#223: Robert Prather - Founder of Vision Research - A Masterclass in Shorting Equities

Robert Prather, Jr, has been with Vision Research for more than 15 years and brings more than 23 years of relevant experience to the team in his role as a member of the senior research staff and President. Vision Research is an independent equity research firm that provides hedge funds with investment ideas.

On this episode, Robert discusses his process for uncovering a short idea and what he looks for, why SPACs have recently done so poorly, and the incentives that currently drive them. Chris and Robert also chat about how a short works (Shorting 101) and how he was able to see something off with Enron before the general market did.

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0:03 - Roberts’s career and background

2:16 - When $50m is missing, where is it?

3:11 - Is it fair to say that people blindly trust public companies for the numbers they put out?

4:15 - Discussions with leaders in public companies vs. private companies

5:55 - Robert uncovers the Enron fraud

12:33 - Robert’s career today in research and shorting equities

20:47 - Deciphering whether a company is going to go to 0 or is simply worth less than its stock price

25:00 - When do CEOs find out about the research you’ve one on them?

28:39 - How does shorting work?

31:02 - Memestocks

38:00 - What happens if everyone takes you up on your ideas at the same time?

39:20 - Thoughts on Tesla

41:53 - How often have you shorted a company and then changed your mind about it?

44:23 - SPACs

1:11:23 - How long does someone predicting a short have to be right?

1:17:39 - What do you predict will happen in the near future?

1:23:48 - Robert’s mantra: Helping others help themselves