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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (15158)	8/13/2002 1:23:48 PM
From: Bob Rudd	Respond to of 78750

PAUL: Shorts - Completely agree that it's tough to do. I studied shorting extensively and have seen some real smart people lose a chunk trying it. That said, I think every serrious investor can benefit from studying how it's done - not just the mechanics, but the stinky stuff to look for, and should occasionally make modest short bets because it sharpens analytical skills and broadens perspective. Regarding the housing sector, I suspect that shorts there are missing the essence of the story - consolidation based on financing advantages: Most home building is done locally, the national guys have access to financing that surpasses anything the locals can match. There may be other advantages like some purchasing clout too, but methinks financing is the biggie. Also, this housing bubble talk appears to incorporate an erroneous assumption that housing prices are national....they're not, they're local.