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Burry Discusses Investing in Farmland, Real Estate, Gold: Video

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Sept. 7 (Bloomberg) -- Michael Burry, the former head of Scion Capital LLC who predicted the housing market's plunge, talks with Bloomberg's Jon Erlichman about his investments in agricultural land, real estate and gold. (This is an excerpt. Source: Bloomberg)
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Text Comments (178)
Dennis Vu (1 month ago)
He was right about gold too
The Bowman's Vlog (1 month ago)
Love the content
Tria K (2 months ago)
The guy who gets his haircut at supercuts and doesn’t wear shoes? At least he’s a Metallica fan
firstname lastname (2 months ago)
Well the gold bet sure didn't work out, but land did.
shanenolan85 (3 months ago)
He sounds like the legendary Jim Rogers with investing in agriculture and gold 💯💯
Victor Muthoka (3 months ago)
Being an African in Africa, I see how food production's gravitating to the global south while at the same time water slowly starts getting scarce. He's literally let the cat out of the bag. Many decades down the line folks will look at this & facepalm. Once again.
Copee (3 months ago)
Everyone who thinks that this man his some kind of HERO are very much in the wrong, this man is basically saying he's buying up farms and the land that goes with it. Farms that have been worked by the same hands" family" for decades. I don't like tis man, trust me he could of gone to the media and shouted at the top of his voice about what was about to happen with the housing market, but no he decided f*%k all those family's who were about to become homeless, the only thing this man cared about was his own gain no matter that he knew in his heart that it would come at the expense of other human beings. Truth is he should never have been allowed to do what he did, he should of been sent to prison along with all them other criminals that worked in high finance, and don't even get me started on what I think of hedge fund managers.
Kuenzang Jamtsho (1 month ago)
Shouted at whom? To whom? It was too late..
Spanky Harland (4 months ago)
Christian Bale played him as a person having social difficulty in explaining things- however the real Michael Burry is nothing like the character in the movie.
Mommagong (4 months ago)
Agricultural land with water in site is dr Berry's investing pursuit
The interviewer should wipe thst smug smile off his face. It seems milk boy didn't experience enough real life.
rsr789 (4 months ago)
Stupid caption, he's buying land that has water. It's the water that matters.
Jim O (4 months ago)
Not just land. Land with its own water source. Spot on. Read data on the aquifer underneath kansas, texas, and oklahoma. It's limited. Then read up on the dust bowl of the '30's to see what happens when there's no grass, crops, or trees.
D Lenny1 (4 months ago)
2010 he buys land with water on site, he must be crushing it now. fair play to him.
ThePatsyMusic (4 months ago)
i live in australia. i work in property. theres an epic bubble here about to blow. heads up.
Rose Physigeobas (18 days ago)
ThePatsyMusic : The situation in OZ is phenomenal. I actually from Germany, but I never saw Property Price growing like in Australia. Friend of mine owns >15 Houses in Melbourne and he bought it for about 200K each (1995-2000). And now? I think you can imagine the value ....
Shinfomatic (3 months ago)
any updates on it?
coldburn909 (4 months ago)
Bet against it then.
LimLux (4 months ago)
He should've bought Bitcoin
Duncan Firth (5 days ago)
Bitcoin has started a revolution centred around blockchain. It won't stop at currency there will be all sorts of innovations.
padizo sorcerer (1 month ago)
+Lachy T I don't own any btc now, but anyone not blind can see how big it is.
Lachy T (1 month ago)
padizo sorcerer No, actually, I'm exactly right. But have fun thinking you're "playing the markets" with your bitcoin gambling.
padizo sorcerer (1 month ago)
Lachy T, you sir, are terribly wrong
Lachy T (3 months ago)
LimLux Why? He's not an idiot. Bitcoin is pure gambling, if Burry wanted to gamble he could go to a casino.
Dominic Merlo (5 months ago)
Mistake buying gold in 2010 & 2011.
Apil Gurung (5 months ago)
All hail Odin!
Verne Fits (5 months ago)
Burry is totallyon point
Evolution Lancer (5 months ago)
a guy with 1 eye saw so much more than others with 20 20 missed. how eye-ronic.
