Forensics and the art of triangulation

Very interesting and insightful panel discussion

https://www.gsb.stanford.edu/events/tesla-wells-fargo-scandal-success-accountability-corporate-america

Brief Synopsis:

  1. There was a change in after 2000 to go after the corporation rather than the executives with the ultimate responsibility of a fraud. It was misguided policy change which punished the shareholders instead of the management.
  2. Humiliating or disrespecting a short-seller will only make them more aggressive in trying to uncover any wrongdoings (Echoes the sentiments of Marc Cohodes in his Real Vision Interview ). This is beside the additional point that this kind of behavior is not expected from a honest management.
  3. With the increasing reliance of quant strategies, an investor can get an edge by doing the donkey work of scuttlebutt and getting out of the office.
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