Putting His FANG Into the Stock Market: Getting to Know Bob Lang

Yes, we all know Bob Lang. He’s been at TheStreet Pro for years! But how well do you really know Bob?

In the latest video in our “Getting to Know…” series, I sit down with Bob Lang and learn that he was the guy who invented the FANG acronym, which gave way to today’s Mag 7. Plus, we discuss Bob’s thoughts on risk management and why he doesn’t leave his trading desk during market hours.

Please enjoy.

Video

Transcript

Jason Meshnick (00:02.242)
Getting to know Bob Lang at TheStreet Pro. All right. My name is Jason Meshnick, the CEO of TheStreet Pro, and I am joined today by Bob Lang, who has been with TheStreet Pro for well, we’re gonna learn how long Bob has been with TheStreet Pro. But I just want to start off by saying Bob is one of my favorite people at TheStreet Pro because he is can do lots of different things. Bob publishes out on everything from technical analysis to options to even short trading ideas.

has been working on the portfolio for a number of years. And with that, let’s get to know Bob. So Bob, as we’ve discussed the way this is going to work, I’ve got seven different questions we’re going to talk about today. And the first one is we’re going to start with a fun fact about you to help everyone get to know Bob Lang.

Bob (00:51.579)
Well Jason, great to see you and great to talk to everybody and thank you for the nice introduction. The check says in check is in the mail. So sending it to you. So no, seriously, you’re you you’re you’re just doing an amazing job with with with TheStreet and kudos to you. So fun fact about me. it was about thirteen years ago, Jason, when I was I was doing some work for Jim Cramer, not here at the

Jason Meshnick (00:58.84)
Yeah.

Bob (01:20.429)
here at TheStreet but also for his Mad Money show. And he he got wind that I was doing a you know, he was doing a lot of techno analysis and charting. And so I started I I came into his lineup or stable of of chartists that he would bring on once ever once a week or once every other week for this segment called off the charts. And so I I was I was doing some stuff from time to time. We did

Did a segment on Boeing, we did a segment on Goldman Sachs, a few other things as well too. So it was in two thousand thirteen, Jason, when I he he he would email me, Bob, got anything for the show next week? That’s all he that’s all it’s that’s all he’s he was even to to to this day, that’s all he says in an email to me. So he said, Sure, let me figure something out. So I remember that he was doing something with acronyms.

And I I wanna say the one the one acronym that he had with names was Candies. And it was I can’t remember it was intuitive surgical, it was Netflix, some couple of other other other other names, Apple and so I said, Well let me let me see if I can figure one out. So I d I I I put a couple of names together. I said, Yeah, I really like Facebook, it’s new. It came out there and that was a pretty good one. Amazon, always love Amazon.

Netflix was a it was a was a hot shot name that I really liked and then Google. So put those four together, Jason, and I came up with FANG, F A N G. And and that was an acronym that that Jim used on the show. It was in February of two thousand thirteen. And he ran with it and he ran, ran, ran. He he he scored probably ten touchdowns with that with that ball over over the pat over the following ten years or so until, you know, Mag seven came out.

and and re somewhat replaced it. But, you know, every time somebody tried to kill Fang, they it it rose like a phoenix. for a while there, Jason, it seemed like Fang was being talked about every single day on the financial media, whether it was C N B C, whether it was Bloomberg, or CNN or or Fox Business News, everybody was talking about Fang and how important this group of stocks were to the stock market. And

Bob (03:41.957)
So it wasn’t until about two thousand eighteen, seventeen, eighteen or so that Jim actually admitted that he stole it from me. I don’t I w I wouldn’t actually say he stole it from me, but we we we we put we put it together. I I I like to think of this as a as a as a joint venture between him and I. I don’t think he stole it from me and look, you know, I mean at the time

Everybody knew Jim Cramer, nobody knew Bob Lang, so it it was important just to let him go with it and run with it and see how much mileage he can get. And obviously he got a lot of mileage out of the out of the FANG. But it was a it was a lot of fun, it was a good run and you know, people still remember it to this day. So that’s that’s my fun fact for you. I came up with the Fang and if anybody wants to ask Jim, he’ll he’ll he’ll agree, he’ll admit it and came up with it and we worked on it together and it was a success.

