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Investor that Inspired ‘The Big Short’ Has Sold All of his Stocks — Except One
He perfectly predicted the last crash and is bracing himself for what’s coming
Michael Burry came to fame for his multi-billion-dollar bet against the US housing market in the mid-2000s. His background, reasoning, and interesting personality were chronicled in the Michael Lewis book The Big Short, which became a Hollywood feature and Christian freaking Bale played Burry.
Many, including the investors who put him as the manager of a fund, thought he was out of his mind when he made his moves before the subprime mortgage crisis hit. They tried their best to get him to change the position. When that didn’t work they attempted to pull their money out but couldn’t, and then ended up making an insane return thanks to Burry’s foresight.
So his fame grew, Michael Lewis came knocking, wrote a great book on the whole crash, and somehow Michael Burry found himself at a movie premier and with legions of fans and investors following his every trade.
Then a few weeks ago, he sold off his entire US stock portfolio except for a $3.3 million stake in one firm: a company that invests in private prisons and mental health institutions.
Both are extremely dark omens.
A market savant sees the mother of all crashes coming, unloads one hundred sixty-something million worth of stocks in a matter of weeks, and the only ones he keeps are for a freaking private prison company.
What the hell does he see, and what does it mean?
A market savant sees the mother of all crashes coming, unloads one hundred sixty-something million worth of stocks in a matter of weeks, and the only ones he keeps are for a freaking private prison company.
Burry’s moves fall in line well with predictions made earlier in the year by another famed investor named Jeremy Grantham, who wrote a piece to his investors entitled Let the Wild Rumpus Begin, in which he said the US economy is on the precipice of a super-bubble crash.
