Mohnish Pabrai, among really any SuperInvestor I've heard share an opinion on Einhorn has praised his intelligence. I knew Einhorn was struggling recently, a value investor, that shorts high growth stocks has had a brutal run of late.
- Shorted Netflix and Amazon in 2015. Both have tripled since then.
- Managed $11.8 billion in 2014. Now manages around $5 billion.
- Fund down 15% YTD
Some things that come to my mind
is why he hasn't adapted to new investing environment? will he? has he considered? too confident? too smart?
Similarity to Joel Greenblatt. Both configure a bubble basket, consisting of high growth stocks. Greenblatt mentioned Salesforce is one he shorts, which has tripled over the past 5 years. Uncommonly, Greenblatt is having success or so he says in this new era of momentum, quants, and indexes.
High quality businesses should never be shorted such-as Amazon and Netflix. Mark Cuban reference this as the top two holding in his portfolio.
Stock market is a game of ups and downs. And although history repeats itself in that sense, the down is never for the same reason. This means what worked in the past won't work in the future. The next Warren Buffett won't think like Buffett. The opinion I form towards Einhorn is he is very rational, which further demonstrates how difficult it is to fight biases and your ego. Superinvestors struggle in short periods of time. Monkeys can succeed in short periods of time. To invest like the best you must remain relevant long term. And as baseball does, the game will humble you when your ego gets too large.