Wednesday, April 17, 2019

Dr. Michael Burry - mentally tortured for more than 2 years, but made 400%+ thereafter

Dr. Michael Burry is the ONE EYED Physician turned Fund Manager, who figured out that the Housing Market in the US is going to fall apart, as early as 2005. He went to several Banks, but many bankers laughed him off. They said that he's gone mad. Housing Mortgaging was the biggest money maker for the Banking Industry during those days. Even people used the names of their Dogs to take mortgages. Banks just dished out money for all. This Doctor was the first guy who wanted to short the housing market. With much insisting he managed to use an instrument called Credit Default Swap, and shorted the housing Market. That was in 2005. But his prediction did not realise until 2007 and 2008, when the Great Recession SANK the entire world down.
The mental agony he had to go through for such a long period is mind boggling. He invested Millions if not Billions of Dollars belonging to his investors. He told them that they can't take the money out through a Moratorium until his prediction comes right. This made many clients furious, and attacked him mercilessly. He had to write the daily fluctuations of the Instrument he used to short the Market on a White Board in Office. For more than 2 years he had to write the negative percentage fall every day. That percentage value was so huge in money terms. Yet he did not back off. Finally world experienced the pains whilst his investors experienced gains. His fund managed to make a whopping 489% for his investors. Best part was that it was against their wishes. But that didn't make the investors refuse the millions of dollars of Gains they received from that great prediction.

Investing and Trading in Financial Markets is not a cake walk or an easy ride. His life is a great lesson for those untiring die hard investors and traders. Are you one of them??? He knew exactly what was coming but it took many years to come into fruition. He is one of the best to show the mind power you need to hold on till your expectations are fulfilled. Many elites, respectable figures, eminent bankers, scholars, professors including rating agencies and watchdogs were on the opposite side. His investors believed the Big wigs more than him. He was such a reserved person, that he never moved around with crowds, but he knew and believed in what he was doing. He was sidelined and all alone!!!

In the CSE we see almost every one is disgruntled and dejected at present. Sentiments are so weak. Almost all would not believe that it will go up any time soon. But just like Dr. Michael Burry there are a few who see outside the heard. There are many influential eminent figures in the heard. Those who are in the opposite are not prominent yet they are confident that the gains they are anticipating will happen sooner or later....... Which side you are in???

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