Michael Burry, the famed US investor, first shot to prominence for his uncanny ability to predict the 2008 subprime lending crisis. His audacious move to short the US mortgage market at the time earned him both fortune and fame.
Fast forward to 2023, and Burry once again made headlines with his new ‘Big Short’ last month, this time aimed at the stock market. However, it is safe to say the move hasn’t panned out as expected so far, with Burry being roughly 50% down on this investment.
Nevertheless, even though these shorts make up the vast majority of Burry’s portfolio, the legendary investor still holds some stable stocks that could be enticing for long-term investors.
Picks for you
Expedia (NASDAQ: EXPE)
Expedia (NASDAQ: EXPE) is a well-known online travel company that stems its growth from three key segments, including retail, business-to-business (B2B), and Trivago.
Earlier this year, the company equipped its platform with a ChatGPT-powered travel planning feature, aimed at improving the user experience from planning to post-booking.
Scion Asset Management, a hedge fund managed and founded by Burry, currently holds nearly $11 million worth of EXPE shares, according to 13-F filings revealed in August.
When it comes to its stock market performance, EXPE has witnessed steady growth over the years.
From 2013, EXPE’s share price nearly doubled from around $52 to $100.8 at the time of writing on September 25, 2023.
Despite encountering occasional setbacks over the past decade, this stock has demonstrated consistent long-term growth, making it an attractive choice for investors who favor a “set-and-forget” strategy.
Stellantis (NYSE: STLA)
Another stock Burry owns that could be appealing to long-term investors is Stellantis, a car manufacturing company formed as a product of the merger between Fiat Chrysler and the French PSA Group.
Per the last available regulatory filings, Burry’s Scion held approximately $5.7 million worth of STLA stock, or 325,000 shares.
The company witnessed an even more impressive rally over the past 10 years, with its share price nearly quadrupling from $5.3 in September 2013 to $19.3 today.
It is important to note that STLA’s trajectory has been significantly more volatile over the years, as evident in the above chart.
However, the stock embarked on a steady upward trajectory in 2023, surging more than 30% since January 1. In addition, Stellantis has a price-to-earnings (PE) ratio of 2.93, indicating a notably low company valuation, which usually serves as a sign of a favorable investment opportunity.
For comparison, Tesla (NASDAQ: TSLA) has a PE ratio of 71.3, according to Yahoo Finance data.
Whatever long-term option investors opt for, having stocks with a history of steady and stable growth is crucial for them as it bolsters portfolio stability and acts as a hedge against unforeseen risks, thereby providing a safer foundation for their investments.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
