Warren Buffett: Shorting Stocks Is Always A Terrible Idea

Warren Buffett has frequently made his views on the dangers of shorting stocks clear, and in this video, he emphasises the unlimited financial losses and potential bankruptcy that might be suffered by people who attempt to short even the most obvious frauds.

[guydreamr]

Markets can stay irrational longer than you can stay solvent. - John Maynard Keynes

[chavruta]

remember than even the Big Short guys almost failed because the timetable almost outran their ability to stay solvent.

[Lithilic]

The potential upside on shorting just seems so minimal for the amount of risk you have to take on to get those returns.

[normbograham]

i have not lost money shortselling, but eventually i realized the gain was not worth the risk. i then made some money with the short squezed stocks, but even that gets weird because you are holding stocks you do not believe in.

[speedingAtI]

described exactly how AMC and GME worked.

[kestaskuliukas]

Is it good for the market though? Seems to good to have people out there looking to call out BS.

[swakawakaflame]

Charlie looks like he’s watching a tennis match

[apidas]

I think he's generally a good guy. preventing people from shorting. he cares about the market. it's admirable.

[Mountainman]

Your loss is never unlimited. There’s no exchange that that will allow it to go unlimited. Once you get to a point where you’ve lost all your money where you’re at a net 0 they sell your sock and your guess what’s called liquidated

[tradingpsychology]

Adani from INDIA has done and is doing exactly what Buffett speaks about here. That's why Buffet is the true GOAT forever.

[Ken-ercq]

The problem with large scale shorts seems to be that you have to get the shares from somewhere. This means dealing with large organisations, for example pension funds, who hopefully have a good idea what the shares are worth. What are described as sophisticated investors. So you borrow their shares, give the research that they are undervalued, and start dumping shares. Now if the pension fund thought that the shares were worth $10 each, if nothing you say changes their mind, they might start buying at $9.50. So they end up with more shares and eventually you need to buy some, and that could be rather difficult.

[JjelmanyaNorvay]

Thanks for the analysis! I need some advice: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?

[kashmirha]

Because they want quick money. Thats the answer for the last question.

[pauldeamer]

Covered calls are so much more reasonable.

[MathildaLindgren]

warren always lies never does as he tells others to do. always an angel with his public advice. beware!

[rondrake]

Then there are some really withit individuals that see something most of us never can

[Paulina-brtm]

This may be true for an investor, as a day trader I short sell stocks often, and as long as I have proper risk management mechanisms in place, I can make money or get out before losing more than I want.

[andrewshaw]

Why are these videos always so old? Do people not use new clips?

[richvandervecken]

The reason the short sell exits in the first place is so investors can have a hedge against losses if the market moves against them. I think it is crazy to invest in individual company stock because there are so many ways the stock price can be impacted. If you are going to trade then minimize your risk and trade the market indices instead. It takes a much larger volume to move the whole exchange than it takes to move an individual stock.

[ZerbinoEllenberg]

Thanks for the interesting content! 😍 I wanted to ask something unrelated: 🤔 I only have these words 🤔. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I’d be grateful for some help. 🙌