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Worthless if you assume their business will not change and adapt. This is the fundamental risk in most short selling theses. People and businesses are not stati
by voisin 6y ago
Worthless if you assume their business will not change and adapt. This is the fundamental risk in most short selling theses. People and businesses are not static, immutable objects. Given the dollars on the line you have to assume they will be seeking ways to pivot and adapt.
- krustyburger 6y agoThey have been consistently losing money, quarter after quarter, for a long time. The dollars on the line were present all the time. Your logic applies equally well to long positions, if you believe all people and businesses are constantly in such flux.