Harriso Meyer (6 months ago)
This interviewer is a moron
Wackokicker (6 months ago)
glad I've cut vacations and fancy cars to get a beautiful piece of land with 3 independent water sources, a lake and plenty of fish and fruit trees
Stewmeat82 (6 months ago)
This is why Farmers can’t afford the land anymore,,, we really needed to tax the hell out of out of state investors.
chazz Lucas (6 months ago)
this man is a numbers guy .... And the numbers didn't add up
Drew Steeves (6 months ago)
Alan Savoy holistic management for land offers a method to take degraded land a rebuild the land to being productive. Regenerative farming offers a similar objective.
CoelhoCoin Tech (7 months ago)
He should have bought bitcoin
Ajey (7 months ago)
So, he bet against Obama's recovery. Smart man. MAGA!
daboodeef179 (7 months ago)
according to native american prophecies, water will be worth more than any gold because there will be huge shortages and it will all be controlled by the government
LilMOMMAson (7 months ago)
Originally here in 2012, back in 2018.
stellvia hohenheim (5 months ago)
Shut the fuck up
m.m. tmn (7 months ago)
LilMOMMAson Back in 2018
intx123 (7 months ago)
buying mortgage stocks would of beat buying gold, if he bought gold then then he's maybe -30% right now. The mortgage stocks would be down about the same but would have returned a lot of money in dividends.
Assante Freeman (7 months ago)
The apocalypse is near
AndyB (7 months ago)
"I don't think the recovery will be that robust" - It's 2018 and we're already back up to 2007 bubble housing prices in many markets all over the U.S....Here we go again!
m.m. tmn (7 months ago)
AndyB how so? I was in Miami sitting in a subprime house from 05-09... I’m also worried with d. Trump deregulating the financial market
Michael Gorbaty (7 months ago)
Burry is not closed anymore. He re opened in 2016. He’s shorting China now.
Sucio (1 month ago)
+Michael Gorbaty how do you know what he is shorting...?
Michael Gorbaty (6 months ago)
Rob Fraser his fund hit the SEC Edgar filing three months ago. Scion Asia LP is his fund.
Brong Wrinkler (6 months ago)
Michael Gorbaty legit?
Jose Barrezueta (8 months ago)
Did Greenspan, or the Fed for that matter, ever contact him to find out how he figured out the housing bubble?
Dj Rice (5 months ago)
nope, in fact when he wrote an article on the fact that the government didn't learn anything from 2008. they audited him which cost him a million dollars in accountant and lawyer fees.
nicolashrv (8 months ago)
Do they actually need to study to become an interviewer? They think it is "smart" to ask a question pointing irony?......."so, you made billions betting against house value, and now you are investing in house value?". First, not only the logical thing to do is invest in something when it reached its lowest point, obviously will go up again.......but also, point an irony doesn't make you smart.....in fact, this case proven you have to be very stupid to ask that question, specially in the market business where you have fluctuations.
Lachy T (3 months ago)
He's not betting on the housing market, he's investing in physical, farmable property with active water catchments. Very big difference.
grassinigrassini (6 months ago)
yeah amazing bloomberg put that guy to interview lol
jahnrobe (9 months ago)
The one eyed king in the land of the blind.
Dr Sandeep Parwaga (2 months ago)
jahnrobe Brilliantly put.
Lachy T (3 months ago)
But never let them know you can see...
dosduros (9 months ago)
"I dont want to disclose that" - Smartest answer you will ever hear.
Scott Wall (9 months ago)
"gold is an interesting investment based off how I see the world turning out" he went from wallstreet at 50k Birdseye view to investing based off how he sees the complete world market and collapse. This guys on another level altogether
Dom Dukes (9 months ago)
Of course you have to by physical gold. If anyone learns anything from “the big short”, it should be that you can’t trust Wall Street or banks....
Mike Tayon (9 months ago)
"farm land with water on site" ~ WATER RIGHTS, and LAND! Smart thinking for future!
bassbird (9 months ago)
he seems way less autistic then christian bale plays him in the Big Short
JinJan24 (8 months ago)
bassbird the financial crisis of '07 now lays back 10 years. It is said, that he quit his position as a hedgefond Investment manager, which might has led him to change or improve on his social behavior. Though he made a big amount of money, which might also give him some rest, not juggling with third party capital anymore.