Jason Meshnick (04:34.359)
So Bob, you you really put the fang into the market.

Bob (04:37.168)
Of the bite, right? To put the bite in the market right now. Yeah.

Jason Meshnick (04:39.169)
The the bite.

bite from the Fang into the marketplace and that’s that big at yeah the Mag Seven like you said. And and really if you think about you know the size and the importance of those stocks these days, it really has in many ways taken over the market. Right. They’re they’re the largest market cap companies, they’re the most important and really they they push the market around. Helene every day talks about the the mag seven versus the others and and really that’s it’s this kind of bifurcated market that you know it all goes back to

the Fang stocks that you you came up with. You came up with the acronym.

Bob (05:14.33)
So so so Jason, let me let me let me put you ask you a question. Of those four names, Facebook, well meta Amazon, Netflix and Google Alphabet, which name sin in thirteen years do you think has done the best of all four of them?

Jason Meshnick (05:31.703)
it’s probably gonna be the one that I don’t expect. and so I I’m gonna go with with Netflix on that.

Bob (05:42.363)
You’re correct. By a mile. They by a country mile. They crushed the other three names like it like it’s nobody’s business. And that’s not because it was a small market cap name and and it grew so much, but it it did grow a lot. It it went up and split a couple of times. I think it did a one for seven split. but yeah, this stock just just went ripping higher.

Jason Meshnick (05:45.441)
Yeah.

Bob (06:09.192)
And it was it’s it’s been the it was the number one stock, even though nobody’s really paying much attention to it other than we are in TheStreet Pro portfolio, it’s in there. nobody’s really paying much attention to to Netflix anymore. they figured somebody asked me, so why didn’t you use NVIDIA for N instead of Netflix? I’m like, Well at the time it wasn’t it it it wasn’t on my radar screen, so

Jason Meshnick (06:31.103)
Exactly. Nobody was talking about it back then. And and and Netflix was also a bit of a turnaround story back then, right? It it had its day in the C D times, and then when when streaming came along, people were like, Well, I think Netflix their their day is over. And then they they made a great turnaround. but I’d like to move on to our next question, which kind of builds on what we’ve just talked about. so you talk about your relationship with Jim Cramer.

going back thirteen years, but I know that it goes back longer than that. So our second question is how long have you been with different iterations of TheStreet Pro, Real Money, et cetera?

Bob (07:08.752)
So I think I I I first got started, Jason, in in 2009, you know, right around the financial crisis, just maybe just before. and admittedly Jason got myself in a little bit of hot water with some people. I was a little bit ornery posting things on the on the site. And I talked with Dave Morrow, who’s passed away. He was the CEO of of of TheStreet back.

back in the day. and he wanted my content on the on the website and and I didn’t realize how important it was to to be a little bit more judicious and a little bit more calm and a little bit less rowdy. so I got a little bit of hot water with some people. one of them, my good friend Doug Cass, who didn’t like a little bit of what I had to say. We have we have ironed out those differences and we are we are great friends today. so those

that all that is water under the bridge. yeah, Dougie d I I I love Dougie. He’s wonderful. He he he does just an amazing job every single day and and

Jason Meshnick (08:11.543)
Good to hear.

Jason Meshnick (08:18.933)
He does. Nob nobody works harder than Dougie.

Bob (08:21.198)
Nobody, no no question about that. He he he is the hardest working person on TheStreet and and and deserves the all the accolades and kudos that he gets on a regular basis. but I got myself thrown off, Jason, and they it for about a good year and a half and it I did it to myself. It was self inflicted wound and I

Jason Meshnick (08:45.591)
To steal a line from Seinfeld it was no Bob Lang one year.

