The five models that we teach the students work in different waysand and overlap, of course. The macro model is the kindelburgminsky model, which basically says that the fraud cycle follows the business cycle and financial cycle with a lag. We then have we use governance model, which i derive from bill black from his great book, the best way to rob a bank is to own onewasisawich wat, his stories of the esenel and banking crisis as an a bank experememer quite wel late eighties, early 90s.
Our guest this week is renowned short-seller Jim Chanos, founder, and president of Kynikos Associates. Over the course of his long and successful career, Jim has publicly bet against companies like Enron, which Barron’s deemed the “market call of the decade, if not the past 50 years.” While many know him for these famous shorts, fewer know that Jim is also a passionate historian, and is a firm believer in the notion that history can act as a useful guide for investors today. In this wide-ranging conversation, we discuss:
- How Jim started his career in finance
- The Mississippi Bubble
- How past financial frauds and manias can be useful for modern investors
- Tesla
- Lessons from the Great Financial Crisis
- Jim’s financial history course at Yale and Wisconsin
- Theranos
And much, much more… we hope you enjoy.