The $750,000,000 blunder on GameStop stock that broke Michael Burry’s heart (and bank).

Back in 2019 Michael Burry saw value in GameStop when next to noone else did, and he warned hedge funds that they were missing a trick. And when everyone ignored his warnings, he decided to invest heavily in GameStop, making it his company’s biggest long position.

Fast forward to late 2020 and we have a David Vs Goliath battle, the people vs the system, when some savvy investors in the wall street bets subreddit recognized an opportunity to force GameStop short sellers into a short squeeze. This meant that Michael Burry’s position in the company was looking very strong and he could cash in big on the 3000% climb.

And yet...in their most recent filing it showed that Scion Asset Management (Michael Burry’s investing firm) sold their entire position in GME stock in Q4 of 2020, which meant that they MISSED THE ENTIRE CLIMB!

Now it’s not all bad news for Burry as he still managed to buy and sell multiple times during 2019 and 2020 and make big profits on each, but I can’t help but wonder how he is feeling now, knowing that he may have left $750M on the table.

Surprisingly, despite this horrendous turn of fate, Burry has still been actively trading other stocks as if nothing even happened, so who knows, perhaps he is just built differently to most of us, If it were me, I would be devastated and you would have had to drag me out of my room after months of sobbing.

Nonetheless, Burry still made an estimated $35 million on his final sale of GME stock and that’s nothing to sneeze at...except that we know it could have been $800 million!


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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice.
I am not a financial adviser and you should seek independent, licensed, financial advice to make sure the actions you plan to take suit your individual circumstances.
I am not responsible for the financial decisions that you make, only you are