Hacker News Reader

Comment by ramblerman | Hacker News Reader

> and why people who bought in at 200/300/400 will lose their YOLO money

Simply because the stock isn't actually worth 400.

A few players made a smart play on wallstreetbets, and they got lucky when the hedge funds were stubborn enough to keep going deep into the red while the subreddit gained 3m new subscribers and was able to keep squeezing them.

But buying in at 400 today seems like idiocy. It would be akin to joining a pyramid scheme right at the end. Maybe you are not last, but it's likely.

View on HN

Basically no stocks are worth their price today, if there was a condition that you weren't able to sell the stocks after buying nobody would pay the current prices on stocks. The only reason they are valuable is because you can sell them later to the next loser.

Take Walmart for example, it would take 70 years for you to get back your money from the stock from its dividends which are extremely stable. Do you think that is worth it? No, you pay for the stock since you know someone else will also pay for the stock when you sell, not because you want to get those sweet dividends.

> it would take 70 years for you to get back your money from the stock from its dividends which are extremely stable.

Why are u valuing a stock by its dividends alone? There are stocks without dividends.

I agree we are in a bit of a bubble right now, but your valuation method seems a bit lacking. Walmart has a P/E of 20 which while also too basic on its own would give you a far more realistic 20 years.

Do not forget the emotions at play. Financially it might not make sense, but the feeling to be part of the team that "sticks it up to the man" might play a role in the decision to join, even this late.

They'll be sticking it up to the man at their expense, or the bigger sucker that comes in after them. Maybe it's worth the money for some.

Sooner or later it will pop, it's not like the GME business suddenly got 50x more valuable (and it's not looking to get, any time soon). So the last suckers will be left with an expensive paper that pays little to no dividend, or they can try to sell it to a market where no one wants it.

Read the threads. It’s very clear that people understand that. Some of these people bought fractional shares just to participate in potentially bankrupting a hedge fund.

Yeah, the whales already invested when it was >60. Those buying at 400 are small investors with a few bucks that are riding the social hype with YOLO money. They don't really care about that money if they can say "I was there".

Try to train a HFT algorithm to account for this.

I felt the same with it at 85 on Monday.

The way I look at it, it’s a shame it’s a missed opportunity. But it didn’t cost me anything either. So there is that.

It only seems like idiocy if you’re in it to make money. Think of it more like donating $400 a cause that will actually have concrete results.

Reply on news.ycombinator.com