TL;DR

Michael Burry’s recent portfolio shift shouldn’t influence your investment decisions. Remember past market crashes and the often-unreliable nature of financial gurus; avoid getting caught up in the hype.

Story

Another day, another market guru’s prediction. This time, it’s Michael Burry, the guy who famously predicted the 2008 housing crisis. He’s dumped all his stocks except for Estee Lauder. Sounds impressive, right? Think again.

First, the mechanics. Burry’s moves are based on 13F filings—reports showing what stocks large investors hold. “But,” as one user points out, “Burry is a short-term trader, meaning his 13Fs are almost useless.” His portfolio turnover is high; these filings are two months delayed. So we’re looking at potentially outdated info.

Second, impact: what’s in it for us? Nothing, likely. Many blindly follow these “gurus,” hoping to replicate their (perceived) wins. This often ends poorly. Remember the dot-com bubble? Or Enron? The ’experts’ were wrong then too. Burry’s high-profile moves might spark a temporary surge in Estee Lauder’s stock, but that’s not a guarantee.

Third, lessons: Don’t chase the next big thing. This isn’t investing; it’s gambling. Avoid guru worship; these predictions are rarely foolproof. These high-profile investors often make moves to generate publicity, and a lot of the time, this publicity is generated at the expense of the public.

Conclusion: Market predictions are unreliable. Burry’s move is interesting, but it’s not a surefire sign of a market crash. Investing requires due diligence, research, and a healthy dose of skepticism, not blind faith in famous names. There’s no magic bullet; financial success requires diligence and education, not the fleeting hope of mimicking a high-profile investor.

Advice

Ignore the gurus. Do your own research. Remember: past performance is not indicative of future results.

Source

https://www.reddit.com/r/stocks/comments/1knj7rb/michael_burry_has_sold_every_stock_in_his/