
Ep 381. Disney and Nelson Peltz, Carvana’s Fall, Pair Trading Strategies, and Charlie Munger’s Top 3 Places to Find Stocks
Focused Compounding
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How to Short a Bad Business
If you're over 10 times price to sales, that means that it's totally on like any other kind of business that you can't kind of put in any sort of category possible. You have to be careful about shorting bad businesses where there's not something else wrong with it or it's not a fraud. Shorting a bad business is dangerous because of mean reversion and it's fairly easy for a bad looking business to make it a better business. But yeah, I mean, we own some where people would definitely do that.
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