MEGA Trading Post/Short Thoughts Mash-Up June 2, 2026
Michael Burry
· Cassandra Unchained
· June 03, 2026 at 00:01
· ⏱ 3 min read
| Read on Substack ↗
Summary
Michael Burry warns that actively shorting the market is risky and rarely profitable, advocating instead for a conservative approach of raising cash and selectively shorting overvalued themes while buying undervalued stocks that have been oversold. He reiterates his bearish view on Palantir (PLTR), calling it a sand castle supported only by the AI narrative, and maintains a short position.
•Burry compares the Cassandra Unchained community's quality to early techstocks.com (circa 1996) and appreciates the expert discussions.
•He cautions that actively shorting with puts is highly risky because bull markets are the rule, shorts cap gains at 100%, and death by a thousand cuts is common.
•His typical strategy is to stay mostly long, raise cash in rich markets, trim extended positions, and only deploy into serially whacked undervalued stocks while shorting mania fulcrum points.
•The only time he massively leveraged a short was with RMBS and corporate CDS in the 2000s, which had a unique concrete timeline.
•Burry states Palantir trades at ~16x his IV15 estimate and calls it a sand castle supported by the AI applications narrative, reaffirming his short position.
Read time3 min
Length3,222 chars
Categoryfinance
Ideas
Michael BurryFounder, Scion Asset Management; subject of The Big Short
Palantir is overvalued at ~16x IV15, supported only by the AI narrative, making it a vulnerable short as the author believes the sand castle will eventually be washed away.