Michael Burry
· Cassandra Unchained
· June 19, 2026 at 00:49
· ⏱ 1 min read
| Read on Substack ↗
Summary
Michael Burry advocates dollar cost averaging into falling knives when volume confirms a shift in shareholder base, and he puts this into practice by buying Mercado Libre after a 39% decline. The trade signals a selective, valuation-conscious approach in a market where semiconductors and big tech are leading while other sectors lag.
•Burry bought Mercado Libre at ~$1,630, 39% below its June 2025 high.
•MELI has traded 246% of its outstanding shares over the past year, indicating heavy turnover.
•Burry's standard rule is to wait for a 20% drop from purchase price before adding, but volume confirmation allows earlier averaging.
•On the trading day, semiconductors and big tech led the market; software was mixed and other sectors underperformed.
Read time1 min
Length1,525 chars
Categoryfinance
Ideas
Michael BurryFounder, Scion Asset Management; subject of The Big Short
Burry is dollar cost averaging into MELI after a 39% decline from its June 2025 high, citing very high share turnover (246% of shares outstanding) as evidence that the shareholder base has shifted to
Burry is dollar cost averaging into MELI after a 39% decline from its June 2025 high, citing very high share turnover (246% of shares outstanding) as evidence that the shareholder base has shifted to steadier hands, reducing the risk of further steep drops.