Great article. It's ironic though: Burry was ahead of the market. "Looking backwards (in this case buying when the CEO went on the cover of Time for fraud, and the stock dropped from $12) would have worked better. It's usually best to buy when pessimism is at its max. Though, then again, picking the bottom in the short term is usually a fool's errand, but in this case, it would have been a good idea
Thanks for reading and commenting Peter. In this instance yes the stock dropped further after the additional negative publicity but as you state trying to pick the bottom is a fool's errand. As Howard Marks wrote - "It's absolutely impossible to know when the bottom has been reached."
I wish I had written this post.
Great article. It's ironic though: Burry was ahead of the market. "Looking backwards (in this case buying when the CEO went on the cover of Time for fraud, and the stock dropped from $12) would have worked better. It's usually best to buy when pessimism is at its max. Though, then again, picking the bottom in the short term is usually a fool's errand, but in this case, it would have been a good idea
Thanks for reading and commenting Peter. In this instance yes the stock dropped further after the additional negative publicity but as you state trying to pick the bottom is a fool's errand. As Howard Marks wrote - "It's absolutely impossible to know when the bottom has been reached."