The Art of Short Selling

[claphands22]

[amazonsearch]The Art of Short Selling[/amazonsearch]

 

The Art of Short Selling is written by Kathryn Staley.  The book covers the risks of short selling, the personalities of professional short sellers, bubble stocks, high valuations, gobbledygook business plans, industry obsolescence, Crazy Eddie, the shortcomings of short selling, the history of short selling, and the fundamentals of finding shorts.

 

The book sells for 40USD+ for a new copy or the kindle edition. Looks like used copies can be purchased for 24 dollars at the moment. I got mine through the interlibrary loan system at my local library. 

 

"The corollary to the disclosure dilemma is that most analysts are afraid to admit that hey do not understand accounting or accounting terminology. So the cycle is self-perpetuating: Chief financial officers do not explain; analysts do not ask."

 

[west]

http://www.amazon.com/The-Short-Selling-Marketplace-Book/dp/0471146323

 

The Art of Short Selling is written by Kathryn Staley.  The book covers the risks of short selling, the personalities of professional short sellers, bubble stocks, high valuations, gobbledygook business plans, industry obsolescence, Crazy Eddie, the shortcomings of short selling, the history of short selling, and the fundamentals of finding shorts.

 

The book sells for 40USD+ for a new copy or the kindle edition. Looks like used copies can be purchased for 24 dollars at the moment. I got mine through the interlibrary loan system at my local library. 

 

"The corollary to the disclosure dilemma is that most analysts are afraid to admit that hey do not understand accounting or accounting terminology. So the cycle is self-perpetuating: Chief financial officers do not explain; analysts do not ask."

 

 

No comments about it?  Just starting this thread... because?

 

(I'm not trying to be confrontational.  I'm just confused...)

 

I recently finished this as well.  I thought it was a pretty good book, worth one read through while taking notes.

 

My only complaint is I don't think it's worth the 40USD+ price they're asking.  That and Staley tries to write in a folksy manner.  And she's really, really bad at it.  Which makes for painful reading at times.

 

[augustabound]

That and Staley tries to write in a folksy manner.  And she's really, really bad at it.  Which makes for painful reading at times.

 

I saw a video of a speech she did a few years ago.  That's the way she is.  Beyond boring with that folksy southern drawl from what I remember.

[claphands22]

The Art of Short Selling is a great book, which is why I started the thread.  The main takeaway from the book is the general pattern of short selling. Find a great short candidate, watch it run against you for a year(s) but with patience you should get rewarded. Short candidates have repeating themes: fads, frauds, accounting gimmicks and obscene valuations. You'll need to watch the short interest as a percentage of float because of squeezes; Staley recommends staying away from shorts where the short interest, as a percentage of float, is higher than 15%.

 

She gives lots of case studies of good shorts, some that were stressing to short, some that were instantly rewarding. No way to tell before hand how a short is going to go. The book was published in 1997 so it might seem dated to some people but I enjoyed the aged case studies, it reinforces the cyclical nature of the markets.

 

I am rereading it again before I have to return the book, I'll try to type up some notes for whoever is interested.

[claphands22]

I wrote extensive notes (7,000+ words) on the Art of Short Selling here: http://walrusvalue.blogspot.com/2014/02/notes-on-art-of-short-selling.html

 

I hope someone will find them useful. 

[Guest wellmont]

does the book arrive with a warning label on the cover?

[Orange]

I wrote extensive notes (7,000+ words) on the Art of Short Selling here: http://walrusvalue.blogspot.com/2014/02/notes-on-art-of-short-selling.html

 

I hope someone will find them useful.

 

 

I appreciate this.

[Liberty]

I wrote extensive notes (7,000+ words) on the Art of Short Selling here: http://walrusvalue.blogspot.com/2014/02/notes-on-art-of-short-selling.html

 

I hope someone will find them useful.

 

Thank you!

[RhubarbXIV]

With the continuous references to "pain" and the tables showing short interest side-by-side with share price, this book more than anything probably convinced me that short selling wasn't going to be my millieu.

 

It's still very much worth reading because the case studies are great a'la O'Glove and short selling is a great frame to use when thinking of what not to buy.