Michael Burry Net Worth: Michael Burry, known for his early prediction of the subprime mortgage crisis, is a highly acclaimed hedge fund manager. The film “The Big Short” portrayed his remarkable story, with Christian Bale playing his character. Raised in San Jose, California, Burry pursued economics and medicine at the University of California before venturing into hedge fund management. He founded Scion Capital in November 2000 and successfully shorted the tech bubble in 2001. Burry’s exceptional foresight and understanding of financial markets propelled his influential status in the investment community.
With a deep desire to acquire comprehensive knowledge, Burry exhibited intense focus and concentration, particularly in advanced subjects. Later discovered his mild autism, introverted personality, and exceptional ability to concentrate contributed to his success as an investor. His accurate prediction of the 2008 subprime mortgage crisis solidified his reputation. Burry’s story highlights the power of embracing individual strengths and overcoming adversity.
Michael Burry personal life
Michael Burry’s investment in GameStop gained significant attention. In March 2020, he revealed ownership of 3 million shares and called for change through an open letter. Gradually reducing his position over six months, Burry retained 1.7 million shares.
The stock price of GameStop experienced an unprecedented surge in January 2021, driven by coordinated efforts of Reddit users. At its peak on January 28, 2021, the share price reached an astonishing $480. Burry’s 1.7 million shares would have been worth approximately $816 million, considering his average acquisition cost of $4 per share in 2020.
Burry’s investment in GameStop demonstrates his keen market insight. While the circumstances surrounding the stock price surge were extraordinary, his early involvement positioned him to realize substantial gains from his initial investment.
Although Burry no longer practices medicine, he maintains an active license with the Medical Board of California. Instead, he shifted his career focus towards finance and established Scion Capital LLC in 2000, marking the beginning of his influential role in investment and hedge fund management.
At Stanford, Michael Burry dedicated his off-duty hours to financial investing, excelling particularly in value investing. His exceptional stock-picking abilities attracted the attention of esteemed companies such as White Mountains Insurance Group and Vanguard and renowned investor Joel Greenblatt. Burry’s investment style is rooted in the principles outlined in the influential book “Security Analysis” from 1934, emphasizing the concept of margin of safety.
In 2000, Burry took a momentous step by establishing his hedge fund, Scion Capital. He secured the initial capital for his venture with a combination of inheritance and family loans. From the outset, Burry demonstrated his prowess by delivering impressive profits to his investors. In 2001, while the S&P 500 experienced an 11.88% decline, Burry reported an outstanding 55% gain. He continued outperforming the market in subsequent years, even during further decline.
Burry’s investment strategy included skillful shorting of overvalued tech stocks, contributing to his notable achievements. By the end of 2004, Scion Capital had grown to manage approximately $600 million in assets, firmly establishing Burry’s reputation as a highly successful and influential investor.
Net Worth of Michael Burry
Michael Burry’s interest in stock investing grew while he pursued a medical career. Despite his medical focus, he held an economics degree and dedicated his spare time to studying value investment strategies.
In 2000, Burry made a significant career shift, abandoning his medical residency at Stanford University to establish Scion Capital. The fund experienced remarkable success, delivering a 55% return in its inaugural year. By 2004, Scion Capital had amassed a substantial $600 million in assets under management.
Burry’s pivotal moment came in 2005 when he convinced his investors to join him in a massive bet against the housing market. Although it took time for his predictions to materialize, when they did, the outcomes were staggering. Burry achieved a profit of $100 million, while his investors collectively reaped a remarkable $700 million return.
Burry’s exceptional investment understanding and ability to seize lucrative opportunities have solidified his reputation as a skilled investor. His remarkable journey is a testament to his expertise, establishing him as a prominent figure in the financial world.
Since 2013, Michael Burry has operated his hedge fund as Scion Asset Management, functioning as an exempt reporting advisor. His investment strategy encompasses a diverse portfolio, including gold, farmland, tech stocks, and investments in private prisons.
Burry’s investment activities have garnered significant attention. In 2021, he initially made a substantial $534 million bet against Tesla stock but later reversed his position. Additionally, he holds put options worth approximately $31 million on ARK Investment Management.
Burry’s early involvement in GameStop exemplified his ability to identify opportunities. He purchased shares before the meme stock short squeeze phenomenon, unintentionally catalyzing a wave of retail investors and driving up the gaming retailer’s.