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The re-emergence of Michael Burry reminds of me of some advice I give young analysts. The Big Short is a great book/movie. Absolutely read it. However:
1) It isn't a very good explanation for why the crisis happened
2) It offers terrible lessons on being a pro investor
1) It isn't a very good explanation for why the crisis happened
2) It offers terrible lessons on being a pro investor
On #1, it is just too narrow. For you to really understand the crisis (and how it might matter to future events including COVID) you have to understand the interconnectedness of banks.
@benbernanke memoir is much better for a fullsome view of what happened.
@benbernanke memoir is much better for a fullsome view of what happened.
On #2, it glorifies hero trades. It implies you can dig through a prospectus and find that one tidbit that everyone else missed and make a fortune. It implies you should bet everything on one big idea. These just aren't good ways to make money consistently.
Most of the time if you think you know something that everyone else doesn't, you are wrong. If you bet everything on your genius idea, you will lose. They won't write a book about you. You'll be looking for another career.
