Yogi Berra restaurant quote: "Nobody goes there anymore. It’s too crowded".  I suppose something similar might be possible for size and value factors. On the other hand, one would guess the arbitrage has been codified in 100s if not 1000s of algorithms, so ultimately, IMO, these factor premiums are dead.

best,

ps I started this post early morning, closed my computer, drove rt to Philadelphia  (5 hours) to drop off our nephew, and just finished my post. I didn't realize in the intervening time you had posted twice so this post was not informed by your last two posts...
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 28, 2020, 09:14:30 PM
I prefer to think certain industries or even sectors are and may remain stagnant, but not dead; saying that value stocks, which could encompass many sectors, are dead or even stagnant seems too general to me. It ignores fundamentals and company stories.


I feel that way about the term IPO too, though as you say many have huge losses. One recent IPO that is not a new company and has substantial earnings is RPRX , Royalty Pharmaceutical.


In the end much of this stuff is cyclical and I believe we have been fooling ourselves wrt defining our cycles. Any of the following can be expected as it has been a long time: inflation, higher taxes, higher interest rates, and unemployment, which spiked with the Covid shutdown.

Peter, did you mean to say the value premium is dead?
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 29, 2020, 09:31:53 AM
Peter, did you mean to say the value premium is dead?
QD,

No, I did not mean to suggest that. What I have observed over the past year or so is a lot of articles where the authors raised the question of whether value investing is dead or not. Of course, the proponents of value investing, like Rob Arnott at Research Affiliates, have come to the defense of value investing, as he and his associates have attempted to do in this article:

https://www.researchaffiliates.com/en_us/publications/articles/reports-of-values-death-may-be-greatly-exaggerated.html

I have also noticed that there are value oriented funds that now purchase the stock of companies like Netflix and Alphabet and Facebook even though in the past they would not have been in their portfolios based on the way that value stocks were evaluated. These days, increasing emphasis is placed on the value of intangibles. This aspect, as well as the Fama French analysis, is covered in the above article. And also in this typical article:

https://www.ipe.com/ahead-of-the-curve-value-investing-in-the-next-decade/10034818.article

This morning, for fun and to satisfy my curiosity, I did a Google search using the search words "Is value investing dead?" I got about 37,100,000 results. ;D
That alone may be a reasonable basis for someone that has a reasonable timeframe, like a young investor, to add value to a portfolio. In my case, I am more inclined to look at large cap value, in part because such a fund is likely to have dividends as part of the return. For my granddaughter, I would be more inclined to have her look at small cap value. For example, Vanguard had a small cap value fund that is down year-to-date by almost 25%. Its expense ratio is only 7 basis points. But since September of 2007 when the fund was created, the average annual return is 9.40%. This is not uncommon. Value funds often lead out of recessions, like the one in 2007-2009. The aforementioned fund also pays a dividend (its SEC yield is currently 2.5%).

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: wotavidone on June 29, 2020, 10:32:03 AM
"Stephen J. Dubner reaches a well-reasoned conclusion – backed by financial industry immortals – that the money spent on fees is a waste when compared to the strategy of the passive fund that tracks a market index. He cites a study where only the top 2% to 3% of active fund managers had enough skill to cover their cost."
Don't disagree with that conclusion.
It's when you insist on buying individual shares that professional advice beats trying to pick winners yourself.
I generally tell newbies several things:
For relatively unsophisticated investors like myself, day trading is gambling.
Don't do it unless you are OK with seeing the value of your investment vary wildly day to day.
Use only money you are prepared to lose.
Funds provide a way of diversifying whilst making small regular purchases.
Whatever you do, don't get your advice from a man at the bar.  ;D

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 29, 2020, 02:06:34 PM
Here is another article that appeared today on the 60/40 matter, at a website that caters to advisors:

https://www.advisorperspectives.com/articles/2020/06/29/the-60-40-allocation-is-broken

At the same website, there was also this article about actively managed funds underperforming on a risk adjusted basis:

https://www.advisorperspectives.com/articles/2020/06/29/actively-managed-funds-underperform-on-a-risk-adjusted-basis

And today Vanguard sent me this article directed to advisors (I signed up to have them sent to me such articles even though I am not an advisor) on how large cap stocks performed better than low- and mid-cap stocks on a quality basis during the recent drop in the market:

https://advisors.vanguard.com/insights/article/qualityfactorperformanceduringthedownturnsizemattered?cmpgn=FAS%3AEM%3ANWLTR%3A223114833689

