Other Company Elements Considered by Jim Chanos
Other elements of a company that Jim Chanos looks at & does his homework upon are Accounting irregularities, Booms that go bust, & Technology obsolescence. Accounting irregularities are like Enron & World.com cases. Booms that go bust are like the dot-com bubble in the 1990s & real estate bubble in the late 1980s. Technology obsolescence is business concepts that are outdated for example Netflix. Netflix’s business concept is likened to having little old ladies in warehouses stuffing envelopes with DVDs. Jim Chanos does not see Netflix lasting more than a few years.
Reference:
Financial Times interview with Jim Chanos.
