Michael Burry’s Strategic Stock Holdings This Year 🚀
Michael Burry, renowned for his prescient bets against the housing market prior to the 2008 financial crisis, is achieving notable success in his stock trading efforts through his hedge fund, Scion Asset Management. This year has proven to be particularly rewarding for Burry, a key figure famously associated with the film ‘The Big Short’.
Surprisingly, Burry has reached these significant trading milestones by focusing on a very select group of stocks. His current portfolio consists of shares from only ten companies, showcasing a strategic and minimalist approach to investments.
Highlighted Stock: Alibaba (BABA) 📈
One of Burry’s top investments is Alibaba (NYSE: BABA). According to financial expert Oliver from MMMT Wealth, the stock has considerable upward potential, with predictions suggesting it could reach the $125 mark, and possibly hit $140 following recent announcements regarding the company’s buyback strategies.
With an impressive revenue growth of 3.88% year-on-year (YoY) and an enterprise value-to-sales (EV/Sales) ratio of 1.9x, Alibaba’s stock is trading at approximately $112.58. This reflects a remarkable increase of 50.59% since the beginning of this year, along with a 37.01% gain in the last month.
Focus on Shift4 Payments (FOUR) 💳
Another significant stake in Burry’s portfolio is with Shift4 Payments (NYSE: FOUR), a payment processing company that has seen a revenue increase of 29.83% this year, accompanied by an EV/Sales ratio of 2.7x. The success of this firm can be attributed to its rapidly expanding and varied software offerings.
Market analysts at Oppenheimer have recently begun tracking Shift4 Payments, assigning an ‘outperform’ rating alongside a price target of $109. Furthermore, various Wall Street experts express optimism regarding the company’s future performance.
As it stands, Shift4 Payments’ stock price is around $89.18, showcasing a year-to-date (YTD) increase of 21.35% and a 12.63% rise within the past month, according to recent market data.
Molina Healthcare’s Resilience (MOH) 🏥
Next in Burry’s portfolio is Molina Healthcare (NYSE: MOH), a health insurance provider serving more than five million members. With an EV/Sales ratio of 0.5x and a YoY revenue growth approaching 20%, Molina has adapted swiftly to the post-COVID healthcare landscape compared to its competitors.
Molina’s strategic focus on Medicaid and its diversified range of product offerings, supplemented by active mergers and acquisitions, have solidified its position in the health insurance sector. Currently, MOH shares are valued at $330.16, reflecting an 11.14% decrease since the year began, although they seem to be regaining strength as of early August.
Baidu (BIDU): A Chinese Market Leader 🔍
Burry’s portfolio also includes Baidu (NASDAQ: BIDU), a major player in China’s artificial intelligence and search engine markets. After Google’s departure, Baidu has established itself with a year-on-year revenue growth of 0.37% and an EV/Sales ratio of 1.7x.
Despite a recent price surge following positive chart patterns, Baidu stocks are presently considered undervalued, especially compared to their all-time high of $339.91 achieved in February 2021. Currently trading at $110.60, Baidu has experienced a notable recovery of approximately 32.33% over the last month.
Other Notable Holdings 🌐
In addition to the aforementioned stocks, Burry’s portfolio also comprises five other companies, each with varying degrees of success. These include Hudson Pacific Properties (NYSE: HPP), online luxury retailer Realreal (NASDAQ: REAL), insurance company American Coastal (NASDAQ: ACIC), haircare brand Olaplex Holdings (NASDAQ: OLPX), and biopharma firm Bioatla (NASDAQ: BCAB).
Hot Take: What Lies Ahead for Burry’s Investments 🔮
As you analyze Burry’s strategic choices, consider the implications of his selected investments for the coming months. The spotlight on his carefully chosen stocks offers valuable insight into market trends and the potential for growth in diverse sectors. Observing how these investments evolve can provide a clearer vision of the investment landscape this year.
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