Michael Burry is a medical doctor-turned-hedge fund manager who made headlines in the early 2000s for his unconventional investment strategies and uncanny ability to predict market trends.
His most notable achievement was correctly predicting the 2008 financial crisis, a feat that earned him the nickname “The Big Short Doctor.”
In this article, we’ll take a closer look at Michael Burry net worth in 2023, background, investment philosophy, and the events that led to his prescient call of the 2008 housing market crash.
Michael Burry Net Worth (2023)
Michael Burry is a well-known American investor and hedge fund manager with a net worth of approximately $320 million in the year 2023.
Burry’s fortune was built primarily through his bet against the housing market in the early 2000s.
He correctly predicted that the housing market was in a bubble and that it would eventually collapse, and he bet against it by purchasing credit default swaps (CDS) on subprime mortgages. This bet earned him and his investors a return of more than 700%.
In addition to his hedge fund, Burry also earns money through various other investments, including stocks and real estate. He is also known for his philanthropic efforts, including donations to organizations that promote education and provide healthcare to underserved communities.
Early Life and Career of Michael Burry
Michael Burry was born in 1971 in New York City and raised in San Jose, California. He graduated from Vanderbilt University with a degree in neuroscience before going on to medical school at Duke University.
However, after completing his residency, he decided to pursue a career in finance instead of practicing medicine.
In 2000, at the age of 29, Burry founded Scion Capital, a hedge fund that focused on value investing.
His investment philosophy was based on the teachings of Benjamin Graham and Warren Buffett, who advocated for buying undervalued assets and holding them for the long-term.
The Big Short
In 2005, Burry began to notice that the housing market was in a bubble. He believed that the widespread use of subprime mortgages, coupled with lax lending standards, was creating a dangerous situation.
He began to bet against the housing market by purchasing credit default swaps (CDS), a type of financial instrument that pays out when a borrower defaults on their loan.
At the time, very few people were aware of the potential risks in the housing market, and many investors thought Burry was crazy.
However, he persisted, and by 2008, his bet against the housing market had earned him and his investors a fortune. When the housing market finally collapsed, Burry’s CDS paid out, netting him and his investors over $700 million.
Burry’s prescient call of the 2008 housing market crash made him a household name and earned him the nickname “The Big Short Doctor.”
His story was later retold in the bestselling book “The Big Short” by Michael Lewis and the Oscar-winning film adaptation of the same name.
In 2011, Burry closed Scion Capital, citing a desire to spend more time with his family and pursue other interests. He currently manages a small family office and continues to invest in undervalued assets.
Final Thoughts on Michael Burry!!
Michael Burry’s story is a testament to the power of unconventional thinking and the importance of doing your own research.
His ability to spot the housing bubble and correctly predict the 2008 financial crisis is a remarkable achievement that has cemented his place in the annals of investing history.
While many investors were caught off guard by the crisis, Burry’s foresight allowed him to profit handsomely from it.
|Name||Occupation||Years active||Notable achievement|
|Michael Burry||Hedge fund manager||2000-2011||Correctly predicting the 2008 financial crisis|
FAQs About Michael Burry
How did Michael Burry become successful?
Michael Burry became successful as a hedge fund manager by identifying and profiting from market inefficiencies and trends, such as the housing market crash of 2008.
What was Michael Burry’s role in the 2008 financial crisis?
Michael Burry was one of the first investors to identify and bet against the housing market, correctly predicting the collapse of the market and making a significant profit as a result.
Is Michael Burry still working as a hedge fund manager?
No, Michael Burry closed his hedge fund in 2016 and is no longer actively managing money.
How did Michael Burry get into investing?
Michael Burry got into investing while studying as a medical student and started investing in stocks and real estate properties.
Has Michael Burry ever written a book?
No, Michael Burry has not written a book. However, he has been featured in the book “The Big Short: Inside the Doomsday Machine” by Michael Lewis, which tells the story of his bet against the housing market.
Also further read: