Every Stock Michael Burry is Buying Right Now! (9 New Buys)

[00:00:00] Speaker 1: Michael Burry is out here telling everyone the AI bubble is about to burst. And at the same time, he went and bought more stocks. We just got his latest stock buys. He doubled down on two stocks that he already owned. He added two brand new ones, and he's got one that he calls a high conviction pick. And there's still one more that he's watching. This is not a guy who buys by accident. So the question is, why? We're gonna break down every single one of those moves today and explain what he said about them. So before we get into the moves, let me give you a quick background on this guy, because if you don't know who Michael Burry is, you absolutely need to. He's the founder of Scion Asset Management, and he became a legend for one reason. Back in the mid 2000s, when every bank, every analyst, every expert was saying the housing market was fine, Burry studied the actual data and said it was going to collapse. So what did he do? He bet against it. In 2008, when the housing market crashed and nearly took down the entire financial system, Burry made him and his investors over $700 million. His story became the movie, "The Big Short." Christian Bale played him. Now, I'm not telling you to copy Burry. Don't buy a stock just because he is, or anybody on the internet talks about it. What I want you to see is the process. That's what we're here to teach. Looking at real numbers before you spend a single dollar. That's what changes everything compared to all the other lemmings out there. So let's get into it. I'm excited to see if Burry's moves actually hold up when we run them through our own process. Now, before I show you all these stocks, I want to give you a quick recap. Back in May, we did a full video on Burry's portfolio. And at that point, he had just bought Microsoft, MSCI. He was watching Salesforce, and he was building positions in PayPal and Adobe. But here's what's happened since then. He did not slow down. He actually leaned in harder. And to understand why, you need to understand the idea behind everything he's doing right now. He called it a whale fall. Here's what that means. When a whale dies in the ocean, it sinks to the bottom. And when it gets down there, it feeds an entire ecosystem of creatures. Things that nobody was paying attention to while everyone was watching the whale swim around up top. And that's exactly what Burry thinks is happening in the stock market as we speak. Everyone is watching AI, NVIDIA, Micron, AMD, the big tech names, anything with an AI story attached to it. All the money, all the attention, it's all going there. And because of that, a bunch of really good companies are just sitting at the bottom getting ignored. Their stocks are beaten down. Not because the businesses are broken, but because they're not AI stocks. And Burry is loading up on them. He said it himself, and I quote, "These stocks are part of the mass whale fall happening away from the main spectacle." That's his whole thesis right now. So keep that in mind as we go through every single move he has made. Stock number one, PayPal. PayPal is down almost 24% this year and Burry did not sell. He doubled down. Here's what he said about it. And this is one of the best quotes I've seen from him in a while. He said, "The market has been attending PayPal's wake for years now, though the body has yet to show it." Think about that. Everyone has been acting like PayPal is dead. And Burry is saying, "I've been to the funeral. The body isn't there." So why does he like it? Well, one, the company's buying back its own stock hand over fist, and it has a margin improvement program that he thinks is going to start showing up in the numbers through 2026 and 2027. Yes, Apple Pay, Stripe, and Block are real competition. Burry knows that, but he thinks that story is already baked into the stock price and then some. Now, guys, I'm talking about the companies now, and I'm going to show you some more about them in a little bit. Stock number two, Adobe. Adobe is down 42% this year, 42%. This is Photoshop. This is Creative Cloud. This is one of the most deeply embedded software companies on the planet, and the stock has been cut by over half since its all-time high and almost half this year. Why? Because the market is worried that AI is going to eat Adobe's lunch. Burry disagrees. He calls it, and I quote, "A clear, deep value opportunity." He bought more shares at $199.59 after the stock dropped almost 7% following earnings. The company actually had strong results, be it on earnings. Be it on profit, raised its full-year outlook, but told the market it was pushing a freemium model and delaying price increases. Of course, investors panics. Burry bought. He's pointed out that Adobe's gross margins are near an all-time high of 89.4%. Guys, I agree with Burry. He believes the business is not broken. He also sees real value in their Firefly AI products and believes the stock is being massively underpriced. One thing he doesn't mention is their AI revenue tripled in the last quarter. And he has said the market is underpricing it by quite a bit. Stock number three, MercadoLibre. This one's interesting. MercadoLibre is basically the Amazon of Latin