Podcasts about scion capital

This recording took place at the London Value Investor Conference over summer, where Simon hosted a discussion with Joel Greenblatt. Joel not only founded and runs Gotham Asset Management, but was also an adjunct professor at Columbia Business School for 20+ years. Joel previously ran Gotham Capital, where he achieved 50% annualised returns between 1985-1994 (34.4% net). Joel also helped Michael Burry set up Scion Capital in 2000. In this discussion, Joel offers some exceptionally valuable insights into the issues of active versus passive, if valuation works pays, the need for patience, thoughts on concentration, and learning from mistakes. He talks on the need for detailed valuation work in order to identify compelling valuation opportunities, but also of the need for patience for the market to recognise such situations. He advocates passive for those ill-equipped to undertake detailed valuation work, and also recognises the challenges of owning too many overvalued and insufficient undervalued companies when you are passively invested.  He then explains how the best way to learn from one's investing mistakes is to lose amounts of money that matter. Joel goes on to acknowledge that he would have been fired several times over, had it not been his own firm! A treasure trove of advice from a pro! The interview is followed by a short Q&A. Thanks to the following for their contributions here: Steve Clapham of Behind the Balance Sheet, Mark Rubenstein of HPS Investment Partners, Ajit Dayal of Quantum Advisors India, and Cole Smead of Smead Capital Management. ​​The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors, and the World Gold Council. Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

In this episode, we dive into the two "big bets" that were recently revealed to be a part of Michael Burry's portfolio for his hedge fund Scion Capital. When you look into the details, it's likely that one of these is not as large as it seems, and the other may be misplaced. My Options Courses Options Foundations: https://gum.co/yvRjw Options Advanced: https://gum.co/CIqDW 

Com o recém divulgado o formulário 13F de Michael Burry, pudemos conhecer as posições detalhadas de seu fundo Scion Capital. A grande aposta de 2021 é short em Tesla e comprado em Inflação. Além de calls de Google e Facebook também. Pois Burry realmente coloca seu dinheiro naquilo que fala. Interessante também entender a forma de exposição do investidor americano.

Ivermectin (Covid Wonder Drug?) and the Wall Street RevolutionI don't often say, "We've done a great show," but today's episode IS a great show! I hope you'll tune in for some crucial information!Season 2, Episode 9 is a real treat, starting with our first segment about Ivermectin, yet another possible weapon in the fight against Covid-19. Since Covid began, we've covered hydroxychloroquine as a safe and effective drug to CURE Covid, though many in the medical profession has done all they could to smear it, and we talk about why. Then we covered inhaled Budesonide, which doctors in Texas found useful and inexpensive.Now we're proud to tell you about Ivermectin, a Japanese drug pioneered in the 1970s that Japanese medical journals have called 'a wonder drug on a level with penicillin and aspirin.' Quite an endorsement! Its success rate in treating Covid so far is 100%... and it costs about twelve CENTS/treatment course! Doctors in both Australia and Broward County, FLA have successfully prescribed the drug. Hear what WE have to say about it!Segment 2 looks at the Reddit Revolution on Wall Street, centered around the Reddit WallStreetBets group, which has taken the financial world by storm. We discuss Dr. Michael Burry, famous from THE BIG SHORT, the man who first saw the mortgage crisis in 2005 and bet against it; he made a fortune as a result. Now his fund, Scion Capital, had taken a big bet on GameStop (before the Redditers did), and he stands to make a huge return. The Reddit crowd is pitting Main Street against Wall Street to earn huge returns and break the greedy hedge funds simultaneously.You can learn more about what Michael Burry is doing by following www.gurufocus.com, understanding what's in his Scion portfolio, or following New Money on YouTube for videos about Burry and other money-related topics. You can also learn more about New Money's own investment strategy by using the links under his videos to visit www.profitful.online.If you're interested in using Ivermectin or hydroxychloroquine, but your doctor won't prescribe it, please visit www.americasfrontlinedoctors.com and click the link at the top (How do I get Covid-19 medication?) to talk to a physician and ask for a prescription!As always, reach out to us at talkjampodcast@gmail.com. We love hearing from listeners and respond to all email!Episode 9 is sponsored by the audiobook version of STEALING FIRE by Susan Sloate, read beautifully by Mapuana Makia (listen to the free sample on Audible!):https://www.audible.com/pd/Stealing-Fire-Audiobook/B08JV3YD4P

