Tuesday, February 01, 2005
Glad I didn't short Google
My portfolio managed a $1,300 gain today, thanks to a modest rebound in COLL (though the price is still below where I "bought" my shares yesterday). I sure am glad I resisted the urge to short Google today; shares hit an all time high after the company released another great quarterly report. I continue to think Google is way overvalued, given the company's huge market cap and low barriers to entry. However, the lesson I learned this fall when I lost $6,000 shorting Google is that I should be more careful when trying to short high momentum stocks. As Keynes once said, markets can remain irrational far longer than most investors can remain liquid. For now, I will stay on the sidelines and wait until the irrational exuberance for Google shares has faded.