Michael Burry
"I try to buy shares of unpopular companies when they look like road kill and sell them when they've been polished up a bit" – Michael Burry
Here is a full break down of Burry's investment strategy
The 3 main pillars:
1. Thorough research
2. Contrarian thinking
3. Focus on undervalued assets
1. Thorough research
2. Contrarian thinking
3. Focus on undervalued assets
Investment Strategy:
• Deep Research: Burry extensively researches potential investments, diving into financial statements, industry trends, and economic indicators to identify undervalued opportunities.
•Contrarian Approachl: He often takes contrarian positions, going against prevailing market sentiment. This involves identifying misunderstood or overlooked assets that have the potential for significant upside.
• Deep Research: Burry extensively researches potential investments, diving into financial statements, industry trends, and economic indicators to identify undervalued opportunities.
•Contrarian Approachl: He often takes contrarian positions, going against prevailing market sentiment. This involves identifying misunderstood or overlooked assets that have the potential for significant upside.
• Long-Term Perspective: Burry tends to have a long-term investment horizon, willing to wait for his thesis to play out even if it takes years for the market to recognize the value of his investments.
• Risk Management: While willing to take bold positions, Burry is also focused on risk management. He carefully assesses downside risks and seeks to mitigate them through various strategies, such as hedging or diversification.
Key Criteria for Investing:
• Fundamental Value: Burry looks for investments that he believes are fundamentally undervalued relative to their intrinsic worth. This could involve analyzing factors such as earnings potential, cash flow, and asset value.
• Fundamental Value: Burry looks for investments that he believes are fundamentally undervalued relative to their intrinsic worth. This could involve analyzing factors such as earnings potential, cash flow, and asset value.
• Margin of Safety: He seeks investments with a significant margin of safety, meaning that the current market price is substantially lower than his estimate of the asset's true value. This provides a cushion against potential losses and enhances the potential for outsized returns.
• Catalysts for Change: Burry looks for catalysts that could trigger a reassessment of the investment by the broader market. This could include factors such as changes in industry dynamics, corporate restructuring, or shifts in investor sentiment.
• Mispricing Opportunities: He actively seeks out mispriced assets, where market inefficiencies or temporary factors have led to disparities between price and value. Identifying and capitalizing on these discrepancies is a key part of his investment strategy.
• Underappreciated Risks: Burry also pays close attention to risks that may be overlooked or underestimated by the market. This includes factors such as regulatory changes, macroeconomic trends, or industry disruptions that could impact the investment thesis.
By adhering to these principles and maintaining a disciplined approach to investing, Michael Burry has achieved notable success in identifying undervalued opportunities and generating significant returns for his investors.
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Expendabiggles : As long as the DD checks out. Only problem is naked shorters doing illegal shit. If the SEC did its actual job, shorters be wiped TF out!
Expendabiggles : TRUTH: Bury finds companies, funds, banks, etc doing VERY well on paper but then doing the deep DD, he discovers a long waiting ticking time bomb the company is purposely sweeping under the rug. And then bets against them and waits for the bomb to go off. Use to work when the market ran in a fashion where cheating would eventually catch up and implode but since 2008, the FED helps the cheaters so they don’t crash the market so much rather take them out back and shoot them like the criminals they are! Which essentially turned the entire world’s economy into a ticking time bomb. Because when the US goes, so will every last foreign govt in bed with the US or depending on the US for its own survival like china. No US, no china. Unless china actually believes it can have a good economy without selling its junk to the US??
intuitive Jackal_354 Expendabiggles: very intelligent comment