Not according to Michael Burry, the legendary investor featured in the book and movie, The Big Short, who is predicting a 2008-style crash. American Michael J. Burry is a physician, investor, and hedge fund manager. He was the founder of the hedge fund Scion Capital, which he ran from 2000 until 2008, before closing the firm to focus on his own personal investments. Burry made a fortune betting against CDOs before the 2008 financial crisis and his estimate net worth is $250 million. He currently manages over $100 million in his own fund. In an interview with Bloomberg, Burry said index fund inflows (investment money) are distorting prices for stocks and bonds in much the same way that CDO purchases did for subprime mortgages over a decade ago. The flows will reverse at some point, he said, and “it will be ugly” when they do. “Like most bubbles, the longer it goes on, the worse the crash will be,” said Burry, who oversees about $340 million at Scion Asset Management in Cupertino, California. One reason he likes small-cap value stocks: they tend to be under-represented in passive funds. Here’s what else Burry had to say about indexing, liquidity, Japan and more. Comments have been lightly edited and condensed. “Central banks and Basel III have more or less removed price discovery from the credit markets, meaning risk does not have an accurate pricing mechanism in interest rates anymore. And now passive investing has removed price discovery from the equity markets. The simple theses and the models that get people into sectors, factors, indexes, or ETFs and mutual funds mimicking those strategies -- these do not require the security-level analysis that is required for true price discovery. “This is very much like the bubble in synthetic asset-backed CDOs before the Great Financial Crisis in that price-setting in that market was not done by fundamental security-level analysis, but by massive capital flows based on Nobel-approved models of risk that proved to be untrue.” “The dirty secret of passive index funds -- whether open-end, closed-end, or ETF -- is the distribution of daily dollar value traded among the securities within the indexes they mimic. “In the Russell 2000 Index, for instance, the vast majority of stocks are lower volume, lower value-traded stocks. Today I counted 1,049 stocks that traded less than $5 million in value during the day. That is over half, and almost half of those -- 456 stocks -- traded less than $1 million during the day. Yet through indexation and passive investing, hundreds of billions are linked to stocks like this. The S&P 500 is no different -- the index contains the world’s largest stocks, but still, 266 stocks -- over half -- traded under $150 million today. That sounds like a lot, but trillions of dollars in assets globally are indexed to these stocks. The theater keeps getting more crowded, but the exit door is the same as it always was. All this gets worse as you get into even less liquid equity and bond markets globally.” “This structured asset play is the same story again and again -- so easy to sell, such a self-fulfilling prophecy as the technical machinery kicks in. All those money managers market lower fees for indexed, passive products, but they are not fools -- they make up for it in scale.” “Potentially making it worse will be the impossibility of unwinding the derivatives and naked buy/sell strategies used to help so many of these funds pseudo-match flows and prices each and every day. This fundamental concept is the same one that resulted in the market meltdowns in 2008. However, I just don’t know what the timeline will be. Like most bubbles, the longer it goes on, the worse the crash will be.” “Ironically, the Japanese central bank owning so much of the largest ETFs in Japan means that during a global panic that revokes existing dogma, the largest stocks in those indexes might be relatively protected versus the U.S., Europe and other parts of Asia that do not have any similar stabilizing force inside their ETFs and passively managed funds.” “It is not hard in Japan to find simple extreme undervaluation -- low earnings multiple, or low free cash flow multiple. In many cases, the company might have significant cash or stock holdings that make up a lot of the stock price.” “There is a lot of value in the small-cap space within technology and technology components. I’m a big believer in the continued growth of remote and virtual technologies. The global retracement in semiconductor, display, and related industries has hurt the shares of related smaller Japanese companies tremendously. I expect companies like Tazmo and Nippon Pillar Packing, another holding of mine, to rebound with a high beta to the sector as the inventory of tech components is finished off and growth resumes.” “The government would surely like to see these companies mobilize their zombie cash and other caches of trapped capital. About half of all Japanese companies under $1 billion in market cap trade at less than tangible book value, and the median enterprise value to sales ratio for these companies is less than 50%. There is tremendous opportunity here for re-rating if companies would take governance more seriously.” “Far too many companies are sitting on massive piles of cash and shareholdings. And these holdings are higher, relative to market cap, than any other market on Earth.” “I would rather not be active, and in fact, I am only getting active again in response to the widespread deep value that has arisen with the sell-off in Asian equities the last couple of years. My intention is always to improve the share rating by helping management see the benefits of improved capital allocation. I am not attempting to influence the operations of the business.” “I sold out of those investments a few years back. There is a lot of demand for those assets these days. I am 100% focused on stock-picking.” Source: Bloomberg. In short, pardon the pun, Burry is saying that index or tracking funds are not safe and the amount of money flowing into them is creating a massive bubble, which will ultimately burst causing a recession. But what about managed mutual funds and unit trusts? Surely, if the index funds crash, surely they will follow since they always tell their investors to “stay invested” or “ride out the storm” and people get burned. I am not your financial adviser, so take advice on your investments and pensions funds. Word of the Day Index and Tracker Funds An index or tracker fund is an index fund that tracks a broad market index or a segment thereof. Tracker funds are also known as index funds. These funds seek to replicate the holdings and performance of a designated index. Tracker funds are designed to offer investors exposure to an entire index at a low cost. Source: Investopedia. There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook. See more at www.moneytipsdaily.com: More Recession Warning Signs Should you be buying Gold? 3 Myths of Property Investment Creative Finance Tools for Owning or Controlling Property

