First of all, we are investors who believe in the long-term ownership of good businesses bought at reasonable prices. Therefore, we do not believe in participating in any kind of market timing strategies which would include shorting. We feel that attempting to time markets is an act of speculation, not investment. This does not mean that we believe speculation is wrong or foolish, this simply means that we don't choose to engage in it. Instead, we prefer to position our capital as investors are taught by the likes of Ben Graham and other proponents of value investing.
On December 16th, 2010, Whitney Tilson presented a thorough and cogent explanation of why he felt that Netflix (NFLX) was a short. The article was published on Seeking Alpha titled: Whitney Tilson: Why We're Short Netflix. The reason we believe that Mr. Tilson was right, is because we feel that Netflix, although a great company with a powerful record of growing their earnings, was then, and still is, very overvalued. On the other hand, the reason we believe he was wrong was partially stated in the opening paragraph of this article. Not only do we not believe in shorting, we especially don't believe in shorting a stock with the price momentum that Netflix (NFLX) currently possesses.
On December 20, 2010, Netflix CEO Reed Hastings wrote an impassioned response to Mr. Tilson's original article titled Netflix CEO Reed Hastings Responds to Whitney Tilson: Cover Your Short Position. Now.. Not only was Mr. Hastings' response
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Drew Barrymore Marley Shelton Thalía Brooke Burke Thandie Newton
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