Michael Burry's Big Bet is a Red Flag?

Good Morning,

Welcome to another edition of ChartWiz, where we visualize financial data in bite-sized portions. In today’s edition we break down Michael Burry’s portfolio, largest congress moves, and a deep dive into Chipotle’s earnings.

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PORTFOLIO HOLDINGS BREAKDOWN

Michael Burry just made some massive portfolio moves, including betting big on China.

Burry closed his Semi-Conductor short (which was crushed) and opened some new positions.

His largest two positions are Chinese stocks, with Alibaba (BABA) and JD (JD) making up a combined 12.27% of his portfolio, signaling a strong bet on Chinese e-commerce. Speaking of e-commerce, Burry started a new position in Amazon (AMZN).

But it's not just tech giants catching his eye; a diverse array of players from health care to media hold court. Citi (C) and CVS are in the mix too, showing that old-school finance and retail haven't lost their luster.

Anything stand out as a red flag from the King of 2008?

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CONGRESS MOVES

The flurry of stock trades by members of Congress, especially with the top trader racking up 210 trades in six months, raises more than a few eyebrows.

It's not merely their trading prowess that catches the eye, but the potential conflict of interest that comes with their unique access to non-public information.

As lawmakers, they are privy to early legislative changes and economic policies that could influence stock prices. The question then becomes: are these trades merely savvy market moves, or are they exploiting a legislative loophole for personal gain?

COMPANY DEEP DIVE

Chipotle's aggressive expansion strategy, as illustrated in the latest chart, may be a double-edged burrito. While the chain has impressively increased its new store count by 175%, the same-store sales growth has taken a 37% dip, suggesting a potential cannibalization scenario. As the company lays down new bricks, it seems to be stealing bites from its older establishments' burrito bowls.

This trend raises the question: is Chipotle's rapid growth strategy leading to a self-feast, where new stores nibble away at the profits of established ones? Investors may need to watch out for indigestion if this pace of expansion continues without a corresponding increase in the overall market appetite.

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WORD FROM WIZ

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Have a fantastic week!

-Wiz