Terzo episodio di tre riguardante una domanda sicuramente preoccupante per molti: siamo dinnanzi a una crisi economica/finanziaria (o una depressione)?Abbiamo parlato di cosa ne pensa Ray Dalio sul tema nella prima puntata e delle preoccupazioni di Michael Burry, ex-manager dell'hedge fund Scion Capital, che predisse la crisi finanziaria del 2007-2009 analizzando e scoprendo la bolla dei CDOs e dei mutui subprime. In questo episodio invece capiremo perché noi, da "investitori intelligenti", non dovremmo preoccuparci.Inizialmente vi racconterò alcune delle peggiori previsioni che vari economisti o aziende hanno proposto, ma che sono fallite miseramente nel tempo. Ciò è utile per capire cosa succede quando si prova a leggere il futuro quando non si hanno superpoteri e valutare l'impatto degli errori commessi basandosi su questi tentativi.Poi approfondiremo quale dovrebbe essere la strategia di investimento di un risparmiatore medio per evitare che le emozioni, l'inesperienza e la voglia di "scommettere sul futuro" possano intralciare i vostri investimenti. Sarà un viaggio interessante!SITO: https://mataandassociates.comFACEBOOK: https://www.facebook.com/mataandassociatesCONSULENZE: https://mataandassociates.com/consulenze

