Burry added his “favorite” stock back to his portfolio after the sell-off. What else did he buy?

Michael Burry, known as the inspiration for a character in *The Big Short*, has once again purchased shares in Lululemon, a manufacturer of premium athletic apparel, footwear, and accessories, one month after his unexpected sale of the stock. The investor had called the brand’s shares his “favorites,” but sold his entire stake in early October for tax optimization purposes.

“I re-entered my position in Lululemon during today’s sell-off. The stock fell nearly 4%—to just over $106—and that’s good enough for me,” Burry wrote on his blog, Cassandra Unchained, on November 11.

On November 11, Lululemon shares closed at $107.5, down nearly 3% for the day.

Burry believes that the market is undervaluing Lululemon because the new management has not yet been able to resolve long-standing issues with the company’s marketing strategy and communications. However, he views this situation as temporary and remains confident in Lululemon’s ability to develop new products. In his blog, Burry emphasized that his assessment of the company’s prospects has not changed.

Back in June 2026, the investor wrote that he saw long-term growth potential in Lululemon’s stock because the company maintains a strong brand, remained profitable, had virtually no debt, and, at that time, held approximately $1.5 billion in cash reserves. At the time, Burry wrote that, according to his calculations, an investment in Lululemon could yield about 18% annually over a 15-year horizon.

In September, when the company released a weak earnings report and lowered its revenue and profit forecasts, Burry acknowledged that Lululemon was performing worse than he had expected. However, he continued to view its stock as undervalued and an attractive investment.

However, on October 6, the investor unexpectedly announced that he had sold all of the Lululemon shares in his portfolio. Burry himself attributed this to tax considerations—he wanted to lock in a loss and reduce his taxable income from other transactions. As a temporary replacement, he bought shares of the footwear manufacturer Deckers for his portfolio—which he considered similar to Lululemon—and planned to return to the sportswear manufacturer’s stock once the tax restriction expired. On November 10, Burry clarified that he was still waiting for the right moment to buy Lululemon shares again, while maintaining his investment in Deckers.

Since the beginning of 2026, Lululemon's stock has fallen by approximately 50%. However, over the past month, the stock has nearly recovered from the sharp decline in September, which was triggered by a downward revision to the revenue forecast.

In a post dated November 11, the investor also reported that he had purchased additional shares of the Latin American e-commerce platform MercadoLibre at a price below $1,500 and shares of Sprouts Farmer’s Market, a supermarket chain specializing in farm-fresh and organic products, at approximately $48 each. He also increased his stake in Adobe, expecting the developer of Photoshop to benefit from the mandatory transition of users with “perpetual” licenses to paid subscriptions. Burry himself said that he recently had to pay for a subscription when his Adobe Acrobat 2020 software package stopped opening.

In addition, Burry increased his position in the fintech company PayPal and the Chinese online retailer JD.com, and bought more shares of the Brazilian mining company Ero Copper during a market dip. He views the company’s performance positively—S&P recently upgraded its credit rating to BB—and expects demand for copper to rise due to the infrastructure upgrades needed for the development of AI.

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This article was AI-translated and verified by a human editor