How Reddit Brought A Multi-Billion Dollar Hedge Fund To It's Knees

01-28-2021, 01:23 PM

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#1141

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Originally Posted By BigBallsMcgee⏩

you're only saying that in hindsight. at the time, its just a one of many niche tech things most of which dont amount to much.

They made the case early on, and the case they made is the reason why it's being valued today. So they were right.

Venture capitalists roll the dice too. They bet on different people and business ideas and hope some hit. its not different than betting on a horse.

Rolling dice is pure chance. Investing based on analysis is not investment based on chance. The do not simply throw money and any every venture, hoping that one sticks... That would be investing using chance.

Your argument seems to be...

Someone values Tesla 10 years ago, and give XYZ reasons for doing so . Even after XYZ is the reason why it's successful, the investors success was based on pure chance.

Again, investing based on analysis is not investing based on pure chance.

01-28-2021, 01:25 PM

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#1142

dannyg2127
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I bitched out and got out this morning when it was in the 400s because the robinhood thing scared me. If robinhood opens back up and the price is around where it is now I'm getting back in

01-28-2021, 01:26 PM

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#1143

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Originally Posted By jademaster⏩

A hedge fund is really two distinct things: there's the actual fund that people put their money into, and there's a management company that oversees the fund. Melvin Capital Management is, obviously, a management company. "7 clients" means that they have seven funds they manage--technically it's the fund itself, rather than the people who invest in the fund, that are the management co's clients.

There are various reason why they might have multiple funds: they might have clients with different tax treatment (non-profits vs. taxable investors), for example, or one fund is riskier because it uses more leverage.

You have given out too much Reputation in the last 24 hours, try again later.

01-28-2021, 01:27 PM

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#1144

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Originally Posted By sugalump5⏩

Billionaire boomer on cnbc crying(actual tears), these people are livid and the more they try to game this the more it annoys everyone else into holding.

Are you kidding me?

01-28-2021, 01:28 PM

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#1145

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Originally Posted By BetaAsPhuck⏩

He was wrong about Bitcoin.

There were investors (e.g. Roger Ver) who saw that the underlying technology of Bitcoin was revolutionary, and that Bitcoin was only a beginning and wasn't going anywhere. That was a smart move. He saw a new technology, and he was right. Roger Ver was a millionaire before he invested in Bitcoin, through mainly selling tech.

He wasn't the only one. Early investors of Ethereum also saw how revolutionary it was, and they were right.

They didn't just throw money in without research, they did a lot of research and believed that it had long term potential, and they were right.

Venture capitalists often do that, but noone says they are 'rolling the dice' when they invest in start ups. So why say that about people who were astute enough to research and invest in emerging technology?

You're god damn right I was wrong. The thread was floating on the front page here circa 2009/2010. The guy just kept on swearing and swearing to buy BTC. He was riding it so much it appeared to be nothing but snake oil... At the time I was PROBABLY making 2k a month but that was play money as I had no bills living at home. Just gas money.

Instead of even putting in 200 bucks into BTC I was buying other crap. I'm a risk taker too. BTC reached $100, $300, and so on. I didn't hop on the train till after that 2017 bubble, I've made measly money since then.

01-28-2021, 01:30 PM

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#1146

Shysty021
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I robinhood and ally

Ally you have to wait a day to get funds transferred to it though

Robinhood is garbage with the bullchit they pulled today

01-28-2021, 01:30 PM

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#1147

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Clip of boomer crying.

Also said "people are sitting at home getting their checks from government. This 'fair share' is a bull**** concept and is just a way to attack wealthy people.

01-28-2021, 01:33 PM

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#1148

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Originally Posted By BetaAsPhuck⏩

They made the case early on, and the case they made is the reason why it's being valued today. So they were right.

Rolling dice is pure chance. Investing based on analysis is not investment based on chance. The do not simply throw money and any every venture, hoping that one sticks... That would be investing using chance.

Your argument seems to be...

Someone values Tesla 10 years ago, and give XYZ reasons for doing so . Even after XYZ is the reason why it's successful, the investors success was based on pure chance.

Again, investing based on analysis is not investing based on pure chance.

It doesnt have to be a blind guess to still come down to chance.

A lot has been done on this issue of how much random luck is involved in investing, and the evidence is pretty strong that it significantly comes down to chance, and then we rationalize everything after the fact to say it all made sense and could only have ever happened this way.

01-28-2021, 01:33 PM

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#1149

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Originally Posted By sugalump5⏩

Clip of boomer crying.

Year old, brah...

01-28-2021, 01:33 PM

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#1150

nn586
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Originally Posted By sugalump5⏩

Clip of boomer crying.

