Six stocks targeted by the investor fell sharply within days of his Substack post revealing the positions.
Michael Burry disclosed short positions against six stocks on June 30, including Nvidia, Tesla, and Caterpillar. Most of the stocks declined shortly after the announcement, prompting speculation about a “Burry effect.”
Burry, who gained fame for predicting the 2008 housing crash, ranks second on Substack’s finance bestseller list and has nearly 2 million followers on X. His disclosures often attract copycat traders, though he denies influencing markets.
Short selling involves borrowing shares to sell, aiming to repurchase them at a lower price. If the stock rises, losses can mount. Burry’s recent bets contrast with the “Buffett effect,” where Warren Buffett’s purchases often lift share prices.