America. E-commerce, payments, logistics, all of it. And it's down over 21% this year. Burry added to his position in the mid-1500 range and described it as a clean, long-term winner trading at a discount because of its international exposure. Meaning, because it's not a U.S. stock, people aren't paying attention to it the same way. That's the whale fall again. Not an AI story, it gets ignored and gets cheap. Stock number four, Lululemon, also down over 40% this year. Burry built a full position at around $120 a share. Guys, this is not a tech company. This is not a software company. It is a retail brand, athletic wear. And it got completely left behind in the rush towards AI. No analysts upgraded in the past month. Nobody's talking about it, which is exactly the kind of situation that Burry looks for. Stock number four, Zotus. This one might surprise you. Zotus makes medicine and vaccines for animals, pets, livestock, that is their business. Has nothing to do with AI, nothing to do with tech. And it pays a dividend. Burry called it a fat pitch, which is a reference to what Buffett calls a really obvious opportunity that just requires patience. He bought it despite the fact that the company is currently dealing with some legal and fraud probe issues around their 2026 guidance. That tells you something. He looked at all that noise and said, the long-term business is still good, I'm buying. Stock number five, Alibaba. Burry or he owned Alibaba and he added to it. This is the Chinese e-commerce and tech giant. It has been beaten down for years. And if you've watched our channel, you know that we are holders of Alibaba. There's been regulatory pressure in China. There's been a lot of geopolitical concerns. You name it. Burry keeps buying. Same thesis, good business, ignored by the market, trading cheap. Stock number six, Viva Systems. Now Viva makes cloud software specifically for the life sciences industry, pharmaceutical companies, and biotech. Burry bought shares at $159.05 and the stock is down nearly 30% this year. His reasoning is very straightforward. He said, it's come back to lows with its price to earnings and price to sales far below historical levels. There's been a concern in the market that Salesforce, which Burry also owns, is a competitive threat to Viva. Burry pushed back on that directly. He said, the Salesforce threat is only relevant to a small part of its business. The significance has been far overstated. At 17 times forward earnings, Viva is trading below most of its software peers. Long adoption of their vault CRM platform, expanding AI tools, growing with large pharmaceutical customers. Burry thinks the market has gotten this one wrong. And number seven, it's actually a mystery stock. On June 8th, Burry put out a post about Samsung electronics. Now, Samsung is a Korean company, not a US company. But the reason he flagged it matters for how he thinks. He said there's a simple rule with Samsung. When the stock hits tangible book value per share, which means that the stock price drops below what the company's hard assets are actually worth. You buy it. No more analysis needed. Just buy it. Guys, think about how simple that thesis is. Yes, it could be too simple for most. But I laugh when I see people get these incredible ideas about, hey, if I look at this, it's like, guys, just keep it as simple as possible. Now, he has said that the setup has appeared eight times in the past 30 years with Samsung. And each time it worked. He actually bought Samsung in early 2025 and made it one of his top three holdings. Then he said he sees a comparable opportunity in a US stock right now, but he would not name it. So that one is the mystery. Now, here's what ties all this together. Burry's been warning for months that the AI trade is turning into a dot com style bubble. Too much money chasing too few stocks. He thinks it ends bad for the AI darlings. But while everyone debates that, he's been quietly building a nine stock portfolio of companies that have been left for dead, beaten down, ignored and cheap. He said it best himself. Lighter expectation stocks will float to the top as the heavy expectation stock see market value simply disappear. Guys, he's not waiting for a crash. He's already positioned for what comes after it. Now, let's take each one of these stocks and run them through the everything money process price versus value. And we use the stock analyzer tool to figure out what we would be paying for it based on our own assumptions. Now, before we dive in, I want to remind everybody never take our title and thumbnails literally, just like we're never going to give you a stock tip. We're not watching Michael Burry's portfolio to get a stock tip either. And if you're going to thank him for anything later, it's going to be because you learned the process. Analyzing his portfolio the same way we'd analyze mine or any stocks. It's always about teaching the process. That's the thank you I want from you later. So stock number one, PayPal. Guys, ironically, a company that I own that has gone down quite a bit since I started buying it. The price is $38.7 billion. For those of you who are new to our channel, you're probably like, what the heck does that mean? Well, you might look at the ticker symbol, ticker price and