Recently I’ve had quite a few people contact me asking where they can find more information about Dr. Michael Burry and his investing process. I’m pretty sure this has something to do with the upcoming film The Big Short, which is based on the book by Michael Lewis, The Big Short: Inside the Doomsday Machine.
Here’s a collection of Burry resources as well as some key takeaways from his old blog posts that you might find interesting.
Dr Michael Burry founded Scion Capital in 2001 and in its first full year of trading, 2001, Scion returned 55.44% gross for its investors. The S&P 500 fell 11.88% over the same period. In 2002, Scion returned 16.08% gross for its investors, compared to the S&P 500’s -22.10%. And in 2003 the fund once again returned over 50% gross, beating the S&P 500 by 22.02% for the year.
From its inception in 2000, through to closing during 2008, Scion returned 696.94% gross and 472.40% net compared to the S&P 500, which returned 5.2% over the same period.
Burry’s strategy was simple but time-consuming and intensive. His early blogs detail how he went about finding prospective investments, as well as how he managed positions once he had decided to buy.
Csinvesting has condensed Burry’s blog posts from 2000/2001 into one case study here.
The Young Money blog has a summary of Burry’s posts on Silicon Investor if you don’t have the time to read through the entire case study from csinvesting above.
For a collection of Burry resources, you can head over to ValueWalk’s Michael Burry Resource Page
And finally, if you’re interested in the whole Michael Burry story here’s a four-part series I wrote for ValueWalk on Dr. Burry’s career:
- Dr. Michael Burry — Part One: Starting Small
- Dr. Michael Burry — Part Two: How Much Can I Lose?
- Dr. Michael Burry — Part Three: Looking For Bargains
- Dr. Michael Burry – Value And Quality
Photo by Jo@net