Michael Burry’s Stock Portfolio – Lessons for Long-Term Investors
1. Who is Michael Burry?
• Famous investor, made legendary bets during the 2008 financial crisis (The “Big Short”).
• Known for contrarian investing — buying what others fear, selling what others chase.
• Runs Scion Asset Management.
• Current Assets Under Management (AUM): $578M.
So when Burry positions his portfolio, the world takes notice.
2. Snapshot of His Portfolio
Here’s the core allocation (based on recent filings):
• UnitedHealth Group (UNH) – CALL → 18.88%
• Regeneron Pharmaceuticals (REGN) – CALL → 18.16%
• Lululemon (LULU) – CALL → 16.43%
• Meta (META) – CALL → 12.76%
• JD.com (JD) – CALL → 5.64%
• Alibaba (BABA) – CALL → 4.90%
• ASML Holdings (ASML) – CALL → 3.46%
• VF Corporation (VFC) – CALL → 3.05%
• Others (Estee Lauder, Bruker, Regeneron direct shares, etc.) → ~9.7%
3. What Do We Notice?
1. Heavy in Healthcare (UNH, REGN):
• UnitedHealth = America’s largest health insurer.
• Regeneron = Biotech giant with strong drug pipeline.
• Burry clearly sees healthcare as a defensive sector — stable earnings, aging population, and consistent demand.
2. High-Quality Growth Bets (META, ASML, LULU):
• META → Cash-rich tech giant in AI & advertising.
• ASML → Monopoly supplier of advanced semiconductor equipment.
• Lululemon → Premium retail brand with global expansion.
• These represent dominant companies in their niches, with pricing power and growth runway.
3. Contrarian China Exposure (JD, BABA):
• Many investors fear Chinese stocks due to regulation, slowing economy.
• Burry often buys where pessimism is high but long-term fundamentals are intact.
• Suggests he sees deep value opportunities in Chinese tech.
4. Consumer Plays (VFC, Estee Lauder, LULU):
• Brands with loyal customer bases.
• These can rebound strongly when consumer spending recovers.
4. Why Does Burry Use CALL Options?
• Instead of buying shares directly, Burry often buys call options (the right to buy shares at a fixed price later).
• Reasons:
• Leverage: Control big positions with smaller upfront capital.
• Conviction trades: When he believes the stock could rise strongly.
• Risk control: If wrong, loss is capped at option premium.
⚠️ But for regular investors: options are risky if not well understood. Focus on the stocks themselves and the sectors he is targeting.
5. Key Lessons for Investors
1. Concentration, Not Diversification for the Sake of It
• Notice he’s not holding 50–100 random stocks.
• Instead, he bets big on fewer, high-conviction ideas (top 5 = nearly 70% of portfolio).
2. Blend of Defensive + Growth + Value
• Healthcare (defensive) → Stability.
• Tech (growth) → Future upside.
• China stocks (value) → Contrarian bets.
• Consumer brands → Cyclical recovery.
This mix balances risk and opportunity.
3. Think Long-Term, Buy When Others Fear
• China exposure shows willingness to go against the crowd.
• Healthcare shows patience in slow but steady sectors.
4. Reinforce With Discipline
• Even though he’s contrarian, he’s not random.
• He studies fundamentals deeply before making concentrated bets.
6. Why Investors Should Pay Attention
• Studying portfolios like Burry’s gives us a window into high-level thinking.
• Not an invitation to copy blindly, but to ask:
• “Why is he bullish on healthcare?”
• “Why does he see value in Chinese tech when others don’t?”
• “How can I apply the same principles of concentration and conviction in my own portfolio?”
7. Final Takeaway
Michael Burry’s portfolio is a masterclass in positioning:
• Heavy on healthcare defense ✅
• Selective tech & growth leaders ✅
• Contrarian China bets ✅
• Anchored by discipline & conviction ✅
For everyday investors, the message is:
Don’t scatter your money everywhere. Build a focused, resilient portfolio blending stability, growth, and opportunities others might be overlooking.
✨ Closing Thought: “Michael Burry teaches us that wealth is not built by following the crowd, but by having the patience and courage to position where the future value lies.”
1. Who is Michael Burry?
• Famous investor, made legendary bets during the 2008 financial crisis (The “Big Short”).
• Known for contrarian investing — buying what others fear, selling what others chase.
• Runs Scion Asset Management.
• Current Assets Under Management (AUM): $578M.
So when Burry positions his portfolio, the world takes notice.
2. Snapshot of His Portfolio
Here’s the core allocation (based on recent filings):
• UnitedHealth Group (UNH) – CALL → 18.88%
• Regeneron Pharmaceuticals (REGN) – CALL → 18.16%
• Lululemon (LULU) – CALL → 16.43%
• Meta (META) – CALL → 12.76%
• JD.com (JD) – CALL → 5.64%
• Alibaba (BABA) – CALL → 4.90%
• ASML Holdings (ASML) – CALL → 3.46%
• VF Corporation (VFC) – CALL → 3.05%
• Others (Estee Lauder, Bruker, Regeneron direct shares, etc.) → ~9.7%
3. What Do We Notice?
1. Heavy in Healthcare (UNH, REGN):
• UnitedHealth = America’s largest health insurer.
• Regeneron = Biotech giant with strong drug pipeline.
• Burry clearly sees healthcare as a defensive sector — stable earnings, aging population, and consistent demand.
2. High-Quality Growth Bets (META, ASML, LULU):
• META → Cash-rich tech giant in AI & advertising.
• ASML → Monopoly supplier of advanced semiconductor equipment.
• Lululemon → Premium retail brand with global expansion.
• These represent dominant companies in their niches, with pricing power and growth runway.
3. Contrarian China Exposure (JD, BABA):
• Many investors fear Chinese stocks due to regulation, slowing economy.
• Burry often buys where pessimism is high but long-term fundamentals are intact.
• Suggests he sees deep value opportunities in Chinese tech.
4. Consumer Plays (VFC, Estee Lauder, LULU):
• Brands with loyal customer bases.
• These can rebound strongly when consumer spending recovers.
4. Why Does Burry Use CALL Options?
• Instead of buying shares directly, Burry often buys call options (the right to buy shares at a fixed price later).
• Reasons:
• Leverage: Control big positions with smaller upfront capital.
• Conviction trades: When he believes the stock could rise strongly.
• Risk control: If wrong, loss is capped at option premium.
⚠️ But for regular investors: options are risky if not well understood. Focus on the stocks themselves and the sectors he is targeting.
5. Key Lessons for Investors
1. Concentration, Not Diversification for the Sake of It
• Notice he’s not holding 50–100 random stocks.
• Instead, he bets big on fewer, high-conviction ideas (top 5 = nearly 70% of portfolio).
2. Blend of Defensive + Growth + Value
• Healthcare (defensive) → Stability.
• Tech (growth) → Future upside.
• China stocks (value) → Contrarian bets.
• Consumer brands → Cyclical recovery.
This mix balances risk and opportunity.
3. Think Long-Term, Buy When Others Fear
• China exposure shows willingness to go against the crowd.
• Healthcare shows patience in slow but steady sectors.
4. Reinforce With Discipline
• Even though he’s contrarian, he’s not random.
• He studies fundamentals deeply before making concentrated bets.
6. Why Investors Should Pay Attention
• Studying portfolios like Burry’s gives us a window into high-level thinking.
• Not an invitation to copy blindly, but to ask:
• “Why is he bullish on healthcare?”
• “Why does he see value in Chinese tech when others don’t?”
• “How can I apply the same principles of concentration and conviction in my own portfolio?”
7. Final Takeaway
Michael Burry’s portfolio is a masterclass in positioning:
• Heavy on healthcare defense ✅
• Selective tech & growth leaders ✅
• Contrarian China bets ✅
• Anchored by discipline & conviction ✅
For everyday investors, the message is:
Don’t scatter your money everywhere. Build a focused, resilient portfolio blending stability, growth, and opportunities others might be overlooking.
✨ Closing Thought: “Michael Burry teaches us that wealth is not built by following the crowd, but by having the patience and courage to position where the future value lies.”