Michael Burry is a well-known value investor, famous for his housing short prior to the 2008 crisis.
Today he manages capital at Scion Asset Management.
Here are 15 quotes from one of the most curious investors alive today, as well as his investment strategy.
THREAD
Today he manages capital at Scion Asset Management.
Here are 15 quotes from one of the most curious investors alive today, as well as his investment strategy.
THREAD
First, let's take a look at his investment strategy.
His weapon of choice? Research.
His playground? Anything.
"If I can find value in it, it becomes a candidate for the portfolio."
Now, let's take a look at some of his greatest quotes.
His weapon of choice? Research.
His playground? Anything.
"If I can find value in it, it becomes a candidate for the portfolio."
Now, let's take a look at some of his greatest quotes.
1. "My natural state is an outsider, and no matter what group I'm in or where I am, I've always felt like I'm outside the group and I've always been analyzing the group.β
- Indicative of his style, Burry has never feared being a contrarian and following his own gut.
- Indicative of his style, Burry has never feared being a contrarian and following his own gut.
2. "Lost Dollars are simply harder to replace than gained Dollars are to lose."
- Capital preservation. The first rule of investing is don't lose money.
- Capital preservation. The first rule of investing is don't lose money.
3. "I try to buy shares of unpopular companies when they look like road kill and sell them when they've been polished up a bit."
- Buy the fear and sell the optimism.
- Buy the fear and sell the optimism.
4. "I have always believed that a single talented analyst, working very hard, can cover an amazing amount of investment landscape, and this belief remains unchallenged in my mind".
- They say no man is an island, but Burry believes a single analyst can get reasonably close.
- They say no man is an island, but Burry believes a single analyst can get reasonably close.
5. "The late 90s almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane".
- Eerily similar sentiments to today.
- Eerily similar sentiments to today.
6. "It is ludicrous to believe that asset bubbles can only be recognised in hindsight"
- Coming from a man who would know. The signs are often there, we choose to ignore them.
- Coming from a man who would know. The signs are often there, we choose to ignore them.
7. "Investors should own a concentrated portfolio of high-quality businesses that can deliver strong organic growth even if the economy falters."
- Finding businesses that can weather any storm is underrated during boom times.
- Finding businesses that can weather any storm is underrated during boom times.
8. "My positioning with my investors was always, I need three to five years."
- Burry appreciated the nature of the voting machine.
- Burry appreciated the nature of the voting machine.
9. "I hated discussing ideas with investors, because then I become a Defender of the Idea, and that influences your thought process."
- Burry liked to insulate his thoughts to avoid outside influence and biases.
- Burry liked to insulate his thoughts to avoid outside influence and biases.
10. "The market represents 3 categories of business. Those with shrinking intrinsic value, those with stable intrinsic value, and those with growing intrinsic value. The preference would be to buy a long-term franchise at a substantial discount from growing intrinsic value."
11. "I donβt believe anything unless I understand it inside out. And even if I understand something, it is not uncommon that I disagree with an accepted view (even if itβs a Nobel laureate)."
- Know what you own, why you own it and DYOR.
- Know what you own, why you own it and DYOR.
12. "If you are going to be a great investor, you have to fit the style to who you are."
- Not everyone can invest like Burry, find the style that marries your personality and create your edge.
- Not everyone can invest like Burry, find the style that marries your personality and create your edge.
13. "Regardless of what the future holds, intelligent investment in common stocks offer a solid route for a reasonable return on investment going forward."
- *alwayshasJPEG
- *alwayshasJPEG
14. "I donβt take breaks in my search for value. There is no golf or other hobby to distract me. Seeing value is what I do."
- When what you do is your passion, it never feels like work.
- When what you do is your passion, it never feels like work.
15. "I care little about the level of the general market and put few restrictions on potential investments. They can be large-cap stocks, small cap, mid cap, micro cap, tech or non-tech. It doesn't matter. If I can find value in it, it becomes a candidate for the portfolio."
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