One Man’s Superpower of Making Stock Prices Fall

The Wall Street Journal has a really great story (subscription required) about the effect hedge fund manager David Einhorn has on the price of a company’s stock—basically, if Einhorn feels like a stock will fall, investors follow him, and the stock immediately tumbles. Even if you can’t read the article, the video provides a great summary of the story, as does this great graphic showing how Einhorn’s appearance on Herbalife’s first-quarter conference call caused shares to drop in real time. They’re calling it the “Einhorn Effect,” and it’s a power I’m sure all investors wished they had.



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