By thelongshorttrader Kyle Bass, Hayman Advisors, on short selling:
Question: What was the worst trade of your career?
The second company I ever sold short was a disaster. The first one was actually a great trade. It was an East German shipbuilder that was being heavily subsidized by the government when the Berlin Wall came down. The executives were not applying the subsidies to the shipyards. We shorted the stock around 100 Deutsche marks and it never saw an uptick – it went from 100 to 80 to 60 to 40 to 20 to zero, where they were literally chaining the gates after that.
The second short was a technology company. The COO had just quit under suspicious circumstances...
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