‘A cold dark place’ — Michael Burry thinks the market has plenty of room to plunge. But he finally sees value in these 4 stocks

‘A cold dark place’ — Michael Burry thinks the market has plenty of room to plunge. But he finally sees value in these 4 stocks

Michael Burry — the hedge fund manager depicted by Christian Bale in The Big Short — has been aggressively investing during this market downturn.

Burry’s latest 13F filing for the first quarter of 2022 shows a broad range of new investments and some interesting strategic moves with options. That’s a significant shift from the previous quarter when Burry was selling most of his stock portfolio and calling for the “mother of all crashes.”

He’s not exactly bullish on the overall market, recently issuing a serious warning about inflation.

“Transitory, no. Peak, no. To the moon? If you mean a cold dark place,” Burry wrote in a since-deleted tweet.

But the man who shorted the U.S. housing market — and won — clearly sees pockets of opportunities.

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Meta Platforms (META) and Alphabet (GOOG)

Burry’s bet on big tech is clearly noteworthy.

Tech and growth stocks have been out of favor for nearly half a year. Adding these two stocks to the portfolio for the first time is a contrarian move. Burry’s portfolio now includes 6,500 shares of Google parent Alphabet Inc. and 80,000 shares of Meta Platforms Inc., the parent company of Facebook. They’re his fourth- and sixth-largest holdings, respectively.

The move could be seen as a vote of confidence in digital advertising. It could also be a signal of undervaluation. Both stocks are trading at roughly 13 and 20 times forward earnings, respectively.

Booking.com (BKNG)

Travel website Booking.com is now the second-largest holding in Burry’s Scion Asset Management portfolio. He bought 8,000 shares of the company in the first quarter.

Booking stock is trading at a price-to-free cash flow ratio of 17. That means the cash flow yield is as high as 5.9%. As international borders reopen and lockdowns ease, Booking could be an ideal bet on the rebound of global travel.

Story continues

Apple (AAPL)

Burry bought plenty of tech stocks this quarter, but that shouldn’t suggest that he’s…

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