Bronte Capital blog is listed in the Links/blogs/sources page (in the header). Readers may wonder why, since the writer tends to deal with investment-related articles, rather than trading-related. Fair point. But I reckon I can learn a lot from intelligent people (even investors 🙂 ) and its great to find one who writes so well and shares his ideas freely.
I especially like writers who call a spade a bloody shovel.
Critics of the efficient market hypothesis (EMH) have looked at people with better than average results and argued that those results were because they were so smart. I think the EHM critics have got it backward: they should be researching dumb people. The easiest way to argue the EMH is to demonstrate that it is possible to do better than the market because some people are so dumb.
You only need to identify the dummies.
Look at the institutional investors left holding the bag on this stock or on other Chinese shorts and I reckon you have found your candidates.