Michael Burry is an American investor who rose to prominence in 2005 by declaring that the US real estate system was going to collapse. Two years later, his prophecy came true and his story, like that of other investors, was brought to the big screen with the film The Big Short. However, his predictions of recent times have not been precisely characterized by his accuracy. These are some of them.
1. Tesla (January 2021)
Burry, a faithful follower of Twitter, the social network where he publishes his predictions, revealed the collapse of Tesla. The famous investor predicted in January 2021 that Tesla shares would plunge, just as it did with the housing bubble. “Enjoy it while it lasts,” he managed to say.
In December 2020, Burry stated that he was, and urged Musk to capitalize on “the ridiculous price tag” of his electric vehicle company by issuing shares. “Sell that #TeslaSouffle,” he added.
Undoubtedly a more than erroneous prediction, since Elon Musk continues to this day to be the most fortunate person on the planet. In October of that 2021, .
2. Market crash (February 2021)
After failing with Tesla, Burry took to Twitter again to warn his followers that the market was on the verge of bankruptcy. The American investor justified himself by saying that passive investing, the increase in bullish options trading and speculative stock bubbles had brought the market to a knife edge, pointing to rising debt to drive home his point of view.
Unfortunately for him, this prophecy did not come true either, as over the following months, the market continued on a post-pandemic bull run with nothing resembling a crash.
3.Bitcoin
Burry’s relationship with cryptocurrencies goes well beyond a specific date. The head of Scion Asset Management warned in March that bitcoin was a “speculative bubble that presented more risk than opportunity despite most proponents being correct in their arguments as to why it was relevant at this point in history.”
He also assured in March 2021 that the current price of the coin was unsustainable. A more than missed forecast, as the coin rallied to a record high of around $64,000 over the next few weeks, before taking a breather in late April.
Even so, Burry owns shares in several of the companies that invest in crypto assets, such as Coinbase and Square, whose performance depends in large part on the growth of the bitcoin ecosystem.
4. GameStop (January 2021)
This investor missed out on , the American video game retailer, despite holding almost 5.3% of its shares a few weeks earlier. It is precisely this participation that inspired Reddit members to rebel against the shorts that propelled the company public.
Burry once again positioned itself against the market, as it did in its bearish bet against subprime mortgages in 2007. However, Burry failed to see the new rally in the company’s shares and divested all its shares in the fourth quarter of 2020, losing the opportunity to earn more than 1,000 million dollars, according to Forbes data.
5. Robinhood (February 2021)
Burry went so far as to warn in early 2021 that Robinhood, like other apps, was empowering retail investors and disrupting the financial industry. In this sense, Burry commented that this application had led to the gamification of actions and compared it to a “fun casino” for all ages.
Despite this bleak outlook, with a valuation of $40 billion.
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