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So listen to this. Some people come to fame because of a hit song, a successful movie, or a string of good games. Others come to fame because of a successful financial bet. Michael Bur became famous because of his bet against the housing market before the 2008 financial crisis. Then he became like God figure when the movie The Big Short came out.
Now, while getting famous is exciting, coming down from such a high is not a lot of fun. And I think this is exactly what Michael Bur is experiencing. He was right about betting against the housing market. He did his homework. He proved everybody wrong and he made a lot of money. As a result, he became famous.
But this was almost 20 years ago. So imagine being a singer. You had a hit song 20 years ago. It was great. Everybody loved you. You were at the top of the world. But ever since then, your songs were terrible. That's Michael Barry. He is looking for another short bet. He is looking for another high.
He wants to be proved right again. He wants to be loved again. It doesn't matter that the last few of his short bets were horrible songs. He wants to do it again. So now during the search for another high, he is betting $900 million against Palunteer and $187 million against Nvidia. Michael Bur put a really big bet on it's almost a billion dollars.
It's $912 million currently. As far as I can tell, the two companies he's shorting are the ones making all the money, which is super weird. Like the idea that chips and is what you want to short is batshit crazy. When I saw this news, I called my friend and I said, "Does Michael Bur have a brain tumor?" Look, I know that both Palunteer and Nvidia are not cheap.
I mean, Palunteer has a PE ratio of $438. Nvidia has a market cap of almost $5 trillion. Do I own stocks in these companies? No, because I believe I have better places for my money. But am I going to short them? Not unless I have a brain tumor. Companies that are as special as Palunteer or Nvidia are always expensive.
I mean, Palunteer looked expensive at $10 per share, $20 per share. They thought Palanteer was overvalued at 10. They thought it was overvalued at 20. Shorting Palanteer or Nvidia is like shorting a religion. Do you think it's a good idea to tell Islam believers that their god is fake and Christianity is the place to be?
Now, I'm not saying that Palanteer is a religion, although it kind of is. This is a real company that is solving real problems for society. Nvidia is the backbone of AI. I'm not going to bore you with all their financials. Everybody knows that both of these companies are dominating their industries.
They are on the top of the top. Nobody can touch them. But but but but their valuations are out of control. Yeah. So what? You think that the people that invested in these companies don't know that? You don't think that they know that Palunteer has a PE ratio of 438? Uh they know. They just don't care because they are investing in these companies for what they're going to become, not what they are today or the next four quarters.
They also know that AI is just at its infancy and both Palunteer and Nvidia are the beneficiaries of AI. Remember the time when shorting Tesla was more popular than eating junk food? I remember it like yesterday. Tesla just makes money from selling carbon credit. Tesla is valued at more than all the manufacturers combined.
BMW is coming. Audi is coming. Tesla is going to lose market share. Their growth will slow down. And Elon Musk big mouth is going to hurt Tesla. How did it turn out shorting Tesla? The stock is at all-time highs. Market cap is $1.5 trillion. But but I was right. Tesla's growth slowed down, margins compressed, competition increased, even popularity declined, and Elon Musk's big mouth definitely hurt Tesla's brand.
So what? The stock is at all-time highs because investors don't care. There's only one Tesla. When automobile sales decline, there are humanized robots. When EV sales collapse, there are robo taxi or Tesla's energy. Look, Elon Musk is the richest person in the world, mostly because of Tesla and SpaceX.
Is he the richest because those two companies are the most profitable, have the best margins, or have the best growth rates? Nope. Have you experienced this in your life? Only if I had this car, my life would be better. if I made this much money, my life would be better. And then once you achieve this, you realize that your life didn't really get any better.
That's because imagination is so much more exciting than actuality. The same thing with publicly traded companies. For example, with mining stocks, you make the most amount of money. Not when you produce gold or silver, but when a company makes a discovery and investors can imagine big things, how big the mine is going to be, how much the mine is going to make.
That's why Tesla is priced higher than all of the auto manufacturers put together. Tesla doesn't sell the most number of cars. Toyota sells the most number of cars. But is there anything exciting about Toyota? Is Toyota going to another planet? Does Toyota have dancing robots? Because value investors do not understand the concept that imagination is better than reality.
They come up with dumb ideas like shorting Nvidia, Palunteer or Tesla. And as a result, they miss out on the biggest opportunities to make money because such companies look expensive based on their metrics all the time. I started talking about Aduro Clean Technologies on my YouTube channel in 2022 when the stock price was $1.50.
The market cap was around $40 million. The smart people didn't want to buy the stock. It was too expensive. Revenues were too small. market cap to revenue multiple was excessive. Well, today the market cap is 10 times that, $400 million. Still barely any revenues. The market cap to revenue multiple is even more expensive.
And now I see a bunch of people wanting to short Aduro Clean Technologies. In my opinion, Aduro will have a valuation in the billions of dollars in the next couple of years and it will always looks expensive. Always. Why? Because the imagination of future revenue is fantastic. The company has the best solution in the world for plastic recycling and 400 million tons of plastic is being produced every year.
This is a $1 trillion problem and Aduro has a solution to this $1 trillion problem. So here's the imagination. If Aduro can capture 1%, 3% or whatever percent of this market share, it will make many billions of dollars per year. And when that happens, Adura's stock price will reach $1,000, $10,000, or whatever number you want to dream up.
Today, the stock price is at, let's say, $13. I want to buy it. It's as simple as that. Palanteer and Nvidia are no different. Of course, they have much higher market caps and they are much more wellknown by investors. Plus, they are also performing incredibly well fundamentally. They are dominating their industries.
Michael Barry could find easier way to make money other than shorting Palunteer and Nvidia, but he's looking for another high. He wants to make another big short call and be called God again. Making a correct bet on some kind of obscure company like Aduro Clean Technologies is not going to bring back that high. When you get a taste of fame, coming down is not fun.
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