Jim Chanos's View Of Sothebys (BID)

Jim Chanos's View Of Sothebys (BID) by Beowulf Capital

I got drawn towards Sothebys' stock after watching a video where Jim Chanos claimed that he was short Sothebys (BID) Jim interestingly alluded that it was a great way to bet on the economy as it catered to the 10% of the top 1% and that the stock hit $10 in every financial crisis. I decided to go through BID’s annual report to see what I could find.

Sothebys’ business can be divided into three segments: Agency, Principal and Financing.

The Agency business is where Sothebys matches buyers and sellers and cuts a premium from both at the end of the transaction. Sothebys’ sales in this segment was $825M out of...