'Big Short' investor Michael Burry declared he was 'wrong to say sell' - but close followers are split over whether he was being sincere or not

• Michael Burry tweeted "sell" in January, then said he was "wrong to say sell" in March.
• The "Big Short" investor's close followers are split over whether his admission was sincere or not.

Michael Burry tweeted a single, ominous word in late January: "Sell." Two months later, he congratulated investors who bought the dip in stocks at the end of last year, and declared, "I was wrong to say sell."

The jarring reversal by the investor of "The Big Short" fame has divided his close followers. Some have taken his about-turn at face value, and praised him for admitting he called the market wrong. The S&P 500 has advanced 8% this year, while the Nasdaq Composite has surged 17% on the back of high-flying technology stocks such as Tesla and Nvidia.

Other Burry acolytes doubt he was being sincere, and believe his praise of the "BTFD generation" was sarcastic. They're confident the Scion Asset Management boss remains bearish on stocks in the face of historic inflation, surging interest rates, a looming recession, and a potential credit crunch.

We asked four members of "Burryology" — a subreddit dedicated to studying the Scion chief — for their takes on Burry's latest tweets, and how they reacted when they first read them. We've edited their replies for length and clarity:

1. North Collection

"I must admit that upon my first reading of Michael Burry's tweet saying 'I was wrong to say sell,' I took it literally. This came as a bit of a shock to me, as I had previously interpreted his tweets as quite bearish, at least until the latter half of 2022. However, around the time he made this tweet, Burry updated his Twitter description to indicate his penchant for humor online.

"In reality, when Burry congratulated the BTFD generation, he was actually making a sarcastic jab at their excessive economic optimism. It seems that many people perceive Burry to be a permabear and overly pessimistic, likely because he only garners attention for his bearish tweets. Perhaps this explains his newfound humor on social media."

2. WarrenButtet

"I think he is being genuine this time. He said in his Scion letters decades ago that he doesn't get overly emotional whether his portfolio is down or up. This is an ideal philosophy for anyone who relies on intelligent stock selection, and not just marketing a fund to collect large fees on attracted capital. Being sarcastic at this point would be a misstep as it would be an indicator of him being too emotional about the real outcomes.

"My initial thought when I saw the tweet was that no stock market participant can see the future. Dr. Burry has been wrong before, and it's very important that we all think independently and intelligently with our investment decisions.

"Many Burryologists treat his writing as gospel, and I think this isn't at all what Dr. Burry stood for when he was a budding investor. I generally try not to take what he tweets too seriously. After all, he could be using his notoriety to influence the market like the rest of the activist investors."

3. ChiefValue

"Regarding the 'sell' tweet, I think he was being sarcastic to the extent that he believes the market may extend higher in the short term. This is definitely not to say he has turned bullish as some believe.

"If you look at what he has been saying the last couple years, a lot of his concerns regarding valuation, inflation and the strength of the consumer haven't really changed. He most likely believes we are headed lower, but perhaps not as soon as he originally thought.

"His mention of the BTFD crowd was probably to suggest something along the lines of, 'Hey, I shouldn't have said sell because this generation is so trained to BTFD that this bear market may not behave like the ones of the past.' He likes to be vague in his words, but the data he shares is perfectly clear. He is a logic-and-data guy so I believe that is how he is truly communicating his market opinions.

"After seeing his BTFD tweet, I thought his frustration was palpable. There is a common misconception that Burry has called 'nine of the last two recessions.' He gets slandered in that aspect. He actually has a very accurate track record if you go back and read his old investor letters and MSN articles. His calls are not meant to be weekly or even monthly time horizons. I think his 'sell' tweet will age well given some time."

4. JohnnyTheBoneless, Burryology founder

"The 'I was wrong to say sell' tweet may have been his way of highlighting the notion that markets are always in a state of flux. Financial markets experience price changes and volatility over time. There are various factors and forces (e.g. economic conditions, investor sentiment, supply and demand etc.) that influence which way markets may go. You can learn to read some of these forces but others are inherently unpredictable. The banking crisis happened a month after his 'sell' tweet. Very few could have seen it coming.

"I was amused by the tweets but didn't react beyond that. More than a few folks react to these tweets by taking action in the markets. For example, some people sold positions or entered short positions following the 'sell' tweet. In previous tweets, Burry has espoused the importance of being your own investor, doing your research, and acting based on your own insights and life experiences. Taking any kind of action based on a one-word tweet violates that recommendation."