Muddy Waters is short

[Masterofnone]

What a great reminder of "know what you own".

As Fairfax is currently charging each week to all-time highs we are up about 75% from the wonderful opportunity presented by the short attack. There was little fear here on the board. More like oh boy! Flash sale!

 

But it brings up how complex the psychology is when it comes to adding significantly at higher prices. Having the quote drop 10% from prices previously attained during a one month run-up made it seem like a bargain at $930, but how many of us were buying in the weeks before that at the same price? It took the shoddy short report to give us a dope slap to remind us of the positives and potential. Whatever- man am I thankful.

Edited May 7, 2025 by Masterofnone

[cwericb]

Guess that is what happens when a guy like Carson Block (Muddy Waters) listens to a guy like Brett Horne. Perhaps they are in-laws or something?

[SafetyinNumbers]

23 minutes ago, cwericb said:

Guess that is what happens when a guy like Carson Block (Muddy Waters) listens to a guy like Brett Horne. Perhaps they are in-laws or something?

I think they are two totally unique kinds of grifters 

[Masterofnone]

13 minutes ago, SafetyinNumbers said:

I think they are two totally unique kinds of grifters 

They are our pals! Pulls down the stock price for purchases and buy-backs while the company itself clicks right along. What's your beef?

[SafetyinNumbers]

6 minutes ago, Masterofnone said:

They are our pals! Pulls down the stock price for purchases and buy-backs while the company itself clicks right along. What's your beef?

No pals of mine. Both take advantage of investor ignorance and psychology. Lots of Canadian investors in particular will never buy FFH because Morningstar is their screen or the screen of their investment advisor. 

[Masterofnone]

18 minutes ago, SafetyinNumbers said:

No pals of mine. Both take advantage of investor ignorance and psychology. Lots of Canadian investors in particular will never buy FFH because Morningstar is their screen or the screen of their investment advisor. 

Which is more important to you:

That Fairfax is fairly and fully valued at this particular moment in time.

or

That Fairfax steadily grows value far into the future?

 

(They keep repurchasing stock every quarter)...

[SafetyinNumbers]

35 minutes ago, Masterofnone said:

Which is more important to you:

That Fairfax is fairly and fully valued at this particular moment in time.

or

That Fairfax steadily grows value far into the future?

 

(They keep repurchasing stock every quarter)...

Most important to me is the golden rule.

[Masterofnone]

Fair enough. Not pals then, inadvertent helpers.

[Buckeye]

Here’s an interview on TCAF with TCOBF’s favorite short seller!

 

A couple of interesting points that stuck out to me:

 

-No mention of Fairfax, when asked about his biggest misses. Maybe is doesn’t qualify yet? 

 

-Admits to putting his name on other firm’s reports, as long as they agree with the premise and facts (this may not be a surprise, as I believe this issue was raised by other board members).

 

-When asked what they do if one of the names they are researching starts to move (down) before they’ve published.  He says they usually buy “Schmuck Insurance” just in case, so they can still capture some of the downside action. Hopefully he bought lots of Schmuck Insurance on FFH.

 

-Josh Brown mentions how most investors don’t fully understand the businesses they invest in, and therefore when a short report comes out, they tend to believe the short seller and capitulate.  No mention of what happens when one of the companies they short has an entire website/forum, and a legion of fans/investors devoted to in-depth research of said company.
 

https://podcasts.apple.com/us/podcast/the-compound-and-friends/id1456467014?i=1000706947001

Edited May 10, 2025 by Buckeye

[villainx]

On 5/9/2025 at 4:45 PM, Buckeye said:

No mention of Fairfax, when asked about his biggest misses. Maybe is doesn’t qualify yet? 

Thanks, don’t have to look out for it. 

[Masterofnone]

Another big thank you to Muddy Waters!

Now at a double since 02/08/2024 when many of us took advantage of his hack report.

[UK]

11 minutes ago, Masterofnone said:

Another big thank you to Muddy Waters!

Now at a double since 02/08/2024 when many of us took advantage of his hack report.

+1