Bob (08:49.978)
That’s right. That’s right. And so they changed editors and we we got a Pauline Breath Mac was took over. She’s since moved she had moved back to Europe. anyway I I I reached out to her and I said, Look, can I can I get a spot back in there please? Can you you know and she said, Well I’ve got a seg I got a a piece coming up, it’s the Fight Club, a bull versus a bear. Can you write a can you write something about, you know

particular stock, can’t remember which one it was. So and and I actually did a did one against Sarch. It was a bull versus bear against Sarge back then. So this was probably in two thousand eleven, two thousand ten eleven. And it went went over very well. So she said it it did a nice job and you know, we’ll we’ll we’ll we’ll contact you to get another one. So a month or so later she asked me to do another one and that one went very well. and a couple months passed I said I I basically

virtually got on my hands and knees again, Jason, because I knew how important it was to be to be on the commons conversation which was a really important spot back on the back in the day. and I really wanted to get on get back on board with everyone and so I basically got on my hands and knees and she said, Okay, let’s do this. I’ll give you a we’ll we’ll have a zero tolerance policy for you. If you go it get out of line just once, you’re out. I said

Deal. I’m in. So I I learned my lesson. I didn’t I I kept my nose clean ever since and and and and and here we are. So I mean I I it’s been a good it’s been a great run.

Jason Meshnick (10:29.279)
Awesome. Yeah, great. okay, so with that, let’s let’s move on to our third question, which is around your investment philosophy and style. And and one of the things I’m trying to get at with that is is which of our members, what type of our our members would get the most out of your out of your commentary and ideas?

Bob (10:49.648)
Well I I think Jason the the the the members who who who like reading my stuff and appreciate it are intermediate term to long term investors and traders. You know, I I I I I back in the back in my younger days, some years ago, I I would have a little bit be a little bit more aggressive, riskier,

And I’m not gonna say reckless, but sometimes I was. And and I I d I I don’t think that there’s a place for that these days. I know the young people who who tr who trade, I’m I used to be a young person like you, really like that action, like to gamble, like to take risks. But you know, I think today, in today’s market, at our age, it’s more important to take smart risk. And and so I think the the the the investors who peop the people who read what I’m doing see the the the value

of of putting of of using options and not just going long options but also using options against their stocks you know whether it’s cover calls or selling puts open to to pull stocks in at lower prices these are good strategies to use to not just protect yourself but also enhance your return so I think medium term to long term Jason are the people who are paying attention to what I’m

Jason Meshnick (12:11.051)
Yeah, I think that makes sense. And I think you might say that your philosophy used to be that you were bold. And they say that there are old traders, there are bold traders, but there are no old, bold traders.

Bob (12:22.224)
that’s that’s true. That’s a good that that that’s I remember that one. That’s a good that’s a good saying. That’s that’s true. I’m I I’m I’m not quite old yet, but I’m I’m I’m I’m a lot less bold than I used to be.

Jason Meshnick (12:35.669)
Exactly. And I I think that makes sense. I think that works for a lot of our subscribers too. It’s one thing to be bold in your own account or or when you have people following you in the in the minute, right? like like people are following Doug Cass. But but for the rest of us, that you know you can be bold, but on a longer term time frame, which is you know, there’s a little bit different kind of risk there. so let’s with that let’s let’s move on to our fourth question, which is around

Bob (12:45.328)
That’s right.

Bob (12:58.32)
That’s right.

Jason Meshnick (13:04.693)
your best trade, but I don’t necessarily need to know your best trade. It’s more about, you know, what does a good trade look like? What what do you think a good trade is? Which isn’t necessarily your biggest winner.

Bob (13:16.11)
Right. And so a a good trade is one that for me, you know, I’m a I’m a technician, and I know you’re you you you’re very fond of of of the technicals and use that in your analysis and have in the past. but you know, I I look for a stock that’s that’s generating generating great momentum and has good relative strength versus the versus the the indices. Maybe it was the SP five hundred or maybe it’s the NASDAQ.

