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Michael Burry, the mastermind behind the “Big Short,” forecasts the 2008 financial crisis & becomes an influential finance figure on Wall Street. But in finance, where risks destroy fame and rewards dance for investment success, how is Michael J. Burry now?
Can you remember Michael James Burry? Who gives up the profession for a finance career?
If you forget him, don’t worry; this blog article will remind you about Michael Burry’s exciting journey from medicine to hedge fund & also how he became so rich.
Let’s start with the following.
Key takeaways:
- Michael Burry became a hedge fund manager from a physician. He is a licensed doctor in California.
- Michael J. Burry made a $100 million profit from the subprime mortgage crisis by shortening the bond market.
- Michael James Burry closed Scion Capital in 2008 & renamed it Scion Asset Management in 2013.
- Michael Burry is a value investor who meticulously mix the Contrarian and shorting approach.
The big short Michael Burry?
Michael Burry is famous for his role in the “Big Short” film, where he, with his other co-investors, accurately predicts the 2008 financial crisis.
Below is the table detailing the big short Michael Burry.
| Key Stats | Descriptions |
| Date of birth | June 19, 1971 |
| Current age | 53 |
| Birthplace | San Jose, California |
| Education | Economics and pre-med at UCLA. M.D. from Vanderbilt University School of Medicine (1997). |
| Source of wealth | Hedge fund management |
| Marital status | Married |
| Childs | Two sons. One has Asperger’s syndrome |
| Career change | From doctor (neurology) to finance |
| Finance career started | By founded Scion Capital in 2000. |
| Scion Capital closed | 2008 |
| Start personal investment by | Scion Asset Management in 2013 (renamed Scion Capital) |
| Investment style | In-depth research. Value investing. Contrarian mindset. |
| The Big Short | Key figures featured in Michael Lewis’s book “The Big Short” (2010). Christian Bale portrayed him in the film adaptation. |
| Life style | Simple |
Michael burry net worth?
Michael Burry doesn’t disclose his net worth detail publicly, but it is estimated to be a maximumof $1.2 billion. There is a rumor that Michael Burry is less wealthy due to his simple lifestyle. Charlie Munger and Warren Buffet also live in a simple house, which doesn’t mean they are not rich.
Below the table is a detailed list of Michael Burry’s net worth.
| Net Worth ($) | Change (Million $) | Change (%) | Year |
| 340 million | +/- (slightly change) | Not fixed | 2018 |
| 390 million | +50 | +15 | 2019 |
| 425 million | +35 | +9 | 2020 |
| 460 million | +35 | +8 | 2021 |
| 500 million | +40 | +9 | 2022 |
| Between 300 million to 1.2 billion | +/- 1.4 | -/+14 | 2023 |
| Between 350 million to 1.5 billion | +$50 to $300 | +17 to 25 | 2024 |
| Between 400 million to 1.8 billion (projected) | +50 to $300 | +14 to 17 | 2025 |
| Between 450 million to 2.1 billion (projected) | +50 to $300 | 13 to 16 | 2026 |
| Between 500 million to 2.4 billion (projected) | +50 to 300 | 11 to 14 | 2027 |
If you analyze Michael Burry’s net worth, you will see that his wealth increased sequentially, which indicates his money management skills. Michael Burry was famous for the 2008 housing crisis prediction, but his increased net worth reflects his value investment skill.
How much money did Michael burry make?
Michael Burry makes10 million to 100 million per year. However, income may fluctuate according to market conditions, investment success rate & global crisis.
Below is the breakdown of Michael Burry’s other income.
| Make profit ($) | From | How |
| 1 billion | Scion Capital | Selling mortgage-backed securities in the 2008 crisis. |
| 50 million to 100 million | Amazon | Shorting Amazon in the early 2000s |
| 50 million to 100 million | Tesla | Shorting Tesla in 2017 |
Michael Burry wife?