say, that's the price. No, it's buying all the shares. What would it cost you? $38.7 billion. They are selling for seven times free cash flow, seven. The NASDAQ 100 is selling for like 45 times free cash flow or something crazy like that. This is selling for seven times free cash flow. It generated $5.5 billion in free cash flow last year and a little under 5.2 billion a year for the last five years. Now look at this guys. This is the revenue at PayPal. If I hit the name PayPal here and I said to you, here's the revenue by quarter going back seven years, eight years. Would you tell me this was a dying company or a growing company? Again, people can say all they want is dying company. And I get that. And I understand there's competition, but how do you tell me this is dying? And by the way, the dying story started like right here. So I look at this going, okay, maybe this is the exact same thing they say about Adobe and we'll look at that later. Okay. So back to this, they've got good returns on capital, which means they get a good return on the money that they invest in the business. This is a sign of a quality company. They've got gross profit of 46%. So these are some attributes here. We look at and go, okay, something to look forward to. Let's go to our eight pillars. Now we do have some issues here. Cashflow is about even a little bit down the last five years. Same with net income. Everything else is a check mark. We bought back a lot of shares guys, 21 and a half percent of their shares. And guys, I'm not going to lie to you. As long as this price of free cash flow stays this low, I wish they would take every dollar of their free cash flow and buy back shares. This is exactly what this company should be doing. They should focus on growing the business and the CFO should focus on buying back their shares like crazy because if they took five and a half billion and bought back their shares in five or six years, there'd be like no shares outstanding. And the one person holding the shares, the stock would just skyrocket. That's the idea there. Now guys, I've thrown a lot at you. If it feels overwhelming, I get it, but remember it's been overwhelming for everybody in the history. Burry was overwhelmed at some point in his early in his career, but it's about getting through that. And that's what we're here to walk you through. And the other thing is I have an absolutely free key metrics, PDF available for you. That'll explain all of these metrics for you, how to calculate them. That way you and I can be speaking the same language and you can be the smartest of all your friends when you explain all these metrics. So click the link in the description below or in our first pin comment, and we will email you the PDF in just a matter of minutes. It's absolutely free. Go do it right now. So what do analysts think about PayPal? Well, they have profit growing from 542 a share to 917. That's not the sign of death, but, but again, they're analysts take it with a grain of salt and then revenue growth, 35 billion to 56 billion, not huge. It's over seven years, but it's a, it's, you know, mid to high single digits, not a grower. But the point is you can still get a great return on the company if you pay the right price. That's what's really important. So we have all of this. Let's go put in our stock analyzer tool to determine the right price to pay guys. I'm doing a 10 year analysis like usual. First line revenue growth. I did two, four and 6% guys. This is lower than they even had the analysts had next profit margin and free cashflow. I'm going to focus on free cashflow here since it's the one that really drives the value and it's higher than their profit margin. I'm putting 14, 16, and 18% keep in mind guys in the last five and 10 years. My highest number is basically there, what they actually did. So I'm giving them some more room to decrease their profit next. What PE and price of free cashflow would I apply to this business 10 years from now? I picked 13, 17 and 21 guys, I actually think it should be higher than that. They have high returns on capital. They are trusted brand and 15 or 16 is for like average companies in the S and P. I don't believe this is the average company, but I'm hedging here just to show you how ridiculous it is. And then finally guys, what is my desired return? Now remember, I always put in 9% or 10% usually 9%. Remember though, this is my intrinsic value, no margin of safety return. That's the return you should get on a longterm ETF. So to buy an individual company, you need to put a higher number in there. How much higher all up to you. My number is gonna be different than your number. And it involves our situation as well as our knowledge about the company, but for right now, I'm going to stick with 9% for all of these companies just to get intrinsic value. The stock price is currently $42 a share. I hit the analyze button, scroll down guys. I have a low price of 63 to 68 high price of 140, 155 middle price of 94 to 104. And look at this based on today's price. If my middle assumptions occur, I'm looking at a 23.7% discounted cashflow IRR. Now, does that mean it's a no brainer? No. But what I always tell people is if I could have 30 companies with these kinds of metrics, I'm going to do