the legendary investor who predicted the 2008 financial crisis in the united states has already invested half of his wealth in chinese technology stocks.
2024-09-29
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in recent days, wall street across the ocean has also felt the power of the "chinese stock market boom." goldman sachs strategist scott rubner lamented on september 26: “i have held more chinese investment-themed video conferences in the past 48 hours than in the whole previous year.” rubner said that investors are increasingly they are increasingly afraid of missing out on this wave of chinese stock market prices, and they are more inclined to believe that the current round of rising prices "may not subside."at the same time, legendary american investor mike berry was also found to have heavily invested in chinese technology stocks.
▲legendary american investor mike berry
half of the net worth is bet on chinese technology stocks
the “big short” prototype draws attention again
berry, who graduated from stanford medical school, eventually embarked on the path of a professional investor because of his hobby of financial investment, and became famous for predicting the "2008 financial crisis" in advance. the best-selling book "the greatest deal of all time" and the five-oscar-winning movie "the big short" were both based on his legendary experience, making his story a household name.
▲stills of berry (played by christian bale) in the movie "the big short"
combing through the filing documents released by the u.s. securities and exchange commission, it can be seen that berry's scion capital management began to buy chinese technology stocks aggressively in the fourth quarter of 2022. it is estimated that berry made a profit of as much as 37 on alibaba stock. %.
berry's scion capital management has about $200 million in assets under management, nearly half of which is invested in chinese technology giants, according to its latest filings for the second quarter of this year, which ended june 30.
alibaba is berry's largest holding, accounting for 21% of his portfolio at the beginning of the second quarter of this year, and he continued to buy the stock during the second quarter, increasing his position to 24%. in addition, berry also invested 12% of the position in baidu and another 12% in jd.com. in other words, berry invested 48% of his position in these three chinese stocks.
hedgefollow, a hedge fund tracking website, said that "the recent rise in chinese stocks means that berry's portfolio has also made considerable gains, with alibaba posting the biggest gains." based on available public information, berry's average cost per share of alibaba's shares is $78.83, while alibaba's latest closing price reached $107.33, an increase of approximately 37%. if his holdings in chinese concept stocks are taken into account in the entire investment portfolio, the total return will be even more impressive.
"one-eyed man" does not take the ordinary path
make money if the stock index falls
berry was born in san jose, california, in 1971. as a mixed-race child, he has rusin (a minority in ukraine) ancestry. when he was 2 years old, his left eye was completely removed due to retinal detachment, and he became a "one-eyed man" wearing a prosthetic eye.
berry had difficulty concentrating since he was a child and was called a freak by his classmates in school. later, when his youngest son was diagnosed with asperger's syndrome, berry realized that he himself might have had asperger's as a child.
▲movie 'the big short' portrays berry's inattention problem
berry recalled that when he was young, his mind was extremely excited and quick, and it was difficult to concentrate quietly. just maintaining eye contact with others during a conversation consumed a lot of his energy. "if you see me looking politely into your eyes, it means i don't have the energy to analyze your speech carefully."
berry received his m.d. from vanderbilt university and continued his studies at stanford medical school, where he became a resident physician. but at the same time, he also loves investing and actively speaks at silicon valley investment forums, which has attracted warm invitations from many financial institutions. later, although he switched careers and became a professional investor, berry still retains his california medical license and renews his license every year in accordance with continuing education requirements.
berry established his first fund in 2000 with loans and family inheritance, and its performance was very eye-catching. according to biographer lewis' records: "in his first full year, 2001, the s&p 500 fell 11.88%, and berry's fund rose 55%. the next year, the s&p 500 fell another 22.1%. %, berry's fund rose another 16%. in 2003, the stock market finally turned around and the s&p 500 rose 28.69%, but berry's fund beat it again, returning 50%."
accurately predicting the u.s. subprime mortgage crisis
good at identifying macroeconomic issues
what made berry famous around the world was his extremely accurate predictions of the u.s. subprime mortgage crisis and the ensuing global financial tsunami.
after 2000, the u.s. housing market entered a feverish period, and a large number of poor people with poor credit qualifications also obtained loans to buy houses. these loans were collectively referred to as "subprime loans." berry found that although the interest rates on many "subprime loans" were very favorable in the first few years, the interest rates would jump to a high level in a few years. he calculated that these subprime loans would usher in a concentrated outbreak of defaults around 2007. tide. to this end, berry insisted on going his own way and exchanged the funds in his hands for credit default swaps (cds) in order to profit from the wave of defaults.
facts have proved that berry's judgment was very accurate. this operation earned him personally us$100 million and earned a total of more than us$700 million for his clients. however, while waiting for the crisis to break out, his clients continued to demand withdrawal of capital and made personal threats because they did not understand. berry liquidated his fund in april 2008, thus missing the "carnival" after the official outbreak of the financial crisis in 2008. .
since then, berry has focused on personal investments, and his net worth is estimated to be around $300 million. although this level of wealth is not considered a "big man", the american economic community attaches great importance to berry's thinking because he is very good at discovering macroeconomic problems with the perspective of an "outsider".
in recent years, berry has repeatedly called on american investors to be careful about the bursting of the bubble in the u.s. stock market. since 2013, he has invested personal funds into clean agriculture. he is particularly concerned about water resources. berry once said: "don't take clean water for granted. water distribution is a political issue, and water resources will be scarce one day in the future."
red star news reporter zheng zhi
editor pan li editor-in-chief deng zhaoguang
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