Killah Priest (1 year ago)
smart... farmland is best investment
Nick Longbucco (7 months ago)
Killah Priest The US tax payers subsidize a lot of the risk mitigation in farming helping to inflate and stabilize farm prices.
Joe Cool (1 year ago)
I went long on Beanie Babies. I'm totally fucked.
Wes_hopwizard (8 months ago)
Joe Cool I thought that commemorative plates were solid!
Chilly Bandino (9 months ago)
Better than buying tulips.
Colin Walsh (9 months ago)
just buy bitcoin bro
MAD DOG 2020 (1 year ago)
Joe Cool hahahaha 😂
Evan M (1 year ago)
I hope he sold that gold in 2011 when it was almost 1,900 an oz.
Pieter-Jan (1 year ago)
Doesn't the government own all land? If the situation got bad enough, they could just take it from him by force if necessary.
m.m. tmn (7 months ago)
He isn’t betting on a economic crash, he is thinking about production and investment returns.
John Doe (1 year ago)
Yup he doesn't realize in collapse his investments would be useless in todays world lets just say land is a temporary solution specially land in california! He needs to liquidate it all and go into something else.
svennie pennie (1 year ago)
This dude's fake eye looks realer than Bale's acted fake eye in the Big Short.
TheWackokid1974 (1 year ago)
Other then farm land with water on site, He gave NO definitive answers. He's good in this, two ways. 1) No responsibility if people think this is advice, and lose their shirts. 2) He's just simply playing his hand of cards close to the vest. "It's my plan. Get your own."
Gee G (1 year ago)
Water crisis. 3/4 of the earth is water.
TheMemeConsultant (8 months ago)
ItsDank You already can with some fire and condensation. Technology will probably be there to do so much easier soon enough if it isn't already here.
ItsDank (11 months ago)
Gee G try drinking it
Mike Stevens (1 year ago)
I just invested $1.25 on 20oz of dasani water from the 7 11 brokerage down the street. I love it because it's a super liquid investment. ;)
KangBang81 (3 months ago)
You realize that the return to Dasani (a subsidiary of Coca-Cola), just made a KILLING off of your purchase, as did the 7-11. A 20 oz plastic bottle, made in The U.S., is roughly 2 cents to manufacture, and the filtered water inside is about 1/2 a cent. So, do the math; 3 1/2 cents to produce, sold to the distributor for, say, 60 cents per bottle, and they then sell it at $1.25. Coca-Cola (whose biggest shareholder is Berkshire Hathaway headed up by Warren Buffett), made 56.5 cents (estimating cost/profit here), and the gas station made 65 cents. Total gross profit, $1.21.5 (approximately) off of ONE single bottle of water. Now multiply that times X number of customers, Y number of bottle(s) per customer, Z number of customers a day, AND 365 days a year. Yeahhh.... $$$$$$
trangenusa (4 months ago)
Dasani confessed, it's just tap water that's been RO'd Reverse-Osmosis BTW I use to work for the Health Dept. I'll give you this tip! The two DIRTIEST bottled water are Crystal Geyser and Arrowhead!. The cleanest by far is Sparkletts! BTW this test was performed on about 50 bottled water companies and it was published on yahoo a few years ago!
one_life Project (4 months ago)
Worst investment u made.
Darren Fred (4 months ago)
Yeah, but the benefits are short lasting and the return stinks like piss
Higgs000Boson (7 months ago)
Exactly, it also looks like dasani is traded over the counter...
archados (1 year ago)
I wonder if he is a metalhead like he was portrayed in the biographical film.
maltatravel (5 months ago)
MAD DOG 2020 (1 year ago)
archados, the book that the movie was based on stated that Mike Burry would crank heavy metal music at his office, which is amazing and hilarious. I don't imagine that's SOP at Goldman Sachs, lol 😂
OwnMyCreations (1 year ago)
Hmm not sure about the water aspect, there are water treatment plants and we could always just drink and use ocean water although it would take a large amount of energy to transfer it to be drinkable. Possible genius investment could be, trust Burry over the person interviewing him any day.
