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

It’s a valuable strategic tool that allows you to profit on weak companies as well as strong ones, and in bad markets as well as good ones. But there is a caveat. You really have to understand what you’re doing because, what you’re betting against is a company that, quite often, is literally fighting for its survival. To maximise profits you need to get in when skies are blue, but then you need the storm clouds to arrive fairly quickly. It’s not easy. If you have any character flaws, you’ll find them when you start short selling. — Keith Fitz-Gerald..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now