By Justin Spittler, editor, Casey Daily Dispatch

His clients thought he was nuts. Some even demanded their money back.

And why wouldn’t they?

The man managing their money was betting against a market that had more than doubled over the previous 10 years.

It was a true mania. Many people thought it would never end.

But one rogue hedge fund manager saw things differently. He knew the market was a pile of feathers about to get blown over by a hurricane. 

So, he bet that it would crash.

And he didn’t just bet a little. He bet his career on it.

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• It was an “all or nothing” trade…

And it paid off.

He made that bet in 2005—right before the housing market started to topple. 

Shortly after, housing prices across the country plummeted. Millions of people lost their homes to foreclosure. Mortgage lenders failed left and right.

Panic even engulfed the stock market. The average U.S. stock fell 57% over the next two years. Many “safe” blue-chip stocks plunged even more. Countless Americans saw their nest eggs go up in smoke.

But this man made $700 million for his investors, and $100 million for himself.

He became a Wall Street legend practically overnight.

• I’m talking about Dr. Michael Burry…

Burry is the founder of Scion Capital, a successful hedge fund he ran from 2000 until he closed it in 2008. He now runs Scion Asset Management.

If Burry’s name rings a bell, it’s because he was a main character in Michael Lewis’ book, The Big Short. Christian Bale played Burry in the film adaptation of the book.

Burry has now been quietly betting on another massive crisis. Only this time, he’s not betting against the U.S. housing market. I’ll have more to say about this crisis—and how you can flip it into big profits—next week.

But you need to first hear the remarkable story of how Burry climbed to the top of Wall Street.

• Burry was a nobody in 1996…

He had zero financial training. He’d never worked on Wall Street. And he was $145,000 in debt.

To top it off, he was working 16 hours a day as a medical intern. But his real passion wasn’t medicine. It was stocks.

So, he studied the markets from midnight to three in the morning every day.

He then shared his best ideas on his blog, in internet chat rooms, and on message boards like Silicon Investor and MSN Money.

It didn’t take long for Burry to get noticed.

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• I don’t just mean “mom and pop” investors, either…

Some of the world’s smartest investors followed his advice, too.

We’re talking big banks and hedge funds.

It worked out so well that Burry quit medicine in 2000 to focus on stocks. He told his readers that he was going to launch a hedge fund.

• That’s when legendary investor Joel Greenblatt called him up…

Greenblatt runs the wildly successful hedge fund Gotham Capital.

He had been reading (and profiting off) Burry’s blog. When he heard this medical intern was hanging up his scrubs, he offered Burry $1 million for a 25% stake in his hedge fund. 

He wasn’t the only Wall Street insider who came knocking, either.

Reinsurance firm White Mountains Insurance offered Burry $600k for a piece of the fund, plus another $10 million to invest.

Burry wasted no time turning that initial investment into a lot more money. And he did this by being a contrarian. 

• You see, internet stocks were all the rage when Burry launched his fund…

Everyone was getting rich.

But Burry knew the party couldn’t go on forever.

High-flying internet stocks were too expensive. They were doomed to crash.

So, he avoided them like the plague. Instead, he bought cheap stocks other investors didn’t care about.

This bold strategy paid off.

• Burry’s hedge fund returned 55% in 2001…

That’s a monster return for any year. But stocks weren’t soaring in 2001—they were crashing. The S&P 500 actually fell 12% that year.  

The next year, Burry crushed the market again. His fund returned 22% while the S&P 500 fell 16%.

The same thing happened in 2003. This time, his fund returned 50%—nearly double the S&P 500’s 29% return that year.

In other words, a guy with no formal finance training beat the market by 126% from 2001–2003.

• You might be wondering how this is possible…

The answer is simple. Burry sees the world differently from other people.

He focuses on facts. He doesn’t get caught up in hysteria or hype.

It’s how he saw the last housing crisis coming from a mile away. And it’s how he made a fortune during the dot-com crash when most investors lost everything.

• I’m telling you this because Burry’s almost exclusively focusing on one commodity these days…

It’s not copper, oil, or even gold.

It’s far more important than any of those commodities. And yet, most people have never thought about investing in it.

Next week, I’ll show you how Burry plans to profit from this overlooked commodity. And I’ll explain how you can do the same.

Stay tuned…


Justin Spittler
San Francisco, California
August 25, 2017

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