David Einhorn calls out Elon Musk and Chamath Palihapitiya, defends GameStop champion Roaring Kitty, and blasts market regulators in a new letter. Here are the 11 best quotes.

david einhorn
David Einhorn.

  • David Einhorn slammed regulators for failing to protect investors.
  • The Greenlight Capital chief defended GameStop investor Keith Gill.
  • Elon Musk and Chamath Palihapitiya supercharged the GameStop short squeeze, he said.
  • See more stories on Insider’s business page.

Elite investor David Einhorn blasted market regulators, called out Elon Musk and Chamath Palihapitiya for juicing assets, and praised GameStop champion Keith Gill in a letter to Greenlight Capital investors this week.

The Greenlight president also highlighted “The Big Short” investor Michael Burry’s Twitter exit, and pushed for greater scrutiny of Archegos Capital, the family office that blew up in March. Einhorn’s latest letter was obtained by ValueWalk.

Here are Einhorn’s 11 best quotes, lightly edited and condensed for clarity:

1. “The Fed wants to be ahead of the curve on the downside to protect the stock market and corporate bondholders the economy. Behind the curve is fine on the way up no matter how frothy the stock market the recovery is.” – suggesting the Federal Reserve cares more about stock prices and corporate profits than the economy.

2. “If we swing a little less hard, we should hit more balls.” – on his decision to short fewer individual stocks after several of Greenlight’s positions were hit during the meme-stock frenzy.

3. “Investors discussing why they think GameStop (or any other stock) should go up or down ought to be encouraged. There is no reason to drag anyone before Congress for making a stock pick.” – defending Keith Gill, who goes by Roaring Kitty on YouTube, for his “great call” on GameStop.

4. “The real jet fuel on the GameStop squeeze came from Chamath Palihapitiya and Elon Musk, whose appearances on TV and Twitter, respectively, at a critical moment further destabilized the situation.” – Einhorn suggested Palihapitiya intentionally disrupted Robinhood because it competes with one of his investments, SoFi.

5. “If regulators wanted Elon Musk to stop manipulating stocks, they should have done so with more than a light slap on the wrist when they accused him of manipulating Tesla’s shares in 2018. The laws don’t apply to him and he can do whatever he wants.”

6. “Quasi-anarchy appears to rule in markets. Sure, Dr. Michael Burry, famed for his role in ‘The Big Short,’ reportedly received a visit from the SEC after tweeting warnings about recent market trends – and decided to stop publicly speaking truth to power. But for the most part, there is no cop on the beat.” – complaining that regulators have been defanged, and corporate executives can break the rules with impunity.

7. “Hometown International owns a single deli in rural New Jersey, yet it reached a market cap of $113 million in February. The largest shareholder is also the CEO/CFO/treasurer and a director, who also happens to be the wrestling coach of the high school next door to the deli. The pastrami must be amazing.” – underscoring the number of questionable companies that regulators are overlooking.

8. “From a traditional perspective, the market is fractured and possibly in the process of breaking completely.” – highlighting a dangerous lack of regulation and the risk of casual investors getting scammed.

9. “It was as if Bernie Madoff had been told to pay a small fine and stop ripping off New Yorkers, but to go ahead and have fun with the Palm Beach crowd.” – criticizing regulators for only slapping the Tether crypto exchange with a $19 million penalty and a New York ban.

10. “If Congress wants to understand why GameStop stock did what it did, or more recently how the ‘Arch-Egos’ fund cornered the market in a handful of stocks, it would be better to call to account the absentee regulators and their philosophical backers.”

11. “‘Arch-Egos’ was able to buy up most of the float of GSX Techedu, causing the stock to soar 400% in the face of unrefuted allegations of massive fraud. The SEC has an ongoing investigation of GSX but appears to not have noticed a single fund (or a small group of funds) essentially cornering the market. A traditionalist could say this was market manipulation and transparently illegal.”

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Billionaire investor Jeffrey Gundlach warns stocks are hugely overvalued – and amateur traders will worsen the coming crash

Jeffrey Gundlach
Jeffrey Gundlach.

  • Jeffrey Gundlach warned stocks are overvalued and face a brutal downturn.
  • The billionaire investor predicted the stock market will tumble by far more than 15%.
  • The DoubleLine Capital boss also slammed the latest round of US stimulus.
  • See more stories on Insider’s business page.

Billionaire investor Jeffrey Gundlach sounded the alarm on stocks and predicted a painful crash on DoubleLine’s Total Return Webcast last week.