And, finally, Ben Carlson wrote this piece about stocks and bonds and their relative performances over different periods of time, at:

https://awealthofcommonsense.com/2020/06/how-often-do-long-term-bonds-beat-stocks/

Peter

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 29, 2020, 02:38:41 PM
peter,

  Not sure if the author is being purposefully disingenuous but the article on the 60-40 portfolio should have tried to evaluate what would happen in today's market with similar market retreats. I suspect the bond allocation (which the author correctly points out is effectively acting as cash), still provides great downside protection for the portfolio. I don't believe chasing yield in riskier instruments is right for most investors and do believe that approach will eventually lead to disastrous outcomes.  I'm disappointed the author doesn't mention CDs or TIPS and wonder if there's a conflict of interest at play.

best,

edit: I've read various versions of the ben carlson article over the years. I'm surprised he thinks the article provides thought leadership but I suppose he has a varied audience.  Lately, I've started to believe hedging equities with long-term treasuries has been underappreciated by wealth managers. More on this over the coming weeks.

 

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 29, 2020, 02:58:46 PM
peter,

  Not sure if the author is being purposefully disingenuous but the article on the 60-40 portfolio should have tried to evaluate what would happen in today's market with similar market retreats. I suspect the bond allocation (which the author correctly points out is effectively acting as cash), still provides great downside protection for the portfolio. I don't believe chasing yield in riskier instruments is right for most investors and do believe that approach will eventually lead to disastrous outcomes.  I'm disappointed the author doesn't mention CDs or TIPS and wonder if there's a conflict of interest at play.

best,

edit: I've read various versions of the ben carlson article over the years. I'm surprised he thinks the article provides thought leadership but I suppose he has a varied audience.  Lately, I've started to believe hedging equities with long-term treasuries has been underappreciated by wealth managers. More on this over the coming weeks.

 
QD,

In looking at articles about investing, I think you always have to ask who is saying what and why, and what is the personal interest of the authors. For example, I know that Ben Carlson and Michael Batnick and Barry Ritholtz (of RWM) are not going to tell people to jettison their stocks, or do a lot of other things that would be contrary to running a business that manages money. And they have decided to use the Internet as their chosen method of reaching people on the subject of investing. Apparently that is working because many people who read what they write are now clients of RWM. And the aforementioned guys, and especially Ben, have been recognized as having some of the best blogs on the Internet.

I also am aware of people who are perma-bulls or perma-bears, and I take that into account when I read what they write. There are conflicts of interest all over the place. In my own case, I like to read both sides of stories, and hopefully won't succumb to confirmation bias.

BTW, you are not alone in your advocacy of a combination of stocks and bonds. As an account holder at Vanguard, I read articles and watch webcast all of the time where they speak favorably of bonds as part of a portfolio. And when I look at my account and see my breakdown between stocks and bonds (and "other", whatever that might be), I also see what they think I should have as the breakdowns. And it always shows a lot of bonds.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on June 29, 2020, 03:30:05 PM
peter, clearly carlson et al. saw the value of holding bonds in the past and I understand their concern in this interest rate environment. However, it's concerning when I see articles which suggest:

"For starters, they can look for alternative securities such as commodities, precious metals, preferred stocks, and convertible bonds. Those assets and a host of others are not as liquid, but offer diversification benefits. Equally difficult for most money managers, they can hedge equities with equities. This strategy may include options, short positions, and volatility strategies."

clearly, the author is calling advisors and investors to action but lacks prescriptive advice. This brings the oft-repeated investment chestnut to mind: "When you don’t know what to do, do nothing".

I've enjoyed these exchanges Peter, I hope someday we can talk through our respective experience and perspectives over a good bottle of wine and pizza.

as always, wishing you the best,
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on June 29, 2020, 05:43:10 PM
peter, clearly carlson et al. saw the value of holding bonds in the past and I understand their concern in this interest rate environment. However, it's concerning when I see articles which suggest:

"For starters, they can look for alternative securities such as commodities, precious metals, preferred stocks, and convertible bonds. Those assets and a host of others are not as liquid, but offer diversification benefits. Equally difficult for most money managers, they can hedge equities with equities. This strategy may include options, short positions, and volatility strategies."

clearly, the author is calling advisors and investors to action but lacks prescriptive advice. This brings the oft-repeated investment chestnut to mind: "When you don’t know what to do, do nothing".

