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Jim Cramer recommended getting in on Meta around 220 IIRC and then it dropped over 50% and he cried because on his recommendation people lost half their investm

Jim Cramer recommended getting in on Meta around 220 IIRC and then it dropped over 50% and he cried because on his recommendation people lost half their investment. Exiting at a loss is often the 'smart' call. Bill Ackman did basically the same with Netlfix for a 400 million dollar loss: https://variety.com/2022/digital/news/bill-ackman-sells-netflix-stake-loss-1235237715/ https://variety.com/2022/digital/news/bill-ackman-sells-netf... He'd be up huge if he held, but he 'paper handed'. Is he a dumb guy?

penjelly 3y ago
> He'd be up huge if he held, but he 'paper handed'. Is he a dumb guy ive come to believe its often a matter of solvency, theres only so long you can keep that money invested before people start wanting/needing it back. Especially with large economic shifts that weve been seeing.
- hsod 3y ago
  I don’t think solvency was an issue here but another way of getting to the same place is that he felt he could deploy the capital more effectively elsewhere. He made a bet on Netflix because he thought he had some alpha. After he lost a third of it he had less faith in his original thesis and thus his allocation priorities changed. Or at least that’s the story he’d want to tell
hsod 3y ago
Just for context Ackman’s 1.1B purchase would be worth about 2.25B today if he hadn’t sold it for 700M Of course that doesn’t mean it was a dumb trade but his rationale in the letter doesn’t make a lot of sense to me. It has the vibe of something you would come up with if you needed to sound smart justifying a decision you had already made emotionally
bitcharmer 3y ago
> Jim Cramer recommended getting in on Meta around 220 IIRC and then it dropped over 50% and he cried because on his recommendation people lost half their investment. Wait, someone actually traded on Cramer's advice? Please tell me this is a joke.

penjelly 3y ago

> He'd be up huge if he held, but he 'paper handed'. Is he a dumb guy ive come to believe its often a matter of solvency, theres only so long you can keep that money invested before people start wanting/needing it back. Especially with large economic shifts that weve been seeing.

hsod 3y ago
I don’t think solvency was an issue here but another way of getting to the same place is that he felt he could deploy the capital more effectively elsewhere. He made a bet on Netflix because he thought he had some alpha. After he lost a third of it he had less faith in his original thesis and thus his allocation priorities changed. Or at least that’s the story he’d want to tell

hsod 3y ago

Just for context Ackman’s 1.1B purchase would be worth about 2.25B today if he hadn’t sold it for 700M Of course that doesn’t mean it was a dumb trade but his rationale in the letter doesn’t make a lot of sense to me. It has the vibe of something you would come up with if you needed to sound smart justifying a decision you had already made emotionally

bitcharmer 3y ago

> Jim Cramer recommended getting in on Meta around 220 IIRC and then it dropped over 50% and he cried because on his recommendation people lost half their investment. Wait, someone actually traded on Cramer's advice? Please tell me this is a joke.