Suggesting the stock market is “anything other than very overvalued versus history is just to be ignorant of all the metrics of valuation,” the DoubleLine Capital boss said.

Gundlach gave that reply when asked whether he agrees with Michael Burry of “The Big Short” fame that markets are in a “speculative bubble” and will suffer a “dramatic and painful” decline. He voiced a similar view, saying stocks would fall much more than 15% when the downturn comes.

The so-called “bond king” predicted that many retail investors will cash out when equities turn south, exacerbating the inevitable correction. “We’ll have a tremendous unwind of a lot of the money that thinks that the stock market is a one-way thing,” he said.

Gundlach also issued a stark warning about federal spending during the pandemic. “We’re pretty clearly in a speculative bubble regarding debt and government activity,” he said.

The DoubleLine boss deployed a wealth of economic data to make his arguments. For example, he pointed to rising trade and budget deficits, depressed consumer confidence, record readings on the “Buffett indicator” and other market gauges, heady price-earnings ratios, and the disconnect between growth, employment, and the stock market.

Gundlach made several calls during the webcast. He expects year-on-year inflation of over 3% in June or July, the dollar to weaken in the coming months, and gold prices to bounce back.

Moreover, the investor predicted the VIX – an index known as the market’s “fear gauge” because it measures investors’ volatility expectations – will surge past 100 for the first time when the crash comes. Lofty valuations and the “amateur aspect of the market with Robinhood” will fuel volatility, he said.

Gundlach also criticized President Biden’s $1.9 trillion stimulus bill, which was signed into law last week. He called it “shocking” that couples with a household income of $150,000 and three children are set to receive $6,000 in federal support.

Stimulus initiatives are “cooking all of us frogs in a pot,” he said, comparing them to “monetization” programs where governments fund themselves by printing money instead of collecting taxes or borrowing.

“The biggest problem is that we’ve become totally addicted to these stimulus programs,” Gundlach said. He argued that the government is training people to rely on federal support, and could struggle to turn off the tap as a result.

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‘Big Short’ investor Michael Burry slams NFTs with a quote warning ‘crypto grifters’ are selling them as ‘magic beans’

Michael Burry big short
Michael Burry.

  • Michael Burry subtly criticized non-fungible tokens (NFTs) this week.
  • “The Big Short” investor shared a quote comparing NFTs to “magic beans.”
  • Burry has blasted Tesla, bitcoin, Dogecoin, GameStop, and other popular bets this year.
  • See more stories on Insider’s business page.

Michael Burry isn’t a fan of non-fungible tokens (NFTs), if his Twitter profile is any indication.

The investor has changed his header image to a screenshot of this quote: “NFTs exist so that the crypto grifters can have a new kind of magic bean to sell for actual money, and pretend they’re not selling magic beans.”

The quote is from “NFTs: crypto grifters try to scam artists, again,” an article posted by David Gerard on his “Attack of the 50 Foot Blockchain” blog last week. Gerard is the author of a book with the same name as his blog, which tackles bitcoin, smart contracts, and other cryptocurrency topics.

NFTs serve as virtual certificates of ownership and authenticity for digital items, and are stored securely on a blockchain. They’re getting lots of attention after a digital art NFT was sold for $69 million at a Christie’s auction last week.

Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, “Shark Tank” star Mark Cuban, and other high-profile figures have also discussed and dabbled with the technology in recent days. However, critics question the value of NFTs given it’s virtually impossible to stop others copying, downloading, and sharing digital images and videos.

Moreover, Gerard argues on his blog that NFT proponents are using artists as “aspiring suckers” to pump cryptocurrencies, and handing them “crumbs” for their efforts.

Burry is best known for his billion-dollar bet against the US housing bubble in the mid-2000s, which was chronicled in the book and the movie, “The Big Short.” He’s slammed popular investments including Tesla, GameStop, bitcoin, and Dogecoin this year, and warned investors against buying into speculative bubbles.

The Scion Asset Management boss recently signaled he was taking a break from tweeting. However, the latest change to his Twitter profile suggests he still wants to have his say.

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Bitcoin has surged to a record $60,000 as stimulus hopes and big-name backers fuel demand

traders happy celebrate fist pound
The surge marked a 1,000% gain in the past year.

  • Bitcoin hit a record $60,000 on Saturday, marking a 1,000% gain in the past year.
  • The cryptocurrency has benefited from institutional support and fiscal stimulus.
  • Mark Cuban and Kevin O’Leary are fans, Warren Buffett and Michael Burry aren’t.
  • See more stories on Insider’s business page.

