Whitney Tilson Explains Why he Went Short and then Long Netflix [VIDEO]VW Staff
Hedge fund manager and author Whitney Tilson explains his second thoughts on Netflix, whether Apple can sustain its reputation as an innovation engine, and the simplified operations of Citi. Part 2 of a 2-part interview with Steve Forbes. See part one here- Whitney Tilson in-Depth Discussion on His Investment Style [VIDEO]
Whitney Tilson interview below
Forbes: Been one of those talk about a romance or lack of romance. You’ve been on all sides of that?
Tilson: Yes. It’s one of a half dozen stocks in my entire 15 year investing career that I’ve been both long and short. And I have yet to find an investor who has a major position in Berkshire Hathaway and is enthusiastic about something as seemingly non-value oriented as Netflix.
Forbes: Well, as you know, the stock as done sensationally. You’ve done very well with it.
Tilson: Yes. After years of purgatory, the stock went from $10 to $300, then down to $50, and now it’s up to well over $200.
Forbes: So is this one of the those “I missed it” traps?
Tilson: It’s hard for me. I think if ever in my career I’ve never had a stock quadruple in seven months. And it’s been a rocket ship, and I’ve been happy to ride it. But I believe been taking money off as it’s risen because it’s very difficult to value Netflix.
I can tell you what Berkshire Hathaway is worth, plus or minus 10% with high degree of confidence. With the same degree of confidence, I couldn’t tell you plus or minus 50% on Netflix, because it’s a very open-ended situation. I think in ten years, I think it has the possibility of being an enormously valuable media company that could have a market cap like Amazon’s or something of $100 billion.
Full Whitney Tilson transcript can be found here on Forbes.com