Burry's Longs and Shorts

Value Investing with Sven Carlin, Ph.D.•Jul 3, 2026

Summary

Sven analyzes the investment portfolio of Michael Burry, highlighting a dual approach that mixes long-term value positions with aggressive short hedging. Sven explains that Burry targets businesses with strong turnaround potential or fundamental improvements, aiming for a 15% return, while simultaneously hedging against a potential 'super bubble' in the AI sector. Sven emphasizes that while Burry's strategy is methodical, replicating his short positions—which involve complex options and puts—is not suitable for everyone and requires specific expertise.

MercadoLibre (MELI): Sven suggests that MercadoLibre offers significant growth potential, citing it as an interesting prospect for those looking to add to their portfolios. He implies that the company fits the profile of a business with strong fundamental potential for investors to evaluate.

Adobe (ADBE): Sven highlights Adobe as a stock worth examining for its risk-reward profile. He suggests that investors might find value in this position for their long-term holdings, provided it aligns with their individual strategy.

PayPal (PYPL): Sven mentions PayPal as part of a group of stocks that investors should research for potential portfolio inclusion. He notes that the stock offers an interesting risk-reward dynamic that could appeal to investors interested in turnaround or fundamental growth plays.

Mentioned Stocks

PLTR

Sentiment: SELL

Reasoning: Sven highlights that Burry is shorting Palantir as part of his hedge against the AI market, suggesting that Burry views the company's current valuation as unsustainable.

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ORCL

Sentiment: SELL

Reasoning: Sven notes that Michael Burry holds put options against Oracle, signaling a bearish stance on the stock due to Burry's belief that the AI sector is currently a 'super bubble.'

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TSLA

Sentiment: SELL

Reasoning: Sven identifies Tesla as one of the stocks Burry is currently shorting, aligning with Burry's overall pessimistic view regarding the AI and tech 'super bubble'.

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