Michael Burry's Big Long: Investing in Chinese Internet Companies
Who is Michael Burry?
Michael Burry is a money manager who gained fame for his successful bet against the U.S. housing market in 2008, which was chronicled in the book and movie The Big Short.
What is Burry's Big Long?
Burry's Big Long refers to his recent investment in Chinese internet companies.
Why is Burry Investing in Chinese Internet Companies?
- Growth potential: China's internet market is one of the largest and fastest-growing in the world.
- Low valuations: Chinese internet companies are currently trading at relatively low valuations compared to their U.S. counterparts.
- Government support: The Chinese government is supportive of the internet industry and has implemented policies to encourage its growth.
Which Chinese Internet Companies is Burry Investing In?
Burry's portfolio includes investments in several Chinese internet companies, including:
- Alibaba
- Baidu
- Tencent
- JD.com
- NetEase
What are the Risks of Investing in Chinese Internet Companies?
- Political risk: The Chinese government has a history of intervening in the internet industry, which could impact the profitability of internet companies.
- Competition: The Chinese internet market is highly competitive, with many companies vying for market share.
- Currency risk: The value of Chinese internet companies can be affected by fluctuations in the Chinese currency, the yuan.
Conclusion
Michael Burry's investment in Chinese internet companies is a significant development that suggests that he sees value in this sector. However, it is important to be aware of the risks associated with investing in this market before making any investment decisions.
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