Michael Burry's Q3 13F: New Buys and Bearish Bets on Palantir, Nvidia

Michael Burry's Q3 13F Overview

• 💡 Michael Burry's Q3 13F filing revealed his recent buying and selling activity.
• ⚠️ Investors are cautioned against blindly following Burry's trades, as he is a frequent trader and his reported holdings are a snapshot.
• 🔍 13F filings do not disclose actual buy prices; website estimates are often inaccurate and based on assumptions.

Key Stock Purchases

• 📈 Burry's largest stock buy was Molina Healthcare, a position the speaker also holds and is looking to expand.
• 🎯 The speaker's thesis for Molina includes its repricing strategy, efficient Medicaid operations, and potential for margin recovery to 4-4.5% pre-tax.
• 🛍️ He also increased his stake in Lululemon, another stock held by the speaker, noting its strong balance sheet and international growth.
• ✅ Lululemon's risk-reward is considered reasonable at current prices, despite concerns about competition and US market pressure.

Bearish Bets: Palantir & Nvidia Puts

• 📉 Burry placed put options on Palantir and Nvidia, signaling a bearish outlook on these high-flyer stocks.
• ❓ The true nature of these options positions is unclear from 13F filings, as strike prices and expiration dates are not disclosed.
• 📊 Palantir's Q3 earnings showed excellent operational results (63% revenue growth), but the stock dropped due to its "priced for perfection" valuation (100x sales).
• 💡 The speaker finds Palantir's valuation difficult to justify, despite its strong performance, highlighting the complexities of options trading.

Investment Philosophy & Caution

• 🧠 Michael Burry is a contrarian investor known for outperforming the market by going against the herd.
• 🚫 The speaker advises against buying a stock simply because Burry bought it, given his frequent trading and the snapshot nature of 13F reports.