STREET DOGS: Agony for money
So you might think short selling is easy, but it’s not
I am not genetically engineered for shorting. The mania of markets can last quite a long time, and when you take into account the collateral needed, it doesn’t appeal to me. — Bruce Berkowitz When you are long on a stock, as it goes down in price, the position is going against you and it becomes a smaller portion of your portfolio. In shorting, it is the other way around: if the short goes against you, it is going to become a larger position of your portfolio. When you short a stock, your loss potential is infinite; the maximum you can gain is double your value. So why will you take a bet where the maximum upside is a double and the maximum downside bankruptcy? — Mohnish Pabrai Being short and seeing a promoter take the stock up is very irritating. It’s not worth it to have that much irritation in your life. It would be one of the most irritating experiences in the world to do a lot of work to uncover a fraud and then have it go from X to 3X and have the crooks happily partying with...
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