Michael Burry highlights how value investors may profit from deeply discounted stocks if underlying business value remains intact.
Michael Burry, known for predicting the 2008 housing crash, argued in a recent post that investors should focus on a stock’s current price rather than entry point when holding deeply underwater positions. He illustrated how a stock falling from $100 to $10 could still deliver a 6x return if the business retains a $30 intrinsic value, targeting value investors willing to hold through volatility.
Burry, who closed his Scion Asset Management fund in November 2025, has spent the past year warning of a market bubble driven by AI stocks like Nvidia and Palantir. His shift to a paid Substack, *Cassandra Unchained*, has amplified his critiques of speculative trends, though his latest post advocates patience in distressed positions.
The example underscores Burry’s contrarian approach, contrasting with his reputation for betting against overvalued assets. His argument centers on the disconnect between market price and fundamental value, a theme central to his investment philosophy.