Monday, February 15, 2021

Michael Burry Has Some Thoughts Re: Tesla and Robinhood

Michael Burry, who made $800 million shorting the housing bubble in 2008 (famously documented in the book and film, "The Big Short"), recently made perhaps up to $270 million going long GameStop. I don't know much about Burry's long-term track record but he seems to be an astute contrarian investor with a knack for being in culturally important financial events.

So, it's interesting that he's shorting Tesla...and warning about the #gamification of investing due to apps like Robinhood. Burry believes:

  • Tesla shares could fall 90% without crashing the financial system--for perspective, that means Tesla's share price would go back to what it was...a year ago. Yup, that's how crazy the rally has been.
  • That such a drop would be good for the market because it would temper the speculative behavior of retail investors, who are being had by Wall Street via investing apps (click to enlarge):

It'll be interesting...Tesla is a cult as much as a car company. In the past, we've marveled at how despite producing only a tiny fraction of the cars as other major automakers its market cap is larger than most of them combined. And many a hedge fund manager has been burned shorting Tesla...So, Burry may get a get a pair of comfy satin shorts for his efforts.  We shall see...

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Love Me Some Eminem

 President Obama living his best life ...at a rally for Harris. Lose yourself in cool.