Also said "people are sitting at home getting their checks from government. This 'fair share' is a bull**** concept and is just a way to attack wealthy people.

LMFAOOOOOOOOOOOOOOOOOOOO

01-28-2021, 01:35 PM

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#1151

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Originally Posted By BigBallsMcgee⏩

It doesnt have to be a blind guess to still come down to chance.

A lot has been done on this issue of how much random luck is involved in investing, and the evidence is pretty strong that it significantly comes down to chance, and then we rationalize everything after the fact to say it all made sense and could only have ever happened this way.

What kind of investing?

01-28-2021, 01:42 PM

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#1152

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Originally Posted By BetaAsPhuck⏩

What kind of investing?

Anything you put money in and hope things you dont control go your way

01-28-2021, 01:43 PM

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#1153

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01-28-2021, 01:43 PM

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#1154

meanstringbean
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Originally Posted By BetaAsPhuck⏩

What kind of investing?

bigballsmcgee is 100% wrong. Comically wrong even. Investing, legitimate investing not day trading, has little little little risk and long run if you aren't a dope it's basically 99.99% guaranteed best way to grow your assets.

Now if you are talking about stock picking and getting warren buffet type wealth then yea - luck is a big factor.

But it doesnt take a genius to just dump money in a vanguard SP500 tracking fund , ignore, check in 3 decades later, and be a multi millionaire

01-28-2021, 01:48 PM

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#1155

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Originally Posted By BigBallsMcgee⏩

Anything you put money in and hope things you dont control go your way

You're trying to say that literally every single form of investing is based primarily on luck for positive outcomes?

I can't be bothered to derail the thread anymore by arguing you, tbh.

01-28-2021, 01:49 PM

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#1156

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Originally Posted By ApeXXXPredator⏩

All of these stocks were stagnant and/or lost money today: KOSS, NAKD, NOK, EXPR, AMC.

It's because the hedges are doubling down on shorts, trying to drive the price down. They're hoping all the people who are holding but can't buy, will get depressed seeing the price and sell...thereby bailing them out.

It's a massive gamble for them, but at this point they're screwed either way, so they're making a play hoping we flinch.

Just keep in mind the current rates are still higher than they were a week ago. The short squeeze will still happen as long as people don't sell.

01-28-2021, 01:50 PM

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#1157

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I wish I had spare cash. I would hold the line with WSB.

01-28-2021, 01:51 PM

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#1158

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Originally Posted By Dan_S⏩

It's because the hedges are doubling down on shorts, trying to drive the price down. They're hoping all the people who are holding but can't buy, will get depressed seeing the price and sell...thereby bailing them out.

It's a massive gamble for them, but at this point they're screwed either way, so they're making a play hoping we flinch.

Just keep in mind the current rates are still higher than they were a week ago. The short squeeze will still happen as long as people don't sell.

In fact, look at what's happening with Nokia right now. They were able to drive the price down and there are orders for millions of shares so that they can cover their shorts. That's what they're trying to do with GME, BB, and AMC.

01-28-2021, 01:52 PM

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#1159

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Originally Posted By meanstringbean⏩

bigballsmcgee is 100% wrong. Comically wrong even. Investing, legitimate investing not day trading, has little little little risk and long run if you aren't a dope it's basically 99.99% guaranteed best way to grow your assets.

Now if you are talking about stock picking and getting warren buffet type wealth then yea - luck is a big factor.

But it doesnt take a genius to just dump money in a vanguard SP500 tracking fund , ignore, check in 3 decades later, and be a multi millionaire

You have given out too much Reputation in the last 24 hours, try again later.

Exactly, there's many different forms of investing.

Some have a high probability of returns, and investing in them and getting a return is not primarily based on luck, it's based on past performance (i.e. evidence).

01-28-2021, 01:55 PM

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#1160

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Originally Posted By BetaAsPhuck⏩

You're trying to say that literally every single form of investing is based primarily on luck for positive outcomes?

I can't be bothered to derail the thread anymore by arguing you, tbh.

yes and I'm far the only one who believes it, its a big theory in economicshttps://en.wikipedia.org/wiki/Random_walk_hypothesis

01-28-2021, 01:58 PM

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#1161

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Originally Posted By meanstringbean⏩

bigballsmcgee is 100% wrong. Comically wrong even. Investing, legitimate investing not day trading, has little little little risk and long run if you aren't a dope it's basically 99.99% guaranteed best way to grow your assets.

This is only true if you cover the board and bet the market as a whole.

