Who Is Michael Burry?
Michael Burry is a famous investor who predicted the 2008 housing market crash. Now, he’s making a surprising new move with his money—he sold almost all of his stocks and put his focus on just one company: Estée Lauder, a top makeup brand.
Why Makeup?
Burry believes a recession might be coming. In hard times, people often stop buying big luxury items but still spend money on small treats, like lipstick and makeup. This idea is called the “lipstick index”—when the economy goes down, makeup sales go up.
That’s why Burry is betting that Estée Lauder will do well, even if the economy slows down.
What Else Did Burry Do?
Burry also made put options (a bet that a stock will go down) against big tech companies like:
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Nvidia
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Alibaba
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JD.com
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Baidu
This could mean he’s worried about a worsening trade war or problems in the AI and China markets.
Gold Investment
Back in May 2024, Burry also put $10 million into gold using the Sprott Physical Gold Trust, which is a way to invest in gold without physically holding it. This was a smart move—gold prices went up a lot this year.
What Does This All Mean?
Burry seems to be getting ready for a recession. He’s staying away from risky tech stocks and Chinese companies, and putting money into safe or smart bets like gold and makeup.
Some experts question the “lipstick index” theory, but Burry clearly believes that Estée Lauder could grow during tough times.
Key Takeaways:
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Burry sold almost all his stocks to invest only in Estée Lauder.
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He thinks a recession is coming, and people will still buy small luxury items like makeup.
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He bet against big tech and Chinese companies.
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He invested early in gold before prices went up.
Disclaimer: This is for information only, not financial advice.
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