Short Selling

“Short sellers are the canaries in the coal mine”

“Shorting is difficult. If you short, you are not only making an investment decision, you are making a market decision.”

“When you look carefully at the economics of shorting, it makes no sense to take the bet. The lowest price a company’s stock can go to is zero, but there’s an unlimited upside. An unleveraged short position has a maximum payoff of 2:1.”

“To me, the primary task in investing is to test and then retest some more the parameters and paradigms that appear to govern daily events. Betting against them is dangerous when they look solid, but accepting them without question is the most dangerous step of all.”

“It takes a great deal of nerve to cling to a short position in a stock in the face of an advancing market even though the stock may clearly be overvalued.”

“Short sellers are the market’s police officers. If short selling were to go away, the market would levitate even more than it currently does.”

“To some degree, I’m betting on the continuation of what is now. I’m not betting it will continue exactly, but I’m betting against dramatic discontinuities.”