Or maybe it’s a Russell two thousand. So I’m looking for stocks that that perform better than than and everybody else. And and look, that’s no different than than than finding a good basketball team, Jason, or finding a a a good tennis player. You know, the you you look for the person who’s performing the best in in situations and conditions that are about equal for everybody else, right? So I mean if i if you were a basketball fan back in the day like I was in the eighties and

you know, I mean, one name comes to mind, Michael Jordan, right? I mean, who who who was better than Michael Jordan back in the day? They were per he was performing better than everybody else. He had the best relative strength, he had strong momentum, and he performed and he executed and was had a perfect record in the NBA final, six and right? So I I don’t know of anybody who’s who’s who’s had a perfect record in the in the NBA finals a as well as he as as he’s done. So so I’m looking for stocks that perform well

I’m not so exactly bothered when a stock gets overbought w from a lot of momentum because overbought is simply it’s a it’s a condition, it’s not a signal. So I’m I’m looking for stocks that have already had a signal, given me a good signal and allowed me to to jump on board. And if the stock pulls back and gives me a dip opportunity to buy, then even better. So so th those are

Jason Meshnick (14:55.681)
Right.

Bob (15:10.128)
So those are some of the qualities I’m looking for. you know, I’m looking for v the strongest momentum names in the universe that I can.

Jason Meshnick (15:17.995)
Yeah, I I love that. too many people look at overbought, oversold as a trading signal. And and for years I’ve been trying to get people to to look at it exactly as you just said it. It is a condition and it it’s not a signal. overbought just means that the stock might be ready for a pause or reversal, but it doesn’t have to. Stocks can stay overbought or oversold for a long period of time. That just means that you have a strong trend when that’s happening. Yeah.

Bob (15:42.672)
That’s right.

Jason Meshnick (15:45.004)
Wonderful. great. So well since we’ve talked about you know, what does a good trade look like, let’s actually talk about we can be more specific here, what was your worst trade and what did you learn from that? Because I feel like worst trades can be far more educational than best trades.

Bob (16:03.406)
Well, I would say I mean not a couple. I I had I had one where there’s a little d indiscretion if if you if if you could indulge me here for a little bit. I was in a lot of I was in over my skis about probably about two thousand seven or two thousand eight on some Google alphabet calls.

Jason Meshnick (16:09.741)
Ha.

Bob (16:29.646)
Now back then I was just really kinda getting s getting my feet wet with options. I really got started in two thousand three or four. you know, and learning learning a little bit more, and making mistakes and making some good trades. But, you know, if you remember back in the time that was right before the financial crisis, Google had gone public, I think, in two thousand four. It had been a hot name and had been doing very, very well. so I had gotten over my skis on some Google calls. I had a lot of a lot of Google. I think probably had about

fifty thousand dollars with a Google calls. And I had some other positions on as well. It’s about ten minutes to seven. I’m in California. market’s been open for twenty minutes. Stock is doing well. and I go to the bathroom and I didn’t have any any put protection on. We didn’t sell any calls against it. So come out ten minutes later, Jason, I’m down twenty five grand on the position. What’s going on? What happened here?

Jason Meshnick (17:26.955)
no.

Bob (17:28.812)
And apparently the CFO made some comments at a c at a at a conference saying something to the effect of, Well, we can’t sustain this rate of growth forever. And and everything just it just went down. It went it went it it sunk on on really heavy volume and I couldn’t believe it. I’m like, I’m never gonna go to the bathroom again while the market is open. I just can’t do it. So I mean I I’m not leaving my desk. So

Jason Meshnick (17:43.445)
I remember that.

Bob (17:58.405)
That was that was a that was a bad a bad result. It wasn’t necessarily a bad trade. I I was probably and again the the worst thing was that I I got a little overexposed over over my skis on the position. I had I had I was holding too much, I didn’t have any protection on, but I learned my lesson there about that and also holding it instead of going to the bathroom. So I hopefully that was not a hopefully that wasn’t a a bad story.

Jason Meshnick (18:13.389)
Mm-hmm.

