This Famous 'Big Short' Investor Is Betting Big Against Apple, but Buying This Stock
Michael Burry, the investor who gained fame thanks to the film The Big Short, is betting against the largest company in the world, Apple (NASDAQ: AAPL). Scion Asset Management's latest 13-F (the disclosure document that funds must file with the Securities and Exchange Commission each quarter), reveals that as of the end of the first quarter, nearly 18% of the value of its portfolio was in Apple put options, which become more profitable as the stock price falls. That's a bold bet -- but is it a smart strategy?
It's hard to ignore the warning signs that the financial situation of the average U.S. consumer is weakening: Credit card debt is at an all-time high, inflation has soared, and housing has become unusually expensive. This weakness could prove a drag on Apple, as its devices are nice, but people can live with their old models if they need to. However, Apple hasn't seen its profits or revenue fall yet.
Source Fool.com
