Michael Burry Interview: Early Life to Index Bubble Predictions

Michael Burry's early life was marked by a strong interest in science and a keen analytical mind. He grew up in San Jose, California.

Burry developed a passion for science, particularly biology, and attended Stanford University. He graduated in 1994 with a degree in biology.

After college, Burry worked as a medical resident before realizing that medicine wasn't the right fit for him. He then pursued a career in finance, where his analytical skills would eventually serve him well.

Burry's interest in value investing was sparked by his reading of Benjamin Graham's book "The Intelligent Investor". This book would go on to shape his investment philosophy.

Michael Burry's early life was marked by a significant challenge when he was diagnosed with retinoblastoma at the age of 2, which led to the loss of his left eye.

Growing up, Burry wore a prosthetic eye, which became a part of his identity.

Burry was born and raised in San Jose, California, and later settled in Saratoga, California, where he currently resides with his second wife and two adult sons.

At 35, Burry was diagnosed with Asperger's Syndrome, a condition he shares with his son, who was diagnosed with the same condition.

Burry's unique perspective on life, influenced by his experiences with Asperger's, has likely contributed to his distinct approach to investing.

Burry's investment career began as a hobby, where he gained a reputation for sharing insightful views on online forums and his blog.

He launched his own investment fund, Scion Capital, in 2000, with an initial capital boost of $1 million from Joel Greenblatt of Gotham Capital.

Burry's fund, Scion Capital, achieved a remarkable return of 55% in 2001, a year when the S&P 500 declined by 11%.

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Michael Burry's investment career is a fascinating story of how he went from being a hobbyist to a respected voice in the investing space. He started actively participating in online forums and sharing his insights on his blog, which helped him build a reputation as a unique and astute investor.

Burry's strategies were indeed very different from others in the field, as he once said, "Everything I do in investment is just very different." He made a significant move in 2000 by launching Scion Capital, his own investment fund, with an initial capital boost of $1 million from Joel Greenblatt of Gotham Capital.

The fund was a huge success, giving its investors a return of 55% in 2001, while the S&P 500 suffered an 11% decline. Burry strategically shorted overvalued tech stocks, capitalizing on the dot-com bubble and enhancing his reputation as an astute investor.

Burry's success with Scion Capital was impressive, but he eventually shut down the fund in 2008 due to criticism and a desire to explore other investment ventures. He rebranded his firm as Scion Asset Management in 2013 and began targeting investments in gold, water, and agricultural land, reflecting his conviction that water is the most valuable asset of the future.

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Michael Burry's investment career started as a hobby, but he quickly became a respected voice in the investment community through his online forums and blog.

He launched his own investment fund, Scion Capital, in 2000 with an initial capital boost of $1 million from Joel Greenblatt of Gotham Capital.

Burry's fund was a success, giving its investors a return of 55% in 2001, a year in which the S&P 500 declined by 11%.

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Michael Burry argues that passive investing has removed price discovery from the equity markets. This means that markets are no longer able to sort out good companies from bad ones.

Banks' reduced risk-taking due to regulations has led to reduced market maker inventory, making it harder for markets to discover true value. Reduced market maker inventory is like a supermarket with just one can of beans or just one bottle of milk.

Passive investing requires no security level analysis, unlike active managers who perform this analysis. By not looking at value, passive investors are essentially buying companies in proportion to their size, without considering their worth.

This argument could also apply to any fund, whether it's active or passive, if it's benchmarked against some kind of index.

Michael Burry's biggest bets are worth taking a closer look at. Tesla is his largest wager, with put options on over a million shares valued at $731 million as of June 30.

He's also betting on Facebook, but in a different way - with call options on over 900,000 shares, valued at $327 million. Burry expects the tech giant's stock to rise.

Burry's third-largest bet is on a US Treasury bond ETF, where he's expecting interest rates to rise. This wager is valued at $280 million.

