What is a suit? Who is a suit? Are suits somehow betrayers of some cause? Is that why people feel compelled to go in front of Congress and say they are from humble backgrounds? They don't want to be known as someone who sold out his class or threw his lot in with hedge funds that are the province of the rich.
OK name-callers, I wear a suit constantly. I would wear a suit to bed if I could. I think it shows respect to the viewers. It's my armor.
But wearing is not the same as being and it is time for the rebels who infiltrate every aspect of this market, pushing small marijuana stocks, dissecting Palantir (PLTR) , loving GameStop (GME) to try to recognize teaching from tyranny.
While recuperating I devoured the GameStop hearings. Up front, let me say that I am in favor of anyone who, in a trusted way, helps people make money. If you can't be trusted because your systems aren't ready, then you better fix them as it's easier to lose trust than gain it even if you have a tremendous app. Robinhood violated that trust, and Vlad Tenev was most apologetic for doing so. I like that. His app-loving legions overwhelmed his system and they paid a price for doing so unless they were selling, which, in retrospect worked darned well. That said, I can't find any intent to defraud anyone even as it sure seems like there could be collusion. If the Justice Department has something, which I don't think they do, they should play their hand. Same with the San Francisco bureau of the SEC.
I don't think Ken Griffin, a man who has built a fund and a clearinghouse that I am in awe of, is villainous at all. Is it his fault that Citadel, by virtue of market share, offers the best price? Is there too much concentration in that business? Of course. Is that his fault? No.
Steve Huffman from Reddit? I love Reddit. Sure it can be chaotic and incoherent. I want that improved; none of my business.
Melvin Capital? What can I say? Turning a win into a loss is one of the biggest investing sins I can come across. I have made many many mistakes in investing so I don't want to pile on. But, sheesh, it wasn't as if GameStop was running out of cash going into a gaming paradise holiday. At $8 GameStop was more of a long than a short until the game console pipe gets filled... and it will. How anyone could be that short ahead of a triple launch of game boxes in the midst of a pandemic -- with a chip shortage of all things -- is crazy.
And then there's the smartest guy of all: the Reddit hero, the guy who figured it out and made fortunes doing so, Keith Gill, aka Raging Kitty.
This guy is everything I like about the business in that he figured out the combustibility of the situation and profited from it. He is the person to celebrate.
Here's where I'm steamed though. Many of the people who laud Gill seem to despise me. They think I am either owned by the shorts or owned by the rich or owned by the clearing firms, or owned by someone nefarious, heaven knows who. Does it bother me? You have to be a rhino not to have it bother you. I am not a rhino.
Why scorn a Gill champion. Because I ripped out the catheter from my hospital bed called into "Squawk on the Street" and urged people to sell GameStop at $350, top of the world ma? Was my motive to bust the well-orchestrated squeeze? No. It was to make viewers money. Since then I have heard only that Gill had done more homework than me, understood the story better, realized much more than I did about what could go right with the god of Chewy (CHWY) , Ryan Cohen, now shining his board of director light on GameStop 300 points below where I counseled sell.
That's what I don't like. GameStop, the chain, is having a good month or two but not doing well. GameStop, the stock, was doing too well versus the store. I didn't care about ending the squeeze. I cared about helping to the people who now seem to despise me.
My misguided opponents? They broadcast their slander against their ally. They, the diamond hands, the yolos, the rocketships, are the rebels without a cause, because the only cause with stocks is make money, not, somehow to be right and lose money. If that's a sin to you, if that's why you didn't sell GameStop when you could have, look, to others, because I can't help you and throw your scorn toward the establishment that regrets and denigrates you, not your champion.