The Big Short / Netflix
Michael Burry has been sounding the alarm over hype and speculation in the markets for months, warning that reckless promotion and buying will result in a devastating crash.
The investor has targeted Tesla – which it sells – as well as bitcoin, Robinhood and GameStop’s shopping frenzy in recent weeks.
The head of Scion Asset Management is best known for his billions of dollars bet against the US housing bubble in the mid-2000s, which was immortalized in Michael Lewis’s book “The Big Short”. He was played by Christian Bale in the film adaptation.
Here are Burry’s top 17 tweets, slightly edited and condensed for clarity:
1. “The markets have now bubbled up in a dangerous way.”
2. “People say I didn’t warn you last time. I warned you, but nobody heard it. So I warned you this time. And yet, no one listens. But I will have evidence that I did.”
3. “Current fads (#BTC, #EV, SAAS, #memestocks) are like housing in 2007 and fiber / .com / comm / routers in 1999. Overall, nothing wrong, just driven by speculative fervor at insane heights. the fall will be dramatic and painful. “
4. “Speculative stocks #bubbles end up driving players into too much debt. #MarginDebt popularity accelerates in spikes. At that point, the market is dancing on the razor’s edge. The loss of IQ from passive investment and the exaggeration of #stonksgoup increase the danger . “
5. “So, @elonmusk, yes, I am sold on $ TSLA, but free advice to a nice guy … Seriously, issue 25-50% of your shares at the current ridiculous price. This is not dilution. You would be cementing permanence and incalculable optionality. If there are buyers, sell that #TeslaSouffle. “
6. “Well, my last Big Short just got bigger and bigger and BIGGER too … $ TSLA $ 60 billion increase in market capitalization just today … 1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados … enjoy it while it lasts. “
7. “$ BTC is a speculative bubble that presents more risk than opportunity, although most proponents are correct in their arguments about why it is relevant at this point in the story. If you don’t know how much leverage is involved in the race, you you may not know enough to own it. “
8. “I don’t hate $ BTC. However, in my opinion, the long-term future is tenuous for decentralized cryptography in a world of legally violent and heartless centralized governments with #liflood interests in currency monopolies. In the short term everything it’s possible – because I’m not a short #BTC. “
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9. “A Doge’s breakfast, perhaps. We are lost in all things.” – commenting on the hype around dogecoin.
10. “I made it public when it was cheap and I made it public when it was time to leave. The same with anything else. I called it as I see it and shared it a little. In 2005-6 it was not so easy to share.” – investing in GameStop and then leaving it.
11. “Hey, $ GME is now a $ stonk and could go up to> $ 1000, but if I won an amount that would change my life with this action, I would be done with it. Make a starting shot: bulls make money, bears make money , #pigsgetslaughtered. #Fundamentals. “
12. “There cannot be another GME. Nothing else is / was anywhere near as short (100 +% fluctuation), so small (microcap) and so hated / ignored / dismissed before #thebigshortsqueeze. It was a unique and perfect setup . There will be no other like it. Much like #thebigshort. “
13. “If I put $ GME on your radar and you do well, I’m genuinely happy for you. However, what’s happening now – there must be legal and regulatory repercussions. This is unnatural, insane and dangerous.”
14. “If you don’t use #robinhood, you have to see to understand what # gamification of # stonks / options means. So here it is. If this looks like a serious investment app to you, NOT a dangerous casino” fun to all ages, ‘you’ve been #gamified. “
15. “Special Purpose Aquisition Companies, or #SPACs (~ blank check companies), are hotter than ever. Companies that go public this way are not rated highly. Anyone with a reputation has an incentive to do a SPAC and consummate a business, regardless of quality. “
16. “It’s too early, she’s too hot, and today, short sellers are shy, but Wall Street will be relentless in the end.” – Ark founder and CEO Cathie Wood.
17. “I’m not running for president. I have a lot of flaws. Do you really want to see a cross-eyed President of the United States of America? No one really wants that. I would have to use a patch, and I don’t want to use a patch.”
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