very well in investing. I don't know whether I'm going to be right on one company. The goal there is though, to find the 20, 30, 40 companies, whatever the number is that are big companies that I like that are mispriced stock. Number two, Adobe guys, another company that I own, Burry bought it recently at a lower price than me. I bought it in the low 200s. He bought it 199. In the past, I had sold cash secure puts to get the stock at a low price was not able to get it. Finally, when earnings hit, I just went and bought a lot of shares myself. Remember, do not do anything because I have done it. We're here to teach a process, but I want to be open with you about what I have done. All right, so Adobe, their market cap price of the business is 78 billion, high returns on capital, 26 to 36%. Incredible guys. Also selling for seven and a half times free cash flow. Guys, look at this. Their free cash flow in the last five years is 8 billion a year. Last year was 10.3. Is that a dying business? Let's go see. Let's go to the cash flow page and let's go find this free cash flow. This is their free cash flow by year. Okay. Let's go to quarterly. Let's see how their free cash flow looks over the last several quarters since 2019. A lot choppier than PayPal, but the line here is clearly up. Does this look like a dying business? I don't know. Not to me. It doesn't. Let's go back to annual. Let's go back to our free cash flow. It has skyrocketed since 2016. And this is where AI became big was right here and we're still doing much higher than that. I want everybody to remember that going forward. Another thing I love. Not many acquisitions here. Only 2.83 billion in the last five years. That's not a lot for a company of this size that in that same time has generated 40 billion in free cash flow. And yet look at their revenue growth. 16.9% a year for the last 10, 11.7% for the last five, 11% for the last three. Remember a lot of companies will make acquisitions to grow their revenue. So that's why we added this here because I want to sit there and say, well, let's see how much they've spent to grow their revenue by making acquisitions. This is nothing. This is 5% of their 6% of their free cash flow over the last five years. And they've still grown a ton. And then remember 89.4% gross margin. That's an incredible, incredible number. All right. Let's go to our, let's go to our eight pillars here. eight pillar thriller, all eight check marks. Haven't bought as many shares back as PayPal, but if anybody at Adobe who works in finance is there, do me a favor, just buy your shares back. Don't do anything else besides grow the business and buy your shares back. For those of you who are new, when you buy back shares, you decrease the number of shares out there. Therefore the same earnings get divided amongst less shares. So for example, if there's 10 shares outstanding and the company makes $20, it's $2 per share. If they buy back two shares, they're down to eight shares. They still made 20, but now instead of $2 per share in profit is $2 and 50 cents per share in profit. 20 divided by eight. So guys here, their shares outstanding by quarter going back to Q1 2019, just consistently going down. And guys, since then the price of the stock was consistently decreasing, which allows them to buy back more and more shares. This is an absolutely important thing for people to understand. And guys, this is exactly why I teach on YouTube. There are idiots out there who literally tell you that issuing shares makes the company worth more. That is absolutely false. So let's go to our analyst estimates here to see what they think about the death of Adobe. $24 a share to $45 a share. Almost doubling in the next seven years. Now, analysts have bias, but remember this bias against Adobe has been going on for a while and yet analysts keep these numbers going higher. Maybe they know something. And here's revenue, the dying business growing from 26 billion to 46 billion over the next seven years. Not a huge number, but it's there. So now, stock analyzer tool. Guys, I did a 10 year analysis. I'm going to go through this one a little bit faster because we already explained everything before. Revenue growth, three, six and 9%. Free cash flow, because it's higher and the more important metric, 37, 40, and 43. PE or price of free cash flow, 18, 21, and 24, because of such high returns on capital that are getting better. And my 9%, no margin of safety return. The stock's currently at 196. Hit the analyze button. We have a low price of 395, a high price of 890, middle price of 600 for a potential return in the middle of 26% discounted cash flow return. Stock number three guys is Viva. And guys, I'm not going to lie to you. I have no idea what Viva is. It is a $25.7 billion business. Look at this. Enterprise value of $20 billion. Guys, this is not very common. When the market cap is greater than the enterprise value. First off, what's enterprise value? It basically means if you want to buy the entire company, you get the cash, but you also take on the debt. If you want to pay it all up, all, all take the cash in, pay off the debt, it would cost you this. It's lower than the market cap. That means this is a net cash business. They have far more cash on hand than