Bitcoin surged as high as $60,000 for the first time on Saturday, lifting its price increase over the past year to more than 1,000%.

The cryptocurrency, which boasts a market capitalization of more than $1.1 trillion, has been buoyed by investor optimism. President Joe Biden signed a $1.9 trillion pandemic-relief bill into law on Friday, which will lead to $1,400 stimulus checks being distributed to millions of Americans, fueling hopes that the market boom will continue.

Bitcoin has also benefited from major institutional endorsements this year. Elon Musk’s Tesla plowed $1.5 billion into the cryptocurrency, Mastercard said it would allow merchants to accept select cryptocurrencies, and BlackRock has started to “dabble” with it as clients clamor for bigger returns.

“Shark Tank” billionaire Mark Cuban said this week that money is flowing into crypto because rock-bottom interest rates have reduced the appeal of bonds and other assets. People are also bored at home during the pandemic and see owning crypto as a source of entertainment, he continued.

Cuban argued bitcoin’s utility has increased massively with the rise of decentralized finance (DeFi) platforms. However, he dismissed the idea that it could serve as a currency or hedge against inflation.

One of Cuban’s “Shark Tank” costars, Kevin O’Leary, has warmed up to bitcoin after previously calling it “garbage.” He cited inflation risks and the advent of bitcoin ETFs as reasons for his change of heart, and plans to give the digital coin a 3% allocation in his portfolio.

However, other high-profile investors remain deeply skeptical of bitcoin. Warren Buffett has blasted it as “rat poison squared” and a worthless delusion. He warned that cryptocurrencies would come to a bad end.

Buffett’s business partner, Charlie Munger, recently said it was too volatile to serve as a medium of exchange, and advised others to follow his lead and not buy it.

Michael Burry, the investor who anticipated the collapse of the US housing market in the mid-2000s and made a fortune betting on that outcome, has warned bitcoin is a “speculative bubble” and predicted a “dramatic and painful fall.”

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‘Big Short’ investor Michael Burry called Apple a ‘Buffett stock’ in 1999. Warren Buffett finally bought it in 2016.

Michael Burry Warren Buffett

  • Warren Buffett counts Apple as one of his best investments ever.
  • “The Big Short” investor Michael Burry identified Apple as a “Buffett stock” in 1999.
  • Buffett’s Berkshire Hathaway only bought a stake in the iPhone maker in 2016.
  • See more stories on Insider’s business page.

Warren Buffett praised Apple, one of his most lucrative bets ever and easily the biggest holding in Berkshire Hathaway‘s stock portfolio, as a “jewel” in his latest annual letter. Yet the investor only realized the iPhone maker’s worth and bought a stake in 2016 – nearly two decades after Michael Burry described it as a “Buffett stock.”

Buffett famously seeks to invest in undervalued companies with strong consumer brands, robust finances, and high-quality management. Burry, whose billion-dollar bet against the US housing bubble was chronicled in the book and movie “The Big Short,” recognized that Apple boasted all of those attributes in the late 1990s.

Apple ticked the boxes

Burry, who now runs Scion Asset Management, studied Buffett closely as a young investor and incorporated the Berkshire chief’s teachings into his own research. He shared his stock picks and debated their merits on the Silicon Investor forum, where he posted more than 3,000 times during the dot-com era.

One of Burry’s favorite stocks was Apple, as it showed many of the characteristics that Buffett looks for in a business.

“Apple, boy, everyone is living in the past on this one,” he posted in April 1999, when Apple’s market capitalization was under $6 billion, compared to over $2 trillion today. “Management is now great. The product is now very good, but even more importantly the marketing is now great.”

“No one is crediting Apple, but to me, it has the markings of a value stock and potential Buffett-like stock,” he said in another post that month.

“A real cash machine of late, trading at a mid-single digit multiple of cash flow, with a great recovery in terms of operating efficiency,” he continued. “A great brand name with proprietary advantages and mindshare. Subtract out the cash and it was recently trading at about 10 times earnings.”

The investor doubled down on his position in a May 1999 post. “Apple’s now a Buffett stock thanks as much to its management as its brand,” he said. Apple co-founder Steve Jobs had returned as CEO in 1997, hired future CEO Tim Cook in 1998, and launched the beloved iMac that year as well.

Burry trumpeted the company as “incredibly undervalued” given its cash generation, market opportunity, solid balance sheet, and limited downside in another post in May 1999.

