- Michael Burry warned of mass speculation, excessive stimuli and an impending crash.
- Investor “The Big Short” expressed many of the same concerns in an interview in 2010.
- Burry also reflected on the start of his career and his bet against the real estate bubble.
Michael Burry has sounded the alarm bells about rampant speculation in the markets, rampant government spending and the inability of investors to learn from past bubbles and crashes. He raised similar concerns in a Bloomberg interview in 2010.
The boss of Scion Asset Management also spoke of his iconic bet against the real estate bubble of the mid-2000s, immortalized in the book and film “The Big Short”. Plus, he explained what drove him to invest, touched on Warren Buffett’s influence on his career, and foreshadowed the GameStop investing that sparked the equity craze even this year.
Here are the 14 best Burry quotes from the interview, slightly edited and condensed for clarity:
1. “I had social issues when I was younger. I was very drawn to being a rock star, an athlete or something like a fund manager. The reason being that they are based on performance Sport is not the case no matter how nice you are No matter how you style your hair If you are performing that’s all you need to do. from a young age I was quite interested in the idea of meritocracy and ranking people based on their effort and talents. Managing money was something that I could put effort into and do. . “
2. “I have had these interests which have been very intense in my life. The two interests that are really intense are music and markets. And every once in a while there is something else that will captivate me a bit, but it always comes down to those two things. “
3. “My natural state is an outsider, and no matter what group I am or where I am, I always felt like I was outside the group, and I always analyzed the group.” – reflect on its diagnosis of Internet and real estate bubbles.
4. “I’m in this book, ‘The Big Short’, but I’m not a big short. I’m not looking for good shorts. I spend my time looking for good long ones. I’ve shorted mortgages. because I had to do it. Every bit of logic had led me to this job, and I had to do it. “
5. “The appreciation in house prices was built into the mortgage market. Once house prices stopped rising, credit started to be taken out and house prices started to fall. saw in 2005, and that’s why I made it the biggest investment of my life. “
6. “My main concern is that there has been a total abdication of personal responsibility throughout our society. I don’t think anyone anywhere is blaming themselves for what they have done to help. The most damaging thing we can do as a country is to blame a small number of people, and not look within ourselves for what each of us has done or has not done that has leads to this mess. ”
7. “I am 100% sure that the economic policies and theories that got us into this mess will not prevent the next mess from happening. By not learning the lessons we need to learn, we are essentially devoting ourselves to make the same mistakes. It’s that simple.
8. “All these bailouts, all the stimulus, all this money that we print – it doesn’t hit us yet. It’s like we’re a teenager and we have depression, and our parents gave us a credit card. credit and said, ‘Go and cure your depression.’ It is not clear that we will have to pay this back at some point. “
9. “It is a giant gamble to take advantage of our future and the future of our children and the future of their children to try to get out of this. It’s very difficult to predict exactly which direction this is going to go, but I don’t think it’s a good bet. “
10. “We have become a nation of bubble heads. We just saw this huge bubble burst, and now everyone has their ideas of what the next bubble is and what is going to explode next. It is not. hard to say there is a bubble, the hard part is predicting when it will burst. “
11. “I want an investment thesis that I haven’t heard of or seen. I’m looking for an original thesis.” – Burry finally found this original thesis in GameStop. He invested in the video game retailer in 2019 and wrote several letters to its directors urging them to repurchase more than 80% of the outstanding shares of GameStop.
12. “I’m very interested in small tech companies. I’m interested in companies with a secular growth profile, or a secular history that usually doesn’t depend on what the government is doing. I’m looking for good products, a good one. management, good market position, competitive dynamics. “
13. “There’s only one Warren Buffett. There’s no point in trying to be like Buffett.” – Burry said Berkshire chief Hathaway inspired him to become a fund manager and modeled his early career on Buffett..
14. “Wall Street still thinks stocks are cheap. I would hate living in New York and hearing that 10 times a day.”
Read more: Michael Burry subreddit founder explains unique investor appeal ‘The Big Short’ – and reveals actions hidden in his tweets