15 Tips about Shorting

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We think shorting makes us better analysts. Charlie Munger says you really understand a company when you can articulate the negative scenario better...
We won’t short on valuation – say, because Google is trading at 20x next year’s cash flow when we think it should only trade at 15x.
When you short, it’s important to have the right benchmark. People look back and say, “I spent all this time and effort on shorting and only broke...
We made a few more general mistakes when we started our own firm. One was that we told ourselves that we should be hedging against macro concerns when...
Without having a commitment to the short side, it’s difficult to be offensive when you should be. The highest-return opportunities are available...
We short because I think it is the most prudent way to manage a portfolio, from a risk perspective, and because I believe the key to successful...
An important way we try to minimize risk is by actively deploying short sales. We don’t do it primarily for that reason – we do it to generate...
Tags: shorting, risk, sales
I'd always said that if a guy was long the best 50 companies he knew and short the 50 worst, if that didn't work you were in the wrong business. But...
We have consistently prepared for the worst, incurring significant hedging costs on an ongoing basis. While many of our holdings did not truly require...
How would you judge an investing strategy that had the following fundamental economic characteristics: 1) Limited potential returns, but unlimited...
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