Michael Burry Net Worth | Celebrity Net Worth

Michael Burry Net Worth | Celebrity Net Worth

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What is Michael Bury’s net worth?

Michael Bury is an American physician, investor and hedge fund manager who has a net worth of $300 million. Bury became widely known as the founder of Scion Capital LLC. Through Scion, he correctly predicted the 2008 real estate market crash, earning a fortune in the process.

Bury was portrayed by Christian Bale in the 2015 film “The Big Short”. After launching Scion Capital LLC in 2001, the fund saw 55% returns, thanks to intelligent bets against tech stocks before the Internet bubble. As of 2004 he had over $600 million in assets under management.

subprime mortgage bet

Michael became famous when it was revealed that he had placed a $1 billion bet against the subprime mortgage industry before the Great Recession of 2008. Bury actually went to Goldman Sachs and persuaded the financial firm to sell him “credit default swaps” that bet against subprime deals. This was a very unusual move for such a relatively small fund manager. He started betting in 2005. The bet was a long loser. During the period before the real estate market exploded, Scion had to make regular payments to cover its swaps. This capital outlay made his investors revolt and ask for their money back.

Bury was ultimately right and his fund eventually earned $700 million for its investors. He personally earned $100 million.

An April 2010 op-ed excerpt for The New York Times acquitted argued that anyone who studied financial markets carefully from 2003 to 2005 could easily recognize risk in subprime markets.

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Another notorious acquittal has been video game retailer GameStop. In March 2020, Bury revealed that it had acquired 3 million shares of GameStop. He then gave an open letter to the managers of the company demanding change. He reduced his position to 1.7 million shares over the next six months.

In January 2021, GameStop’s share price skyrocketed, largely thanks to the coordinated effort of Reddit users. GameStop briefly hit $480 per share on January 28, 2021. At that level Michael’s 1.7 million shares would have been worth $816 million. When he acquired his stake in 2020, he paid an average of $4 per share.

Astrid Staviarz/Getty Images

Early life and education

Michael Bury was born on June 19, 1971, in San Jose, California. His left eye was gone from retinoblastoma when he was two years old, and he has had a prosthetic eye ever since. As a teenager, Buri went to Santa Teresa High School. Later, he enrolled at the University of California, Los Angeles, where he studied economics and pre-med. Bury later received his MD from Vanderbilt University School of Medicine, and began but did not complete a residency in neurology at Stanford University Medical Center. Although he does not practice, Bury keeps his license active with the Medical Board of California.

Investing career start

During his time at Stanford, Bury worked on financial investing, and was particularly successful at value investing. He did so well with his stock picks that he attracted the attention of companies like White Mountain Insurance Group and Vanguard, as well as major investors like Joel Greenblatt. Bury has stated that his investing style is based on his 1934 book “Security Analysis” and that all of his stock picking is rooted entirely in the concept of margin of safety.

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In late 2000, Bury founded his own hedge fund called Scion Capital, which was funded by both an inheritance and loans from his family. Almost immediately, he was making huge profits for his investors. In its first full year in 2001, it was reportedly up 55% while the S&P 500 fell 11.88%. The S&P 500 fell again the next year while Buri was up once again. In 2003, he beat the market again with a 50% increase in his investments. To achieve these returns, Bury used the strategy of shorting overpriced tech stocks. By the end of 2004, he was managing approximately $600 million.

subprime market

Buri began focusing on the subprime market in 2005. Using his own analysis of mortgage lending practices over the past two years, he correctly foresaw that the real estate bubble would collapse in early 2007. He researched residential real estate values. , and predicted that subprime mortgages and bonds based on them would begin to lose value when core rates were replaced by much higher rates. As a result, Bury shorted the market by persuading Goldman Sachs and other large investment firms to sell credit default swaps against subprime deals that were weak.

While he was paying for his credit default swap, Bury experienced a revolt among his investors, many of whom panicked that his predictions would be proven wrong. Some cautiously withdrew their capital. However, Bury’s predictions eventually ran out, and he made a personal profit of $100 million and more than $700 million for his remaining investors. In addition, Scion Capital had a 489.34% return between 2000 and 2008. By April of 2008, Buri had exhausted its credit default swap shorts, and therefore did not benefit from the economic bailouts of 2008 and 2009. He then liquidated his company to focus on personal investing.

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further investment career

Bury reopened its hedge fund as Scion Asset Management in 2013, filing reports as an exempt reporting advisor. Thereafter, he focused his primary attention on investing in gold, water and agricultural land. His fund has also made major investments in Facebook and Google’s parent company Alphabet Inc.

In late 2020, Bury initiated a short position on Tesla, predicting that the company would collapse as the housing bubble formed. He reportedly has put options on more than 800,000 Tesla shares. Bari also reportedly holds options for the firm ARK Investment Management for about $31 million.

In popular culture

Bury has been written about and portrayed in books and in film. In 2009, he was talked about in journalist Gregory Zuckerman’s non-fiction book “The Greatest Trade Ever”, which focused primarily on hedge fund manager John Paulson’s role in the subprime mortgage crisis.

The acquittal had a large part as one of the themes of Michael Lewis’s 2010 non-fiction book “The Big Short: Inside the Doomsday Machine”, which chronicled the build-up to the collapse of the housing bubble and the main players. covered those who benefited from it. Betting against the market. The book was adapted into a 2015 film directed by Adam McKay and starred Brad Pitt, Ryan Gosling, Steve Carell and Christian Bale as Bury. The film received widespread acclaim, receiving five Academy Award nominations and one win for Best Adapted Screenplay. Bell was also nominated for Best Supporting Actor for his role as Bury.

personal life

Bury lives in Saratoga, California with his wife and son. His son was diagnosed with Asperger’s syndrome; After reading about the disorder, Bury believes it may be him himself.

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