I'm rereading Financial Shenanigans and this time I'm taking notes on it because you really have to treat this book like a class in its own right (I'll have to do the same with Quality of Earnings and Manias, Panics, and Crashes later on). My fear is that for a lot of these short opportunities that are mentioned by prominent short sellers you really either have to go off of their word because you're not going to China to figure out if they're right or not (Luckin, Iqiyi, Wirecard) or you'd have no idea until it's too late (Krispy Kreme, Symbol, AIG, all from Financial Shenanigans). For those of you that have seen my posts from Roy's free Substack blog, he helps out a lot to know what to look for when it comes to finding companies that are peddling shit to you while they play financial games. But for some of these you really may not know that they're playing revenue games. I mean come on how are you supposed to find out as a schmuck investor with a ten cent Schwab account that some company is faking transactions by shipping out product to their warehouses but saying a customer put in the orders for it?
I want to get way better at this than I currently am (which is to say, not at all, or at least not confidently so). How do you know for certain when nobody is standing over your shoulder to give you some sort of validation that says "yeah you're right they're messing with you"?
Submitted August 16, 2020 at 10:06PM by howtoreadspaghetti https://ift.tt/3iQI1ZR