I've enjoyed these exchanges Peter, I hope someday we can talk through our respective experience and perspectives over a good bottle of wine and pizza.

as always, wishing you the best,
QD,

As I mentioned before, I think everyone is groping for answers and solutions. And once you decide to rule out bonds, what is left? The answer is everything else. That can include stocks, stock mutual funds and ETFs, money market funds and CDs, commodities, options, precious metals, private equity, fine art, annuities, real estate, and who knows what else? But of all of these options, the one that I have found in my reading and listening to be mentioned the most is gold. And this is not only from bears but also from conservative investors. I think the main concern that leads to this choice is not only because of COVID-19, which is bad enough in itself, but also because of the uncertainties surrounding the China situation, inflation, a potential decline in the dollar, and future earnings performance, especially now that companies are going to be gun shy about buying back their own shares to boost their earnings and offset stock options. And I would add high debt levels. US companies are sitting on something like 10 trillion in debt.

At the moment, gold is trading at about $1773. The most common projection that I have seen is around $2500.

I, too, have enjoyed our back and forth discussions on investing. The discussions have also helped me to think through my next steps. Maybe sometime we can end up sharing a bottle of wine.  ;D

Peter

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on July 03, 2020, 11:13:41 AM
peter,

  article in today's wall st journal on private equity funds in retirement plans:

https://www.wsj.com/articles/the-mixed-case-for-private-equity-in-retirement-plans-11593077401

"The average annual return for an index of U.S. private-equity funds after fees over the decade ended Dec. 31 was 14.35%, versus 13.44% for the Wilshire 5000 Total Market Index, according to Cambridge Associates.

But a new study from an economist at Oxford University says U.S. public pension funds earned average annual returns of 11% after fees in private equity over the past 25 years, about the same return as small- and midcap U.S. stock-market indexes."


I don't know if anyone appreciates my wall st anecdotes but the debate over returns brings to mind a project we did for a large ($1T aum) asset manager. Long before algos became mainstream, the asset manager hired a phd responsible for creating trading algos. This was very rare for a buy-side shop. The fund manager had become concerned about key-man risk and hired us to see if we could move the algo to a mainstream trading platform.

We met with the phd and he claimed the algo returned about 60 basis points to the fund over human traders. Those 60 basis points returned a huge $ component to the asset manager and the phd had become one of the best paid and most powerful employees at the company.

When we started the project, the fund manager added a newly hired math phd to our team to understand and evaluate the monetary performance of the algo. After about two months of analysis, our project had two key findings: the algos could be moved to a 3rd party trading platform and it lost about 20 basis points year over year to human traders. So our recommendation was to drop the algo.

Politically, this was a complete disaster for the fund manager and the creator of the algo. In fact, the use of the algo appeared is some promotional literature for the company and was well-known in the industry. Our report was buried, the math phd fired and we never got near another front-office project at the fund manager. But, about two years later, the aglo phd was quietly pushed out and the algo retired.

Someone at the fund manager must have appreciated our analysis as they increased our presence in middle and back office projects and they eventually became our largest client.

best,


Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on July 03, 2020, 03:40:16 PM
QD,

Thanks for the link to the WSJ article. The article is behind a paywall but I used the title in a Google search and found a website that purloined the article in full.

I am not holding my breath on private equity as a potential part of my portfolio, but I found the correlation of returns from private equity to small and midcap indexes to be quite enlightening. Actually, the last couple of days I have been looking more and more into small equity value. And what surprised me is that the P/E ratios for two Vanguard small cap value funds are around only 12.5-13.5 whereas it is around 22+ for the S&P 500.

I also found your foray into the project that you pursued for the asset manager to be very interesting. Increasingly, I have been reading more and more about how AI (artificial intelligence) and algorithms and robo-advisors are attempting to replace people in the field of investing. I think even some RIAs are getting nervous about being replaced in some areas with algorithms.

To add to the above, today I read an interesting article that you might enjoy as much as I did. It is an article by a fellow named Louis-Vincent Gave. Louis is French but live in China, so he has a good handle on what goes on in China. I regularly read Louis' articles but I enjoyed this one the most. It is at:

https://blog.evergreengavekal.com/towards-more-of-the-same/?pdf=10558

I should add that Evergreen Gavekal has been negative on the market for the past couple of years. In fact, one of the principals (David Hay) at Evergreen, which manages money for high net worth individuals, has been bearish to the point of proclaiming that the market before the Coronovirus attack was a bubble of major proportions. He calls it Bubble 3.0 and has been blogging on his thesis for the past two or three years. He even plans on writing a book on the matter. I personally welcome both sides of the issues, including the negative ones.