Secondo episodio di tre riguardante una domanda sicuramente preoccupante per molti: siamo dinnanzi a una crisi economica/finanziaria (o una depressione)?Abbiamo parlato di cosa ne pensa Ray Dalio sul tema nella precedente puntata. In questo episodio vedremo come la pensa Michael Burry, ex-manager dell'hedge fund Scion Capital, che predisse la crisi finanziaria del 2007-2009 analizzando e scoprendo la bolla dei CDOs e dei mutui subprime. Nel prossimo invece capiremo perché noi, da "investitori intelligenti", non dovremmo preoccuparci.Questo episodio metterà in relazione due idee in opposizione riguardo i fondi indicizzati e il volume recentemente in aumento delle transazioni riguardanti i fondi a gestione passiva. Negli ultimi mesi, le dichiarazioni di Michael Burry sono circolate molto velocemente ed è interessante analizzare come i vari operatori hanno preso e commentato la notizia. Tuttavia, come ad ogni puntata, un disclaimer: questo episodio non vuole essere premonitore né vuole sembrare un oracolo, piuttosto, ha l'intento di spiegare quanto sia difficile tracciare una rotta tra i tantissimi fattori che hanno effetto sull'economia e al contempo dare qualche spunto per riflettere su come funziona il complesso mondo dei prodotti finanziari.Per fare ciò in 20 minuti e in modo discorsivo ovviamente si ricorre a moltissime semplificazioni, che sono però necessarie per non rendere il tutto stucchevole.Sarà un viaggio interessante!SITO: https://mataandassociates.comFACEBOOK: https://www.facebook.com/mataandassociatesCONSULENZE: https://mataandassociates.com/consulenze

Are Index Tracking Funds a Safe Investment? Not according to Michael Burry, the legendary investor featured in the book and movie, The Big Short, who is predicting a 2008-style crash. American Michael J. Burry is a physician, investor, and hedge fund manager. He was the founder of the hedge fund Scion Capital, which he ran from 2000 until 2008, before closing the firm to focus on his own personal investments. Burry made a fortune betting against CDOs before the 2008 financial crisis and his estimate net worth is $250 million. He currently manages over $100 million in his own fund. In an interview with Bloomberg, Burry said index fund inflows (investment money) are distorting prices for stocks and bonds in much the same way that CDO purchases did for subprime mortgages over a decade ago. The flows will reverse at some point, he said, and “it will be ugly” when they do. “Like most bubbles, the longer it goes on, the worse the crash will be,” said Burry, who oversees about $340 million at Scion Asset Management in Cupertino, California. One reason he likes small-cap value stocks: they tend to be under-represented in passive funds. Here’s what else Burry had to say about indexing, liquidity, Japan and more. Comments have been lightly edited and condensed...See full article at www.moneytipsdaily.com Word of the Day Index and Tracker Funds An index or tracker fund is an index fund that tracks a broad market index or a segment thereof. Tracker funds are also known as index funds. These funds seek to replicate the holdings and performance of a designated index. Tracker funds are designed to offer investors exposure to an entire index at a low cost. Source: Investopedia. There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook. See more at www.moneytipsdaily.com: More Recession Warning Signs Should you be buying Gold? 3 Myths of Property Investment Creative Finance Tools for Owning or Controlling Property

