A genius in the history of world stock markets: Michael Burry

The Life and Education of Michael Burry

Michael Burry was born in California in 1971. After studying biochemistry at Vanderbilt University, he started medical school and started taking steps towards his medical career. However, his interest in the world of finance during his medical studies led him to change his career plans.

Stepping into a Finance Career

Burry's career in finance began when he founded Scion Capital, a small investment fund. This fund initially operated on a small scale, but grew rapidly thanks to Burry's analytical abilities and ability to seize opportunities in the financial markets. I think he took the biggest step when he discovered his talent.

2008 Financial Crisis and Mortgage-Backed Securities Predictions

Burry's name came to prominence for his accurate predictions during the 2008 financial crisis. His analysis at Scion Capital included a distinct prediction that the housing market bubble would burst and problems in the mortgage-backed securities market would lead to a major financial crisis. Realizing that the market was inflated and that all expectations and investments were in the same direction, Burry, based on these analyses, made major exits in order to protect his fund and investors against the financial crisis. In this direction, he took a large part of the fund out of mortgage-backed securities and used credit default swaps (CDS). He made a huge profit before the crisis by taking positions in derivative products such as ). This is where the name of the movie about his career that will be shot later comes from: The Big short.
In fact, the lesson he gives to people is more important than his success in his career. If the entire market is focused on an expectation, the realization of that expectation is inversely proportional. He made the biggest gains possible in the history of the world stock market by both knowing this basic rule and analyzing the transactions perfectly.