Michael Burry Stock Portfolio: A Historical Look at the Legendary Investor's Holdings (2024)

Michael Burry is a name that needs no introduction in the world of investing. The former hedge fund manager and founder of Scion Capital shot to fame after his billion-dollar bet against the housing bubble was depicted in the book and movie "The Big Short." Burry's ability to identify and capitalize on market inefficiencies has made him a legend among value investors.

In this comprehensive blog post, we'll take an in-depth look at Michael Burry's stock portfolio, tracking its evolution over the years and analyzing the key holdings and investment strategies that have shaped his success. We'll also explore his performance, portfolio changes, and the reasoning behind his investment decisions.

Michael Burry Stock Portfolio 2021

As of December 31, 2021, Michael Burry's portfolio, managed through Scion Asset Management, was valued at around $1.74 billion. Some of his top holdings in 2021 included:

1. Geo Group (GEO)

2. Activision Blizzard (ATVI)

3. Alphabet (GOOGL)

4. Facebook (META)

5. Kraft Heinz (KHC)

Burry's portfolio in 2021 was heavily concentrated in the consumer cyclical sector, reflecting his belief in the resilience of certain industries during economic recovery. However, his stake in Geo Group, a private prison operator, raised eyebrows, as it was a relatively unconventional investment for a value investor.

Michael Burry Stock Portfolio 2023

Michael Burry's portfolio underwent significant changes in 2023, with a notable shift towards Chinese tech stocks and a departure from his previous holdings. As of December 31, 2023, Scion Asset Management's portfolio was valued at around $95 million, with the top five holdings being:

1. Alibaba Group Holding (BABA)

3. HCA Healthcare (HCA)

4. Oracle (ORCL)

5. Citigroup (C)

Burry's foray into Chinese tech giants like Alibaba and JD.com showcased his willingness to invest in undervalued assets, regardless of geography or sector. His portfolio also maintained a presence in the healthcare and financial sectors, suggesting a diversified approach to value investing.

Michael Burry Stock Portfolio History

Michael Burry's stock portfolio has undergone several transformations throughout his illustrious career. Let's take a closer look at the key milestones and holdings that have shaped his investment journey:

1. The Big Short (2005-2008)

Burry's most famous investment was his bet against the U.S. housing market before the 2008 financial crisis. Through his hedge fund, Scion Capital, he shorted subprime mortgage-backed securities, earning a staggering 489% return between 2000 and 2008.

2. Shift to Value Investing (2009-2015)

After the success of his housing market short, Burry transitioned to a more traditional value investing approach, focusing on undervalued stocks across various sectors. Some of his notable holdings during this period included Microsoft (MSFT), Google (GOOGL), and Western Digital (WDC).

3. GameStop Saga (2019-2021)

In 2019, Burry famously took a position in GameStop (GME), recognizing the potential for a short squeeze. As the infamous meme stock craze unfolded in 2021, Burry's stake in GameStop garnered significant attention, though he eventually exited his position.

4. Portfolio Overhaul (2022-2023)

In a surprising move, Burry sold off most of his stock holdings in 2022, citing concerns over market conditions. However, he quickly pivoted in 2023, building a concentrated portfolio focused on Chinese tech stocks and select healthcare and financial companies.

The Evolution of Michael Burry's Investment Strategy

While Michael Burry's stock portfolio has undergone significant changes over the years, his core investment philosophy has remained rooted in value investing principles. However, his approach has evolved to adapt to changing market conditions and capitalize on emerging opportunities.

In the early years of Scion Capital, Burry's investment strategy was heavily influenced by his extensive research into the housing market and his identification of the subprime mortgage crisis. His decision to short the housing market was a contrarian move that went against the prevailing sentiment at the time, but his conviction paid off handsomely.

After the success of his housing market short, Burry transitioned to a more traditional value investing approach, seeking out undervalued stocks across various sectors. This period saw him invest in tech giants like Microsoft and Google, recognizing their long-term growth potential and strong fundamentals.

However, Burry's investment strategy took a noteworthy turn in the aftermath of the GameStop saga. Recognizing the potential for a short squeeze, he took a position in the meme stock, showcasing his willingness to embrace unconventional opportunities when supported by sound analysis.

More recently, Burry's portfolio has been characterized by a concentrated focus on Chinese tech stocks, particularly Alibaba and JD.com. This strategic shift highlights his ability to identify value on a global scale and his willingness to invest in sectors and markets that others may overlook or undervalue.

Throughout his career, Burry's investment strategy has been underpinned by a deep commitment to thorough research, contrarian thinking, and a willingness to go against the grain. He has consistently sought out opportunities where his analysis diverges from the prevailing market sentiment, often leading to contrarian positions that ultimately pay off.

Michael Burry's Short Positions and Market Outlook

While Michael Burry is primarily known for his long equity positions in undervalued stocks, he has also taken significant short positions when his analysis indicates potential market downturns or overvalued sectors.

One of Burry's most notable short positions was his bet against the housing market in the mid-2000s. By identifying the inherent risks and unsustainable practices in the subprime mortgage market, Burry was able to profit immensely when the housing bubble eventually burst.

In more recent years, Burry has expressed concerns about market overvaluation and potential bubbles in various sectors. In 2022, he raised eyebrows by selling off most of his stock holdings, citing concerns over market conditions and the potential for a significant downturn.

Burry's market outlook is often shaped by his analysis of macroeconomic factors, such as inflation, interest rates, and government policies. He has been vocal about his concerns regarding the potential impact of excessive monetary stimulus and rising debt levels on long-term economic stability.

