This Legendary Investor Just Made a Huge Bet on This One Stock -- Should You Follow?
Legendary investor Michael Burry is known for making big bets. In fact, he became famous for being one of the first investors to recognize the 2008 subprime mortgage crisis, and he bet heavily against the housing market by buying credit default swaps on subprime mortgage-backed securities. Credit default swaps essentially act like insurance against default, so when the underlying mortgage-backed securities collapsed, Burry profited handsomely. He was later portrayed in the movie The Big Short by Christian Bale.As such, it was quite notable when it was revealed that Burry sold off his entire investment portfolio in the first quarter, except for one stock: cosmetic company Estee Lauder (NYSE: EL). In fact, he doubled his position in the stock during the quarter.Burry didn't stop there, though. Not only did he sell his entire stock portfolio, but he also bought put options on Nvidia and several Chinese ADRs, including Alibaba, PDD Holdings, and JD.com, among others. By buying put options, he was betting that these stocks would decline in price. Continue reading
Legendary investor Michael Burry is known for making big bets. In fact, he became famous for being one of the first investors to recognize the 2008 subprime mortgage crisis, and he bet heavily against the housing market by buying credit default swaps on subprime mortgage-backed securities. Credit default swaps essentially act like insurance against default, so when the underlying mortgage-backed securities collapsed, Burry profited handsomely. He was later portrayed in the movie The Big Short by Christian Bale.
As such, it was quite notable when it was revealed that Burry sold off his entire investment portfolio in the first quarter, except for one stock: cosmetic company Estee Lauder (NYSE: EL). In fact, he doubled his position in the stock during the quarter.
Burry didn't stop there, though. Not only did he sell his entire stock portfolio, but he also bought put options on Nvidia and several Chinese ADRs, including Alibaba, PDD Holdings, and JD.com, among others. By buying put options, he was betting that these stocks would decline in price.