Alphabet, the parent company of Google, is also on Burry's radar, with call options on its shares valued at $230 million. He sees potential for growth in the tech company.

McKesson, a US healthcare company, is another stock Burry is betting on, with call options valued at $130 million. The company was chosen by the US government as the primary distributor for COVID-19 vaccines in 2020.

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CVS, an American pharmacy chain, is also on Burry's list, with call options valued at $44 million, in addition to its shares worth $17 million.

Kraft Heinz, a food giant, is valued at $58 million in Burry's portfolio. He's betting on the company's stock to rise.

Walmart, an American retail giant, is another stock with call options valued at $53 million in Burry's portfolio.

Cardinal Health, a US healthcare company, rounds out the list with call options valued at $49 million in Burry's portfolio.

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Michael Burry, the hedge fund investor and hero of Michael Lewis's book The Big Short, was portrayed by Christian Bale in the 2015 film of the same name. The film is based on Lewis's book, which tells the story of the 2008 financial crisis.

Michael Burry's views on the economy and investment scene were recently shared in an interview with New York Magazine, where he expressed concerns about the current state of the economy and society. He believes that the biggest hope for a new era of personal responsibility has been lost, and instead, people are doubling down on blaming others.

Burry also pointed out that the people who caused the 2008 financial crisis profited from it, a pattern that has repeated itself in the dot-com bubble and crash. This is a worrying trend, as it shows that those in power are not being held accountable for their actions.

Michael Burry, a hedge fund investor and manager, was the hero of Michael Lewis's book "The Big Short" about the 2008 financial crisis. He's known for his technical analysis and ability to remain uninfluenced by market trends.

Burry's firm, Scion Asset Management, has a history of making big bets on market crashes. In fact, he's still betting on a Wall Street crash, having purchased $866 million in put options against the S&P 500 and $739 million against the Nasdaq 100.

He believes that the economy is heading for another crisis, and his predictions are based on his analysis of market trends and economic indicators. Burry's views are not just about the economy, but also about society and the impact of government policies on individuals.

One of Burry's key points is that the people who caused the 2008 crisis profited from it, rather than being held accountable. This is a theme that's repeated in history, such as the dot-com bubble and crash.

Here are some key facts about the 2008 financial crisis and the current state of the economy:

The Big Short has made its way to the big screen, and Christian Bale was the one to bring the character of Burry to life in the 2015 film adaptation.

Christian Bale's portrayal of Burry is definitely worth watching, and it's great to see the story come alive in a different medium.

You can check out the 2015 film The Big Short to see Bale's performance for yourself.

Michael Burry is a respected voice in the investment community, known for his unique strategies and insights. He started out as a hobbyist, quickly making a name for himself through active participation in online forums and sharing his thoughts on his blog.

Burry's investment career took off in 2000 when he launched Scion Capital, his own investment fund, with an initial capital boost of $1 million from Joel Greenblatt of Gotham Capital. His fund's success was impressive, returning 55% in 2001, while the S&P 500 suffered an 11% decline.

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Michael Burry effectively called the dot-com bubble by shorting overvalued tech stocks, earning him a reputation as an astute investor. He continued to excel, returning over 22% on average per year to Scion Capital investors by 2008.

Burry's forecasts and predictions have been accurate, including his prediction that the real estate bubble would burst in 2007. His insights and expertise have made him a notable figure in the financial markets.

Michael Burry believes that banking regulations have reduced the amount of risks that banks can take, resulting in reduced market liquidity.

This reduction in market liquidity is similar to a supermarket with limited inventory, such as having only one can of beans or one bottle of milk.

Burry thinks that passive investing has removed price discovery from the equity markets.

Price discovery is the ability of markets to sort out good companies from bad companies, where good means profitable and able to return value to shareholders.

By passively following an index, you're not looking at value at all, you're simply buying companies in proportion to their size.

This approach removes the need for security level analysis, which active managers perform.

Without security level analysis, we're not going to get true price discovery.

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