Kevin Carter – The Math of Shorting a Stock Is Against You

BIO: Kevin Carter is the Founder and CIO of the Emerging Markets Internet & Ecommerce ETF (NYSE: EMQQ) and Chairman of the EMQQ Index Committee. STORY: During the Dot-com boom, Kevin came across Amazon, but he dismissed it as just a bookstore not worth its valuation. He decided to short Amazon and lost a third of his net worth at the time. Had he bought the stock instead of short selling it, he would be $50,000 richer today. LEARNING: Short selling is a bad investment idea. Nobody can do a perfect valuation; always know that you are working with estimates.   “Good judgment comes from experience, and experience comes from bad judgment.” Kevin Carter   Guest profilehttps://www.linkedin.com/in/thekevintcarter/ (Kevin Carter) is the Founder and CIO of thehttps://emqqetf.com/ ( Emerging Markets Internet & Ecommerce ETF) (NYSE: EMQQ) and Chairman of the EMQQ Index Committee. Prior to EMQQ, Kevin was the Founder & CEO of AlphaShares, an investment firm offering five Emerging Markets ETFs in partnership with Guggenheim Investments. Previously Kevin was the Founder & CEO of Active Index Advisors, acquired by Natixis in 2005, and the Founder & CEO of eInvesting, acquired by ETRADE in 2000. Kevin received a degree in Economics from the University of Arizona and began his career in 1992 with Robertson Stephens & Company. Worst investment everIn the late 90s, Kevin was a very confident young value investor. He wanted to be like the likes of Warren Buffett. He had worked as an analyst professionally and got paid very well by hedge funds and mutual funds for his research. The Dot.com boom hitsThe Internet showed up, and then the Dot-com bubble burst. Kevin was relatively successful at that point and confident but also a bit naive. Kevin got wind of a new e-commerce company, Amazon, but he thought of it as just a bookstore. He believed that it shouldn’t be valued any differently. He spent a lot of time comparing Amazon to Barnes and Noble and was convinced that it would not amount to m