Michael Burry: How a stock can fall from $100 to $5 and still deliver a 6x retur

Watching a stock you own fall by half can make you want to panic-sell or pray the price returns to your entry point so you can exit. But Michael Burry, made famous by the film The Big Short, used a June Substack post to argue that selling is the wrong move (1).

He wrote that once you're deep underwater on a stock, it doesn't matter how much you paid for the stock. The only number that counts is the stock's current price, because that's where your next gain or loss will be measured from.

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Burry, who is known for predicting the U.S. housing crash, has spent the past year warning that the market appears to be a bubble thanks to AI names like Nvidia and Palantir. As a result, he closed his fund, Scion Asset Management, in November 2025 (2) to focus on his paid Substack, Cassandra Unchained (3).

So, writing an articl

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/michael-burry-stock-fall-100-110000253.html)