Cheryl Jeffali (1 year ago)
lol, holy crap! Start prepping everyone! I'm with you Mr. Burry. I made Morgan Stanley sell everything after 2008 and bought a piece of land with well water.
Melody Yan (1 year ago)
he's not awkward as christian bale portrayed him?
N V (8 months ago)
yeah, i noticed too!
Servo333 (1 year ago)
The interviewer is a fucking clown.
LuciousB (1 year ago)
Am I the only one who's pissed at the fact that the guys who predicted the unpredictable has 53 comments on his video? 123,000 views? We live in such a fucked up society :(
Lingke Jiang (6 months ago)
I think many people saw the crash coming...
Michael Gorbaty (7 months ago)
Those who pay attention are rewarded 💡
Colin Walsh (9 months ago)
The class most active on Youtube is not only young, but particularly vapid and unintelligent. This the last place that intelligent people turn to for socioeconomic information.
AFARDB2012 (1 year ago)
I can't remember the last time I watched this, over a year ago I think? His land with water comment has stuck with me this entire time. This morning I open SnapChat and look at The Economist newsfeed and Every. Single. Article. is about a growing water crisis, even that a war might be fought over water in the future. WTF is going on lol. This guy is incredible.
Johnny boi Supreme (4 months ago)
I actually wrote a short essay a few days ago about why I didn't think "water wars" were going to be a thing. My reasoning comes down to two things. Economies of scale and the law of supply and demand. Around 2.5 pct of Earth's water is fresh and we have yet to exhaust that. Assuming that was going to happen within the foreseeable future a freshwater shortage would result in higher prices. The reason water desalination is not economically viable in most places is due to naturally occurring fresh water being in adequate supply. It's too expensive. Higher water prices would likely change that. Economies of scale come into play with the nature of innovation in desalination. As with many things when some entrepreneur thinks he can do something cheaper than his competitors he invests in R&D in order to refine the idea. R&D costs are what you call fixed costs and when a company has large fixed costs they can be said to have a fixed cost structure or high operating leverage, etc. This means they stand to benefit from increasing the size or "scale" of their operations. Within a relevant range of operation fixed costs don't change the more you produce. In fact fixed costs decrease if you think about it on a per unit basis. That's economies of scale. My ultimate point being water shortages are not an unsolvable problem. There's more water on Earth than we'd conceivably use in the foreseeable future unless human industrial demand for water grew exponentially. Further, the costs (and thus price) of desalination will decrease given time while the price of extracting naturally occurring freshwater will increase. Desalination will likely become a common source of freshwater.
Peter Volanský (11 months ago)
So what would you suggest to do ?
BQSurfer (1 year ago)
I would really like to know if he is buying physical gold or stocks in gold mines etc..... Too bad that part was cut out.
Lachy T (3 months ago)
vtrmcs History would suggest that almost regardless of the societal situation gold is valuable. It is the archetypal symbol of value in almost all human society throughout the ages.
vtrmcs (11 months ago)
Even buying physical gold assumes that in the midst of a total financial collapse, people are willing to trade and negotiate rather than [try to] take. In itself, that is a bet.
Jeremy Meehan (1 year ago)
He's probably referring to either the physical or spot price of gold, rather than mining stocks.
Emil Danielsen (1 year ago)
But why doesn't he ask WHY he is investing in gold and land with water on it?
Emil Danielsen (1 year ago)
Yeah, this seems sound. You just find what is the most basic, and underpins everything else. In times of scarcity, this resource will take many small hits from everywhere, but the avarage will follow this trend. It's its own risk mitigation mechanism. Interesting. What resources would this include? Wheat, rice, water and electricity seems the most obvious. Then... Musk is doing well to invest in solar roofing, Burry does well to invest in water, and Monstanto is just grabbing the world by the balls and squeezing as hard as it can.
Aaron Smith (1 year ago)
there is a read somewhere floating around the internet where he had an interview with time magazine where he talks about Clean, drinkable water obviously having value especially to people who don't have access to it. But his interest is more in the food that it can produce. Because areas that are low on food are also low on water. And how many ounces of water is required to make one ounce of wine?
xlFoXxMulderlx (1 year ago)
invest into salt water, seawater purifiers
Pfsif (2 years ago)
The interviewer has the fucking smirk on his mug that need a good smack to straighten it out.
