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It's hard to believe in someone when your pay depends on their failure. I compare it to companies who take out life insurance policies on their low-level emplo
by millstone 14y ago
It's hard to believe in someone when your pay depends on their failure.
I compare it to companies who take out life insurance policies on their low-level employees, sometimes called dead peasant insurance. Would you want to work for a company that has a financial interest in your death? What if they told you that they believe in you, they really do, but the life insurance was so cheap that it was a superior risk-reward decision?
I would still say the company is wrong to do so: you should not bet against what you believe in, no matter how good you think the bet is. The stock market is not a game, and weaponized short selling can and has destroyed companies.
- damoncali 14y agoIf you could short Tesla at a price of $135,000 per share, would you do it? I sure as hell would, and it has nothing whatsoever to do with my feelings about Tesla's business, except that it's not worth $135,000 per share today.
- lutusp 14y agoAll right, but the "real" value of a stock is just one factor. Another one is the well-documented tendency of the public to be swept up in fervor for a company and an equity for reasons other than true value. That's another horse to ride.
- damoncali 14y agoIndeed. You buy when you think the the company undervalued and sell when you think it is overvalued. The order in which you do that is irrelevant and signals no emotion.