Michael Burry is back with two bets against Nvidia and Palantir

cnn.com

62 points·jb1991··7 comments

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That said I'm not convinced with these famous investors. I worry the big short kind of broke his brain, he's obsessed with these landfall cases now and I'm not sure they're really going to pan out. His last big one was water and I can't imagine he's doing much better than just farmers renting the land he owns.

I definitely think that he thinks he's smarter than the market and sees bubbles everywhere, and I also definitely think that there's a gigantic AI bubble, or at least extreme 'frothiness' with all this circular investing to prop stock prices up.

Actually turning a bubble into money is another question entirely, however, especially since he himself popularized shouting the emperor has no clothes at every turn. When the market will believe someone is a different story.

Even with obviously ridiculous valuations, being a short means thinking you're smarter than the market, and you can time it, and you are smarter enough that a structurally disadvantaged investment is a good idea.

Smarter has nothing to do with it, see e.g. tragedy of the commons.

Eisman, Burry and Paulson all got their brain broken by that.

With Burry I think the redeeming part is that he is mostly, AFAIK, running his own capital since that time so there's no point criticizing him for his weird picks.

Paulson spent the last decade burning investor capital using the reputation, good for him I guess.

Eisman didn't do so well the last decade either, but at least his Youtube / podcast is light years ahead of the garbage that rich VCs are doing in terms of education.

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