debt. It's hard for companies like this to go bankrupt. Okay. We have a PE of 15 and a half. We have a, sorry, a price of free cash flow of 15 and a half and a PE of 27. Why is this one lower? Just like Adobe and PayPal, more cash flow than net income. Most people out there are looking at net income because you're smarter. You're going to look at free cash flow. Next profit margin 25% a year for the last five and 10 years, 28% last year, 75% gross margin. Basically no acquisitions, $7 million in the last five years. And look at this revenue growth, 22% for the last 10, 16% a year for the last five, 15% a year for the last three. Let's go to our eight pillars. All right. This one slight shares higher, not the worst, but higher. Let's see how it's been lately. So we go to our financials. We go to the income statement. Let's put in quarterly because sometimes they start to do a turn. Okay. It's still a little bit higher. It's just like inching up. It's just starting to dip down right here. It's going a little bit lower right there. So not a ton, but it is decreasing. So let's go to analyst estimates here. Analysts have this profit doubling in the next six years from 810 per year per share to 1626. Literally double with revenue growth from 3.23 to 8.76. That's two and a half times revenue in the next eight years. That's double digit every single year. Basically according to analysts. So let's go to a stock analyzer guys. I've done this company before. I can't believe that. So I'm going to go to 10 year analysis. I don't remember when I did this company. I did 6, 10 and 14% revenue growth. I did 27, 41 and 45% free cashflow guys. Look at this. They've done 43 and 44 for the last five and 10. These might be very, very low PE. I did 14, 17 and 20 because it is above average ROIC. It's got some good growth. I could actually justify maybe a higher PE. And finally my 9% no margin of safety return. The stock's at 155. I hit the analyze button. I have a low price of 136. According to free cashflow, a high price of 383. Middle price of 230 with middle assumption return of 14 and a half percent per year. So not as good as PayPal, not as good as Adobe, but still I understand why he's interested in it based on this price. You just watched me share Michael Burry's portfolio and analyze a few of the companies and we aren't done yet. But think about this. One of the greatest investors alive, a guy who called 2008. Before then he was an incredible stock picker who got, he was a doctor on the west coast that people like Joel Greenblatt would take advice from and try to copy his trades. And you saw how he looked at each one of these stocks, not just because Burry bought them, but because the numbers either made sense or they didn't. That's the difference between investing and gambling. Most people watching right now are watching Burry's moves and doing one or two things. They're either blindly copying him, buying whatever he buys without understanding why, or they're sitting on the sidelines, watching stocks move, feeling like they're missing something, but not knowing what to do about it. Guys, both of those are terrible. Both those feel horrible and both of them will cost you money. Here's what's actually happening in the market right now. Burry's finding stocks that are down 30, 40 plus percent, and he's buying them with conviction because he knows that he can understand the value of a business. He's done the work. He isn't guessing. He's not hoping. He knows the price he wants to pay and he waits for it. That's it. That's the secret. And that's exactly what our stock analyzer tool lets you do. You put in your own assumptions. You decide what you think the business is worth. And the tool tells you the price that you should be willing to pay based on everything you put into it. Don't waste a single dollar buying it. Don't waste one minute analyzing something that doesn't matter. Sit there. Use the tools we have to get there. No more freezing when the market drops. No more watching someone else make a move and wondering if you should follow. You're going to know what to do based on yourself because you would have done the work yourself. We have thousands of people inside our community right now doing exactly this. Running stocks through the analyzer. Sharing their assumptions with each other. Talking through the numbers and the story together. Guys, these are regular people. This isn't Wall Street. These aren't hedge funds. These are people who decided they were done guessing. They were done being afraid of what the market was going to do. Now, here's something I've not shared in our recent videos. We actually have a class coming up this week. It's eight sessions from now until August where you get to work directly with me and Dalton in a small group on Zoom. You get to ask direct questions. You get to learn the foundations of investing. And we will actually grade your stock analyzer assumptions and retirement plan. And most importantly, you're going to walk away with a process that will pay you far more than the cost of the class. We have a special price going on right now with only a few spots left with registrations closing on Wednesday morning. So, guys, click the foundations link below in the description of this video. And as a bonus, you're also going to get three months of our software and community behind me absolutely free. Now, let's go look at Alibaba here. Another company that I own that I've been a fan of for a while. $260 billion price. A lot more debt here. $323 billion enterprise value. That means there's about $65 billion essentially in debt. Guys, look at this. Now, this is a company spending a lot on AI. $21 billion per year in five-year profit compared to their, sorry, cash flow compared to their net income of $13 billion a year for the last five years. $11.3 billion in free cash flow versus $15.67. Selling for 12 times free cash flow in the last five years. 