Michael Burry Has 50% of His Portfolio Invested In These 8 Stocks

3. Advance Auto Parts Inc (NYSE:AAP)

Michael Burry’s Q1’2024 Stake: $7,232,650

Percentage of Burry’s Portfolio: 6.98%

Automotive aftermarket parts provider Advance Auto Parts Inc (NYSE:AAP) is one of the top Michael Burry stocks. Advance Auto Parts Inc (NYSE:AAP) accounts for about 7% of the total Q1 portfolio of Scion Asset Management. Burry increased his fund’s position in Advance Auto Parts Inc (NYSE:AAP) by 22% in the March quarter, entering the second quarter with a stake worth about $7.2 million.

For 2024, Advance Auto Parts Inc (NYSE:AAP) expects to earn between $3.75 to $4.25 per share and rake in revenue of $11.3 billion to $11.4 billion.

Third Point Management stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its first quarter 2024 investor letter:

“We initiated a position in Advance Auto Parts, Inc. (NYSE:AAP) in Q4 2023 at an attractive entry point, after the third consecutive guidance cut of the year overshadowed new CEO Shane O’Kelly’s strategic plans to course correct the business. Advance operates in the highly attractive auto aftermarket industry, which has proven resilient in various consumer cycles and is currently supported by increasing vehicle complexity, a growing and aging carpark, and supply and affordability challenges.

While Advance has significantly underperformed peers across key KPIs over the past several years, our work suggests that many of these shortcomings aren’t structural. Feedback has been consistent that while the Advance brand is strong, a lack of relevant industry experience in key roles has led to years of inconsistent execution that has snowballed over time. We are confident that a portion of the performance gap vs. peers can be closed with new leadership and advisors in place…” (Click here to read the full text)