
219: Edwin Dorsey – Critical Reporting—A Good Guy Flagging Bad Companies
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How to Make Money in the Short Market?
Wik: It's quite difficult to make money as an ethical a short vesta. In order to break even, you need be generating nine per centage points of alpha. Also, now that there's more short cellars out there, and people become more sophisticated,. There's like less lay ups. If something is obviously overvalued or going to zero in five years, usually it's heavily, heavily shorted. So the borrow cost is going to be high, and there's going to be a lot of squeezes along the way. Those two factors, i think, are the big thing.
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