Tesla Motors Inc (TSLA), Kinder Morgan Inc (KMI) & Why Being Wrong Could Be Your Ruin

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Foolish bottom line

The best way to generate returns in the stock market is to buy high quality business at a good price and hold for the long term. Shorting is challenging and risky, and most investors shouldn’t do it. That’s not to say it can’t be profitable or useful as a hedge, but it should be done only by experienced investors who fully understand the costs and especially the risks. Even experienced investors should be selective, cautious, and careful about shorting. It’s a tough way to generate returns.

The article 4 Reasons Not to Short Stocks originally appeared on Fool.com and is written by Brendan Mathews.

Brendan Mathews owns shares of Kinder Morgan and is short shares of ParkerVision. The Motley Fool recommends and owns shares of Kinder Morgan and Tesla Motors.

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