All about Michael Burry: The Man Who (Successfully) Predicts Crashes!

Famous traders

Michael Burry

Michael Burry biography

Beginning of his career

Michael James Burry is an American investor hedge fund manager and a physician, born in June 19 1971. He formed the Hedge Fund Scion Capital which he managed from 2000 to 2008 before shutting down the firm to focus on his own personal investment. Michael Burry became famous for being the first investor to envision and profit from the subprime mortgage crisis which took place between 2000 to 2010.

He was born in San Jose California. He lost his left eye to retinoblastoma at the age of two and has been using artificial eye ever since then. Michael Burry studied economics and pre-med at the University of California, Los Angeles. He further went to Vanderbilt University School of medicine where he was awarded with doctor of medicine degree. He equally went for residency in neurology at Stanford University Medical Centre but never got to finish it. Burry usually worked on his hobby which was financial investing whenever he was off duty from work.

The time he turned out as an investor

After working both as a neurology resident and pathology resident at Stanford he left and went fully into what used to be just a hobby (financial investment) and had his own hedge fund company. He has started to build a reputation as an investor by becoming successful in value investment which you wrote about on message boards on the stock discussion sites silicon investor. M. Burry became very successful with his stock investment that he got the attention of companies like Vanguard, White Mountains insurance group and prodigy investor such as Joel Greenblatt. He claimed that is investment Style is built upon Benjamin Graham and David Dodd’s 1934 book ‘Security Analysis’. All my stock taking has 100% based on the concept of a margin of safety.

During the time he was managing hedge fund Scion capital he made quiet some good Returns with his various investments. By the end of 2004, he was comfortably managing $600 million and raking in more money. In 2005, Burry looked into the subprime market and through his analysis of mortgage lending practice in 2003 and 2004. He accurately forecasted the collapse of subprime mortgage to happen in early 2007. In the end his prediction was right and they got massive profit from it. As an investor he got immortalized by the Hollywood movie industry as a result of the movie that portrayed his life achievement. The movie was titled ‘The Big Short’ released in 2015.

How did Michael Burry made his money?

Michael Burry left his work as a neurology resident in Stamford Hospital and also shut down his website in November 2000. He decided to start his own hedge fund company which he named Hedge Fund Scion Capital. He founded this company with the inheritance and loans from his family. Not long after the end massive profits for his investors and went on building himself a solid reputation. He had his biggest hit which became a life changer for him when in 2005 he decided to focus on the subprime market.

He made is analysis and true that he was able to forecast the impending collapse of subprime mortgage. His prediction was accurate and through this he made a profit of $100 million for himself and $700 million for his investors. He did not stop there but rather went on with buying shares and stocks going into diverse investments. He invested in water, gold and Farmland. In the late December of 2020, he bought some shares from Tesla and as of May 2021 his hold has gotten over 800,000 Tesla shares. He also has close to $31 million worth of investment with Ark invest.

Where is Burry located?

Michael Burry was born in San Jose, California and he lived almost all his life there. He is married with children and together with his family they currently live in Saratoga, California.

What is his net worth?

Most of the money Michael Burry made from the subprime mortgage crisis coupled with his investment with Tesla and other big companies as all together made him have a net worth of $300 million.

Best quotes by Michael Burry

“I don’t believe anything unless I understand it inside out. And even if I understand something it is not uncommon that I disagree with accepted view (even if it’s a Nobel laureate).”

Michael Burry

“I hate discussing ideas with investors because then I become a defender of the idea and that influences your thought process.”

Michael Burry

”I have always believed that a single talented analyst working very hard can cover an amazing amount of investment landscape and this believe remains unchallenged in my mind.”

Michael Burry

“I just really like to find my own ideas.”

Michael Burry

“If you are going to be a great investor you have to fit the style to who you are.”

Michael Burry

“In essence the stock market represents three separate categories of business; they are adjusted for inflation does with shrinking intrinsic value and those with steadily growing intrinsic value. The preference always would be to buy a long-term franchise at a substantial discount from growing intrinsic value.”

Michael Burry

“It is ludicrous to believe that asset bubbles can only be recognized in hindsight.”

Michael Burry

“My natural state is an outsider no matter what group I’m in or where I am. I have always felt like I’m outside the group and have always been analyzing the group.”

Michael Burry

“People want and authority to tell them how to value things but they choose this authority is not based on facts or results.”

Michael Burry

“The borrowers will always be willing to take a great deal for themselves. It’s up to the lenders to show restraint and when they lose it watch out.”

Michael Burry

Michael Burry’s portfolio

Below are the top five stocks Michael Burry was interested to buy.
This is not financial advice and is the data we could gather at the time of writing this article.

Walmart Inc. (NYSE: WMT)

Number of hedge fund holders: 71

Walmart Inc. deals with the retail business and its headquarter is in Arkansas. At the end of June 2021 Burry true Scion Asset Management owned call options on 378,600 shares in the retail that are worth $53.3 million. This represents 2.56% of the portfolio.

The Kraft Heinz Company (NASDAQ: KHC)

Number of hedge fund holders: 33

The Kraft Heinz Company is a food and beverage maker based in Pennsylvania. It was revealed that Scion Asset Management owned call options on more than 1.4 million shares in this company by the end of June 2021 which are worth over $58 million and covers 2.79% of the portfolio.

McKesson Corporation (NYSE : MCK)

Number of hedge fund holders: 51

McKesson Corporation is a healthcare and pharmaceutical company based in Texas. Regulatory filings by Scion Asset Management reviews that Burry owned call contracts on 682,400 shares in the healthcare company by the end of the second quarter of 2021. This covers 6.26% of the portfolio and worth $130 million.

Alphabet Inc. (NASDAQ: GOOG)

Number of hedge fund holders: 155

This company offers internet and Technology Services. It’s headquarter is in California. Scion Asset Management owned call options on 91,900 shares in the technology company at the end of the second quarter of 2021. The worth of this steak is over $230 million and covers over 11% of the portfolio.

Facebook Inc. (NASDAQ: FB)

Facebook Inc. owns and controls social media platforms and equally operates in California. Scion Asset Management owned call options on 941,200 shares in the social media firm at the end of the second quarter of 2021 covering 15.7% of the portfolio. The worth of this share is more than $327 million.

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