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Twitter user and stock trader Dave Portnoy called Warren Buffett an idiot for offloading his airlines stocks during the coronavirus lockdown.
The game of stock trading is a game of investment guarded by lots of factors that changes every day and every minute. A recent video tweet from Dave Portnoy of Davey Day Trader Global has attracted a series of comments from users who understand the space. Dave Portnoy called out Warren Buffett, one of the world’s richest men and stock trading veteran, an idiot owing to Buffett’s offloading of some airline stocks amidst the coronavirus pandemic.
The lockdown caused the stock value of airlines to plummet, creating uncertainty about the immediate future investments in similar stocks.
Warren Buffett in Stock Trading
Warren Buffett is a renowned figure in the investment world and he has developed strong investment models that guide many investors to date. He believes that investments should be limited to businesses that can easily be analyzed.
Buffett’s tenets cut across management, finance, and values, and all these provide a foundation on which he rests his value investing philosophy. While his thoughts gave rise to empirical estimations, the application is always subjective, and in this regard, any trader can be wrong at any time.
Portnoy’s Take and Reactions
Portnoy may seem justified in his video tweet where he brags about making close to $300,000 from airline stocks that Buffett unloaded while the lockdown-induced losses mount. Portnoy believes the wrong call made by Warren Buffett suggests the billionaire investor is not as relevant in the scheme of things as he is now. Portnoy stated:
“I’m not saying I had a better career… He’s one of the best ever to do it,” he said. “I’m the new breed. I’m the new generation. There’s nobody who can argue that Warren Buffett is better at the stock market than I am right now. I’m better than he is. That’s a fact.”
Portnoy may be right about the renounced airline stock but questions about him rating himself above Buffett sprang up in reaction to his tweet.
Buffet is an investor, you are a trader. Buffet have been on the game for 80 years, not sure if you will be still on the game for another 80 days. More importantly, have some respect for elderly people that were around when you were still wearing nappies.
— Giovanni Li Causi (@GiovanniCausi) June 9, 2020
Investing in stocks and trading stocks are two different ventures but with similarities. Beyond the analysis made available in different forms, every trader/investor must make the final call on his move irrespective of popular opinion. This way, the blame game in the case of loss will be avoided.