Both in 2023 and 2024, Michael Burry, famously known for ‘The Big Short,’ sparked debate with his Chinese stock bets – his growing long positions in Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and Baidu (NASDAQ: BIDU) – was hotly debated thanks to its sheer size and the dubious performance of the People’s Republic’s economy.
Through the discussions, a far smaller yet far more successful investment went largely overlooked: Burry’s stake in the luxury online retailer RealReal Inc (NASDAQ: REAL).
REAL shares have been exceptional performers throughout 2024 and 2023 – the year the legendary investor first purchased them.
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Here’s how much Michael Burry is up on his RealReal stock bet
Specifically, Michael Burry reported buying 684,442 RealReal shares during the first quarter (Q1) of 2023 and estimated their worth on the final day of the trimester at $862,000.
While it is difficult to determine the exact timing and average price of the trade, REAL stock was changing hands in the rough range between $1.10 and $2.10 from the start of January to the end of March of the year.
Assuming ‘The Big Short’ investor bought the equity near the lower end of the range, he could have spent as little as $753,000, and if the price was nearer to the higher bound, he might have spent as much as $1.4 million.
In the 21-24 months since his initial investment, Burry has made multiple RealReal trades, both buying and selling the stock until he landed at his last stake in the firm: 500,000 shares.
Whatever the specifics of each transaction may be, it is undeniable the head of Scion Asset Management is substantially in the green on his luxury retailer bet.
Had he held on to his original stake, it would, at press time, be worth nearly $7.5 million, meaning his profit would amount to somewhere between $6 million and $6.7 million.
Why Michael Burry likely didn’t make $6 million trading REAL shares
While Burry’s investment has undoubtedly been profitable, some of his trades likely reduced his total returns. Many of his later purchases were made before RealReal’s stock surged past $4. However, all known sales were executed in the price range between $1.28 and $4.55.
Finally, even if Burry’s entire stake – likely amounting to 500,000 shares as in the Q3 filing – was purchased at the highest possible price of $3.91, he still would have spent PRICE for holdings worth VALUE at press time on January 2, 2024.
RealReal shares skyrocket in 2024
The investment appreciation Michael Burry enjoyed – even if on a relatively small investment – is the result of RealReal stock’s exceptional performance in 2024.
The year saw REAL shares break out from sideways trading they were experiencing through 2023 and, in total, skyrocket 478.99%.
The uptrend was particularly strong in more recent trading as RealReal is up 218.12% in the last 6 months and 86.02% in the last 30 days.
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