While Burry's short positions and bearish market outlook may sometimes be met with skepticism, his track record and willingness to go against the prevailing sentiment have earned him respect among investors and analysts alike.

Lessons from Michael Burry's Investment Journey

Michael Burry's investment journey offers valuable lessons for investors of all levels, from seasoned professionals to aspiring value seekers. Here are some key takeaways from his approach and portfolio management:

1. The Power of Contrarian Thinking

Burry's success is largely attributed to his ability to think independently and challenge conventional wisdom. His willingness to go against the grain and invest in opportunities that others overlook has been a defining characteristic of his investment strategy.

2. Thorough Research and Due Diligence

Burry's investment decisions are rooted in extensive research and rigorous due diligence. His ability to identify market inefficiencies and undervalued assets stems from a deep commitment to understanding the underlying fundamentals and potential risks.

3. Concentration and Conviction

Burry's portfolio is often highly concentrated, reflecting his conviction in the opportunities he identifies. This approach requires a strong belief in one's analysis and the ability to withstand market volatility and skepticism.

4. Adaptability and Flexibility

While Burry's core investment philosophy remains grounded in value investing principles, his portfolio has demonstrated a willingness to adapt to changing market conditions and embrace new opportunities when supported by his analysis.

5. Patience and Long-Term Perspective

Burry's investment horizon is often longer-term, allowing him to ride out short-term market fluctuations and capitalize on the compounding effects of value creation over time.

By studying Michael Burry's investment journey, investors can gain insights into the mindset, discipline, and analytical rigour required to navigate complex financial markets and achieve sustained success.

The Future of Michael Burry's Portfolio

As Michael Burry continues to navigate the ever-changing financial landscape, investors and analysts alike will be closely watching his portfolio moves and market outlooks. While his recent focus has been on Chinese tech stocks and select healthcare and financial companies, his investment strategy remains dynamic and adaptable.

One area of potential interest is Burry's stance on emerging technologies and disruptive innovations. As new industries and business models continue to reshape the global economy, Burry's ability to identify undervalued opportunities in these sectors could present compelling investment opportunities.

Additionally, Burry's views on macroeconomic factors, such as inflation, interest rates, and government policies, will likely influence his portfolio composition and market outlook. His willingness to take contrarian positions based on his analysis could lead to further portfolio adjustments and potential short positions in overvalued sectors.

Regardless of the specific investments or market conditions, one thing is certain: Michael Burry's portfolio will continue to be a source of fascination and inspiration for value investors worldwide. His unwavering commitment to thorough research, contrarian thinking, and long-term value creation will undoubtedly shape his investment decisions in the years to come.

As the financial world continues to evolve, Michael Burry's portfolio serves as a reminder that success in investing requires a combination of analytical rigor, independent thinking, and the courage to embrace complexity and go against the grain when necessary.

FAQs:

What is Michael Burry's investment strategy?

Michael Burry is primarily a value investor who seeks undervalued stocks with strong fundamentals. He is known for his extensive research and willingness to go against the grain when identifying investment opportunities.

How big is Michael Burry's portfolio?

As of December 2023, Michael Burry's portfolio, managed through Scion Asset Management, was valued at around $95 million.

What stocks is Michael Burry investing in 2024?

Based on the latest 13F filings, some of Michael Burry's top holdings in 2024 include Alibaba (BABA), JD.com (JD), HCA Healthcare (HCA), Oracle (ORCL), and Citigroup (C).

What are Scion Asset Management's top holdings?

Scion Asset Management's top holdings mirror Michael Burry's personal portfolio, with Chinese tech stocks like Alibaba and JD.com leading the way, followed by healthcare and financial sector companies.

How has Michael Burry's portfolio performed historically?

Michael Burry's portfolio has delivered stellar returns, particularly during the housing market short leading up to the 2008 financial crisis. His hedge fund, Scion Capital, recorded a 489% return between 2000 and 2008.

Does Michael Burry still hold short positions?

While Michael Burry is primarily known for his historic short position against the housing market, his recent portfolio compositions suggest a focus on long equity positions in undervalued stocks.

How often does Michael Burry update his portfolio?

Michael Burry's portfolio is subject to regular changes and updates based on his ongoing research and market analysis. Investors can track his holdings through quarterly 13F filings with the SEC.

What is Michael Burry's net worth?

Michael Burry's net worth is estimated to be around $300 million as of 2023, primarily accumulated through his successful investment strategies and hedge fund management.

Can individual investors follow Michael Burry's portfolio?

While individual investors cannot directly mirror Michael Burry's portfolio, they can use his investment philosophy and stock picks as a starting point for their own research and decision-making.

Where can I find more information about Michael Burry's investment philosophy?

Michael Burry's investment philosophy and approach are extensively covered in the book "The Big Short" by Michael Lewis, as well as numerous interviews and articles featuring the renowned investor.

Conclusion

Michael Burry's stock portfolio has undergone a remarkable transformation over the years, reflecting his ability to adapt to changing market conditions and identify value where others may not see it. From his legendary bet against the housing market to his recent focus on Chinese tech stocks and select healthcare and financial companies, Burry's investment journey is a testament to the power of thorough research, contrarian thinking, and unwavering conviction.

As investors seek to navigate the ever-changing financial landscape, Michael Burry's portfolio and investment philosophy offer valuable insights and inspiration. While individual investors may not be able to directly mirror his holdings, they can learn from his approach, seeking out undervalued opportunities and maintaining a disciplined, value-oriented mindset.

Ultimately, Michael Burry's stock portfolio serves as a reminder that success in investing often lies in the ability to think differently, embrace complexity, and stay true to one's principles, even in the face of scepticism or market volatility.