Stanley Druckenmiller: “I’m Not Sure I’ve Ever Made Money On Shorts”

Johnny HopkinsStanley DruckenmillerLeave a Comment

In this interview with Bloomberg, Stan Druckenmiller explains why shorting is a risky business saying, “I’m Not Sure I’ve Ever Made Money on Shorts”. Here’s an excerpt from the interview:

Our shorts have been fine this year, except my index shorts which have been a disaster.

But we always short the same way. I just try to look at the current situation and then I try to think of a situation 12 to 18 months from now based on my forecast.

If I believe the security prices are going to be less, then I short them.

Frankly, I‘m not sure I’ve ever made money, if I took back the last 40 years. I’m afraid to look. I’ve never had a down year, but I’m not sure I’ve made money in shorts.

I like it. It’s fun, but you can get your head handed to you. It’s a game that really only professionals should play. The odds are against you.

If you’re dead wrong on a long, you can lose a hundred percent. If you’re dead wrong on a short, you can lose 10 times your money. When I was at Soros, I shorted $200 million worth of Internet stocks in March of ’99 and in three weeks covered them at a $600 million dollar loss.

I lost $600 million dollars on a $200 million investment in three weeks. I was short 12 stocks, and they all went bankrupt, every one of them.

You can watch the entire discussion here:

For all the latest news and podcasts, join our free newsletter here.

FREE Stock Screener

Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.