Tuesday, December 6, 2011


Been reading a scribd document of Michael Burry write-ups, courtesy of csinvesting (top quality blog). Not only am I not in the same ballpark as Burry - I'm not even on the same planet. I think it will be very difficult for most people to emulate him. Burry seems quite a short-term investor, spotting anomolies that he thinks the market will correct.The companies he selects don't seem to be great businesses - maybe Burry is "an early Buffett on steroids", although I am anaware as to how penetrating Buffett's early analysis is. His first recommendation, for instance is GTSI, which is down 32% over the last decade. It peaked at around $15 at the end of 2002. Burry wrote about it in March 2001 at $5. So clearly, a masterly shorter-term play, but not a long-term buy and hold. Contrariwise, the document doesn't give Burry's assessment of Apple, but if memory serves, he made about 30% on it - and we now all know just how well Apple went on to perform.

An interesting comment by him:
spin-offs  often  reach  a  price  nadir about one-year after the spin-off date

All hail to the Burry.

No comments: