'Big Short' investor Michael Burry told Elon Musk to cash in Tesla stock, gave up on being as popular as Warren Buffett, and wanted more credit for his housing bet. Here are his 14 best quotes.
 Christian Bale as Michael Burry in "The Big Short."The Big Short/Netflix
Michael Burry, the hedge-fund manager played by Christian Bale in "The Big Short," bet against subprime mortgages and made a fortune when the US housing bubble popped in 2007 and 2008.The Scion Asset Management boss has said he gave up early on being as widely liked as Warren Buffett, tweeted at Elon Musk that he should cash in on Tesla's lofty stock price, and bemoaned the lack of credit he received for his housing wager.The "Big Short" investor Michael Burry has said he ruled out becoming as popular as Warren Buffett, advised Elon Musk to cash in on Tesla's sky-high stock price, and complained about the lack of kudos he received for correctly betting the US housing bubble would burst.
Burry, the founder and boss of Scion Asset Management, made $750 million in profits for his investors and $100 million personally when his bet against subprime mortgages paid off in 2007 and 2008. He was portrayed by Christian Bale in the movie adaptation of Michael Lewis' book.
Here are Burry's 14 best quotes. The first 12 are taken from emails, investor letters, and interviews with Lewis detailed in 'The Big Short.'1. "If you are going to be a great investor, you have to fit the style to who you are."
2. "Buffett was too popular for me. I won't ever be a kindly grandfather figure."
3. "The late nineties almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane."
4. "I'm not making a bet against a bond. I'm making a bet against a system." - referring to his wager on the housing market's collapse
5. "What you want to watch are the lenders, not the borrowers. The borrowers will always be willing to take a great deal for themselves. It's up to the lenders to show restraint, and when they lose it, watch out."
6. "I don't take breaks in my search for value. There is no golf or other hobby to distract me. Seeing value is what I do."
7. "I have always believed that a single talented analyst, working very hard, can cover an amazing amount of investment landscape, and this belief remains unchallenged in my mind."
8. "I'm building breathtaking sand castles, but nothing stops the tide from coming and coming and coming." - describing the constant pressure he faced from clients while building his positions and waiting for the housing market to implode
9. "I have a job to do. Make money for my clients. Period. But boy it gets morbid when you start making investments that work out extra great if a tragedy occurs."
10. "One of the oldest adages in investing is that if you're reading about it in the paper, it's too late. Not this time." - arguing that the risks of mortgage-backed securities were blatant but not reflected in their prices
11. "It is ludicrous to believe that asset bubbles can only be recognized in hindsight."
12. "It was as if they took one swimmer in the Olympics and made him swim in a separate pool. His time won the gold. But he got no medal. I honestly think that's what killed it for me. I was looking for some recognition. There was none." - lamenting the lack of credit he received for his shrewd investments
13. "There is all this opportunity, but so few active managers looking to take advantage." - highlighting the money to be made in unloved assets during the current passive-investing "bubble"
14. "So, @elonmusk, yes, I'm short Tesla, but some free advice for a good guy ... Seriously, issue 25-50% of your shares at the current ridiculous price. That's not dilution. You'd be cementing permanence and untold optionality." - advising the electric-car maker's CEO in a now deleted tweet to sell a load of Tesla shares at their sky-high price, generating cash to use elsewhere |
