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Hey, welcome back to Two Guys, Socks and I'm Dylan. And I'm Vinnie. And we're doing a video today that has been requested kind of a lot in the comments or not requested but talked about. I'm pretty excited to see everyone's opinion. Please vote. It's I'll show you it's that just posted what the vote's for but it's is Michael Burry a little bit of a sham now or a more of a financial guru than legendary investor.
Okay? A lot of people I feel are going to vote against it but just hear me out. I'm not defending him. I'm just going to give straight data. Okay? Um this is pretty interesting when you see someone who was in charge of a hedge fund have a legendary reputation and then go to like Substack. And and not run a fund anymore.
It's it's a little bit unique. Okay? So but just keep an open mind. Take this data and just remember Cathie Wood's I want people to be thinking of Cathie Wood's while we're doing this is a hedge fund manager. Okay? So I that needs to be assessed. Now, his his Scion Capital the big short era the the returns of his are on the left and then the S&P 500 on the right.
Absolutely disgusting. Okay? He he destroyed in that era. Obviously, it's a very different era now but he destroyed in that era. He killed it and then you have, you know, this pretty wild stat. He essentially had a cumulative return during that time of 489% when the S&P had three. That's disgusting.
Remember, he's operating hundreds of millions of dollars all the way to billions at the end of that. Um kind of insane. Obviously, we've talked about the big short multiple times on this channel. Um absolutely disgusting. Okay? Now, after that happened, he closed this um this firm and he opened a proxy called uh Scion Capital Management or Asset Management.
It's a little bit different, so you we don't know specific performances, cuz all he had to do was release 13 Fs. So, this is an estimation using all the data I can find. Some sources are a little bit higher than others. I tried to just do an average. But, if you look at from 2013 to to 2025, we see the S&P 500 here, and then Scion down here.
He was routinely slightly under. Now, again, this is a rough estimation. There is so many sources claiming different things. I would take this with a grain of salt. I would say some of these numbers are far worse than actually is, and some are far better. Um for instance, that I kind of disagree with the 2021, but again, we're just doing the best we can, cuz we don't actually have the final numbers.
But, if we're going to vote on this, we need to look at some pretty key some pretty key things that he talked about. There was a very ominous tweet, as Vinnie remembers, just sell. And it was on that date, right there. Yeah. Yeah. Glad to say I did not follow that advice, uh very fortunately for Yeah.
the entirety of my investing life. Yep. That is um that was that's a bad call, especially when it's different when you're when you're early, and then eventually, right? There's no dips here. There's a small one to the 100. There's nothing. This is the weekly chart. This is straight up for 4 years. So, if it dips now, does it count?
No. It's 5 years, 6 years later. It doesn't count. Um I I would say it. Huh? He At least he did eventually come out and say I was wrong to say sell. I don't know how much time elapsed between the two, but he did eventually say that. And he said, congratulations like retail traders. Super Yeah, so he was essentially my point is I think he's stuck in an environment of 2000 2008 where retail trading was really not a thing.
But now as we I've done multiple videos on retail trading can actually move markets. It's over 20% ish of the total volume. It's a whole different deal now. Um there's a pretty famous Tesla short that he went real hard in the paint on. Um did multiple tweets about. I want to pull them because there's too many.
Um but you can see where he entered and where he exited. Um it that's the theory on where he exited by the way cuz we have 3-month windows. We don't I don't I don't know where he exited but based off of his tweets and he did an interview on that date where that red arrow is that he said it was actually just a trade.
I'm going with that means he's probably out. But again, I don't know. He was out after this for sure. Um here is the mother of all crashes in 2021. He tweeted that right here in a series of kind of rambling the world's going to be over tweets. Um too many to put on the screen but not really. Just little bit of a correction.
Yeah. And then as we know what happens after this, straight up into the right. Yep. Yeah, man. Buy the dip, bro. Buy the dip. Yeah. Okay. Now, here is the thing. He is closed. He's no longer running a hedge fund. He is closed his stuff. He does a newsletter which we bought on this channel so that we can do kind of stuff on it when he's when he says stuff.
Uh it's 440 bucks or something like that. Now, at what point are you a financial guru? Because there are people if we if me and Vinnie right now start selling a course, some course and we don't have full transparency which none of those people will do, I wonder why. Um we are financial gurus. That is That That is in my opinion.
It's unethical. You're charging for something that you you don't know enough about. It's like no one knows the market enough, right? That's why That's why Warren Buffett did that challenge for 10 years and not one hedge fund could beat it. No one could beat the market for 10 years in a row. Okay? Um ironically.
