Michael Burry Just Sold Everything

About this Video

• Video Title: Michael Burry Just Sold Everything
• Channel: New Money
• Speakers: Narrator
• Duration: 00:12:17

Introduction

This video analyzes Michael Burry's Q1 2025 13F filing, revealing a dramatic shift in his portfolio. He liquidated nearly all his holdings, except for Estee Lauder, and simultaneously opened put options betting against several companies, including those he previously held long. The video explores the reasons behind this drastic change, focusing on the impact of renewed trade tensions between the US and China.

Key Takeaways

• Massive Portfolio Liquidation: Michael Burry sold almost all of his stock positions, reducing his portfolio from $77 million to $13 million. Only Estee Lauder remained.
• Bearish Bets: He opened put options, actively betting against Alibaba, JD, Pinduoduo, Baidu, Nvidia, and Trip.com. This is a significant reversal from his previous long positions in several of these companies.
• Geopolitical Influence: The renewed trade war between the US and China is cited as the primary driver for Burry's bearish shift. Tariffs and geopolitical risks significantly altered the outlook for Chinese tech stocks.
• Estee Lauder Exception: Burry's remaining holding, Estee Lauder, is discussed in the context of the "lipstick index" hypothesis, but its recent poor performance and restructuring efforts are also highlighted. The narrator suggests Burry might view this as a contrarian value play.
• Limitations of 13F Filings: The video emphasizes the limitations of using 13F filings as a reliable indicator of an investor's current strategy, as they are released 45 days after the quarter's end, representing past actions rather than a real-time view.