Dave Portnoy’s decision to leave E-Trade (he claims he was kicked off the platform after criticizing the company over a recent string of outages), was only the brash Barstool Sports founder’s latest repudiation of the Wall Street and financial establishment. Over the past few months, the outrageous founder of Davey Day Trader Global has led an army of Robinhood traders into the shares of bankrupt companies like Hertz, and turned the concept of active management on its head by picking stocks by randomly picking tickers out of scrabble letter bags.
Since dismissing Warren Buffett as “Washed up” and irrelevant on his daily livestream, where he shares his trades and stream-of-consciousness commentary, Portnoy has drawn the ire of handful of Wall Street luminaries running the gamut to the respectable (Howard Marks, Leon Cooperman, guys who have actually managed money) to the people like Dennis Gartman and Ron Ansana, whom he has torn apart on his twitter feed and during his broadcasts.
In a pair of amusing editorials, Gartman hysterically scolds Portnoy for his “rank, almost amateurish, speculation.” Here’s a snippet via Fox Business.
Thousands, perhaps many thousands, of naive, mostly very young and wholly inexperienced “investors” follow his every word and his every recommendation as he engages in day trading.
For the past several weeks he has been right. The market had rallied — but we are again reminded of Joseph Kennedy’s admonition.
We are also reminded of John Maynard Keynes’ admonition that the market can remain illogical far longer than we can remain solvent.
And here’s a clip from a recent interview where Gartman warns that “when the shoe clerks are in the market…that’s always been the sign of a market top.”
Because god forbid the proles make any money while the rich are out there stuffing themselves, right?
We suspect that after Portnoy is finished “beating [Gartman] like a drum” in his response, the newsletter writer will brush it all off as some kind of joke, or like he was being tongue-in-cheek, or whatever.
Portnoy admittedly lost big when he first tried his hand at day trading. But he quickly saw his fortunes turn around when he tuned out the talking heads on CNBC and figured out “that stocks only go up.” Fortunately for him and his army of traders, he came to this realization just as Warren Buffett was publicly dumping his airline stocks. This simple analytical assessment – that the airlines wouldn’t be going out of business – birthed his career as a fly-by-night stock analyst.
Portnoy expounds on his “stocks only go up” theory in a Fox News editorial published below:
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Howard Marks is mad. Ron Insana is mad. Dennis Gartman is mad. In fact, it seems like all the Wall Street suits are mad.
Who are they mad at? Me.
Why are they mad? Because when COVID-19 caused sports to be postponed indefinitely a few months ago, I turned from sports gambling to day trading and founded my own fictional firm called Davey Day Trader Global Global.
Yes, that’s two globals because one global isn’t enough to describe how global we are.
I have livestreamed my trading exploits every single day for millions of people to watch.
In the beginning, I struggled. I was down $2 million before I could blink, and all the self-proclaimed pundits and talking heads on Wall Street treated me as a lovable loser.
The finance community welcomed me with open arms. But then something funny happened along the way. I started winning and they started losing.
The more I won, the more mad they got.
While Warren Buffett told people to get out of the airlines and cruises, I told my clients to dive headfirst into both industries.
I bought Spirit at $7.70. Within months, it had tripled. I openly wondered whether I was better than some of the legendary (albeit geriatric) traders of past generations.
Suddenly, I became the most talked about person on Wall Street. Every time I turned on the TV, my name was being mentioned, usually in an unflattering light.
It culminated with Dennis Gartman (who is that?) going on FOX Business Network’s “Varney & Co.” Thursday and essentially saying it’s unfair that the public is allowed to invest in the stock market.
He thinks it’s unfair that I’m leading an army of day traders who treat stocks like a game and am making it more difficult for Wall Street veterans to navigate.
Gartman was mad that for the first time in history, retail investors, or the “retail bros” as they call them, don’t need them to invest our money for us. They no longer get a fat commission check every single time the public wants to make a trade.
They want the public’s money, but they want to be the only ones allowed to spend it. They want to get paid whether they win or lose.
The pure arrogance of guys like Gartman, Insana and Marks is surreal. They somehow think trading is their birthright and that they alone should have a monopoly on making money.
They don’t think Joe Public can be smart enough or trusted enough to invest our own, hard-earned money. Only they have that knowledge and insight on what is best for us.
Yet here I am. Beating them like a drum for the past three months at their own game. While they have been slow to react to the changing markets, I’ve adapted on the fly.
All I hear is old-timers say that the retail bros are going to get crushed. That they’ve lived through this before. That the pride comes before the fall.
Yet I ask them, how many global pandemics have they actually lived through? The answer is zero.
I have as much experience in this trading climate as they do. And maybe the very fact that I’m not burdened with their history has allowed me to see this market for what it is, while they have failed miserably.
Whatever the case may be, I’m just glad I can make trades for myself and make money for myself instead of paying commissions for bad advice from talking heads.
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Source: Fox News