It is ludicrous to believe that asset bubbles can only be recognized in hindsight. Michael Burry More Quotes by Michael Burry More Quotes From Michael Burry Sometimes markets err big time. Markets erred when they gave America Online the currency to buy Time Warner. They erred when they bet against George Soros and for the British pound. And they are erring right now by continuing to float along as if the most significant credit bubble history has ever seen does not exist. Opportunities are rare, and large opportunities on which one can put nearly unlimited capital to work at tremendous potential returns are even more rare. Selectively shorting the most problematic mortgage-backed securities in history today amounts to just such an opportunity. Michael Burry erring opportunity america I don't believe anything unless I understand it inside out. And even if I understand something, it is not uncommon that I disagree with accepted view (even if it's a Nobel laureate). Michael Burry accepted views believe My natural state is an outsider. I've always felt outside the group, and I've always been analyzing the group. Michael Burry analyzing outsiders groups If you are going to be a great investor, you have to fit the style to who you are. Michael Burry fit style ifs I hated discussing ideas with investors, because then I become a Defender of the Idea, and that influences your thought process. Michael Burry influence process ideas In essence, the stock market represents three separate categories of business. They are, adjusted for inflation, those with shrinking intrinsic value, those with approximately stable intrinsic value, and those with steadily growing intrinsic value. The preference, always, would be to buy a long-term franchise at a substantial discount from growing intrinsic value. Michael Burry essence would-be long 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. Michael Burry working-very-hard landscape mind I didn't offer transparency. I provided one quarterly report in letter form. That was all you got. I basically demanded that if you're going to invest in my fund you need to accept my terms. The terms not being super highs, but just, I'm not going to cater to you. Michael Burry accepting letters needs 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. Michael Burry restraint shows watches However, if one has been playing the buy-and-hold game with quality securities, one has been exposed to a substantial amount of market risk because the valuations placed on these securities have implied overly rosy scenarios prone to popular revision in times of more realistic expectation. This is one of those times, but it is my feeling that the revisions have not been severe enough, the expectations not yet realistic enough. Hence, the world's best companies largely remain overpriced in the marketplace. Michael Burry risk expectations games When I stand on my special-issue "Intelligent Investor" ladder and peer out over the frenzied crowd, I see very few others doing the same. Many stocks remain overvalued, and speculative excess - both on the upside and on the downside - is embedded in the frenzy around stocks of all stripes. And yes, I am talking about March 2001, not March 2000. Michael Burry issues intelligent talking Early on, people invested in me because of my letters and then, somehow, after they invested, they stopped reading them. Michael Burry reading letters people The late 90s almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane. Michael Burry investors late insane I just really like to find my own ideas. Michael Burry my-own ideas Read every line item until you get it. Michael Burry items lines I think a lot of funds get their ideas from Wall Street. I just like to find my own ideas. I read a lot. A lot of news. I just follow my nose. A lot of times it's a dead end, but sometimes there's value there. Michael Burry wall ideas thinking Everything I do in investment is just very different. Michael Burry investment different My positioning with my investors was always, I need three to five years. Michael Burry three years needs Fresh, clean water cannot be taken for granted. And it is not - water is political, and litigious. Transporting water is impractical for both political and physical reasons, so buying up water rights did not make a lot of sense to me, unless I was pursuing a greater fool theory of investment - which was not my intention. Michael Burry me fool political water Innovation, especially in America, is continuing at a breakneck pace, even in areas facing substantial political or regulatory headwinds. The advances in health care in particular are breathtaking - so many selfless souls are working to advance science, and this is heartening. Michael Burry innovation care health science
