5 Times Michael Burry’s Market Crash, Other Predictions were Wrong

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1. Companies Going Public Through SPACs Lack Quality

Source: Twitter, March 2021

Burry also took a swipe at special purpose acquisition companies in March this year, tweeting that even though SPACs were hotter than ever in the world of finance, the companies that went public through them were not well vetted. He even added that anyone could start an SPAC and get wealthy from it, regardless of the quality of the firm going public. Despite this bear outlook, SPACs have continued to facilitate some of the largest public offerings this year, with many under agreements with lucrative startups in growth areas in the coming months as well. 

Burry holds a large stake in Alphabet Inc. (NASDAQ: GOOG), the California-based technology firm. At the end of March, Burry had call options on 80,000 Alphabet Inc. (NASDAQ: GOOG) shares worth more than $165 million. 

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ: GOOG) with 2.9 million shares worth more than $6 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”

You can also take a peek at Michael Burry’s New Stock Picks and Michael Burry is Shorting Tesla and Buying These 10 Stocks Instead.

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