Michael Burry
Michael Burry
#### Full Name and Common Aliases
Michael Joseph Burry is a medical doctor-turned-financial analyst and hedge fund manager.
#### Birth and Death Dates
Born on June 24, 1971 (alive).
#### Nationality and Profession(s)
American physician, investor, and founder of Scion Asset Management.
#### Early Life and Background
Burry grew up in San Jose, California. His interest in healthcare led him to pursue a career as a neurologist at Stanford University Medical School. However, he eventually shifted his focus towards finance and economics. Burry has stated that his experiences with patients suffering from rare neurological diseases fueled his curiosity about financial markets.
#### Major Accomplishments
Burry's most notable achievement is predicting the 2008 subprime mortgage crisis. He identified the bubble and successfully shorted various companies involved in the crisis, earning significant profits for himself and his investors. This foresight also made him a prominent figure in the world of finance.
#### Notable Works or Actions
Burry's investment strategy emphasizes value investing and has been influenced by Benjamin Graham's principles. He has written extensively on his views on the stock market, often expressing skepticism towards mainstream financial theories. Burry is known for his contrarian approach, which involves taking positions opposite to those held by the majority of investors.
#### Impact and Legacy
Burry's predictions about the 2008 crisis have been widely recognized as accurate, demonstrating his ability to think critically and outside conventional wisdom. His success has also led to him being featured in various media outlets, including interviews with prominent news organizations like Bloomberg and CNBC.
#### Why They Are Widely Quoted or Remembered
Burry is widely quoted for his astute observations on the stock market and his unorthodox investment strategies. He has captured the attention of investors, economists, and financial analysts due to his accuracy in predicting significant events, such as the 2008 subprime mortgage crisis. His ability to challenge mainstream views and think critically about complex economic issues makes him a respected figure in the world of finance.
As a doctor-turned-investor, Burry's unique perspective has allowed him to excel in an area where many others have failed. His dedication to understanding financial markets and his willingness to challenge conventional wisdom have made him a widely recognized authority on investing.
Quotes by Michael Burry
Sadly, in the highest levels of economic thought in government, questions are not tolerated. It is as if we're dealing with the binary thinking of a fundamentalist religion.
In early 2005, I really studied the prospectuses of these mortgage pools that were tranched out into different-rated slices rated by agencies like S&P and Moody's. They had names like Park Place and People's Choice. It was clear to me that many of the buyers of these repackaged subprime mortgages were doing little analysis.
In June 2005, mortgage rates were at 40-year lows, and risk premiums on mortgage securities were at all-time lows. Once the banks migrated to the subprime area, there was little else that could be done to send housing prices higher.
I think a lot of hedge funds get their trades from Wall Street and get their ideas from Wall Street. And I just like to find my own ideas. I'm reading a lot; I read a lot of news. I'm addicted to it. I basically - I follow my nose on news stories.
Back in 2005 and 2006, I argued as forcefully as I could, in letters to clients of my investment firm, 'Scion Capital', that the mortgage market would melt down in the second half of 2007, causing substantial damage to the economy.
I seek individual investments that will allow me to target total portfolio returns of at least 20% annually after fees and expenses on an annual basis over a period of years, not months.
It is a tenet of my investment style that, on the subject of common stock investment, maximizing the upside means first and foremost minimizing the downside. The deleterious effect of permanent capital loss on portfolio returns cannot be overstated.
Common hedging techniques include shorting stocks, buying put options, writing call options, and various types of leverage and paired transactions. While I do reserve the right to use these tools if and when appropriate, my firm opinion is that the best hedge is buying an appropriately safe and cheap stock.
Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled into this category or that category so that fund of funds, pensions, and other institutions can make comforting - if not necessarily prudent - asset allocation decisions.
Innovation, especially in America, is continuing at a breakneck pace, even in areas facing substantial political or regulatory headwinds. The advances in health care in particular are breathtaking - so many selfless souls are working to advance science, and this is heartening.