8 ms·
That is a really good point and one that I haven't thought of much. I've always considered "most popular" company as a signal of overvaluation, though I've cert
by jsight 8y ago
That is a really good point and one that I haven't thought of much. I've always considered "most popular" company as a signal of overvaluation, though I've certainly never analyzed that rigorously.
But is there a similar correlation with "most popular short" and future success? Its definitely possible.
- ShorsHammer 8y agoFair point, I wouldn't say simply being contrarian is the solution. Shorts do great work and can profit immensely from finding the truth, as they should, but personally feel the financial media is a Dr. Frankenstein which creates it's own monsters. There's plenty of examples of "common knowledge" in the year before the Great Recession. All sorts of talking heads lined up to re-iterate the _truth_. It is possible to short a viable company into bankruptcy and win from it, this is something that should be acknowledged.