Michael Perez (2 years ago)
He's from the future
swedge, PhD (1 year ago)
He's living in 3017
kutsikuzik (2 years ago)
"How I see the world playing out". The world is a chessboard. I bet on the most probable moves to be made.
writerconsidered (1 year ago)
game theory
kutsikuzik (2 years ago)
+BloodofPatriots They are called regularities and coherences.
RussellFSho (2 years ago)
It absolutely does. They're just far more complicated.
Julio Lisboa (2 years ago)
depends on the perspective really...
BloodofPatriots (2 years ago)
Except that the world doesn't have defined, static rules like chess.
Person 23 (2 years ago)
Does anyone know where I can find the full interview? I watched the 25min video called "Profile: Michael Burry", which doesn't show the clip this video has. Is there a full video anywhere?
Jason Waite (2 years ago)
Bloomberg, why did you disable the likes and dislikes?
ThomasFromTN (1 year ago)
Jason Waite Oliver B's insipid remark might clue you in on how worthwhile the input from moronic Youtubers can be, and why someone might even disable comments.
Oliver B (1 year ago)
jew institution
Ruben Velazquez (2 years ago)
Water water water. We are running out. Investing in anything to do technologically and physically with some land is a great idea.
Mommagong (4 months ago)
John Doe not processing water spring site on land
Mommagong (4 months ago)
In the credits you see that his only stock is in h2O
John Doe (1 year ago)
You embarrass yourself thats about the only person embarrassed here.Processing water is NOT a solution Israel has the largest distillation system in the world and has been successfully running the country on 30% recycled water it proves to COSTLY and more importantly economically DEVASTATING.The salt has to go somewhere! and dumping millions of tons of salt on land like the middle east has done has been devastating.It is said to be a luxury solution not a solution or china would have done it.
magitician (1 year ago)
+Reduxwood go to your nearest beach and take a big ol' gulp of the water. Don't bother telling me what happens because I know
VideoSensei (2 years ago)
Water more important than gold. Save your soul
Tamara Grace (2 years ago)
why Michael, why land with water, why gold? why? like you said don't we have a right to know? now that you're a commodity and public figure why not give a background thesis on why we should be investing in these things? I'm just curious and would like to know ;)
Jd Clifford (2 years ago)
+Hifza ahmed You've just proven my point...thank you. You accused someone of being racist when they clearly were not. I called you out for being ridiculous. When you cannot criticize somebody of anything as a HUMAN BEING without being accused of being prejudiced, something is clearly wrong. Nobody criticize Hifza. If you do you hate Muslims...it's a fact! LOL Additionally, how were I to know you are Muslim? Not all people who look like you are Muslim. Stop being so narrow-minded.
Jd Clifford (2 years ago)
Hifza, don't be ridiculous.
Tamara Grace (2 years ago)
+MushiMushi really? Ok you caught me :/
Mike Nelson (2 years ago)
Here we are, 5+ years later. Was he right? Sure, arable land is a premium, but has it changed with the severe drought patterns? I wonder if his calculations included that bit of information, or if he's invested in a bunch of deserts? Banks will always have money, and money will always have the attention of most politicians, so one new president won't be able to change things - an entire congress would have to go. For these reasons, the banks will always be profitable.
Urameshi Yusuke (2 years ago)
that population growth is an exponential function. That half of the arable land in the world is already used as farmland and that our population by the end of 2050 will have doubled. Arable land next to sustainable water sources are a gold mine. It's the reason water is a private enterprise atm.
NoRecourse1785 (2 years ago)
+parisjwalk You are correct. We haven't even legislated the problems that led to the housing bubble in the first place either; the repeal of Glass-Stegall. I would bet that a huge reason Burry is betting on farmland, also involves water rights. We are not far away from a major water crises. The only thing I see that can subvert that is figuring out a way to desalinize water cheaply. I think it should be pretty clear why he is betting on gold. Warren Buffet bought $1 billion in silver not too long ago. We could very well be sitting on a huge fiat bubble. That would be catastrophic.
parisjwalk (2 years ago)
+Lance Baker No gold is perfect. Once the next bubble bursts on most likely "student loans" gold prices will go back up and gold will be worth several times what he bought it for. The housing market will also fall again because millennials can't get jobs or at least jobs that paid what their parents used to make to buy houses. Regardless people are still being given homes and cars with very little money or assets to back it up. Also how will they take care of their parents houses when the parents are too sick to work and kids are too poor to keep up mortgage payments? It's all going to happen again very soon and even worse because we're still making the same mistakes. That's why land and agricultural skills will be valuable. Pretty soon the American dream will be reduced to just putting food on the table.