I rented this Ferrari and I I can rent this piece of cows, too. Yeah. There're a lot of those. Those are financial gurus. Now, at first there was multiple comments on our last video that we had Michael Burry on and they were calling him financial guru in the comments. I'm like, "That's not right." And think about it.
I'm like, "Well, he does just have a newsletter now." He is He is doing all the criteria. He's also not being super transparent. He He's being very transparent with specific trades, but not weight or or like annual return. And that that I've seen in these. Okay? But then I'm like, "All right." But Cathie Wood's I which I disagree with has literally blown up a hedge fund like entirely would be a hedge fund manager and not a financial guru.
And that's my problem. You know what's hilarious, too? I don't You don't probably follow this, but you know Steve Eisman? Do you know who that is? I recognize the name. He's another guy from The Big Short, the movie. He's the guy that Steve Carell played. Yep, Steve Carell. Um so, he has a YouTube channel.
It's been growing pretty aggressively. Uh he just launched a members-only subscription to his channel now, too. Okay. So, again that makes me a little bit angry. Um cuz I mean, if your if your content's good enough, you just just make money on YouTube. Just do the ads. Why you being a scumbag? All right.
I keep on going back and forth. I I was going to go Burry's not a guru. Now I'm leaning toward that made me angry. Um Okay. So, one thing before people vote, I do think you should listen to this podcast and I'm going to throw him one bone here. This was a awesome podcast with Michael Lewis. Burry does not do interviews very often.
He very clearly, if you look at him, has autism. It's very obvious, in my opinion. He does not like doing interviews. And he got really frustrated at one point during the interview. And it's it's this line right here, okay? So, Michael Lewis asks him, he's like, you know, "What What do you exactly have to show the public?" And he just went off and like he's like, "Well, the media bastardizes options trades." He says, "I'm working out and I see on CNBC I have a billion-dollar short position on Palantir." And you can see in his face he's pissed.
He's like, "It was $10 million." He's like, "They don't know what options are." And he goes off on on all the stuff. He's like, "It's so out of the money. I can't lose a billion dollars. It's impossible. It was a 10 million That's not how it works." And I get it. He He So, he shows how they got there.
Like he you know, cuz they're they're magnifying by 100 all that stuff. He shows how they got it. He's like, "That's not accurate. That's a headline. It's completely inaccurate." He's like, "I could not lose a billion dollars. I didn't have a billion dollars on it." Yeah. This is the stock market equivalent to if it bleeds, it leads, you know?
Yeah. It's really not cool. Um so, I I just posted this right before we filmed this. There's zero votes. And as you can see, it says posted zero seconds ago. So, has Michael Burry transitioned to a glorified financial guru? Okay, so yes, he's not worth following. And I want you to keep in mind, Cathie Wood is not a financial guru.
She is a hedge fund manager. Just keep that in mind while answering these questions. She's not charging for anything other than you go to her fund, she takes your percent, and you will not beat the market as we can clearly see. Um So, and then no, he still has valuable information, but is not what he once was.
I'm probably in that one. I keep going back and forth. Or he's still legendary, whatever he says deserves a deep dive. I have a problem with him charging for a newsletter. I do not I don't I don't like that. I have a a little bit of a problem with it. I don't know how you feel. I mean, coming next week, Tuesday of the guys newsletter is coming out.
I'm just joking. It's only $1,200 a week. Yes. Solid. Where would you vote? Uh I would say valuable information but not once what he was. Um you know, all these folks are worth listening to on occasion, but ultimately like, you know, buy the dip, bro. Buy things you understand. You know, have that commitment to say that whatever the market's saying about this company is probably wrong.
See my meta video. He He He also he did address that what people say that he he's called the last crash 10 times and has been right twice. He actually does have a tweet showing like, "When did that happen?" And he lists he's like, "I'm calling for a crash here." And then it's like, "If I call for the same crash in a matter of a month, it's now six crashes, but it's just the same one." So I I also do get that point.
He's called it He did call it twice. He's very wrong, to be clear, as we saw, up and to the right. He was not correct. He didn't call it 10 times. He called it twice. And it was He was wrong twice. Um so yeah, vote. I'm very interested to see what people think. Cuz I hate those financial guru people, man.
I don't I don't respect them at all. If I have to see it one ad with Michael Burry shirtless in front of a Ferrari, I'm going to probably lose my mind. Yeah, that'll call it for me. I want my money back in that newsletter at that point. All right, guys. Have a good one. Guess the next one.
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