Ian Dunlap is an investor with one of the highest win percentages in the country and founder of Red Panda Academy. Through Red Panda, Ian teaches his blueprint for success to students, who often have little to no experience with trading. Using completely custom formulas, Ian is able to teach in 30 days what took him years to grasp. In December 2018, Ian celebrated his third highest day in trading, earning US$56,000 in about 2 hours. Ian’s passion for investing is rooted in his upbringing. Growing up in East Chicago, Indiana, he didn’t come from an affluent area or a rich family. Perhaps what had the greatest impact on him most was when a relative was taken advantage of by a dishonest investor. Through that experience, Ian witnessed the fear and distrust that can accompany investing. “One of the biggest ones (mistakes I made) was not investing early enough in the market. I got started late at 24. And the stock market is the easiest thing to invest in.” – Ian Dunlap Worst investment ever A college friend called Ian into his dorm room one day in 2005 and showed him a social media website, asking if he had seen it and if he was on it. Twenty minutes later, he had signed up for an account and was hooked, spending maybe two to three hours a day on the site. He mainly using it for his party promoting and other business, and started using it to run advertising. He called a relative and said: “Listen, I don’t call and ask you for anything. When I tell you, this is the greatest thing I have come across in life, I’m willing to take the last of my money, if you will take some of your money (he had a lot of money), and invest in this company with me.” His relative answered: “What the hell are you talking about? You’re in college … What do you know about investing in a technology company?” This clearly was a different time for venture capital. His relative refused. He tried to get other friends and other family members involved also, but got the same answer. And Ian was young black college kid. At the time, one of his friends worked at MySpace, which at the time was the hottest thing that was being tipped to destroy Instagram. Referring to the website Ian wanted to invest in, his friend said: “I think this company is going to kill us … I know we have all the artists, all the kids are on here, but this thing that you’re on, is nothing like we’ve ever seen.” It turned out that the US$125,000 investment, of which he would have put $10,000 of his own money would have turned into $26.4 million. That company was what was known as TheFacebook.com. Now every time he sees his relative on the holidays, the relative says: “I probably should have given you the money you wanted. Ian says we all have made such “boneheaded decisions”, in which if we would have just invested a little bit of capital, it would have changed our lives forever. Some lessons Be more convincing. Ian laments not being persuasive enough to get the family member to put in some money so they could invest in Facebook (FB:US, FB.OQ), which is currently trading at - US$190.56/share. Facebook turned into one of the biggest tech companies in history, and he regrets not following up more and failing to make a better case for the investment. Stay true to your convictions. Whenever you have a position that is true to your heart and you know it is going to work, you may be the only person on the face of the earth that believes it, but you have to let your conviction carry you. “Most top investors did not start out in the industry. They took back roads, got into the industry and formulated their own strategy. And that’s how they became so effective.” – Ian Dunlap Andrew’s takeaways Investigate. When you see a business that you think is interesting, investigate it, ask questions, and find out if you could invest in it. At some point, an investor has to take action. But do not act without doing research. Do not act without assessing the risk. Size your position. This is a critical risk management concept because sizing your position matters so much. Investigate, do your preliminary research, and try to invest US$10,000 (if you have US$100,000 liquid) to get the step of taking the action going, but then size that position carefully. Actionable advice Put some money into the market every month. Start with a small amount. Then you will have the financial freedom that you want. Even in a down market, especially when we hit a recession in a couple years. Buy more.   “I always tell people just buy index funds, hold them … You don’t have to be the second coming of (Warren) Buffett to make money, just buy the S&P 500, the Dow or the equivalent in your country. I got started late. That’s why I’m so passionate about it.” –  Ian Dunlap #1 goal for next 12 months To have a more balanced life. The money is fun but first and foremost, take care of your health. “I’ve had 14 family members died in 17 years. At no funeral have I ever thought about business. Not once. I didn’t care about a chart, long-term, short-term. It doesn’t matter. Take care of your health. That’s the most important thing. The money will be there … especially if you’re investing automatically.” – Ian Dunlap Parting words “Listen to every past episode (of My Worst Investment Ever) so you don’t make the dumb mistakes and that the other guests made.”   You can also check out Andrew’s books  How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points   Connect with Ian Dunlap LinkedIn Twitter   Connect with Andrew Stotz astotz.com  LinkedIn  Facebook  Instagram  Twitter  YouTube  My Worst Investment Ever Podcast      Further media mentioned Michael Lewis (2010) The Big Short Inside the Doomsday Machine  Gregory Zuckerman (2009) The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History  Michael Burry (2006) A Primer on Scion Capital’s Subprime Mortgage Short Adam McKay, director (2015) The Big Short  

Michael Burry's Big Short Best Stock Analyzed - Corepoint Lodging Stock Analysis. CPLG stock. Famous from the big short, dr. Michael Burry had to disclose his portfolio recently given that Scion Capital is above $100 million in assets under management. Want to know more about what I do? https://goo.gl/MQG2k5 Full-time independent stock market analyst and researcher! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio) Stock Ideas and Analyses for The Small Investor: https://goo.gl/GdKEoe I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com/ Check out Modern Value Investing YouTube: https://www.youtube.com/c/InvestwithSvenCarlinPhD

