Chit Chat Stocks Michael Burry: The Ultimate Deep Value Investor
Feb 12, 2025
Discover the intriguing journey of Michael Burry, the deep value investor behind the iconic housing short. Unpack his unique investment strategies, contrasting deep value with compounders. Dive into case studies of Masaba Holdings and the complexities of mortgage-backed securities. Learn about Burry's analytical approach to volatility and timing, especially during crises. Explore his methods in understanding market sentiment and uncovering hidden opportunities in uncertain times. Get insights into his performance and current holdings in today's market landscape.
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From Medicine To Hedge Fund Founder
- Michael Burry left his medical residency to start Scion Capital after building a following on blogs and message boards. He launched Scion in late 2000 with backing from Joel Greenblatt and White Mountain Insurance and quickly outperformed indexes.
Classical Deep-Value Playbook
- Burry's strategy is classical deep value: buy unpopular companies trading far below intrinsic worth and sell when sentiment recovers. He emphasizes concentrated positions and illiquid, undervalued situations for long-term appreciation.
Volatility Is Opportunity, Not Risk
- Burry rejects volatility-as-risk orthodoxy and treats price volatility as opportunity when intrinsic value remains intact. He argues buying at low interim prices increases, not decreases, expected returns if the dollar is still a dollar.
