Michael Burry’s Top 7 Stock Buys in Q1 2023

A lot has happened in the first quarter of 2023! AI took the world by storm, Credit Suisse and several large US banks went under and China relaxed some of the strict zero-Covid measures that were curtailing economic growth throughout 2022.

Michael Burry’s Scion Asset Management were quick to act and have made some notable additions to its portfolio, capitalizing on some opportunities that arose due to the tricky macroeconomic climate. Burry, famed for his prediction of the 2008 housing market crash and subsequent big short, has shown renewed faith in two specific areas: the sustained growth of Chinese markets and the resilience of regional banks.

Data from China’s National Bureau of Statistics noted 4.5% growth in GDP. A figure that eclipsed forecasts which was likely helped by retail sales jumping 10.6% and industrial output rising 3.9%. These figures paint the picture that the growth story in China may be far from over.

On the other side of the Pacific, Burry has taken new positions in several regional banks, a move that comes on the heels of the recent collapses of First Republic Bank, Silicon Valley Bank, and Signature Bank. These were the second, third, and fourth largest bank failures in US history, respectively.

This bold move demonstrates Burry’s belief in the strong underlying value and potential recovery within the regional banking sector following a heavy sell-down from the market. His approach is a good reminder for investors to think long term and find high quality companies at fair prices.

Now let’s take a look at some of these latest additions to the Scion Asset Management portfolio.