Moreover, he pointed to Apple’s pricing power and consumer brand as evidence it was a Buffett-worthy stock in a July 1999 post.

“Buffett’s point has always been that in the long run it is the consumer franchises that last,” Burry said.

Burry spotted Apple before Buffett

Buffett loves consumer brands, as they allow their owners to hike prices and serve as “moats” that keep competitors at bay. Some of the Berkshire Hathaway chief’s biggest investments are household names such as American Express, Coca-Cola, and Kraft Heinz.

The investor has described Apple as a consumer-product company that uses technology, instead of a technology company, to explain why he invested despite his historical aversion to tech stocks. He lauded it as “probably the best business” he knows in the same interview.

While Burry beat Buffett to Apple by more than 15 years, he didn’t fully capitalize on his early insight. The budding investor sold his shares after they jumped between 50% and 75% in a matter of months, he disclosed in a July 1999 post.

Burry reinvested at some point over the next 15 years. His Scion fund’s biggest position in the first quarter of 2016 was Apple – it owned 75,000 shares worth $8 million, SEC filings show.

Yet Burry sold the following quarter. If he had held on, Scion’s stake would have more than quadrupled in value to $36 million today.

Regardless, Burry deserves kudos for unearthing a gem. If Buffett bought Apple back when Burry realized it was his kind of company, the Berkshire chief would have made far more than his current $80 billion gain on the investment.

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Billionaire investor Chris Sacca says he’s been invited to sit on SPAC boards and do nothing

Getty Images chris sacca donald trump shark tank
Chris Sacca.

  • Chris Sacca has been invited to sit on SPAC boards and do nothing.
  • The venture capitalist tweeted that many SPAC directors are “window dressing.”
  • Charlie Munger, Jeremy Grantham, and other top investors have criticized SPACs.
  • Visit the Business section of Insider for more stories.

Billionaire investor Chris Sacca tweeted on Tuesday that he’s been invited to sit on the boards of several special-purpose acquisition companies (SPACs) – with no expectation that he does any work.

“I’ve been offered a bunch of SPAC board seats,” the former “Shark Tank” star and Lowercase Capital founder said. “The pitch usually goes something like, ‘You’ll get [lots of shares] for just putting your name on it and doing nothing.'”

“While there are some board members actively helping, too many are just window dressing,” Sacca added. “Don’t get distracted.”

SPACs typically aim to secure a stock-market listing then acquire a private company, offering businesses an alternative way to go public than an initial public offering (IPO).

The number of SPACs has exploded in recent months as investors such as Bill Ackman and Chamath Palihapitiya, celebrities including Alex Rodriguez and Colin Kaepernick, and ex-politicians such as Paul Ryan and Gary Cohn have jumped on the trend.

Sacca – an early investor in Uber, Twitter, and Instagram – has shifted his focus towards tackling issues such as climate change and voter suppression in recent years. He isn’t the only high-profile investor to voice concerns about SPACs recently.

Warren Buffett’s business partner, Charlie Munger, dismissed them as “crazy speculation” and evidence of an “irritating bubble” in February.

Similarly, GMO cofounder Jeremy Grantham – who unintentionally made a fortune when one of his investments was acquired by a SPAC last year – slammed them as “a license to rip investors off” and suggested they should be banned.

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‘Big Short’ investor Michael Burry has warned of a stock-market bubble and slammed Tesla, Robinhood, bitcoin, and the GameStop frenzy in recent weeks. Here are his 17 best tweets.

Michael Burry played by Christian Bale
Christian Bale as Michael Burry in “The Big Short.”

Michael Burry has been sounding the alarm on hype and speculation in markets for months, warning that the reckless promoting and buying will result in a devastating crash.

The investor has taken aim at Tesla – which he’s short – as well as bitcoin, Robinhood, and the GameStop buying frenzy in recent weeks.

The Scion Asset Management chief is best known for his billion-dollar bet against the US housing bubble in the mid-2000s, which was immortalized in Michael Lewis’ book “The Big Short.” He was played by Christian Bale in the movie adaptation.

Here are Burry’s 17 best tweets, lightly edited and condensed for clarity:

1. “Markets have now bubbled over in a dangerous way.”

2. “People say I didn’t warn last time. I did, but no one listened. So I warn this time. And still, no one listens. But I will have proof I warned.”

