Quotes by James Chanos

James Chanos

And so it can be very much in the interest of bank A to sell-short bank B shares, or buy CDSes on bank B, because they have exposure to bank B. It’s the responsible thing to do as a fiduciary, and yet if everyone does it at the same time, it’s destabilizing because everyone is selling.

Doe

Fiduciary

Selling

Bubbles are best identified by credit excesses, not valuation excesses. And there’s no bigger credit excess than in China.

Bigger

Credit

Excess

Chinais a world class if not the world class property bubble, primarily high-rise buildings, offices and condos.

Class

Office

World

Derivatives in and of themselves are not evil. There’s nothing evil about how they’re traded, how they’re accounted for, and how they’re financed, like any other financial instrument, if done properly.

Derivatives

Done

Evil

Dubai was a property bubble. Plain and simple. Go to Dubai and see what happened. It was… what I call it the ‘Edifice complex’ – it’s just, we can grow by putting up lots and lots of buildings and trying to attract people to come here, stay here, and put up offices here and sooner or later, you put up too many.

Dubai

Office

Simple

Healthcare is growing now at about 10 per cent per annum in the U.S. top line, versus 3 per cent for the economy. As someone with a sharp pencil and an eye for this kind of thing, this can’t last.

Eye

Growing

Lines

I call it the Rule of Three. If you read a company’s financial statements three times, and you still can’t figure out how they make their money, that’s usually for a reason.

Financial

Reason

Three

I used to think that good short-sellers could be trained like long-focused value investors because it should be the same skill set; you’re tearing into the numbers, you’re valuing the businesses, you’re assigning a consolidated value, and hopefully you’re seeing something the market doesn’t see.But now I’ve learned that there’s a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.

Fall

Skills

Thinking

I’ll always understand the Schadenfreude aspect to short-selling. I get that no one will always like it. I’m also convinced to the deepest part of my bones that short-selling plays the role of real-time financial watchdog. It’s one of the few checks and balances in the market.

Balance

Play

Real

I’ve learned there’s a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.

Differences

Fall

Thinking

Follow The Behaviour University in order to get the greatest quotes from the greatest people of all time so that you can tap into your own greatness.

Arms

Australia

Balance

Bigger

Blame

Cacophony

Cash Flow

Children

Chinese

Class

Credit

Derivatives

Differences

Difficult

Doe

Done

Dubai

Evil

Excess

Eye

Fall

Fiduciary

Financial

Games

Government

Groups

Growing

Growth

Hong Kong

Infinity

Interesting

Lending

Level Playing Field

Lines

Loan

Long

Needs

Noise

Numbers

Office

Organization

Party

People

Play

Real

Reason

Records

Selling

Simple

Skills

The Future Blueprint

Tool

The Home Therapist: Anti Anxiety

Tool

The Autobiography

Tool

The Behaviour Diary

Tool

The Dating Diary

Tool

The Relationship Therapist

Tool

Quotes by James Chanos

James Chanos

And so it can be very much in the interest of bank A to sell-short bank B shares, or buy CDSes on bank B, because they have exposure to bank B. It’s the responsible thing to do as a fiduciary, and yet if everyone does it at the same time, it’s destabilizing because everyone is selling.

Bubbles are best identified by credit excesses, not valuation excesses. And there’s no bigger credit excess than in China.

Chinais a world class if not the world class property bubble, primarily high-rise buildings, offices and condos.

Derivatives in and of themselves are not evil. There’s nothing evil about how they’re traded, how they’re accounted for, and how they’re financed, like any other financial instrument, if done properly.

Healthcare is growing now at about 10 per cent per annum in the U.S. top line, versus 3 per cent for the economy. As someone with a sharp pencil and an eye for this kind of thing, this can’t last.

I call it the Rule of Three. If you read a company’s financial statements three times, and you still can’t figure out how they make their money, that’s usually for a reason.

I’ll always understand the Schadenfreude aspect to short-selling. I get that no one will always like it. I’m also convinced to the deepest part of my bones that short-selling plays the role of real-time financial watchdog. It’s one of the few checks and balances in the market.

I’ve learned there’s a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.

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Topics by James Chanos

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The Future Blueprint

The Home Therapist: Anti Anxiety

The Autobiography

The Behaviour Diary

The Dating Diary

The Relationship Therapist

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