What is Michael Burry's Net Worth?
Michael Burry is an American physician, investor, and hedge fund manager with a net worth of $300 million. Burry gained significant attention as the founder of Scion Capital LLC, where he accurately predicted the 2008 real estate market crash, amassing substantial wealth.
Burry's life was dramatized by Christian Bale in the 2015 film "The Big Short." After launching Scion Capital LLC in 2001, the fund saw a 55% return thanks to strategic bets against tech stocks preceding the internet bubble burst. By 2004, he managed over $600 million in assets.
Subprime Mortgage Bet
Burry gained notoriety for his $1 billion bet against the subprime mortgage market before the 2008 Great Recession. He persuaded Goldman Sachs to sell him "credit default swaps" on subprime deals, an unusual decision for a relatively small fund. Despite initial losses, he stayed the course, eventually earning $700 million for his investors and $100 million personally.
In an April 2010 New York Times op-ed, Burry argued that the risks in the subprime markets were foreseeable to any diligent student of financial markets from 2003 to 2005.
GameStop
Another notable Burry investment involved GameStop. In March 2020, he disclosed ownership of 3 million GameStop shares and urged the company's management to make changes via an open letter. By January 2021, GameStop's stock price surged due to a coordinated effort by Reddit users, reaching $480 per share. At this peak, his 1.7 million shares were worth $816 million, which were initially acquired at an average of $4 per share.
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Early Life and Education
Michael Burry was born on June 19, 1971, in San Jose, California. At age two, he lost his left eye to retinoblastoma and has used an artificial eye since then. Burry attended Santa Teresa High School and later studied economics and pre-med at the University of California, Los Angeles. He earned his M.D. from Vanderbilt University School of Medicine but did not complete his neurology residency at Stanford University Medical Center. Although he doesn't practice, Burry keeps an active medical license in California.
Start of Investment Career
During his time off from Stanford, Burry delved into financial investing, excelling particularly in value investing. His success attracted companies like White Mountains Insurance Group and Vanguard, along with major investors such as Joel Greenblatt. Burry's investment approach draws heavily from the 1934 book "Security Analysis," emphasizing the margin of safety.
In late 2000, Burry founded Scion Capital, backed by both an inheritance and family loans. His first full year saw a 55% gain, despite a declining S&P 500. He continued outperforming the market, achieving a 50% rise in 2003 by shorting overvalued tech stocks. By the end of 2004, he managed roughly $600 million.
Subprime Market
Focusing on the subprime market in 2005, Burry correctly predicted a housing market collapse by analyzing mortgage lending practices. Anticipating this, he shorted the market via credit default swaps from companies like Goldman Sachs. Despite skepticism and withdrawals from nervous investors, Burry's foresight paid off. Scion Capital's returns from 2000 to 2008 were approximately 489.34%, with Burry earning $100 million personally and $700 million for investors.
By April 2008, Burry had liquidated his positions and his company to concentrate on personal investments.
Further Investing Career
In 2013, Burry reopened his hedge fund as Scion Asset Management, focusing on gold, water, and farmland investments. The fund has also heavily invested in Facebook and Alphabet Inc., Google's parent company.
In late 2020, Burry took short positions against Tesla, likening its position to the housing bubble's collapse. He reportedly holds put options on over 800,000 Tesla shares and $31 million worth of ARK Investment Management.
In Popular Culture
Burry has been featured in several books and films. He was discussed in Gregory Zuckerman's 2009 book "The Greatest Trade Ever" and played a significant role in Michael Lewis's 2010 book "The Big Short: Inside the Doomsday Machine." The book was adapted into the 2015 film "The Big Short," directed by Adam McKay, featuring actors like Brad Pitt, Ryan Gosling, Steve Carell, and Christian Bale as Burry. The film received significant acclaim, earning five Academy Award nominations and a win for Best Adapted Screenplay. Bale was also nominated for Best Supporting Actor.
Personal Life
Burry lives in Saratoga, California, with his wife and son. His son was diagnosed with Asperger syndrome, leading Burry to suspect he might have the same condition.