3. “Fads today (#BTC, #EV, SAAS, #memestocks) are like housing in 2007 and fiber/.com/comm/routers in 1999. On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”

4. “Speculative stock #bubbles ultimately see the gamblers take on too much debt. #MarginDebt popularity accelerates at peaks. At this point the market is dancing on a knife’s edge. Passive investing’s IQ drain, and #stonksgoup hype, add to the danger.”

5. “So, @elonmusk, yes, I’m short $TSLA, but some free advice for a good guy….Seriously, issue 25-50% of your shares at the current ridiculous price. That’s not dilution. You’d be cementing permanence and untold optionality. If there are buyers, sell that #TeslaSouffle.”

6. “Well, my last Big Short got bigger and Bigger and BIGGER too….$TSLA $60 billion increase in market cap today alone…1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados…enjoy it while it lasts.”

7. “$BTC is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history. If you do not know how much leverage is involved in the run-up, you may not know enough to own it.”

8. “I don’t hate $BTC. However, in my view, the long-term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with #lifeblood interests in monopolies on currencies. In the short run anything is possible – why I am not short #BTC.”

9. “A doge’s breakfast maybe. We are in a blow-off top in all things.” – commenting on the hype around dogecoin.

10. “I went public when it was cheap, and I went public when it was time to get out. Same with anything else. Calling it as I see it, and sharing a bit. In 2005-6 it was not so easy to share.” – on investing in GameStop then exiting it.

11. “Hey, $GME is now a $stonk and may go >$1000, but if I made a life-altering amount in this stock, I’d punch out. Main Street has Wall Street by the cojones. Great story/LOVE it. Tee it: bulls make money, bears make money, #pigsgetslaughtered. #Fundamentals.”

12. “There really can’t be another GME. Nothing else is/was even close to as shorted (100+% of float), so small (microcap) and so hated/ignored/dismissed prior to the #thebigshortsqueeze. It was a uniquely perfect set up. There won’t be another like it. Much like #thebigshort.”

13. “If I put $GME on your radar, and you did well, I’m genuinely happy for you. However, what is going on now – there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous.”

14. “If you do not use #robinhood, you have to see it to understand what #gamification of #stonks/options means. So here it is. If this looks like a serious investing app to you, and NOT a dangerous casino ‘fun for all ages,’ you’ve been #gamified.”

15. “Special Purpose Acquisition Companies, or #SPACs (~ blank check companies), are hotter than ever. Companies going public this way are not well-vetted. Anyone with a reputation has incentive to do a SPAC & consummate a deal, regardless of quality.”

16. “It is too early, she is too hot, and, today, short sellers are timid, but Wall Street will be ruthless in the end.” – on Ark founder and CEO Cathie Wood.

17. “I am not running for president. I am far too flawed. Do you really want to see a cross-eyed President of the United States of America? No one really wants that. I’d have to wear a patch, and I don’t want to wear a patch.”

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‘Big Short’ investor Michael Burry says he’ll stop tweeting after warning of market bubbles for months

Dr. Michael Burry
Michael Burry.

Michael Burry is taking a break from Twitter, leaving his 400,000 followers with only a couple of restaurant recommendations and a list of his favorite death-metal bands.

The investor – who has criticized Tesla, bitcoin, Robinhood, and the meme-stock frenzy this year – signed off this week with a now-deleted tweet in Vietnamese that translates to: “You know my position now, no need to hear more from me.”

The Scion Asset Management boss, whose wife is of Vietnamese origin, updated his Twitter bio with another sentence in her mother tongue that translates to: “No more, you know where I stand.” 

Burry cleared his Twitter feed, leaving only a trio of tweets promoting two Vietnamese restaurants and a Mexican eatery in his home state of California. He added links to the Twitter profiles of eight bands including “Devil Driver” and “Entombed” to his bio.

Burry, whose billion-dollar bet against the US housing bubble was chronicled in the book and the movie “The Big Short,” has been calling out what he sees as speculation and recklessness in markets for a while. 

For example, after revealing he was short Tesla in December, he predicted its stock price would implode like the housing bubble. He also slammed the astronomical rise in GameStop’s stock price as “insane” and “dangerous” in January, after helping to lay the groundwork for the short squeeze by investing in the video-game retailer in 2019.

Moreover, Burry has panned bitcoin as a “speculative bubble,” described Robinhood as a “dangerous casino,” cautioned that the stock market is “dancing on a knife’s edge,” and warned that markets have “bubbled over in a dangerous way.”

The latest comments suggest Burry feels he’s had his say, and has decided to let investors fend for themselves for a while.

