Michael Burry’s Top Holdings Were Gaining While NVDA Was Crashing

4. The Estée Lauder Companies Inc.

Portion of portfolio: 9.68%

Value of holdings: $7,498,000

The Estée Lauder Companies Inc (NYSE: EL) is an American multinational cosmetics company boasting a diverse portfolio of prestige brands sold in over 150 countries and territories. The company produces, markets and sells quality skin care, makeup, fragrance and hair care products.

Burry opened a new position in the company in the fourth quarter buying 100,000 of its shares.

The Estée Lauder’s share was trading at $69.6 after the market close on March 11, with the stock price impacted by the global geopolitical uncertainty and slowdowns in Mainland China and the company’s Asia travel retail sectors.

That said, net sales were down 6% year-over-year to $4 billion in the second quarter of fiscal 2025. Non-GAAP results, excluding non-cash charges, also showed a decline, with a drop in margin and adjusted diluted earnings per share of $0.62. Operating losses totaled $580 million, primarily due to goodwill and impairment charges related to the Too Faced and Tom Ford brands.

However, The Estée Lauder, another newcomer to the list of Michael Burry’s top portfolio holdings achieved a gross margin expansion of 310 basis points, which reflects improved pricing power and progress in its restructuring efforts. The company’s PRGP (Profit Recovery and Growth Plan), focuses on driving sales growth, achieving a strong double-digit operating margin, and managing external challenges including potential tariff increases. To that end The Estée Lauder launched Beauty Reimagined, as an acceleration of a strategy reset.

In its third-quarter 2024 investor letter, an investment management company Appleseed Fund mentioned The Estée Lauder, which has a market capitalization of $25.036 billion.

“Appleseed Fund added four new names to the portfolio in the past six months: The Estée Lauder Companies Inc., Willis Lease Finance, Diana Shipping and Gravity. Estée Lauder is one of the world’s largest producers of cosmetics products, and valuation has become very attractive as this premier beauty company is suffering from a post-COVID-19 hangover.”