Michael Burry Net Worth is $300,000,000
Is Michael Burry a Rich Man?
Burry has a fortune of $300 million as a physician, investor, and hedge fund manager. Scion Capital LLC, of which Burry was a founding member, made Burry a household name. As a result of Scion, he made a fortune by properly predicting the real estate market crisis of 2008.
The Big Short featured Christian Bale in the role of Burry. Because of their smart wagers against tech companies prior to the internet boom, Scion Capital LLC has seen a 55% return since its inception in 2001. As of 2004, he had more than $600 million in assets under his control.
|Net Worth:||$300 Million|
|Date of Birth:||Jun 19, 1971 (50 years old)|
|Place of Birth:||San Jose, California|
|Profession:||Investor/Hedge Fund Manager|
Michael Burry Net Worth – Subprime Mortgage Bet
A $1 billion wager on the subprime mortgage business before the 2008 Great Recession made Michael a household name. He went to Goldman Sachs and convinced the financial institution to offer him “credit default swaps,” which gambled against subprime transactions. For such a tiny fund manager, this was a fairly uncommon action. In 2005, he began putting wagers. For a lengthy period of time, the bet was losing. Scion had to make frequent payments to cover his swaps prior to the real estate market bubble bursting. His investors revolted and demanded their money back as a result of this large investment.
Burry was accurate, and his fund ended up making investors $700 million. He made a fortune of $100 million solely on his own.
If anybody had examined the financial markets closely from 2003 to 2005, Burry contended, they would have been aware of the dangers of subprime mortgages.
Michael Burry Net Worth – GameStop
GameStop, the video game store, was another memorable Burry bet. Shares in GameStop were purchased by Burry in March 2020. His next move was to write an open letter to the company’s executives, urging them to make some sort of adjustment. Over the next six months, he sold all of his shares, reducing his holdings to 1.7 million.
Several Reddit users worked together in January 2021 to boost the stock price of GameStop. Shares of GameStop temporarily touched $480 on January 28, 2021. For those 1.7 million shares, they would have been valued $816 million at that point in time. In 2020, he most likely paid $4 per share for his investment in the company.
Childhood and Schooling
Michael Burry was born in San Jose, California, on June 19, 1971. Retinoblastoma, which occurred when he was two years old, caused him to lose his left eye, and he has been using an artificial eye since then. Burry attended Santa Teresa High School as a teenager. Onward to the University of California Los Angeles where he studied economics and pre-medical studies thereafter. At Vanderbilt University, Burry received his MD and began a neurology residency at Stanford University Medical Center, but did not complete it. Burry has maintained his medical licence, even though he is no longer practising.
Michael Burry Net Worth – Career in the Investment Business
Value investing proved to be a particular area of expertise for Burry throughout his time at Stanford. White Mountains Insurance Group and Vanguard, as well as notable investors such as Joel Greenblatt, became interested in him because of his successful stock choices. “Security Analysis,” a book written in 1934, serves as the foundation of Burry’s investment strategy, he has stated.
Burry started Scion Capital, a hedge fund he started in late 2000 with money he received through an inheritance and loans from his family. As soon as he started working, he was making huge returns for his investors. In his first full year in 2001, he supposedly gained 55% while the S&P 500 lost 11.88%. The S&P 500 sank again the next year, while Burry was once again on the rise.
He once again outperformed the market in 2003, with his assets increasing by 50%. Burry employed a technique of shorting overpriced tech equities in order to make these profits. By the end of the year, he had $600 million under his control.
The subprime market
In 2005, Burry started focused on the subprime sector. He correctly predicted that the real estate bubble will burst in 2007, based on his own research of mortgage lending procedures over the preceding two years. When the initial rates were replaced with considerably higher rates, he anticipated that subprime mortgages and the bonds based on them would begin to lose value. As a result, Burry shorted the market by convincing Goldman Sachs and other major financial companies to sell him credit default swaps against weak subprime loans..
When Burry started making payments on the credit default swaps he had purchased, several of his investors grew concerned that his forecasts were incorrect. Some investors withdrew their money for safety’s sake. Nevertheless, Burry’s forecasts came true, and he made $100 million in personal profit and nearly $700 million in profit for his surviving investors as a result. Between 2000 and 2008, Scion Capital generated gains of 489.34%.
Burry’s credit default swap shorts had been liquidated by April 2008, hence he did not gain from the bailouts of 2008 or 2009. After that, he went out on his own to invest his money.
Investing in My Future Profession
In 2013, Burry restarted his hedge fund under the name Scion Asset Management and began submitting reports as an exempt advisory firm. After that, he concentrated on gold, water, and farmland investments. In addition to Facebook and Alphabet Inc., the parent firm of Google, his fund has made significant investments.
Burry began shorting Tesla in late 2020, forecasting the same downfall of the firm as the housing bubble. According to the reports, he has put options on 800,000 Tesla shares. At least $31 million of ARK Investment Management stock is said to be in Burry’s control as well.
In the World of Popular Art
There have been several novels and movies on Burry. Hedge fund manager John Paulson’s participation in the subprime mortgage crisis was highlighted in the nonfiction book “The Greatest Trade Ever” by writer Gregory Zuckerman in 2009.
Lewis’ 2010 nonfiction book “The Big Short: Inside the Doomsday Machine” traced the buildup to the housing bubble collapse and featured those who gained from it by betting against it. Burry had a larger role in that book. Brad Pitt, Ryan Gosling, Steve Carell, and Christian Bale feature in the 2015 film adaptation of the novel directed by Adam McKay. In addition to getting five Academy Award nominations and a Best Adapted Screenplay award, the picture has been well praised. For his performance as Burry, Bale was also nominated for Best Supporting Actor.
All About Him!
Saratoga, California is where Burry currently lives with his wife and little kid. Burry feels he may be affected by Asperger syndrome after reading up on the condition after his kid was diagnosed with it.