Dr. Michael Burry: Tips, Tricks And Case Studies

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.

Background

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.

Burry resources

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:

  1. Dr. Michael Burry — Part One: Starting Small
  2. Dr. Michael Burry — Part Two: How Much Can I Lose?
  3. Dr. Michael Burry — Part Three: Looking For Bargains
  4. Dr. Michael Burry – Value And Quality

Photo by Jo@net

2 Comments

  • Is there an email address available to send correspondence to dr burry for further insight into his investment philosophy?

  • At the end of the day .. i was one of the millions of americans that was rearended by misleading information from citi corp employees .. i realized later that the way the banks insured the loans, they benefited from forclosures… it is a travesty of justice how they got away with the blatant fraud .. my house went from beinh worth around 700l to less then 300k on under 1 year .. there you go .. o owed 380k .. the banl saod i owed 476k .. sold the loan for 295k and had the insurance company pay the balance .. impossible to imagine .. but true

Leave a Reply