10 Big Short Quotes by Michael Burry | Investing, Tesla, Bitcoin, Meme stocks |

Michael Burry “Big Short” is a legendary contrarian investor, he is most famous for predicting the housing bubble of 2007 and subsequent financial crisis of 2008. 

Burry’s Hedge Fund opened a “Big Short” position against the US Housing market, betting that it would fall. This contrarian bet paid off for his investors & was popularised in the Oscar winning movie “the Big Short” where Michael Burry was played by Christian Bale. 

More recently Burry has opened major short positions against stocks like Tesla and Cathie Woods Ark Invest. See Michael Burry | What stocks has he been shorting?

Fun Fact: Michael Burry is a qualified medical doctor and also has a glass eye! For more see: 8 Unbelievable Facts about Big Short’s Michael Burry?

In this post I’m going to reveal the top 10 Quotes by Michael “Big Short” Burry on Investing, Tesla, Bitcoin and life! 

Contents:

– 12 Quotes by Michael Burry

– Michael Burry Vs Tesla

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Top 12 Quotes by Michael Burry

1. Value Investor

“I look for value wherever it can be found” , This quote is by Michael Burry (played buy Christian bale) in the Big Short Movie.
Burry is a Value investor at heart (with the foundations of Benjamin Graham & Warren Buffett).

However, what makes Burry different is his short selling strategies with options and special situations, for example Gamestop. 

2. Be a Contrarian

“Everything I do with my investing is just very different”. To be a great investor you sometimes need to have a contrarian streak, to be able to bet against the consensus but also be right.

This is because the stock market is an auction based market very similar to horse racing, you can’t just bet on the best horse (Best company) as when everyone does this the odd’s change. You are looking to bet on the outsiders which are misunderstood by the market.

3. Be Greedy When others are Fearful

“I buy shares in unpopular companies when they look like roadkill & sell them when they are polished”. When stocks crash & bad news is everywhere people assume there is more risk, then in fact there is less risk as stocks are cheaper. 

This is another method of being a contrarian investor and also looking for mispricing in the stock market.

Legendary Investor Sir John Templeton talks about “Buy from the pessimists” “Invest when there is Blood on the streets”  and Warren Buffett says “Be Greedy when others are fearful”.

4. Think Independently 

“My Natural State is an outsider, I’ve always felt like this”. Outsiders tend to do well in investing as they don’t feel the need to have approval from others. Herd Mentality and FOMO (Fear of missing out) kills in the stock market.

Warren Buffett once stated:

“You are not right because people agree with you, you are right because your fact’s and reasoning says so”

Burry has been criticised heavily for shorting Tesla stock, but he doesn’t care about this noise as he just does his analysis.

Warren Buffett has also been criticised heavily throughout his career for “Missing the boat” just before the tech bubble popped in the late 90’s to “holding too much cash” at Berkshire Hathaway.

5. Bitcoin Bear

“Bitcoin is a speculative bubble, I don’t hate it but i have doubts about it’s long term prospects”. Michael Burry doesn’t hate Bitcoin but he does have concerns about regulation tapering the major success of the cryptocurrency. 

6. Bitcoin Crash

“The Mother of all crashes is coming in cryptocurrency” . This quote with cause controversy by many. Some believe cryptocurrency and bitcoin will change the world and is the next wave of the internet. However, analysts also agree Bitcoin has no “intrinsic value” only perceived value. As the value is based upon what others are willing to pay.

I personally believe Blockchain is a fantastic technology and so is bitcoin but that doesn’t necessarily mean it’s a great investment.

 

7. Shorting Bitcoin

“Bitcoin is a speculative bubble, I haven’t shorted it yet but anything is possible”. At least Big Short Burry hasn’t decided to short bitcoin “yet” . The Immense volatility of the asset would make it crazy to short sell.

Full Video here: 3 Ways to Short Bitcoin:

8. Concentrated Portfolio

“Investors should own a concentrated portfolio of high quality businesses”. The common wisdom from academic finance is to diversify your portfolio across as many stocks and countries as possible.

However, Michael Burry and many legendary investors such as Warren Buffett and Bill Ackman actually believe in a more concentrated approach.

The reason is simple, it is impossible to know “everything about everything”, thus investing into area’s where you have some special insight or an edge can give you an advantage. Rather than “don’t put all your egg’s in one basket” , “Put all your egg’s in one basket & watch that closely”.