Jason Meshnick (18:20.877)
So it came down to

Jason Meshnick (18:25.973)
No, I I I think it’s great because it it shows it shows two things. so your risk management strategy is it I I think it comes down to two different prongs. The first one being learn to hold it, become a camel, and and the second one is position sizing, right? position sizing or find or or even like you said, having a an offsetting strategy with put protection in there to to manage that risk.

Bob (18:54.778)
But for everybody just l a as a quick lesson over here, position sizing and risk management are the only two is the it’s the only thing that you have control over. The market can’t control your risk management if you just if you don’t let it. so I I I implore everyone to to manage their risk carefully. because it’s your money and the market will do will will will will do anything it can to take their money away from you and and not apologize for it. So yeah, the is risk management is

Uber important for me. I share it with everybody. I tell everybody about it all the time, day in and day out, five, ten times a day if I have to, because it’s the only thing you can control.

Jason Meshnick (19:35.926)
Exactly. And I think too many people come to TheStreet Pro looking for trading ideas, which are important and great, right? But but at the same time, what you and the other contributors are writing about are those those trading ideas within the context of risk management. Yeah. So great. all right, let’s move on to and I think this this actually rolls right into our next question, which is do you have some investment wisdom for our viewers?

Bob (19:51.6)
That’s right.

Bob (20:06.148)
Well, since there’s a lot of people out there who who who aren’t familiar with with trading options or if they are they they’re they’ve maybe dabbled a little bit here and there. it’s it’s not a it’s not as easy as people would believe. But it’s not also not as hard as people have been told or think it is. it’s it’s generally spe it if you have some you know, common sense and some wisdom about about options

and about risk management and about an understanding about math to a certain extent. You can you can you can do it. You can do it well at at it. And I think that there’s the misconception there is that there’s just all this risk involved in trading options and it it’s just like a playing in a casino where you have no edge. Right. So I’ve I worked for years and years Jason to try and create an edge for myself.

It’s not a hundred percent perfect. Nothing ever is, right? Nothing nothing is ever gonna be a hundred percent perfect. But if I can create an edge for myself that gives me a little bit of an advantage over the the over the the market. And I’m again I’m not competing with other people. I’m just competing with the market and and each and every day. I’m trying to my I I wake up every morning, Jason, saying to myself, you know, how can can I can I how can I make a buck today? And if I can do that, and and and make some money trading, then I feel doing

everything that I w that I love to do. I I heard Rev Shark on the on this interview that you did with him not too long ago loved what he had to say about how he he loves what he does, loves trading and he wouldn’t give it up for the world and he says, I’ll never retire. And I I hear, here, same thing with me. I I just love what I’m doing. As long as I manage the risk properly. So that’s if there’s anything people can take away from what I’m talking about today.

manage your risk properly and and and understand and learn about the tools and the technicals as well too and use those to your advantage in in with trading with trading options.

Jason Meshnick (22:14.197)
Yeah, that’s great. And I think I think that gets to our next question though. But it’s it’s about so many of our contributors have a passion for what they do, right? not that any of you would do it for free. I wouldn’t expect that. However, I I think in many ways you would play the game for free, right? It it’s it’s about the game and it’s about the love of what you’re doing. so with that, you know, so that’s one of the things that I think makes TheStreet Pro so special, but

Bob (22:36.624)
That’s right.

Jason Meshnick (22:42.177)
What do you think it what is it about TheStreet Pro that makes it so special?