I will be looking forward to and reading the second and third articles by Louis, and especially the one that suggests that "investors are acting on the premise that cash may become worthless in the coming years". That piques my interest.

And I will also be interested in seeing what happens to Dave Portnoy and the like as the market progresses (I think that Louis may have been thinking of Dave when he wrote the above article). Recently, Dave has been critiquing frozen pizzas where he lives. I would cite the YouTube where he does his analysis but it is replete with profanities. I am not used to that. I may be an old fuddy-duddy (our younger members may have to look that up  :-D) but I grew up in a household where I never heard my mother say even "damn". In the old days, Dave's material would have been rated X.

Peter

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on July 18, 2020, 12:55:36 PM
Peter,

  I've been busy finishing a project, now find myself retired again and have time to think deeply about our investments. A recent WSJ article posited sharply higher tax rates were biden to win the upcoming election. Intuitively this makes sense so we've decided to make IRA/SEP withdrawals to the top of the 24% bracket and rollover into a roth.

  Covering some of the points made in your last post, we found the two top-of-mind issues for traditional asset managers to be uptake of roboadvisors by millenials and withdrawal of assets by the baby boomer generation. We worked on the launch of a robadvisor platform for one of these firms and it was almost comical how hard it was to launch their platform.  Companies like wealthfront developed their platform with new technology and agile development methods while our client had to make changes to aged, brittle sytems which crossed technology and poliitcal boundaries. We had daily calls with over 100 team members to discuss and implement changes accross their platform.  In the end, the launch of the platform was a wake-up call for the asset manager that they needed to make a large capital investment to refresh their platform.

peter, on your point around language, I doubt I've said more than 20 cuss words in my life (including damn). It's just how I was raised, my brothers are the same way but sadly, I don't beleive our kids have followed our example.  I don't much care for portnoy, his shtick, his language but there's no denying his success as an entrepreneur.

best,

Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on July 18, 2020, 11:17:21 PM
21....
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: erickso1 on July 18, 2020, 11:27:55 PM
My family didn’t really swear at all.  But......as a product of jobs I’ve had, fish processor In Alaska, ad inserter in newspaper, auto collections in philly, fixed income am, I’ve picked up a few things that come quicker to the tongue these days.  I try to filter between the personally targeted words (avoidance) and the more generic colorful words.  Like spices in your food, when properly used they add flavor. Portnoy is likely a product of his community and culture, and while his elders might disagree with his language, I can almost guarantee someone in his family had the same mouth.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on July 18, 2020, 11:40:38 PM
You my kind...
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on July 20, 2020, 02:54:36 PM
I worked on a wall st trading floor, many of the traders couldn't complete a sentence without cursing. I guess I never saw the point and above all, it was important to hold my emotions in check under stress.

Early in my career I worked for a hardware manufacturer and a trader tossed our workstation through a window and started cursing at me. It was tempting to get angry but I realzed that everyone on the 200 person trading floor was looking to see how I'd react. I calmed him down and had him running on a new workstation in 15 minutes. A week later, the client tried to hire me but I'd come to realize trading floors were toxic on many levels and endeavored to spend as little time as possible on phyisical trading floors over the course of my career.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: erickso1 on July 20, 2020, 03:22:27 PM
I hear you about the desk.  I've heard some war/horror stories.  One involving a head traders hatred of red pens.  One got left on his station on accident.  He destroyed the entire station, monitor and all.  Our desk is a little more subdued, but I'd rank it tied for second behind the fishing boat for just general language use.  Auto collections was a whole different animal with the bulk of the language being directed at me.  :)
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pizza_Not_War on July 20, 2020, 03:56:39 PM
Combine high stress, money & drugs and you get trouble. Cussing is the far far least of the problems. I witnessed way too much crap downtown NYC in a few short years to last a lifetime.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on July 20, 2020, 06:46:12 PM
I want to be clear that I am not unmindful of how the spoken and written word has changed over the years. And it does not bother me even though I personally refrain from using words outside of my normal vocabulary. But to show how what was once frowned upon is now de rigueur, I invite the members to do a search of books at Amazon whose titles include the F-word in one form or another. I did that out of curiosity today and got 75 pages of hits. I did not look at all 75 pages, and there were a few hits that did not include the F-word, but the message was clear: It is OK to use the F-word, whatever its form. And it is not limited to the ignorante. I see the F-word used by educated and highly successful people on Wall Street in their blogs and articles all the time, both in written form and as spoken word in podcasts. They are perhaps catering to the Millennials and Gen Zs who have grown up with the current ways of expressing themselves, not the milieu that I grew up with.

