Burry and Buffett: Contrarian Moves amid Rising Market Turbulence
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Burry and Buffett: Contrarian Moves amid Rising Market Turbulence

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At a time when Wall Street is full of over crowed long bets, Mike Burry and Warren Buffett have followed interesting contrarian approaches in different markets.

The world of investing is full of contradictions and contrarians. While virtually everyone talks of value investing, almost no one wants to bet on beaten-down names. Moreover, investors are generally prone to buy the rumor and sell the news.

A case in point is NVIDIA (NASDAQ:NVDA), which is probably one of the most crowded long trades on Wall Street this year. In contrast, Chinese names have recently been a strict no-no for investors. The Shanghai Composite (SHCOMP) is now languishing at lows last seen in H1 2020 as China faces rising global trade backlash, challenging demographic trends, and a weak property market.

Yet, the scenario presents mega opportunities for China’s domestic giants, and Mike Burry of The Big Short fame is already moving in on the opportunity. Burry is Bullish on JD.com (NASDAQ:JD) and Alibaba (NYSE:BABA). According to Fortune, the two stocks now make up nearly one-fifth of Burry’s Scion Asset management’s holdings. The investments come at a time when foreign direct investment in China is hovering at a three-decade low.

On the other hand, Warren Buffett has been busy building up positions in companies in neighboring Japan for a while now. The Oracle of Omaha had shared his intention to shift focus to Japanese stocks in June 2023 amid rising U.S.-China tensions. The Nikkei 225 has rallied by nearly 40% over the past year, reaching multi-decade highs.

What Is the Best Stock to Buy in China?

Does this mean you should start loading up on Chinese or Japanese stocks ASAP? The answer is most likely no, but pockets of opportunity always remain, especially when markets are firmly in the grip of bears. In the meantime, our data dive with the TipRanks Comparison tool indicates the following names with attractive potential upsides. While two of these names are already in the green over the past year, JD and BABA continue to offer upside potential in the high double digits.

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