Hindenburg

First, this is going to be super short. Maybe only a couple hundred words. I have the ACT on Saturday, and I have been cramming super hard, including tonight. It has been hard to squeeze everything in. After this Saturday, hopefully, I can get back to regularly posting.

Hindenburg Research is a short-selling company that blew up Adani, an Indian company. They then blew up Block, Jack Dorsey’s company. Most recently, they blew up Carl Icahn. Now, that was back in March, and it has been *checks watch* about 7 months since then. Asking, who are they going to strike next is dumb. Frankly, it could be any over-leveraged, overvalued company. Anyway you slice it I expect Hindenburg's next target to be struck soon. I think I have written about this before, but I think it was only in passing, having a group like Hindenburg prowling is great for the market.

Now, for the individual investor, whether that be a hedge fund, retail trader, or company, if you are invested in a company that is blown up by Hindenburg, you are screwed. You have to get out, or bite the losses and buy more in the following months, once Hindenburg has raked in their cash. However, for the total market, groups like Hindenburg are excellent.

Prowling about, and killing the bloated companies keeps everyone on their toes. Sometimes, the market is so predictable it hurts. In an age of hyper-growth, having a group look around for bloated companies just makes so much sense. Hindenburg forces companies to keep more of an eye on their overall health. Hindenburg keeps these companies honest. Which, overall, is better for everyone.

Okay, now I have to get back to studying. Thank you, and sorry again for the super short post, hopefully, I can elaborate more on Sunday.

Previous
Previous

Dividends Are Flippin Irrelevant

Next
Next

Tesla Again