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‘Big Short’ investor Michael Burry is betting Volkswagen will beat Tesla in electric vehicles

Burry
Christian Bale as Michael Burry in “The Big Short.”

  • Michael Burry owns a stake in Volkswagen’s largest shareholder, Porsche SE.
  • “The Big Short” investor is betting Volkswagen can beat Tesla in electric vehicles.
  • Burry said he was short Elon Musk’s car company in December.
  • Visit the Business section of Insider for more stories.

Michael Burry holds a stake in Volkswagen’s biggest shareholder, he revealed in a now-deleted tweet on Wednesday.

“I don’t own a Porsche, but I own the Porsche that owns VW that owns Porsche,” the investor said. He was referring to Porsche SE, the German holding company that owns 31.3% of Volkswagen, which itself owns Porsche AG, Audi, and other car brands.

Porsche SE and Burry’s Scion Asset Management didn’t immediately respond to requests for comment from Insider.

Burry is best known for his billion-dollar bet against the US housing bubble in the mid-2000s. His lucrative wager was immortalized in Michael Lewis’ book “The Big Short,” and he was played by Christian Bale in the movie adaptation.

The Scion chief’s indirect bet on Volkswagen is notable because the German auto group is taking on Tesla in the electric-vehicle market, and Burry was short Tesla as of December.

He predicted in January that shares in Elon Musk’s electric-vehicle company – which have skyrocketed by more than 600% since the start of 2020 – would suffer a massive collapse. “Enjoy it while it lasts,” he said.

Burry disclosed his Porsche SE position after trumpeting Volkswagen in several tweets.

“Investors, partly due to the #ESGFog, underestimate the size, scale, brands, staying power, and resources of Volkswagen,” he said. The investor linked to a Bloomberg story about a UBS analysis that found Volkswagen’s ID.3 electric car stacked up well against Tesla’s models.

“Ever wonder who owns Bentley, Bugatti, Lamborghini, Porsche, Ducati, etc? VW,” Burry said in another tweet. “Although, Porsche owns VW too. Interested why VW and Porsche do not trade in the US? Because what US investors think is not too important to VW or Porsche.”

Burry’s championing of Volkswagen and his stake in its largest shareholder, coupled with his criticism of Tesla and short position, strongly suggest he’s expecting the German automaker to trounce Musk’s upstart rival.

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‘Big Short’ investor Michael Burry slams bitcoin as a ‘speculative bubble’ – and warns a crash is coming

Michael Burry
Michael Burry.

  • Michael Burry warned that bitcoin is a ‘speculative bubble.’
  • “The Big Short” investor grouped it with electric vehicles, SAAS, and meme stocks.
  • He compared the boom in those assets to the dot-com and housing bubbles.
  • Visit the Business section of Insider for more stories.

Bitcoin’s price has surged to unsustainable levels and buyers have taken on dangerous amounts of debt, Michael Burry cautioned in a recent tweet.

“$BTC is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history,” the investor wrote before deleting the tweet as usual.

“If you do not know how much leverage is involved in the run-up, you may not know enough to own it,” he added.

Burry is best known for his billion-dollar bet on a housing-market crash in the mid-2000s, chronicled in the book and movie “The Big Short.”

The Scion Asset Management chief compared the hype around bitcoin, electric vehicles, software-as-a-service companies, and “meme stocks” like GameStop and AMC to the housing and dot-com bubbles in a tweet on Saturday.

“Fads today (#BTC, #EV, SAAS #memestocks) are like housing in 2007 and fiber/.com/comm/routers in 1999,” he said.

The enormous buzz isn’t entirely unfounded, Burry said, but he doesn’t expect it to last.

“On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful,” he said. 

Burry doubled down on his bearish stance in other tweets last week.

“Those saying me and Munger and Singer are so out of touch are not considering that we have seen this all before, and not just once,” he said, referring to recent warnings about market speculation from Charlie Munger – Warren Buffett’s business partner – and hedge-fund billionaire Paul Singer.

“The market is dancing on a knife’s edge,” he said in another tweet.

Burry said in February he doesn’t “hate” bitcoin but has doubts about its long-term prospects. He expects authorities to squash threats to their currencies and launch their own digital notes and coins.

The Scion chief added that he isn’t short bitcoin, as “anything is possible” in the near future. He’s short Tesla as of December, and cashed out his GameStop shares last quarter after laying the groundwork for the spike in GameStop’s stock price in January.

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