The reason this is the right strategy and not actually trying to pick the right investments individually, is because each individual choice will have a random result

01-28-2021, 01:58 PM

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#1162

AltarOfPlagues
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Originally Posted By BigBallsMcgee⏩

It doesnt have to be a blind guess to still come down to chance.

A lot has been done on this issue of how much random luck is involved in investing, and the evidence is pretty strong that it significantly comes down to chance, and then we rationalize everything after the fact to say it all made sense and could only have ever happened this way.

this is like sayin 90% of diets fail. i mean yes but no.

"diversification is protection against ignorance. It makes little sense if you know what you are doing."

i have no idea what im doing by the way. but i know more than my portfolio manager hes an idiot lol.

01-28-2021, 01:58 PM

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#1163

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Originally Posted By BigBallsMcgee⏩

yes and I'm far the only one who believes ithttps://en.wikipedia.org/wiki/Random_walk_hypothesis

That doesn't apply to say dollar cost averaging into an Index fund. Which is low risk investing based on evidence (the evidence being past performance of both index funds, and dollar cost averaging).

What you posted is specifically about trading.

01-28-2021, 02:01 PM

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#1164

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Originally Posted By BetaAsPhuck⏩

I wish I had spare cash. I would hold the line with WSB.

You can't get in anywhere.
Webull and Robinhood are now selling people's stocks without their consent.
Its sickening and illegal

01-28-2021, 02:02 PM

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#1165

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Originally Posted By BetaAsPhuck⏩

That doesn't apply to say dollar cost averaging into an Index fund. Which is low risk investing based on evidence (the evidence being past performance of both index funds, and dollar cost averaging).

What you posted is specifically about trading.

The success of index funds doesnt disprove that individual investments have random results.

I was trying to say that any given investment, whether in stock form or venture capital or real estate or whatever, will have a random result. thats why the key is diversify and cover the board. You can hit on individual things, but which ones hit is not predictable

01-28-2021, 02:04 PM

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#1166

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Originally Posted By waytoodeep03⏩

You can't get in anywhere.
Webull and Robinhood are now selling people's stocks without their consent.
Its sickening and illegal

what is the justification behind it

01-28-2021, 02:06 PM

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#1167

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Guys stop brainwashing people. Robinhood and others are selling stock out bc young dumb people are dumping everything they have with margin and are getting called.

01-28-2021, 02:12 PM

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#1168

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Probably a lot lurkers wanting to learn about investing ITT. This is what I wished someone explained to me before I began investing in crypto...

Dollar Cost Averaging is the lowest risk way to invest, and investing into an Index fund is the lowest thing to invest into.

This video explains brilliantly:

Day trading and Swing trading is high risk 'investing' when it comes to stocks.

Dollar Cost Averaging can also be applied to the crypto market

If you do choose to apply Dollar Cost Averaging to Crypto I recommend Ethereum and Polkadot, honestly.

If you want to know why...

Ethereum is a blockchain smart contract computer network, that has a massive amount of high value applications built on it. It also is heading into a supply problem.

Polkadot is also a blockchain smart contract computer network was co-built by someone who helped develop Ethereum. It aims to be its own smart contract network, but also to be the bridge between the various blockchain networks. It aims to create interoperability between blockchain networks.

If you invest in Ethereum and Polkadot you are investing in tech which IMO is likely here to stay. Metcalfe's Law is a way of assessing potential value according some analysts, like Raoul Pal. But please DYOR (Do Your Own Research).

01-28-2021, 02:13 PM

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#1169

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Originally Posted By AltarOfPlagues⏩

the redditors in question are childless and live in their moms basement.

the worst case would be if they made a lot of money, then they would have to move out and cook their own chicken nuggets.

literally everyone has know from the beginning that the stock is near worthless. that makes it way funnier.

Right? I would seriously hate for someone to throw down money on this that they can't afford to lose. My understanding about WSB moving the market on this was that there are over 2 million members and so a lot of little purchases added up to a lot of pressure.

Originally Posted By waytoodeep03⏩

You can't get in anywhere.
Webull and Robinhood are now selling people's stocks without their consent.
Its sickening and illegal

If this is true I hope they get nailed for it. And don't bother coming at me with how "we had to protect unsophisticated investors". Not unless they can show hard evidence that this is a consistent and published policy vs. collusion.

I'm not that knowledgeable about the market, but I'm not completely ignorant either. Worked for a broker-dealer, went through the background check. Never pursued a Series 7 and Series 63. I was actually questioned in an SEC investigation once, which was a little nerve rattling, but also kind of funny because I believe my truthful testimony was if anything detrimental to the case they were trying to build.