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Mark Cuban on Short Selling

Michael Covel (March 28, 2005)

I short stocks. I make money shorting stocks. Some of my best friends are the stocks that became worthless over the years and I never had to cover. I short stocks because I¹m a firm believer that in a universe of more than 10k public companies, not all of them are well operated. I also believe that since short selling is rarely if ever offered as an option by traditional brokers to their customers, there is always going to be a bias towards demand trying to push the price of a stock up. That in turn creates an opportunity for short sellers who get to take advantage of that upside bias. Of course there are risks to short selling. If you don¹t fully understand what you are doing, you can lose more on the short side since a stock can only fall to zero, but it can go up to any price. To me, that just gives me reason to do more homework, not to shy away.
Mark Cuban

Read Mark Cuban's Blog on Short Selling.

Yes, it sounds like Cuban has a fundamental view to some extent, but his words about shorting in general are strong.

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