Michael Burry's $200 Million Portfolio: Insights on His Latest Investments

Michael Burry, renowned for his foresight during the 2008 financial crisis, has once again reshaped his $200 million portfolio. His latest SEC filing reveals bold moves across stocks, sectors, and even asset classes—most notably a first-time investment in gold.

Burry's Investment in Gold

Among the most striking changes is Burry’s debut position in the Sprott Physical Gold Trust. This ETF provides direct ownership of physical gold without the logistical burden of storage. Burry allocated approximately $7.6 million—just under 4% of his portfolio—to this gold ETF. At current prices near $2,420 per ounce, gold has climbed roughly 90% over the last five years and 21% in the past six months, underscoring its appeal during volatile markets. For investors seeking inflation protection, gold remains a time-tested hedge within a diversified investment strategy.

Understanding Burry's Gold Thesis

Burry’s entry into gold reflects an in-depth view of its supply and demand dynamics. Total above‐ground gold is estimated at 212,000 tons, with annual mining output of 22,000 to 32,000 tons. Since most gold already circulates above ground, price swings hinge on shifts in demand:

• Jewelry accounts for about 45% of annual consumption.
• Central banks hold approximately 17% of global reserves.
• Bars and coins—including ETFs like Sprott’s—make up roughly 22%.

Investors often turn to gold during economic uncertainty, valuing its stability over non‐yielding cash flows.

"Inflation has peaked but it’s not the last peak of this cycle. Fed will cut and the government will stimulate, and we will have another inflation spike," Burry warned in a recent tweet.

This perspective aligns with his purchase timing: waiting to see the next major shift in monetary policy before moving into gold.

Burry's Significant Position in British American Tobacco

Burry’s largest individual stock holding is British American Tobacco (BAT), valued at about $10.5 million—or roughly 5% of his portfolio. As one of the world’s leading tobacco companies, BAT faces declining cigarette volumes and regulatory headwinds. Yet its pivot to smokeless products has bolstered resilience. The company generates around £10 billion in annual free cash flow against an enterprise value near £90 billion, indicating an attractive yield on cash flow. Burry’s stake in BAT shows his comfort with stable, cash‐rich businesses even amid sector‐specific challenges.

Investments in Alibaba and JD.com

Beyond gold and tobacco, Burry doubled down on Chinese tech by adding to positions in Alibaba and JD.com. These e-commerce giants saw stock prices tumble from their pandemic-era peaks. Today, Alibaba trades at a price-to-free-cash-flow ratio of about 10, while JD.com stands near 6. Burry’s contrarian bet assumes these firms will overcome rising costs and regulatory scrutiny to restore profitability. Although geopolitical tensions between the U.S. and China pose a risk, his investments signal faith in the long-term value of these global e-commerce platforms.

The Unknown: The Rest of Burry's Portfolio

Roughly $80 million—over 42% of Burry's disclosed assets—remains unspecified in U.S. filings. This mysterious portion could include:

• Real estate or farmland holdings
• Direct commodity positions beyond gold
• Short positions on overvalued stocks
• Cash reserves for future investments

Given Burry’s history of unorthodox wagers, investors should anticipate more diverse, off‐radar opportunities in this sizeable “unknown” slice of his portfolio.

Conclusion

• Diversify tactically: Emulate Burry’s balance of stable cash-generating stocks, inflation hedges like gold, and undervalued growth equities to build resilience across market cycles.