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Burry's GameStop Regret: Missing the Meme Mania
17 Dec
Summary
- Burry invested in GameStop in summer 2018, seeing potential catalysts.
- He sold his stake by November 2020, missing the major price surge.
- Retail investors drove GameStop stock to unprecedented highs weeks later.
Michael Burry, the investor behind 'The Big Short,' has shared his perspective on his GameStop investment, admitting he sold the stock before its significant meme-driven surge.
Burry initially invested in GameStop in the summer of 2018, believing the company was undervalued and poised for growth due to factors like a console refresh and potential buyouts. He reinvested in July 2019, making it a substantial holding, partly due to high short interest.
Despite his early conviction and even attempts to influence company strategy, Burry cashed out by November 2020. Weeks after his sale, the stock experienced an explosive rally orchestrated by retail investors, reaching unprecedented highs. Burry noted that while he lent his shares out at high rates, he missed the main event of the meme-stock phenomenon.
