Michael Burry: The Investor Who Predicted the Unpredictable. He Profited from the Subprime Crisis Recently Bet $1.6 Billion on Market Crash.
Who Is Michael Burry?
Michael Burry is an American investor and hedge fund manager. He is best known for being among the first investors to predict and profit from the subprime mortgage crisis that occurred between 2007 and 2010. Burry's story was told in the book The Big Short, which was later adapted into a film.
Personal Life and Education
Burry was born in San Jose, California in 1971. He lost his left eye to retinoblastoma at the age of two. Burry studied economics and pre-med at the University of California, Los Angeles, earned an MD degree from the Vanderbilt University School of Medicine, and started but did not finish his residency in pathology at Stanford University Medical Center.
What Kind of Investor Is Michael Burry?
Burry is a value investor. He looks for stocks that are trading below their intrinsic value. Burry is also known for his contrarian views. He is not afraid to invest in unpopular stocks or sectors.
What Was the Subprime Crisis or Meltdown?
The subprime mortgage crisis was a financial crisis that occurred in the United States between 2007 and 2010. The crisis was caused by a number of factors, including risky lending practices, rising interest rates, and a decline in the housing market.
What Is ‘The Big Short’?
The Big Short is a book by Michael Lewis that tells the story of several investors who predicted and profited from the subprime mortgage crisis. Burry was one of the investors profiled in the book.
What Are Scion Capital and Scion Asset Management?
Scion Capital was a hedge fund founded by Burry in 2000. Burry closed Scion in 2008 to focus on his personal investments. In 2010, Burry founded Scion Asset Management, a registered investment advisor.
Michael Burry's Net Worth
Michael Burry's net worth is estimated to be around $1.2 billion as of April 2023.
How Michael Burry Bets $1.6 Billion on Stock
In the second quarter of 2023, Burry placed a $1.6 billion bet on a stock market crash. He did this by purchasing put options on the SP 500 and Nasdaq 100. Put options give the holder the right to sell a stock at a certain price by a certain date. If the stock market crashes, Burry's put options will become more valuable.
Stock Market Crash Michael Burry
Burry has warned that the stock market is due for a crash. He has cited a number of factors as evidence, including high valuations, rising interest rates, and inflation.
What Happened To Michael Burry After The Big Short In Real Life?
After The Big Short was published, Burry became a celebrity investor. However, he has since retreated from the public eye. Burry continues to manage his personal investments, but he no longer runs a hedge fund.
Key Takeaways
- Michael Burry is a value investor who is known for his contrarian views.
- Burry was one of the first investors to predict and profit from the subprime mortgage crisis.
- Burry has bet $1.6 billion on a stock market crash.
- Burry is a controversial figure, but he is also one of the most successful investors of his generation.
Conclusion
Michael Burry is one of the most successful investors of his generation. He is known for his contrarian views and his ability to identify undervalued assets. Burry's bet on a stock market crash is a bold one, but it is based on his deep understanding of the financial markets.
