Activist short-selling is not something Indians are very well versed with. But in the last two weeks, perhaps all market participants, and also some amount of the general public have come across this term, thanks to Nate Anderson of Hindenburg Research.
This long but very interesting article focuses on Carson Block, an activist short seller. It also has a longish part on Nate Anderson and how they go about their work. It makes for a thriller-like reading.
In early 2022, Anderson got particularly creative on another project. His team was investigating a suspected Ponzi scheme involving an investing firm called J and J Purchasing. To get a meeting with J and J’s principals, they enlisted a man with experience in improv comedy to pose as a prospective client. A meeting occurred at a private airport in Nevada, aboard a jet that Hindenburg had chartered for the occasion to lend the impression of fabulous wealth. The plane was outfitted with hidden cameras and microphones.
The SEC has brought charges against 15 people allegedly connected to the operation, and court filings indicate that Beasley is negotiating a possible plea deal. Anderson has submitted Hindenburg’s report for consideration for the Pulitzer Prize in investigative journalism.
Those of you who have been reading what I write for some time know that I love tennis. In this absolutely brilliant article by Bill Gates, he talks about two games - the inner game and the outer game.
There’s the outer game, which is the mechanical part—how you hold the racket, how you keep your arm level on your backhand, and so on. It’s the part that most coaches and players tend to focus on.
What he thought was missing from most people’s approach, was the inner game. “This is the game that takes place in the mind of the player,” he wrote. Unlike the outer game, where your opponent is the person on the other side of the net, the inner game “is played against such obstacles as lapses in concentration, nervousness, self-doubt, and self-condemnation. In short, it is played to overcome all habits of mind which inhibit excellence in performance.”
“The secret to winning any game,” he wrote, “lies in not trying too hard.”
Thought of the Week:
“The desire to get rich fast is pretty dangerous.” ~Charlie Munger
“Someone will always be getting richer faster than you. This is not a tragedy.” ~Charlie Munger
Most troubles in financial life come from the desire to get rich quickly. It necessitates taking unnecessary risks and overleveraging. Getting rich is a function of being happy with what you have and spending less than you make.
Being time rich is probably more important than having a lot of money beyond what is required to live a decent life.
The focus has to be on contentment.
Video of the Week: Prof Damodaran’s review of the Adani short-selling saga
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