SHORT-SELLING

Lehman Brothers has been using financial engineering to hide its problems. The firm is not as strong as management claims.

I don't short because I hate the company. I short because I believe the stock is overvalued relative to reality.

My biggest mistakes have all come from shorting great companies that I thought were overvalued.

I shorted Netflix and it taught me that being smart about valuation doesn't mean you're right about the stock.