 

9. Investing Research

“I’ve always believed a single analyst working hard can cover a large investing landscape”. Michael Burry is living proof of this when he discovered the major issue with the US housing market, in the movie the big short.

Legendary Investor Peter Lynch also believes the average retail investor can beat the big guys on Wall Street using their own “information edge” and unique insights from your own personal experience. 

10. Mother of all Crashes

“The Mother of all crashes is coming in Meme stocks”. Michael Burry despite being an early investor into Gamestop believes wide speculation has taken over and ultimately it will correct to fundamentals.

BONUS: Investing Passion

“I don’t take breaks in my search for value, no golf to distract me…searching for value is what i do” . Being passionate, driven and a fanatic is key to being a successful investor.

Peter Lynch once stated “The person who turns over the most rocks, wins”. Warren Buffett was known to read through entire moody’s manuals of thousands of stocks doing a manual analysis of each looking for value.

Many Legendary investors continue the pursuit even though incredibly rich, they have a real passion for the game.

Want to Learn how to invest?

Many members of the Motivation 2 Invest community also have this passion and this drive to learn more each day. If you want to learn how to become a great fundamental investor or just join our thriving VIP Group. Check out the link here: https://www.motivation2invest.com/product/stock-investing-course/  

 we open the course to a limited number of members each month so be sure to reserve your spot now. Good Luck! 

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Michael Burry vs Tesla  

Burry has a major short position against Tesla stock.
He has long put’s against 800,100 shares of Tesla worth approximately $534 million, according to a filing with the U.S. Securities and Exchange Commission.

The quote above comes from a public Twitter Battle Michael Burry had with Elon Musk.

Did Michael Burry delete his Tweets?

Yes! Michael Burry made a series of Tweets slamming Tesla stock before deleting them. Luckily we have them saved for your viewing pleasure.

On September 22nd 2020:

Burry sent a Tweet @ElonMusk slamming the Valuation of Tesla stock. 

Tweet 1. Michael Burry Vs Elon Musk 

#Tesla #BatteryDay Edition @elonmusk –

Bloomberg data: Global Autos ex-TSLA

•  $2.3Trillion sales
• $100Billion EBIT,
•  $807Billion MarketCap. 
• $TSLA $25Billion sales, no EBIT, 
• $438Billion MarketCap. 

TSLA Reg Credit revenues a #meltingicecube.

 Global Autos@0.35x sales,TSLA @18X.

 #bubbles pic.twitter.com/YoM8z4H4lb

— Michael Burry, M.D. (@michaeljburry) September 22, 2020

Tweet 2. Michael Burry to Elon Musk about Tesla stock

Michael Burry also highlighted Tesla’s flat revenues and Tesla’s “inferior lithium iron phosphate tech” while appending the Tweet with the hashtag #bubbles.

$TSLA: @FT #BigRead – sales of green regulatory credits necessary for “profitability.” Flat revs as tax credits wane/ deliveries stagnate. Inferior lithium iron phosphate tech behind #millionmilebattery means lower energy density/reduced range. #bubbles https://t.co/Z5XlzzEsJj pic.twitter.com/8wH1o6PJrM

— Michael Burry, M.D. (@michaeljburry) September 22, 2020

Tweet 3. Tesla Short Position confirmed by Michael burry

“@elonmusk, yes, I’m short $TSLA, but some free advice for a good guy….Seriously, issue 25-50% of your shares at the current ridiculous price. That’s not dilution. You’d be cementing permanence and untold optionality. If there are buyers, sell that #TeslaSouffle,”   Source: The Observer

Tesla Stock Crushed like a Soufflé?

The “souffle” mention was a reference to the warning Musk gave to Tesla employees quote: “Tesla’s stock price will immediately get crushed like a soufflé under a sledgehammer” if Tesla doesn’t reach the profitability Wall Street has already priced into the stock.

Tesla Stock has surged more than 20,000% since going public in 2021. 

Driven by Tesla Business improvements, Electric Vehicle Demand & the great leadership (& showmanship) of Elon Musk. 

Just in 2020, Tesla’s share rose astronomically up over 700% , this created many happy Tesla Investors (Including myself) & even multiple “Teslanaires”. 

Many Wall Street analysts were left flat footed when the momentum hit Tesla stock.   

Short sellers lost $38 billion over the course of Tesla’s historic 2020 rally.  Tesla Famously Created some “Tesla Shorts” to provoke fun at the Short sellers (they sold out immediately!). 

Elon Musk May be Selling Tesla Stock & Valuation

 

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