403- FROM THE VAULT: The Role of Shorting in the Market

“There’s nothing evil, per se, about selling things short. Short sellers—the situations in which there have been huge short interests very often—very often have been later revealed to be frauds or semi-frauds.” — Warren Buffett Short selling, or shorting, plays an important role in public markets as it improves prices, rational capital allocation, prevents bubbles, and shines a light on fraud. A recent example of this is the Gamestop event which caused many investors to either gain or lose money, as shorting isn’t ideal for all investors. This is why it’s important to invest with your values—so you can invest with confidence and reduce your risk of making bad investing decisions. In today’s podcast, Phil and Danielle discuss the important role short sellers play in our market and why it’s important to invest with your values. Learn about the Four Ms and how they can help you invest in the right businesses at the right time with this FREE guide: http://bit.ly/3btAqhM Topics Discussed:

Confirmation bias

GameStop squeeze of 2021

Short selling

Hedge fund collusion

Resources Discussed:

Beat the Dealer

Black-Scholes Model

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