Michael Burry: The next huge crash is coming soon | This is his stock portfolio
Michael Burry hasn't been shy about saying that the stock market is extremely overvalued and on the brink of collapse. This is the same investor who became a legend by accurately predicting and betting on a different crash: the crash of the U.S. housing market in 2008 and 2009. In this video, we are going to look at the stocks Michael Burry owns in the portfolio he manages at Scion Asset Management.
Let's jump right into the video. The coolest thing about following Michael Burry's portfolio is that there are stocks in it that most people have never even heard of. These stocks are truly hidden gems. Unlike most well-known investors, Burry is happy to invest in stocks with market caps less than one billion dollars.
Make sure to stick around to the end of the video because you will see which SPAC Burry owned shares in. Let's start with position number one: the largest position in Burry's portfolio is Discovery Communications Class C stock, ticker symbol D-I-S-C-K. Burry owns 855,000 shares of the company worth around 25 million dollars. This position makes up around 18% of his portfolio.
Discovery Communications operates a wide range of educational television channels, as well as consumer and education products and services, and different video services. The company's television brands include Discovery Channel, Animal Planet, Food Network, and TLC. Telecom giant AT&T currently has a deal in place with Discovery to combine its content unit Warner Media with Discovery, paving the way for one of Hollywood's biggest studios to compete with media giants Netflix and Disney.
Warner Media owns brands such as HBO, TBS, and TNT. As the popularity of streaming has exploded in recent years, companies need to be able to build out a huge library of content in order to convince people to subscribe to their subscription service. Speaking of subscriptions, make sure to subscribe to the Investor Center if you aren't already, and hit the bell icon so you don't miss out on any of the knowledge that can help make you more money in your investment portfolio. Our community of investors is over 55,000 strong, and it would be even better with you as a part of it.
Now let's get back into the video. Warner Media is looking to combine its content offerings with that of Discovery to compete against the dominant players of the streaming industry, Netflix and Disney, with its Disney Plus product offering. Discovery stock currently trades around 27 dollars a share. The company had revenue of 10.6 billion dollars and profit of 1.2 billion dollars in 2020. The company has a market cap of around 19 billion dollars and currently has a forward P/E ratio of around 9.5.
The second largest position in the fund is Oventiv, ticker symbol O-V-V-V. Burry owns 600,000 shares of this company worth nearly 19 million dollars or approximately 14% of the total portfolio. Oventiv is an energy producer. The company currently focuses on developing its multi-basin portfolio of oil and natural gas liquids.
This stock currently trades around 28 dollars a share, and the company has a market cap of around 7.5 billion dollars, as well as a P/E ratio of 5.5. Oventiv had revenue of 6 billion and lost nearly 300 million dollars in 2020. The third largest position in the portfolio is Geo Group, ticker symbol G-E-O. Burry owns 2.5 million shares of Geo worth nearly 18 million dollars or just under 13% of the total portfolio.
The Geo Group operates private correctional facilities located mostly in the United States and offers educational programs, vocational training, and rehabilitation therapy services. The company has 130 correctional and detention facilities globally; however, around 90% of Geo's revenue comes from the United States.
An interesting fact about this company is that it is actually organized as a Real Estate Investment Trust, commonly referred to as a REIT. This means that the company must pay out ninety percent of its profits as dividends. The company has a market cap of 970 million dollars, with a P/E ratio of 6.5. The company had revenue of 2.4 billion dollars and a net profit of 146 million dollars in 2020. The stock currently trades at around eight dollars a share.
The fourth largest position in the fund is CVS Health, ticker symbol C-V-S. Burry owns 200,000 shares of this company worth around 17 million or 12% of the entire portfolio. This stock has been a favorite amongst value investors recently. CVS is a leading pharmacy benefits manager with approximately 105 million plan members, as well as the nation's largest drugstore chain.
It runs approximately 9,900 retail and specialty drugstores in addition to its standalone pharmacy operations. The company operates CVS locations inside Target stores. The company also serves an estimated 34 million people through traditional voluntary and consumer-directed health insurance products and related services.
The company has a market cap of 115 billion dollars and a forward P/E ratio of 11.2. CVS had revenue of 268 billion dollars and net profit of 8 billion in 2020. The stock currently trades at around 87 dollars a share. The fifth largest position in the fund is CoreCivic, ticker symbol C-X-W. Burry owns 1.3 million shares of the company, totaling around 13.6 million dollars or roughly 10% of the entire portfolio.