We get right into the Boeing news and what it means for the balance sheet (1:00). Spotify is suing Apple over the 30% App Store subscription commission (5:00). IPO alert for ride sharing and their valuations (8:00). Quick hitters with Turtle Beach, Docusign, and Adobe (12:00). Who’s in hot water this week? (18:00). Investing Mount Rushmore, and an update from Michael Burry and Scion Capital (23:00). We cap things off as always with a FMK (26:00). --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/chit-chat-money/support

The Big Short - Three separate but parallel stories of the U.S mortgage housing crisis of 2005 are told. Michael Burry, an eccentric ex-physician turned one-eyed Scion Capital hedge fund manager, has traded traditional office attire for sho

The Big Short - Three separate but parallel stories of the U.S mortgage housing crisis of 2005 are told. Michael Burry, an eccentric ex-physician turned one-eyed Scion Capital hedge fund manager, has traded traditional office attire for sho

The best-selling book and movie The Big Short tells the inside story of how Dr. Michael Burry made a huge fortune for his hedge fund clients by betting against the real estate market… and how those clients ultimately didn’t appreciate him despite a HUGE profit.  And I may be the only person in America who thinks so, but I think the clients were right and Dr. Burry was wrong.  I’m Bryan Ellis.  I’ll tell you why right now in Episode 191.----Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!Have you ever read the book “The Big Short” by Michael Lewis?  If not, it’s a great read… and I really enjoyed the movie too, which is solidly over 2 hours long and felt like it was over in a flash.So I totally recommend the book and the movie… it’s a really fascinating explanation of what led up to the mortgage meltdown, and how it really was just a function of greed and carelessness.Part of the story involves Dr. Michael Burry.  He trained as a neurologist and got the degree and was a resident, but clearly his passion was in the financial world.  He had a website in the late 1990’s where he posted information about his stock picks and analysis leading to those picks.  His picks were so successful that he got the attention of some major financial players like Vanguard investments and the prominent investor Joel Greenblatt of Gotham Capital.To condense the story a bit, Burry quits medicine, starts a hedge fund called Scion Capital using some inherited capital, and continues to excel.  His first year brought a profit of 55%.  Soon, he had over $500 million under management and was turning money away.  But near the beginning, he attracted a large investment from Gotham Capital, who was Burry’s founding investor.Dr. Burry was clearly a brilliant man… clearly the reason Gotham was willing to give him millions of dollars for value-based stock investing.But Dr. Burry spread his focus a bit.  He recognized that there was a problem, and the problem was that the booming real estate market was built on a house of cards called EASY MONEY… that millions of people were being given loans they couldn’t afford for more than just a year or two during the low introductory teaser rates.  Dr. Burry recognized that there would be a huge wave of defaults soon after those teaser rates expired.Dr. Burry’s analysis turned out to be right… very, very right.  So in 2005 – while real estate was still raging hot – Dr. Burry convinced Goldman Sachs to sell him credit default swaps against loans that Burry saw as risky.  Goldman thought Burry was a sucker, sold him the swaps, and 2 years later, Burry had profited by more than $700 MILLION dollars, making his investors – including Gotham Capital – a huge, huge fortune.Curiously, Dr. Burry quit managing money after that experience.  He made a huge fortune, and doubtlessly could continue to do so as a money manager, because he absolutely has an eye for both risk and value… a rare thing, for sure.But here’s the thing… between the time Burry bought those swaps in 2005 and cashed them in for a huge profit in 2007, some bad things happened.  At first, the real estate market didn’t decline right away, and so those swaps lost value… very quickly.  Then to compound the problem, Goldman and the other brokerages who were responsible for pricing those swaps didn’t exactly do so in an honest way.  