Is CI the only place where you practice CI?


September 25, 2013

 

I recently read an interesting article, “the fraud Detective”. It was about Jim Chanos, a legendary “short” seller. The article covers his history of uncovering what he describes as fraud and then profiting from those discoveries through short-selling on the stock market. The case studies alone make this a good read.

Janos now teaches a course at Yale School of Management on short-selling. That course is described as follows:

      “[He teaches students to] look for tip-offs, look for patterns of bad behavior that repeat from one scandal to the next…. [His methodology] typically comes down to basic financial detective work. He seems to rely largely on a heightened instinct for bad behavior, a willingness to follow up with phone calls and legwork, and an inordinate appetite for hieroglyphic footnotes and disclosures buried deep in corporate 10-Q and 10-K reports.”[1]

Sound familiar?


[1] Richard Conniff, “the fraud detective”, Yale Alumni Magazine, Sept/Oct. 2013, 38, 44-45.



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