In this article, we discuss 3 best stocks to buy according to Michael Burry. If you want to read our detailed analysis of these stocks, go directly to 6 Best Stocks to Buy According to Michael Burry.
3. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 36
General Dynamics Corporation (NYSE:GD) operates as an aerospace and defense firm. The company is the third-largest holding in the Scion Asset Management portfolio. It is a new addition to the portfolio. During the fourth quarter of 2021, Burry bought 80,000 shares of General Dynamics Corporation (NYSE:GD) at an average price of $201.93 per share. The stake is worth $16.6 million and represents 22.39% of the portfolio.
At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in General Dynamics Corporation (NYSE:GD), compared to 37 in the preceding quarter worth $6.2 billion.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Longview Asset Management is a leading shareholder in General Dynamics Corporation (NYSE:GD), with 30 million shares worth more than $6.2 billion.
In its Q1 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and General Dynamics Corporation (NYSE:GD) was one of them. Here is what the fund said:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
2. AEA-Bridges Impact Corp. (NYSE:IMPX)
Number of Hedge Fund Holders: 24
AEA-Bridges Impact Corp. (NYSE:IMPX) is a special purpose acquisition firm based in the Cayman Islands. This stock is also a new addition to the Burry portfolio. Scion Asset Management purchased over 1 million shares of AEA-Bridges Impact Corp. (NYSE:IMPX) during the fourth quarter of 2021 at an average price of $9.86 per share. This stake is worth close to $10 million and represents 13.41% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, California-based firm Fort Baker Capital Management is a leading shareholder in AEA-Bridges Impact Corp. (NYSE:IMPX), with 3.4 million shares worth more than $34 million.
At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $170 million in AEA-Bridges Impact Corp. (NYSE:IMPX), compared to 28 in the previous quarter worth $171 million.
1. CoreCivic, Inc. (NYSE:CXW)
Number of Hedge Fund Holders: 15
CoreCivic, Inc. (NYSE:CXW) owns and runs correctional facilities. Burry first purchased a stake in the company during the fourth quarter of 2020, buying 1 million shares at an average price of $7.19 per share. He then proceeded to add to that position by 10% and 18% in the next two quarters. He then slashed this stake by more than half during the third quarter of 2021 before increasing it by 34% during the fourth quarter.
Latest filings show that Scion Asset Management owned 555,427 shares of CoreCivic, Inc. (NYSE:CXW) at the end of the fourth quarter of 2021 worth more than $5.5 million, representing 7.43% of the portfolio.
At the end of the third quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $84 million in CoreCivic, Inc. (NYSE:CXW), up from 13 in the previous quarter worth $97 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Mason Capital Management is a leading shareholder in CoreCivic, Inc. (NYSE:CXW), with 4.7 million shares worth more than $47 million.
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