Michael Burry Just Sold all his Stocks and Went All in on This One Company

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Michael Burry Just Went All-In on One Stock-Here’s Why Everyone’s Talking About Estee Lauder

Ever get that feeling when someone at the poker table pushes all their chips in, and you just know something big is about to happen? 🎲 That’s the vibe Michael Burry-the “Big Short” legend himself-just sent through Wall Street. The man famous for betting against the housing market in 2008 has now sold every single stock in his portfolio… except for a surprising new darling: Estee Lauder ($EL)278. Yep, the lipstick and luxury skincare giant. Let’s unpack why Burry’s latest move has everyone’s eyebrows raised higher than a beauty influencer’s arch.

The Ultimate Portfolio Glow-Down

What’s more dramatic than a reality TV breakup? Burry’s Q1 2025 portfolio update. He didn’t just trim the fat-he nuked it. Alibaba? Gone. Baidu? See ya. Healthcare, tech, consumer discretionary-you name it, he dumped it137. The only survivor? Estee Lauder, and not just a token holding. He doubled down, scooping up 200,000 shares for a cool $13.2 million78. Talk about going all in on one horse at the beauty derby.

Why Estee Lauder? Why Now?

So, what’s got Burry betting the farm on a company best known for making your grandma’s favorite perfume? Here’s the twist: Estee Lauder isn’t exactly killing it right now. In fact, the company just posted a bigger-than-expected sales drop for 2025, with sluggish demand in the U.S. and a slow-motion recovery in China5. It’s like buying a ticket to a concert after the headliner cancels. But Burry’s never been one to follow the crowd-remember, this is the guy who shorted the housing market when everyone else was buying in bulk.

Betting on Beauty’s Bounce Back

Here’s where the analogy gets spicy: Burry’s move is like snagging a vintage vinyl at a garage sale, convinced it’ll be a collector’s item when everyone else is streaming Spotify. He seems to believe Estee Lauder’s brand power and global reach are undervalued gems, especially as the company embarks on a massive transformation under its new CEO, Stéphane de La Faverie68. The new boss is rolling out a “Beauty Reimagined” strategy, aiming to make Estee leaner, faster, and more innovative-think less grandma’s powder room, more Gen Z TikTok shelfie6.

The Contrarian Playbook: Classic Burry

Let’s be real: Burry’s not exactly known for playing it safe. His portfolio now looks like a doomsday prepper’s bunker-six out of seven positions are bearish put options, including a monster short against Nvidia, betting big that the AI tech rally is running on fumes37. In that sea of red, Estee Lauder stands out like a lone golden ticket. Maybe Burry sees luxury beauty as a recession-resistant safe haven, or maybe he’s banking on a turnaround story that’ll have Wall Street eating its words.

What’s Next for EL? (And Should You Follow?)

Analysts are split like a contour palette-some see upside for EL, with price targets averaging $75.20, while others warn of continued headwinds4. The company’s got challenges: tariffs, sluggish U.S. sales, and a Chinese market that’s still in recovery mode5. But if Burry’s right, Estee Lauder could be the ultimate “ugly duckling” play-unloved now, but ready for a glow-up when the market least expects it.

Final Swipe: Should You Copy Burry’s Beauty Bet?

Let’s not forget: Michael Burry’s moves are never boring, and rarely consensus. Whether Estee Lauder turns out to be the next Cinderella story or a cautionary tale, one thing’s for sure-Wall Street will be watching every step, lipstick in hand. 💄

So, are you ready to swipe right on Burry’s bold beauty bet, or will you wait to see if this makeover sticks? One thing’s certain: in the world of high-stakes investing, there’s never a dull moment-and Burry just gave us all a front-row seat.