Michael Burry, famed for predicting the 2008 crisis, casts bearish spells on Nvidia and Chinese internet giants while dabbling in Estée Lauder's beauty secrets.
Michael Burry, famed for predicting the 2008 crisis, casts bearish spells on Nvidia and Chinese internet giants while dabbling in Estée Lauder's beauty secrets.

The Prophecy Unfolds!

My dearest readers or perhaps I should say fellow investors! It appears Mr. Michael Burry a name whispered with a certain reverence in financial circles – a man who like a Seer peering into the depths of a crystal ball foresaw the great financial unraveling of '08 – is at it again! As I always say 'It takes a great deal of bravery to stand up to our enemies but just as much to stand up to our friends.' And Mr. Burry it seems is standing up to the market armed with put contracts against the likes of Nvidia Alibaba and a host of other Chinese internet giants. One might say he's brewing a potion of pessimism hoping for a draught that will sour their fortunes.

A Curious Case of Puts and Portents

Now these put contracts are rather like riddles wrapped in mysteries inside enigmas aren't they? We know not the precise value nor the strike price nor when these bearish spells are set to expire. It’s akin to deciphering a particularly cryptic prophecy from Professor Trelawney! What we *do* know is that Mr. Burry profits if these companies stumble. The timing is…intriguing especially considering the recent trade turbulence stirred up by President Trump. One can only wonder if Mr. Burry sees the future or if he simply has a particularly keen sense for when the cauldron is about to boil over.

From Mortgages to Memes: A Cautionary Tale

Of course Mr. Burry's past exploits are well documented aren't they? His bet against mortgage backed securities before the '08 crisis earned him a place in the annals of financial history immortalized in Michael Lewis's 'The Big Short'. A rather dramatic retelling if I may say so myself. But let us not forget 'It does not do to dwell on dreams and forget to live.' We must not simply rely on past glories but assess each situation with fresh eyes and a clear mind. And also with a pinch of luck which I am always trying to brew.

The Estée Lauder Enigma

Ah but the plot thickens! Amidst this flurry of bearish bets Mr. Burry has *doubled* his stake in Estée Lauder. A peculiar choice wouldn't you agree? It's like casting a Protean Charm on your investments shifting them from one form to another in a bewildering display. Estée Lauder you see relies heavily on trade with China. So this could mean Burry is hedging his bearish position betting against companies that make parts and services for the internet while placing his bets on companies who sell products.

The Mirror of Erised Reveals...?

This investment raises more questions than answers. Is Mr. Burry anticipating a resolution to the trade disputes? Does he believe Estée Lauder's brand will weather the storm? Or perhaps he simply believes in the enduring power of a good lipstick even in the face of economic uncertainty. After all as I always say 'Happiness can be found even in the darkest of times if one only remembers to turn on the light.' And what is better than a new lipstick to brighten one's mood in the darkest of times?

A Final Thought: Fickle is Finance!

In the grand tapestry of the stock market Mr. Burry's actions are but one thread. Whether his prophecies will come to pass only time will tell. But remember dear readers 'Numbing the pain for a while will make it worse when you finally feel it.' So invest wisely and always keep a watchful eye on the ever shifting tides of fortune. And perhaps just perhaps keep a bottle of Felix Felicis handy just in case. Good luck to all and remember fortune favors the bold! Although I have to admit the fortune favoured are often a little foolish.


Comments

  • quamism profile pic
    quamism
    5/25/2025 8:56:57 AM

    I'm starting to think he just likes making contrarian bets for the fun of it.