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Dumb Money Live

The TRUTH about Michael Burry's Market Crash Prediction

Sep 5, 2023
Renowned investor Michael Burry discusses his $1.6B bet against the stock market. The hosts explore media reporting on his prediction and frustrations with financial journalism impacting retail investors. They also discuss the unique situation of playing the market, future episode plans, and the importance of focusing on individual stock opportunities.
22:23
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Episode guests

Michael Burry

Podcast summary created with Snipd AI

Quick takeaways

  • Michael Burry's reported $1.6 billion bet against the stock market was misleading and inaccurate, as he actually only invested between $250-$600 million.
  • The podcast emphasizes the challenges of successfully predicting macro events and highlights the importance of identifying individual stock opportunities instead of timing the market.

Deep dives

The Misleading Reporting of Michael Burry's Stock Market Prediction

The podcast discusses the misleading reporting around Michael Burry's recent stock market prediction. While many media outlets claimed that Burry invested $1.6 billion and risked 90% of his portfolio on a market downturn, this narrative is inaccurate. Burry's filing with the SEC revealed that he was short a certain number of shares using put contracts, which represents 100 shares of the underlying security. The notional value of these puts, reported by Burry, was $1.6 billion, but he did not actually invest that much money. Estimates suggest that his actual investment is between $250-$600 million. The podcast highlights the responsible reporting of this information and criticizes the potential negative impact on retail investors who may make trading decisions based on false information.

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