This sounds like “scrabble bag investing”
Earlier this month – sat in front of a sign saying “stocks are easy” – Dave Portnoy explained his investment philosophy.
“You just take a couple letters, you mush ’em together, you press ‘buy, buy buy’, and you watch it go up, up, up. That’s how this works,” the sports blogger-turned-investor told his fans.
A few days later, prompted by some gentle ribbing of his claims on CNBC, Portnoy made good on his boast. Ripping open a new box of the tile-based word game, he drew R and T – pointing him towards defence contractor Raytheon.
“Don’t know nothing about it,” he said. “Two hundred grand, market order – done."
Since then, Raytheon shares have fallen about 5pc. While Portnoy’s trade may not go down as one of history’s great investments, it epitomised a corner of the trading world that has gained increasing attention in recent weeks.