The company provides detention and correction services to governmental agencies. CoreCivic's business model is very similar to Geo Group. Given the controversial nature of these companies' business models, these stocks are not very popular with investors. In fact, some large investment funds aren't even allowed to own these stocks in their portfolio because of the controversy surrounding these businesses.
This has created an opportunity for Burry and other value investors to buy these stocks at very low P/E ratios, especially when you consider how expensive the stock market is currently. CoreCivic had revenue of 1.9 billion dollars and net profit of 145 million dollars in 2020. The company has a current market cap of 1.1 billion dollars and trades at a P/E ratio of 8.3. The stock currently trades around 9.50 cents a share.
The sixth largest position in the fund is Scorpio Tankers, ticker symbol S-T-N-G. Burry owns 600,000 shares of the company worth around 13.2 million dollars or 9.6% of the total portfolio. Scorpio Tankers is in the marine shipping industry. The company operates as a shipping company and provides seaborne transportation of crude oil and other petroleum products.
The company serves customers worldwide. Scorpio Tankers had revenue of 915 million dollars and net profit of 114 million dollars in 2020. The company has a current market cap of 994 million dollars, with the stock trading around 17 dollars a share. The seventh largest position in the fund is Marinus Pharmaceuticals. Burry owns 625,000 shares of the company worth around 11.2 million dollars or a little more than 8% of the total portfolio.
Marinus Pharmaceuticals manufactures medical products. The company offers development and commercialization of medical drugs for the treatment of neurological and psychiatric disorders such as epilepsy. The biopharmaceutical company is developing a drug candidate, Ganaxolone, to be used as an add-on therapy for the treatment of partial onset seizures in people with epilepsy.
The disease affects around 50 million people globally, meaning the market potential for this medicine is huge. Investing in biopharmaceutical companies is extremely risky. If Marinus is successful in developing this medical drug, the company will be worth a ton more money than it currently is. On the other hand, if the company is not successful, the stock price could easily go to zero.
The company had revenue of only 1.7 million dollars and had a net loss of 74 million dollars in 2020. The company has a current market cap of 440 million dollars, and the stock currently trades around twelve dollars a share. The eighth largest position in the fund is SunCoke Energy, ticker symbol S-X-C. Burry owns nearly 1.6 million shares of the company worth around 11 million dollars or roughly 8% of the total portfolio.
SunCoke Energy is one of North America's largest suppliers of a key input used in the production of steel. Major customers of SunCoke Energy include U.S. Steel and AK Steel. In addition, the company owns and operates a logistics business that provides handling services to its customers. The company had revenue of 1.3 billion dollars and net profit of 11 million dollars in 2020.
The company has a current market cap of 590 million dollars and a forward P/E ratio of 16.5. The stock currently trades for around seven dollars a share. The ninth largest position in the fund is Golden Ocean Group. Burry owns 700,000 shares of the company worth 7.7 million dollars or roughly 5.6% of the entire portfolio. Just like one of the other positions in the portfolio, Scorpio Tankers, Golden Ocean Group operates in the marine shipping industry.
The company is a leading international dry bulk shipping company. Around 58% of the commodities that the company transports is iron ore, and 30% is coal. The company had revenue of 607 million dollars and a net loss of 44 million dollars in 2020. The stock has gone up from less than three dollars a share in November 2020 to nearly 12 dollars a share currently. The company has a current market cap of around 2.3 billion dollars and trades at a forward P/E ratio of 5.6.
The smallest position in Burry's portfolio is VY Global Growth, ticker symbol V-Y-G-G. Burry owns 144,000 shares of the company worth around 1.4 million dollars or roughly 1% of the entire portfolio. VY Global Growth is a blank check company, more commonly referred to as a SPAC. This is where a shell corporation is listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional IPO process.
SPACs have been getting a ton of negative publicity lately because, frankly, some of the companies that SPACs are bringing public aren't the highest quality companies and should be classified as highly speculative investments. If you like learning about what stocks well-known investors own in their portfolio, check out these videos on both Bill Ackman's and Cathie Wood's portfolio. It's always super interesting to me to see what stocks these investors are buying or selling.
Thank you so much for watching, and talk to you soon.