Investing with William Ackman and David Einhorn

In this video William Ackman and David Einhorn will talk about investing. William says that in his first years, his company made no money from short selling, but that last year 100% from their profits came from short selling. Now, they talk about marking to market. Ackman thinks that Goldman is the best example for this because they have a risk management, and this comes from the fact they have in a very disciplined way marked the market. If someone says to sell 10% of your stock, then that is your mark. You need to give a range to that mark.

The host presumes that the short sellers are just investors. William Ackman says that it would be a good advice to listen a short seller and an investor, to see what information is garbage, and you should pay attention to both of them. If someone gets up in front of one thousand people and makes a twenty minutes presentation, you should pay attention. And then, if that person writes a book and gets 100% profits, then you should really pay attention. There are many rumors circulating about short sellers, Ackman does not know anything about them, but he thinks that they are going to become true. When you have 40 billion dollar balancing, equity is 3% of your capital, very small changes in your assets can affect you.

The host asks David Einhorn how long do they know each other, how they became friends. He says that there are 12 years, and they met in a subway platform, they were at a lunch, and it happened to be engaged in common businesses. They have similar thoughts about Wall Street. They only have different portfolios, or different philosophies about things. Ackman's returns are fabulous. Then, the host asks William Ackman if he is going to do the same profits like last year with short selling, he says that he is not sure, it is more difficult to be sure in this times. Last year, you could buy insurance policies at some companies, and pay almost nothing. Those opportunities can not appear again.

The host keeps asking him what questions he doesn't want to be asked, but William Ackman avoids to give an answer. They are look for businesses which are not likely to be materially affected by Wall Street, just stable businesses, so they don’t have to think top down. They looking for big discounts. What William finds interesting about retail stocks is that no one wants to own retail stocks if they are inner recession going to recession. You should think more about how much the businesses is worth

William Ackman and David Einhorn quotes from this video:

  • You can meet nice people in a subway platform ( William Ackman )
  • If you are a sure short seller, you don’t want the world to come to an end. You want good things to come for America, and not to have reasons to fear ( William Ackman )
Submitted by YouTube Trader on Sun, 04/04/2010 - 19:20

Recently Posted Videos