Bob (22:46.734)
I think it’s the the collective intelligence of of of the of the group of the the people with different experiences and backgrounds. You know, you’ve got somebody like Helene Meisler working working with us and she’s been to different she’s been worked for Cowan, worked for Goldman, worked for a lot of in in different countries as well, lived in Singapore for a while. you’ve and you’ve got a whole bunch of other talented writers who who bring their bring their experiences

to to everyone and to share them with them with them and and to teach them what to do. Because I I think that first and foremost TheStreet should be considered a a an educational diary for everybody so if so you will I know Doug rides a diary, but we’re all we’re all trying to teach you how to be become a better investor or a better trader, be smarter and and and not get caught up in

in in the minutiae that you hear every single day in the media. What we present to you are good hard facts and about about conditions, about markets and about inter interesting trading ideas and investing ideas. That’s what we bring most to to our all of our readers. And you know I I think that that right there is the the greatest compliment that we can get is somebody says, yeah, well you know what I learned something from Bob today or I learned something from Chris Versace

today about this something and I’ve been able to take something away. and and that’s the greatest compliment you can have.

Jason Meshnick (24:22.869)
Awesome. Yeah, that’s great. I completely agree with you. And so is there anything else before we wrap up that you’d like our viewers to to know about you or TheStreet pro or anything else?

Bob (24:36.852)
I think that’s it that’s probably it, Jason. I think I’ve I really enjoyed spending a lot of time and sharing a little bit about my of of myself with with everyone and you know, if you’re in a situation you know, where where where you just don’t familiar and you’re you’re really feeling like you’re in a panic, it’s it’s not as bad as you think it is. And just you know, you you gotta t calm down, settle down, take a deep breath and and recognize it for

Recognize situations and conditions for what they are and don’t panic and then you’re gonna be you’re gonna be just fine.

Jason Meshnick (25:12.235)
Exactly. Yeah. And I you know, I was thinking yesterday about opportunities in the market and how when I when I was actively trading when I was younger, you know, I I would notice some some opportunity that I that I missed and I’d get upset that I missed it. Like, that was a once in a generation opportunity. I should have taken more advantage. But you know what? There’s opportunities that come along.

every day. constantly. There there are new opportunities. Right? Whoever would have thought that AI would be what it is today. You know, ten years ago, it certainly certainly was not. Nobody nobody was talking about AI. And now we are. And and we don’t know what the next thing will be. So there’s there’s always an opportunity.

Bob (25:35.28)
That’s right.

Bob (25:47.332)
Right. Listen, there you know, and and you know, people talk about, you know, this AI is a bubble and of of course it’s a bubble. There’s bubbles everywhere. There’s all you know, there’s always bubbles going on. There’s some are bigger than others, right? I mean, there was a bubble back in the in the biotechs and back in the late eighties. There’s a bio there’s the dot com was a bubble. The financial h crisis back in two thousand eight nine, that was a bubble. I mean, come on. There’s bubbles everywhere. But you know, it’s it’s it’s being able to

That’s how you make money. You make money in a bubble. You can lose your lot of money if you stick around too long. But you make money when the market is you want the market to go up in like like it like it’s been in a like it’s in a bubble. That’s how you inflate. That’s how you inflate your portfolio. That’s how you make money. It’s just being able to recognize when it’s time to slow down or step out step off the train, or or even, you know, take a slower train. That’s okay, right? I mean there’s always bubbles everywhere. So it it’s it’s it’s not anything that

Jason Meshnick (26:42.879)
Exactly.

Bob (26:47.278)
And there’s gonna be bubbles down in in the future. We just don’t know what they are.

Jason Meshnick (26:51.327)
Right. And and you what? And sometimes the best markets where you can make the most money, sure, you can make if you if you ride that trend in in the bubble, you’re doing great. But also being able to be nimble during markets where where there is no where where you’re not in a bubble. you know, oftentimes my favorite stocks to trade were the ones that actually didn’t really go anywhere and I could make lots of small trades. so well with that, Bob, I just want to say thank you for your time and thank you for all of the great work that you do on TheStreet Pro.

And thank you to everyone that’s listening. if you’re a subscriber, thank you for for being a member and for making us the successful site that we are. And if you’re not yet a member, please please visit us. You can read one

Article for free. the second one you have to give us your email address, but you can read a second one each month for free. And then after that, we’d love you to sign up and join us. So thank you, everyone. Thank you, Bob, and and I appreciate your time. And we’ll be back with another segment on getting to know TheStreet Pro subscribers very soon.