I might add that years ago, when I was asked to be a Moderator, I was able to substitute innocent symbols whenever a member used a foul word in a post. I set up the translation and the forum's software did it automatically. So, the F-word might have appeared as #*%* in a post, or something like that. Eventually, the forum's software changed and my protocol on the matter was no longer available to me.  ;D

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: parallei on July 20, 2020, 09:30:08 PM
Oh dear, foul language! Goodness me. Third generation Army Vet here, and all of us went on to MS's or PHD's and successful academic or professional  carriers.

The most eloquent in his use of foul language was my maternal grandfather who did his undergraduate degree at the University of Texas, Austin. Then taught, and practiced, the fine art of machine gunning in WW1. He went on to get a MS and PHD from Colombia and then was a Professor of Economics at Cal Berkeley until he retired. He did think using "sh#t" lacked imagination, but thought "f..k", in its many variations, was just fine.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Hanglow on July 21, 2020, 03:40:52 AM
Scottish here, so I don't really think there is anything foul about language, it's just words and inflection is much more important with regards to your meaning of them  ;D

It is much more difficult for many to convey what we mean through written language of course as there is no vocal inflection, a good example of modern technology helping  with that is the simple emoticon   :)
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on July 22, 2020, 10:23:46 AM
I've long thought Isaac Asimov's quote "violence is the last refuge of the incompetent" could be fashioned into the statement "Foul language is the last refuge of the unimaginative".
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: texmex on July 22, 2020, 10:52:13 AM
"Foul language is the last refuge of the unimaginative".


Expletives and coarse language are among the most imaginative of all dialogue.  Every society across the world has a creative way to scorn others. Cockney rhyming insults and of course, other slang are rich with imagination.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pizza_Not_War on July 22, 2020, 12:19:49 PM
Figure I need to add this to the discussion, a local restaurant http://www.phokinggood.net
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on July 24, 2020, 12:03:39 PM

Expletives and coarse language are among the most imaginative of all dialogue.  Every society across the world has a creative way to scorn others. Cockney rhyming insults and of course, other slang are rich with imagination.

 yes, I agree there is a place for coarse language in literature and theater/movies, but in my experience, 99% of uttered expletives are reflexive, repetitive and unimaginative.  Perhaps you live or have lived in a place where the people around you have taken coarse language to literary heights, but I can tell you nyc is not that place and all you have to do is listen to portnoy for a while to get a sense of it.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Fiorot on July 24, 2020, 07:03:04 PM
He is from Boston WTF not NYC  WTF talking about NYC like    F^^King that.    F**K that F^^Ker
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Chicago Bob on July 24, 2020, 07:40:49 PM
He is from Boston WTF not NYC  WTF talking about NYC like    F^^King that.    F**K that F^^Ker
  You're deep man.   ;D
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: hammettjr on July 26, 2020, 10:14:43 AM
Somehow (I dont know the backstory yet) Portnoy interviewed President Trump at the White House. Below is a link from Trumps official YouTube.

I have no intent of making this thread political, let's try to stay away from it. But pretty amazing business this guy built...I think he started by handing out sports newsletters on the streets of Boston.

https://youtu.be/vRWr9dI8-Jw


Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Gene in Acadiana on July 26, 2020, 01:15:54 PM
The guy makes his female employees sign NDAs so they can't sue him for sexual harassment and illegally threatens to fire workers who try to unionize. I wouldn't call that an amazing way to build a business.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: hammettjr on July 26, 2020, 04:07:14 PM
Well, if that stuff is true, I'd think that it was implemented after he built the business...no one sues a broke guy handing out flyers.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on August 19, 2020, 06:26:15 PM
Dave Portnoy is sick:

https://www.bloomberg.com/news/articles/2020-08-19/barstool-founder-rattles-investors-with-video-saying-he-s-sick

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Quebert on August 25, 2020, 12:50:55 PM
The guy makes his female employees sign NDAs so they can't sue him for sexual harassment and illegally threatens to fire workers who try to unionize. I wouldn't call that an amazing way to build a business.

