Michael Burry is an American investor, hedge fund manager, and founder of Scion Capital, a hedge fund that earned him significant recognition.
He became widely known for his prediction of the 2008 financial crisis and stock market crash, which was famously depicted in Michael Lewis’ book, The Big Short. (As an Amazon Associate, we earn from qualifying purchases.) Burry’s deep research into the housing market collapse allowed him to reap profits by shorting subprime mortgages, while most others ignored the warning signs.
You should read this article because it dives into Michael Burry’s unique trading strategies, early successes, and his current stock picks.
I’ll answer the following questions:
- Who is Michael Burry?
- Is Michael Burry legit or a scam?
- What trading strategy is Michael Burry famous for?
- How did Michael Burry get started in investing?
- What are Michael Burry’s early trading successes?
- Which stock picks are on Michael Burry’s watchlist?
- What is Michael Burry’s net worth?
- Does Michael Burry have a TikTok, YouTube, or IG account?
Let’s get to the content!
Table of Contents
Who is Michael Burry?
Born and raised in San Jose, Burry initially pursued a career in medicine before turning his attention to economics and the stock market.
His shift into finance revealed an extraordinary talent for analyzing companies and market trends, leading him to establish Scion Capital. Through this fund, he identified key weaknesses in subprime mortgages, betting against them at a time when few others saw the looming disaster. He predicted the housing bubble that led to the 2008 stock market crash.
Burry’s ability to forecast significant market events speaks to his intelligence and commitment to research—traits every trader needs to cultivate. Whether looking at rates, housing markets, or stock trends, the key is recognizing the patterns others miss.
Do you want to master your trading strategy like Michael Burry did? Watch my video to learn how.
Is Michael Burry Legit or a Scam?
Some question if Michael Burry is legit because his methods seem unorthodox. However, his track record speaks for itself.
Scion Asset Management, his current hedge fund, continues to generate interest due to his consistent, calculated approach to investing. In fact, his decision to short the housing market resulted in massive gains during a period when most were losing.
What Trading Strategy Is Michael Burry Famous For?
Michael Burry is most famous for his strategy of contrarian investing. He takes positions that go against the larger market sentiment, especially when most people are too emotionally attached to trends.
Burry’s contrarian approach led him to short the subprime mortgage market when the broader financial world was bullish. He wasn’t afraid to go against the grain, and it paid off big.
Contrarian Investing
Burry’s most notable strategy is contrarian investing, where he takes positions that go against the prevailing market sentiment. His famous bet against the housing market involved shorting subprime mortgage-backed securities, a move that was highly controversial at the time but ultimately proved correct.
Contrarian investing, like buying when others are selling or shorting when others are greedy, relies heavily on research. Whether you’re trading stocks, shorting, or looking at put options, it’s all about finding opportunities where others don’t look.
Another investor known for a unique trading strategy is Cathie Wood, the founder of ARK Invest. Like Burry, Wood employs a contrarian approach but focuses on disruptive innovation.
While Burry shorted overvalued markets, Wood takes calculated risks on emerging technologies, believing in their transformative potential. Comparing these two traders’ methods reveals how differing strategies can lead to success. Check out my article to learn more about Cathie Wood’s investment approach.
How Did Michael Burry Get Started?
Michael Burry didn’t start out on Wall Street; he trained as a doctor in California. His entry into finance began with stock-picking as a hobby. He gained attention through his blog, where he shared detailed stock analysis.
His early success in identifying undervalued stocks helped him launch Scion Capital, in 2000. The firm grew quickly as his stock picks delivered significant returns, drawing the attention of larger investors.
What Are the Early Trading Successes of Michael Burry?
One of Burry’s first major successes came in the early 2000s when he invested in undervalued tech stocks following the dot-com bubble. While many traders were panicking, Burry saw value where others didn’t.
Similarly, Jim Simons, the founder of Renaissance Technologies, made his mark through quantitative trading. Unlike Burry’s deep fundamental analysis, Simons used algorithms and mathematical models to identify market inefficiencies.
Both traders, however, shared a talent for spotting opportunities others missed. While Burry focused on undervalued stocks, Simons revolutionized the trading world by combining data-driven strategies with high-frequency trading. Read my article for a deeper dive into Jim Simons’ trading philosophy.
Which Stock Picks Are on Michael Burry’s Watchlist?
Burry’s recent investments have focused on sectors that he believes are undervalued. In particular, he has shown interest in healthcare, energy, and real estate.
Scion Asset Management has taken positions in companies with high potential for growth, even when market sentiment is negative. Burry’s portfolio often includes long-term bets that reflect his cautious view of current market conditions, particularly when it comes to over-inflated assets like cryptocurrency or speculative tech stocks.
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What Is Michael Burry’s Net Worth?
Michael Burry’s net worth is estimated to be around $300 million. The bulk of his wealth came from his bet against the housing market during the 2008 crisis, which yielded hundreds of millions for his investors and a sizable chunk for himself.
Burry’s earnings have continued to grow thanks to his ongoing investments through his company, Scion Asset Management.
Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…
I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.
We don’t accept everyone. If you’re up for the challenge — I want to hear from you.
Apply to the Trading Challenge here.
Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.
Is contrarian investing part of your trading toolkit ? Write, “I’ll keep it simple Tim!” in the comments if you picked up on my trading philosophy!
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FAQs About Michael Burry
How Old Is Michael Burry?
Michael Burry was born on June 19, 1971, making him 53 years old as of 2024. Despite starting his career in medicine, Burry’s transition into finance happened relatively early, and he has built an impressive track record over the past two decades.
Does Michael Burry Have a Blog or Website?
Burry used to run a financial blog in the early 2000s, which gained him attention from Wall Street. Today, while he doesn’t maintain a public blog, he shares his thoughts on markets through his Scion Asset Management disclosures and occasional public commentary, often via Twitter.
Does Michael Burry Have a TikTok, YouTube, or IG account?
Burry doesn’t have an active presence on social media platforms like TikTok or Instagram. However, he has occasionally posted on X/Twitter under the handle @michaeljburry, where he shares brief insights into his market predictions.
Does Michael Burry Offer a Course?
Michael Burry does not offer any formal trading courses. His methods and strategies are largely shared through public disclosures and the historical analysis of his trades. While you won’t find him offering trading lessons, there’s a lot to learn from studying his approach to investing and market analysis.
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