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An important point barely mentioned in the article is how long Burry has been short Tesla for. It mentions he was short at September's Battery Day event. The st
by pedalpete 6y ago
An important point barely mentioned in the article is how long Burry has been short Tesla for. It mentions he was short at September's Battery Day event. The stock is up 28% since then. Has he been short since it was $30? What's his price target? Why?
- jfengel 6y agoIsn't the whole story of The Big Short summed up by "the market can remain irrational longer than you can remain solvent"? As I recall, he barely survived. Under slightly different circumstances, he wouldn't have. Maybe he's right about Tesla, though Tesla seems to have a real innovation that's hard to price (and goes well beyond being a car maker). But even if he is, he's playing a very dangerous game. Shorts are an enormous risk, and getting it right once doesn't mean he can do it again.
- geoduck14 6y agoThat was a key point in the book. Also, the author interviewed many investors who had NO IDEA the bottom was about to fall out. Also, there were plenty of investors in his book that made a lot of money before the bottom fell (and they got out soon enough to keep their profits). Also, Michael Burry's customers were REALLY MAD about his investments (he shorted stuff THAT WENT UP!) - after Michael made lots of profit for his customers, they just moved on and forgot about what he did for them.