Well, this might explain how he got the interview with Trump lol.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Fiorot on August 25, 2020, 06:27:06 PM
Well, this might explain how he got the interview with Trump lol.
Not funny to me and if you want be snarky maybe you need to be on another forum.  I do not come here to read your political slime.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: wotavidone on August 26, 2020, 05:45:09 AM
yes, I agree there is a place for coarse language in literature and theater/movies, but in my experience, 99% of uttered expletives are reflexive, repetitive and unimaginative.
Yes.
Overuse of obscenity and profanity seriously reduces its effectiveness.
e.g. Being a somewhat urbanised Australian, I swear far too much.
The result of that is no one takes any notice when I'm truly ticked off.

On the other hand, my 80 year old mother never calls a bowel movement a %$# when the word poop will do.
If she says the "F" word, we all sit up, shut up, and seriously take notice.
(If she ever says the "C" word, you can assume the world is about to end.)


 
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: jsobolew on September 12, 2020, 10:57:37 PM
I've been watching the one-bite videos released during the pandemic where he's on the street, interacting with people, eating pizza, etc. and no one is wearing masks. He says stuff like "we ain't afraid of no 'rona." I guess it eventually caught up to him.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: 02ebz06 on September 13, 2020, 12:04:23 PM
Yes.
Overuse of obscenity and profanity seriously reduces its effectiveness.
e.g. Being a somewhat urbanised Australian, I swear far too much.
The result of that is no one takes any notice when I'm truly ticked off.

On the other hand, my 80 year old mother never calls a bowel movement a %$# when the word poop will do.
If she says the "F" word, we all sit up, shut up, and seriously take notice.
(If she ever says the "C" word, you can assume the world is about to end.)

When I used to work in a Hospital in Philadelphia, one of the guys would have F bombs roll off his tongue every other word, at work. Didn't matter who was around.
He lived in south Philadelphia, and it is just part of the vocabulary for men and women in neighborhoods there.
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on October 03, 2020, 07:29:33 PM
For those who are interested, there is a very good podcast featuring Dave Portnoy this week on Masters of Business, at:

https://www.bloomberg.com/news/audio/2020-10-02/dave-portnoy-on-the-business-of-sports-media-podcast

The host of the podcast is Barry Ritholtz, who is the  co-founder, chairman, and chief investment officer of Ritholtz Wealth Management, a money management firm with its main offices in New York City. Ritholtz usually interviews people in the finance and investment arenas although from time to time he will interview entrepreneurs and other business people. Also, in Portnoy's case specifically, he has become a rabid stock market trader once the sports side of his member went south with Coronavirus, and has gained quite a following on Wall Street, and especially among young day traders.

I would say that I listen to about ninety percent of Ritholtz's podcasts. When I saw that Dave Portnoy was this week's interview, I had to listen. I wondered whether pizza would be covered and it was mentioned, but only very briefly, in the opening remarks. But I listened to the interview anyway because I found it fascinating. But, lo and behold, at around 00.43-00.44 minutes in the interview (the whole interview runs to a bit less than an hour), Ritholtz specifically raised the question about how Portnoy ever got into the pizza side of his business. It turns out that Ritholtz is crazy about pizza. The discussion on this topic was quite interesting, including Portnoy naming some of his favorite pizza places and also some of the lesser favorites. The pizza discussion ends at around 00.51, so members can listen to only the pizza part of the interview if they so wish. The rest of the interview is directed to standard questions that Ritholtz asks all of his guests.

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: Pete-zza on March 05, 2021, 12:43:46 PM
Dave Portnoy is now backing an ETF (exchange traded fund) seeking to ride the companies most loved by investors online. The ETF has gone bananas:

https://preview1.advisorperspectives.com/articles/2021/03/05/portnoy-backed-etf-sees-third-highest-volume-ever-in-a-debut

Peter
Title: Re: Dave Portnoy of Barstool Sports Losing Money in Stock Market
Post by: quietdesperation on March 05, 2021, 09:40:34 PM
Dave Portnoy is now backing an ETF (exchange traded fund) seeking to ride the companies most loved by investors online. The ETF has gone bananas:

https://preview1.advisorperspectives.com/articles/2021/03/05/portnoy-backed-etf-sees-third-highest-volume-ever-in-a-debut

Peter

at the outset of the gamestop play, I texted the ex-cto of a well-known advisory firm that we should write a program to determine user sentiment on reddit, etc. Of course, there are already 1000s of programs  trading off of internet-based user sentiment but the idea was to focus on WSB and a few others.

 I give these guys credit for getting it done (the etf, not the AI platform, which is very easy at this point) so quickly. If I thought of it, and they thought of it, it's hard to see them returning alpha but I'd guess Dave and the creators of the ETF don't give a whit about making money for their investors. But that is the way of wall st.