1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (4623) 

Jim Chanos – Recaps His Career as a Short-Seller, What He Is Shorting Today

December 06, 2012 | About:

Some comments from Chanos:

- The first company he looked at as an analyst was an enormous fraud; this turned him onto the short side of the business.

- He got his start in 1985; since when the Dow has increased ten times, not exactly fertile ground for a short-seller.

- Short-selling’s most important function is that it brings real-time financial detectives to the markets; regulators are good at finding things after the fact while short-sellers are financially motivated to find frauds.

- Short-selling is now considered much more acceptable as it has been popularized by hedge funds.

- Why he likes China as a short: because there is a credit bubble and because profits from companies are “skimmed” and never get to the passive investor.

- The real estate bubble is still inflating in China (he warned about it three years ago).

- He isn’t bearish on all of China but certainly is about the property market.

- The best short in the world is to be short government promises.

- He thinks investors should be exposed to assets that will beat inflation (including equities) and that really long dated-bonds are a bad idea.

About the author:


Rating: 3.0/5 (5 votes)


Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

jblrseUndervalued Comanies
1946DCF ROC price change one yr
DBrizanmga beater27Jul2016
DBrizanmga beater
DBrizanBlank 26Jul2016
DBrizanBlank 27Jul2016
DBrizanUSA high quality

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)