Tilson talks about Ambac (ABK), MBIA (MBI), Lehman (LEH), Citigroup (C), Washington Mutual (WM) and Wachovia (WB). He always makes great points. Is it just me or do the short sellers like Ackman, Tilson and Einhorn (when they are short) make the best points?
Disclosure (“none” means no position):Long C, WB, none
2 replies on “Whitney Tilson Talks About Shorts”
Clear communication is a sign of clear thinking.
The potential loss going long is limited to 100% while potential gain is infinite. The potential loss going short is infinite while potential gain is limited to 100%.
You can be wrong on a long and still survive. If you are wrong on a short, you can lose infinitely more than you have. I think that’s strong enough an incentive to be very clear about why you are going short. (Of course, that’s not to say you don’t need to think clearly going long.)
Just a thought…
Well Tilson’s Focus Fund (TILFX) is down almost 25% over the trailing 12 months and is almost dead lost in peer group over the past one and three years.
He might be articulate, but his numbers stink.
Wanna talk genius, punch up the Keeley Funds. Now they are good.