23 times last year, last year's free cash flow. Returns on capital stink. Good gross margin. And revenue growth, a little bit slower. But this one has all the story behind it. People were saying, I don't even know what the stock is at right now. $107 a share. People were sitting there saying, oh my God, China, all the geopolitical problems. When you buy the stock, you don't actually own it. I'm like, these have always been problems. Suddenly what happened was the stock fell a lot. News follows the stock price. And suddenly people cared a lot about the issues that were already there. So let's go to our eight pillars. Not as attractive, low returns on capital. We obviously saw cash flows down a lot and net income is down. Everything else is a check mark. Cheap five-year price of free cash flow. This is again, a company that's spending a lot on capital expenditures. Like everybody else in the AI world. The question is, will it work? So let's see what analysts think about this company going forward. Not many out there, but they have over double profit. $5 a share going to 1193 in the next three years. Guys, what PE do you want to attach to this business? Do you want to attach 15? It makes it $180 stock. You want to attach 22? It makes it a $240 stock. Actually higher than that. $260 stock. This is what I mean. If they're right, a lot of potential there. Look at revenue growth. Doubling, over double over the next seven years. So over 10% revenue growth, according to analysts, over the next 10 years and their assumptions. So stock analyzer tool, baby. 10-year analysis. Guys, look how low I went. Three, five, and seven. Keep in mind how low these numbers are. I put in dirt low numbers. Free cash flow, I did 15, 18, and 21. And that 18 middle number is well below its 10-year average. PE, 14, 18, and 22. And my 9% return. The stock's currently at 107. I hit the analyze button. Guys, we have 140 on the low side, 350 on the high side, 225 in the middle for a 20% IRR based on my middle assumptions. And remember, my middle assumptions are 5% revenue growth. This is the number one company in China. If China grows its GDP 6 or 7% a year, what's the revenue growth going to be here? Guys, our final stock we're looking at is Zotus. This company is a $32 billion company with 42 billion enterprise value, essentially 10 billion in debt, that generated 2.37 billion in free cash flow last year, with the average of last five years of 1.9. Look at their profit margins, 10-year is 25%, five years 27, one year is 27.8. So there's an upward trend on the profit margin. High returns on capital, 25% last year, very few acquisitions and revenue growth is not sexy. It's like Alibaba, it's low, but a lot of great stuff here. Selling for 14 times free cash flow, 12 times earnings. Interesting. Eight pillars, almost an eight pillar thriller. That debt is right there. Not the worst, especially considering their five-year average free cash flow is a lot lower than their one year, but I get it. So apart from that, pretty good. Let's see what analysts think. $7 per share here, only growing to 10.50 in the next seven years. Not a lot, not a lot of growth there. Mid to high single digits and revenue growth, low to middle single digits. Something very conservative with this one. And guess what guys, you're going to watch me do it live in person. So I'm going to do two, four and 6% revenue growth. I'm going to do 24, 26 and 28% on the profit margin. I'm going to do 22, 24 and 26% on free cash flow. High returns on capital. Not very good growth rate. Market average is 15 or 16. I'm going to go 13, 16 and 19. I'm going to be, eh, no, I should go higher. 14, 17 and 20. And then again, my 9% desired return. Hit the analyze button. The stock's currently at $77 per share. I have a low price of 70 to 75. High price of 135 to 145. Middle price of 100 to 105 with a middle assumption return of 12%. So guys, for a lot of people, that would be a very good return. It used to be my number. Now guys, we had five stocks all beaten up. Bury is betting the fear has gone further than the fundamentals deserve. Remember great investing is rarely seen as comfortable because discomfort often creates mispricings that have allowed value investors to outperform the market for over a century. So know what you own, know what it's worth and never buy based on hype. Not even hype about what Michael Burry is doing. So if you want to see the five stocks that have high potential right now, click here for a breakdown of each one and why they might look like opportunities right now. The results were very interesting. Thank you for your time.