Michael Burry is an American hedge fund controller and investor best known for betting against the subprime mortgage market in 2008. Currently, Michael Burry net worth is estimated to be $300 million dollars.
In 2015, the movie “The Big Short” depicted Burry’s success story – a role Christian Bale portrayed. In 2001, he spearheaded the foundation of Scion Capital LLC and his astute investments contrary to tech stocks before the dot com bubble burst earned him a 55% return. As of 2004, he was overseeing assets worth an astonishing $600 million!
The Subprime Mortgage Bet
Michael Burry gained fame when it was discovered that he had placed $1 billion wager on the subprime mortgage sector before the 2008 Great Recession. In 2005, with his small fund manager status, Michael managed to convince Goldman Sachs to give him “credit default swaps,” an unconventional bet against subprime deals. Initially, this bold gamble did not pay off; however, after enduring regular payments for some time in order to cover these swaps – investors demanded their money back from Scion Capital (Burry’s enterprise). Ultimately leading up to and through the global financial crisis of 2008-2009 –Burr’s prediction proved accurate and profitable
By utilizing his expertise and foresight, Burry was proven correct; in turn, investors earned a whopping $700 million from the fund while he personally earned an impressive $100 million. In April 2010’s New York Times op-ed article, Burry claimed that anyone who attentively observed the financial markets between 2003 to 2005 could have easily identified potential risks of subprime markets.
In March 2020, Burry made waves when he revealed his stake in the retail company GameStop. His open letter to its executives was a shock and drove them to make major changes. During this time period, Burry scaled back his ownership of shares from 3 million to 1.7 million.
In early 2021, Reddit users joined forces to cause a monumental increase in the stock price of GameStop. On the 28th of January, it was reported that GameStop touched a peak share rate of $480! If Michael had maintained his 1.7 million shares at this exalted price point he would have earned an incredible payout worth approximately $816 million – quite impressive considering the average cost for each share when initially purchased was only around $4!
Early Life and Education
Michael Burry was born in 1971 on 19th June, in San Jose, California. While he was still a toddler, he was diagnosed with retinoblastoma and had to have his left eye removed. Throughout his teen years, he attended Santa Teresa High School before enrolling at the University of California, Los Angeles to pursue an economics and pre-med degree.
He then went on to obtain his M.D. from Vanderbilt University School of Medicine and attempted a residency in neurology at Stanford University Medical Center, though he ultimately did not complete it. He still holds an active license with the Medical Board of California, despite not practicing medicine presently.
Beginning of Michael Burry Investment Career
As he was on break from Stanford, Michael Burry began to focus his attention on financial investments and ultimately became an extremely successful value investor. His stock selections drew considerable attention from companies such as White Mountains Insurance Group and Vanguard, in addition to major investors like Joel Greenblatt. Burry has reported that his investment style is based on the 1934 publication “Security Analysis,” and that his whole stock picking is firmly founded in the concept of margin of safety.
In late 2000, Burry created his own hedge fund titled Scion Capital, in which he generated funds by using both a legacy and loans from his family. Almost immediately, he was delivering remarkable gains for his financiers. During the first total year in 2001, he was reportedly up 55% even though the S&P 500 dropped 11.88%. The S&P 500 dipped again the following year while Burry once again saw a rise.
In 2003, he outperformed the market yet again with his investments increased by 50%. To produce these returns, Burry employed an approach of shorting overvalued tech stocks. By the finish of 2004, he was controlling approximately $600 million.
Currently, Michael Burry is the president of his personal investment firm called Scion Asset Management. He invests in both public and private companies and prefers to buy the stock when it is trading below net tangible asset value (NAV). Apart from investing in publicly traded companies, such as Google and Facebook he has also invested in a number of start-ups such as Utherverse Inc., CropX, and Fluxergy.
Burry is also an avid reader and frequently contributes to discussions and debates on investing boards such as Value Investors Club. He recently shared his views on the current volatility of the market, recommending that investors should “be ready for a crash” due to the lack of knowledge of the long-term economic effects of COVID-19.
Michael James Burry is married to his wife, Cuban-born doctor, Georgia Shiah. The couple lives in Saratoga, California, and has two children together. He is an avid drummer and a passionate reader of books; some of his favorite authors are J.R.R Tolkien, Toni Morrison, and Fyodor Dostoyevsky. Burry is also a vocal supporter of animal rights and volunteers at the Wildlife Center in Santa Clara County.
. Currently, Michael Burry net worth is estimated at $300 million dollars. He is one of the most successful investors of all time and is continuously reaping rewards from his unorthodox strategies in the stock market. It just goes to show that with a little bit of creativity and daring you can achieve great things!