'Big Short' Michael Burry Makes New Bets

The legendary investor has just invested in five new companies after liquidating most of his stock portfolio in the second quarter. You are receiving this message because you have visited Daily Picks 365 and requested to receive daily market updates, If you no longer wish to be contacted, please click the removal link [here](. ['Big Short' Michael Burry Makes New Bets]( [Click here to read full article.]( The legendary investor has just invested in five new companies after liquidating most of his stock portfolio in the second quarter. Michael Burry has accustomed business circles and the general public to unusual decisions. The legendary investor is accustomed to blows of brilliance. The financier, known for having bet on the collapse of subprime mortgages before the 2008 crisis, likes to go against the general trend on Wall Street. For the past months, the man whose business acumen was made famous by the film “The Big Short” in 2015, keeps predicting that the economy will fall into recession. He anticipates a fall in the equity market. The worst, he says, is yet to come. He adds that he foresees a household debt crisis that would pose a serious danger to the economy. “Remember the savings glut problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming,” Burry warned last August. “Winter coming” seems to be a reference to HBO series “Game of Thrones.” Characters used the phrase as a warning. Burry suggested that households continue to spend money without looking, which also affects their savings. In doing so, Americans are putting themselves in a precarious financial situation while inflation remains a drag on the economy. Trending: [I Retired trading just one stock]( Media and Prisons He then confirmed terrible prediction by liquidating almost all of his U.S. stock portfolio in the second quarter. Scion Asset Management, his firm, only owned shares of a single company, Geo Group (GEO) -as of June 30, according to regulatory filings. Scion owned at the time 501,360 Geo shares worth $3.31 million. The company invests in private prisons and mental health sites. As of March 31, Scion Asset Management had invested in 11 companies, including Alphabet (GOOG) – Meta Platforms (META) – Stellantis (STLA) – Bristol-Myers Squibb (BMY) and Cigna (CI) Geo Group was not on the list in March. It’s therefore a new addition. Burry’s investment strategy has evolved further. As of September 30, the financier seems to have bought the dip of the market shares. He added shares of new companies to his portfolio, which now has six companies compared to only one as of June 30. What is also interesting are the sectors in which he has chosen these companies: Burry bets on the media, aerospace and maintains his confidence in prisons. According to new regulatory documents, show that he acquired shares of Aerojet RocketDyne (AJRD) – Charter Communications (CHTR) – Corecivic (CXW), Geo Group, Liberty Latin America (LILAB) and Qurate Retail (QRTEA) In total, his equity portfolio has a total value of $41.3 million, up $38 million from three months earlier. Burry’s choice to invest in media is surprising as the sector is one of those most affected by the recent stock market sell-offs. Stock market regulations require managers of funds with more than $100 million in U.S. equities to file a document, known as a 13F, within 45 days of the end of the quarter to list their holdings in stocks that trade on U.S. exchanges. [Continue reading article here.]( [Buffett Takes $5 Billion Stake in TSMC, Sparking Surge in Shares]( (Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. took a stake of about $5 billion in Taiwan Semiconductor Manufacturing Co., a sign the legendary investor thinks the world’s leading chipmaker has bottomed out after a selloff of more than $250 billion. Shares surged. The Omaha-based conglomerate acquired about 60 million American depository receipts in TSMC in the three months ended September, it said in a filing. The Taiwanese company produces semiconductors for clients like Nvidia Corp. and Qualcomm Inc. and is the exclusive supplier of Apple Inc.’s custom Silicon chips. Apple remains the most valuable single holding in Berkshire’s portfolio. Assuming Buffett bought TSMC’s ADRs at the average price for the third quarter, the stake would have cost him $5.1 billion. They currently trade at $72.80. TSMC’s shares rose as much as 9.4% in Taiwan after the disclosure, the largest intraday increase in more than two years. The 92-year-old Buffett long shied away from the tech industry, making the case that he didn’t want to invest in businesses that he didn’t fully understand. That stance changed in recent years, however, and he has dedicated an increasing proportion of his company’s investments to the tech sector. Chipmaking is one segment that promises sustained growth over the coming years as it’s essential to the expansion of nascent industries like self-driving and electric cars, artificial intelligence and connected home applications. Expansion of cloud services like Amazon.com Inc.’s AWS also promises to bring in more orders for silicon that goes into vast data centers. What Bloomberg Intelligence Says Technology’s deep-red bond returns this year may mask the robust cash flows and fortified balance sheets that underlie the sector. These traits could lead to outperformance in 2023 as investors weigh the potential for a recession. Tight spreads and limited rating downside underpin the sector’s strength. — Robert Schiffman, BI analyst TSMC, which has taken over from Intel Corp. as the firm advancing the cutting edge of chipmaking, has also emerged as a strategically vital player at a time when the US and China have clashed over leadership in the global technology industry. Taiwan’s most valuable company has the manufacturing prowess to make the world’s most advanced chips, instrumental to advancing every nation’s future commercial industries like EVs and AI but also feeding their military and cyberdefense ambitions. The US has imposed elevated sanctions on high-end chips produced for Chinese customers specifically to forestall them making their way into the hands of the Chinese military. Biden’s Chip Curbs Beat Trump in Forcing World to Align on China TSMC shares at home in Taiwan had dropped 28% this year through Monday’s close, as demand for chips has slowed with the economic downturn and investors fretting about oversupply. The company said in October it pulled back on capital spending to about $36 billion this year, which would still be a record high, down from at least $40 billion planned previously. [Continue reading article here.]( , 1919 Taylor Street STE F, Houston, TX 77007, United States You may [unsubscribe]( or [change your contact details]( at any time. Powered by:[GetResponse](