Robert Brandywine (2 years ago)
+Mike Nelson What's the big deal with arable land? We have such crop growing capabilities that most people with land are being paid by the government to NOT plant crops.
MMA Undisputed (2 years ago)
+Lance Baker You dumb fam?
iwbtssothy (2 years ago)
is this Jared Leto's older brother?
Betty Black (2 years ago)
Steve Wiebe really done well since that whole Donkey Kong thing.
pornoonsteroids (8 months ago)
Betty Black totally looks like him!
Eric Mann (3 years ago)
Of course he wouldnt part with any details. To all these individuals crying Armaggedon...what is seen in the market will forever be arbitrary as its nature was that of complete fabrication from inception. What were seeing at most will only be a pendulum swing with a well thought out but impossible to decipher story behind it...barring the possibility of literal destruction of the earth or large land masses of course.
kutsikuzik (2 years ago)
+parisjwalk You speak my mind.
parisjwalk (2 years ago)
+Eric Mann No not the destruction of the earth just yet, Just the downfall of the American Empire and a complete change in our way of thinking. I think it's important to realize the demands of the new world order and how you can have all of the qualifications to be as useful as possible to avoid being on the bottom of the hierarchy, which is not really anything new, just life. We have to decided how we want our new world to be and that may involve many wars and many innovations just as it always has but we have to embrace change in order to be successful.
Rampage Clover (3 years ago)
He is a genius...
tcorourke2007 (1 year ago)
No, he's a doomer. Farmland and gold has not been the investment to hold since 2010.
ImSpartacus (1 year ago)
He's just human. He was spectacularly wrong about the market's recovery (3:00). The stock market has basically doubled since 2010 when this video was uploaded. Also, Gold has massively underperformed compared to the market at large in the half decade since this video was uploaded (3:20). It's grown like 30%, well under what the actual market did. Overall, this guy is human. He makes mistakes. He isn't some messiah.
quanta407 (1 year ago)
sure is
I Ud (3 years ago)
Isn't there a drought in California?
Meghna Natraj (4 months ago)
Cali's agricultural (which needs tons of water) throughput is high. funny right? checkout water wars a documentary
Jeremy Meehan (1 year ago)
You still need rain though.
youngmillionaire42 (5 years ago)
Look at it now ahah.
Josh Hiken (8 years ago)
The most successful and brilliant market strategist on the planet. If he believes gold and land are the best plays than it's time to colonize mars because we're all in big trouble.
MrIkesimba (5 months ago)
Ammunition and dehydrated food
Peter Volanský (11 months ago)
What do you think then is the best kind of investment in these days ? Or where do you invest ?
Jason Logelin (11 months ago)
Wow you were wrong on gold. It was a good buy in 2006 and for sure in 2010 when you posted. And land is so critical being that it is in such short supply now and days, and he isn't buying just any land. It is a long term investment and you dont have a pockets deep enough to make it work for you like Michael.
Dave (1 year ago)
Josh Hiken bloviation.
ednan9 (8 years ago)
he may lose money on gold
BringBack500s (8 years ago)
Burry made 100m USD and walked. His 'investors' lost their balls and cost him a LOT more though, and considering the realities of running a fund during those times, handling the risks and waiting for the trade to come good, he walked away and rightly said 'FU I'm outa here!'. He's going into 'real' property, long term land ownership, which is wise and not really a big deal, its the sensible thing to do. @10k per hectare (guess here) for good land, thats 1sq kilometer per mil. Sensible.
Joe Botticelli (8 years ago)
Does anyone know where to get the entire interview?
skazhiprivet (8 years ago)
The worst is, of course, yet to come.
cosmosgato (8 years ago)
Scary! This guy sounds like he's preparing for Armageddon!

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