In fact, they aggressively took advantage of the situation by pegging the value of subprime mortgages as being far higher than any reasonable person would believe, thus causing the value of Burry’s swaps – which were really just a form of insurance – to sink in value, even though the opposite should have been happening.Burry held on, and in 2007 made a huge profit.  But in 2006… things didn’t look good.  For the first time, Burry’s fund was losing money… and a LOT of it… and worst yet, he was losing money on an investment – credit default swaps – that was outside of Dr. Burry’s core competency, which was value-based stock investing.This didn’t settle well with Burry’s investors.  It was a bad time… open revolt… and many of Burry’s investors… including his biggest client and original investor, Gotham Capital, rather forcefully demanded that Burry exit the trades and return their capital.It was a very bad time at Scion Capital… Burry had never experienced losses, and now he had investors who were losing confidence in him very aggressively, and demanding their money back.So Dr. Burry took an extreme step – he invoked a provision in his investor agreement that allowed him to delay the right of his investors to withdraw their capital… and that, of course, caused a huge problem as well, with lawsuits flying and tempers flaring and a generally awful situation.When it was all said and done, it turned out that Dr. Burry was right.  He made a huge fortune, and so did his investors.But Burry decided to get out of the business of capital management… largely, it appears, because he felt unappreciated.  The movie closes with Dr. Burry sending an unsolicited email to Gotham Capital that said, simply, “You’re welcome.”Ok, so here’s the thing:  The entire movie is set up to narrowly cast the blame for the mortgage meltdown on Wall Street – and there’s certainly lots of blame there, though it’s ABUNDANTLY CLEAR that the real blame belongs to good ole Uncle Sam.But the move also makes a point of glorifying Burry and the fact that he was right – and his big evil investors were wrong – and that they profited from his talent and never said thank you.My friends:  Burry’s investors were right, and Burry was wrong.  The fact that he was ultimately profitable isn’t relevant.I’ve told you over and over again on this show that as self-directed investors, we must use the S3 standard to judge all of our investment choices:  Simple, Safe and Strong.  Those words have some subjectivity, for sure – after all, we’re not all the same.But the real issue is that Dr. Burry did something VERY DIFFERENT with his client’s capital than his history suggested he should do.  Dr. Burry was a brilliant stock picker… brilliant is an understatement.  But he had no substantive experience trading credit default swaps.  He was not a real estate or mortgage investor.  And he wasn’t well connected with that world.  In short, he had only purely academic reasons to think that his hypothesis would prove out.It did prove out, of course, to his and his investor’s benefit.  But even though he was profitable, even though was right on that investment in an astounding, career-defining kind of way, he did something wrong:  He did not respect the capital of his investors.  It wasn’t that he didn’t comply with his legal commitments to them.  He certainly did.  But he quite substantially showed disrespect for their own judgement when he made a major shift in direction… and for an entire year, the objective evidence was the Dr. Burry was very, very wrong… and his fund was hemorrhaging tens of millions of dollars… dollars that belonged to his clients, not to him.Again, Dr. Burry was proven right in the end.  But that’s not the whole issue.  You see, if an investment causes you to worry… that’s a bad investment.  The financial results just don’t justify that.  It means that EITHER the investment is just a bad idea overall, or maybe that you’re using money in the deal you can’t afford to lose.  Either way… consistent, ongoing stress from an investment means it doesn’t FEEL strong to you… and whether we like it or not, those feelings are what brings stress.  And stress isn’t a good thing.  Take it from a guy who had a heart attack at the tender age of 39… and learned some really, really hard lessons about simplifying life and reducing stress as a result.To be clear, I admire Dr. Burry.  I wish I had his intellect.  But he didn’t respect his investor’s capital… and he provides a great case study for why it’s so critical that you work only with people who really, truly do respect your capital just as much as you do.My friends, invest wisely today, and live well forever. 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