Summary: Michael Burry (@michaeljburry) is an American investor, hedge fund manager, and physician. He was one of the earliest investors to recognize the subprime mortgage crisis. As a result of his bets against the housing market, he made significant profits for his investors during the financial crisis. His current net worth as of 2024 is estimated to be $1.2 billion. A large portion of his wealth comes from his successful bet against the subprime mortgage market. He also made a significant profit by betting against Tesla stock.
Michael Burry Background
Michael Burry, a notable figure in the financial world, is best known for his foresight in predicting the 2008 housing market collapse. His journey in finance is characterized by a unique blend of deep analytical skills and a contrarian investment approach. He holds a medical degree and diverged from a potential career in medicine to pursue his passion for investing. He initially made his mark through his private investment firm, Scion Capital, which he founded in the early 2000s.
His claim to fame largely stems from his early recognition of the impending subprime mortgage crisis. He astutely identified the unsustainable nature of the housing market bubble, characterized by risky mortgage lending practices. Acting on this insight, he made significant bets against the housing market through credit default swaps, a move that was initially met with skepticism but ultimately proved highly profitable as the market crashed.
This successful prediction catapulted Burry into the spotlight, and his story was popularized in Michael Lewis's book "The Big Short," which was later adapted into a critically acclaimed film. In the movie, Michael's character, portrayed by Christian Bale, highlights his unconventional but effective investment style. After closing Scion Capital in the late 2000s, Burry continued to manage his own portfolio and later reopened his investment firm under a new name, Scion Asset Management.
Michael Burry Net Worth
As of 2024, Michael Burry's net worth is estimated to be $1.2 billion, with a large portion of his wealth coming from his successful bet against the subprime mortgage market. He also made a significant profit by betting against Tesla stock. He built his hedge fund Scion Capital after receiving an inheritance and loans from friends and family and made his first millions shorting the tech bubble in early 2001. He was able to turn $20 million in funding into over $600 million by the end of 2004.
How Did Michael Burry Get Rich?
He was able to build his hedge fund Scion Capital after receiving an inheritance and loans from friends and family. He made over $400 million in 2001 by shorting overvalued technology stocks after the boom in 2000 and 2001. By the end of 2024, he had turned $20 million in funding into over $600 million.
Then in 2008, he was able to make billions by shorting the housing market and persuading large firms like Goldman Sachs to sell him credit default swaps against the subprime deals that he perceived as weak. From these bets, Michael Burry was able to earn over $1.5 billion in profit for himself and the investors of Scion Capital.
What is the Michael Burry Stock Tracker?
The Michael Burry Stock Tracker account on Twitter is a monthly update of Burry's personal stock holdings. His largest current investment is Apple Inc (AAPL) puts, which represents 18% of his portfolio ($35,000,000).
Final Thoughts
To wrap up, Michael Burry's incredible story is an inspiring one, as he was able to turn his medical education and financial savvy into a multi-billion dollar fortune. He has proved that it's possible to make money in both uptrends and downtrends, although his most famous bet was the subprime mortgage crisis. Michael Burry is also active on Twitter, where he comments on his own investments and the broader market. Finally, despite initially betting against Tesla stock, he has since revealed that he is no longer shorting TSLA.
I fell into crypto during the 2017 mania and have been around ever-since. I now write, research and publish my own reports on the digital asset ecosystem.