Cassandra Burry, a Vietnamese-American woman, is Michael Burry’s wife. Cassandra is a beautiful and intelligent woman who understands Michael Burry’s career. Cassandra Burry is a candid, honest & reliable life partner who plays a vital role in Michael Burry’s success.
Previously, Michael Burry married aKorean woman, but Michael Burry didn’t disclose it publicly.
What does Michael burry invest in?
Michael Burry invests in diverse assets, includinggovernment real estate, farmland, infrastructure, gold, water, & low-cost index funds.
Below, the table & image detail Michael Burry’s investment.
| Invest in | Portfolio portions |
| Black Knight | 19.9% of the portfolio |
| Coherent | 11.3% of the portfolio |
| Geo Group | 25% of the portfolio |
Below the image shows Michael burry’s scion investments.
Michael burry investing strategy?
Michael Burry is a good investor who follows Warren Buffet, i.e., value investing. However, Michael Burry’s investment strategy combines contrarian and meticulous research with value investment.
Below are the details of Michael Burry’s investing strategy.
- In-depth research
In-depth research includes financial statement analysis, understanding critical ratio associated with investment success, type of stock or asset, overall industry trends & whether the company has dedicated management.
In a word, in-depth research means analyzing companies to understand their undervaluation or future growth trends.
- Value Investing
Value investing means finding a company or stock that is undervalued over its intrinsic price & has a greater chance to return its original price or has the probability to grow in the long term. Michael Burry considers this misprice as an opportunity to gain.
- Contrarian Mindset
A contrarian mindset means going against bullish predictions to investigate whether the sentiment is excessively positive. If the analysis found the opposite view, then Michael Burry doesn’t hesitate to take his research.
- Risk Management
Here, Michael Burry meticulously analyses potential risks associated with an investment portfolio & uses financial instruments like options or derivatives to hedge against adverse market movements to mitigate.
Say Michael Burry has an investment portfolio of $10 million & he purchases under put options.
These options will help Michael Burry to lower investment risk in the following way,
- If the market declines to $8 million, then put options increase its price & recover losses.
- If the market price becomes stable or increases, put options indicate hedging cost.
Let’s see a mathematical example to understand it in more detail,
- Michael Burry buys Palantir stock at a market price of $20
- Michael Burry estimates intrinsic stock value at $30 based on earnings potential, growth rate, and discounted cash flows.
So,opportunity = Intrinsic Value – Market Price
=$30 – $20
=$10
Michael Burry considers this $10 as an opportunity & assumes Palantir is now an undervalued stock.
Michael J. Burry uses options, portfolio diversification or stop-loss strategy for risk management at a specific price.
Say the market price of Palantir stock declined & he has a stop loss price of $15. In this case,
- If the stock price falls to $15, a stop-loss order will limit the potential loss to $5 per stock.
- Usually, the stop loss covers the difference price between the opportunity & stop loss price.
Concluding Thought
Michael James Burry is undoubtedly a meticulous investor who predicted the housing crisis accurately. His investment is a rich combination of finance & medical knowledge.
It is also true that Michael Burry’s investment strategy may not fit with others. This statement doesn’t mean that Michael Burry is a lousy investor. Every investor has success & also some significant failures, even Warren Buffet or Elon Musk.
Elon Musk, one of the best business figures, makes enormous profits from Tesla & other businesses but also significantly loses on “X” (former name is Twitter) investment.
So, this doesn’t mean that Elon Musk is not an intelligent business person.
Overall, Michael Burry is a good investor.
Frequently Asked Questions (FAQ)
Is Michael Burry a billionaire?
Yes. Michael J. Burry is a billionaire, according to The Street. But Michael Burry doesn’t claim to be a billionaire. Some sources claim Michael Burry is a billionaire, whereas some agree that he is an upper milliner.
Though wealth changes over time, according to my analysis, Michael Burry is closer to a billionaire.
Disclaimer
The information provided in this article is author’s view & only for educational purposes. Author has no intention to defame anyone & this is not sponsor article. If you make any investment decision based on this information, then financeideas.org will not liable for financial losses. Do your research before making vital decision.
