Short-Selling In 2021: Beware The Crowded Trade, And Eyes On Nvidia

"I'd rather short a real company than a fraud or a meme stock." Akram's Razor made this case on a recent Twitter Space, and we unpack the point on today's episode of the Razor's Edge. In a year when many short-sellers have been run over by trains, and have the AMC and GME shaped scars to prove it, betting against a popular, universally loved name may actually be safer. We go over Akram's historic approach to shorting, how that has to adapt to the current market, what the line is between a meme stock and an ordinary dud, and Nvidia's current position, which is more precarious than the market seems to be pricing in. Topics Covered 2:30 minute mark – Akram's historic shorting approach vs. the current market 9:00 – Microstrategy (MSTR) hodlco vs. opco 15:00 – Pay attention vs. avoid meme stocks 20:30 – More tangible shorts 24:30 – Sketching out Nvidia questions 32:30 – Sketching out tech sector questions 39:30 – The risk of relying on management to warn about slowdowns and the value of contrarianism (in spots) 47:30 – Disputing numbers vs. disputing stories and the proof of stake risk 53:30 – The ARM deal and Nvidia’s meme potential 59:30 – Staying out the way of these memes 1:06:00 – Building the “you’re crazy” basket

Om Podcasten

The Razor’s Edge is an investing podcast that combines a prop trader’s viewpoint and deep-dive fundamental research to provide a unique take on the markets. The show is co-hosted by Akram’s Razor, a trader and investor with decades of experience and a track record of truly differentiated ideas and analysis, and by Daniel Shvartsman, an individual investor for the past decade who saw thousands of investing pitches and ideas and how they played out during his previous time at Seeking Alpha. The duo start with a theme or idea from Akram’s investing, then break it down to understand what goes into the idea, what could go wrong, and what else investors and traders need to know. They also interview industry leaders, executives, and other investors to get a wider perspective. The show has thousands of listeners around the world.