Key insights
- The post discusses the evolving nature of a value investing subreddit, highlighting the influx of non-value investors and 'influencers' promoting low-quality stocks. This shift creates division and potentially negatively impacts inexperienced investors. While not directly impacting the broader US equity market, it reflects a potential undercurrent of speculative behavior among retail investors, which could amplify market volatility during downturns.
(Note the Flair)
It started as a place where value investors hung out, to discuss sieving through high quality gems among stocks that are cheap.
Then this subreddit attracted people looking for serious conversations they could not find elsewhere (eg. “Why did my stock fall”) but many did not bring the valueinvesting mindset into the conversation. They also did not care. ( case in point: someone here recently lamented that we engaged in bottom feeding, another accused us of catching a falling knife)
The last type are the “influencers”, the scums and the scallywags, who are just trying to pump their unprofitable short term below investment-grade stocks to unsuspecting investors.
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Now, I don’t propose we kick out the non-value investors, but we should seek out the pumpers, the DRAM traders, the momo penny stock pushers, and then block them.