Michael Burry’s Strategic Move with AAP: How He Saved Millions by Selling Advance Auto Parts Stocks
AAP Stocks Decline: The Impact on Michael Burry
In March 2024, Advance Auto Parts (AAP) appeared to be a flourishing part of Michael Burry's portfolio. By the end of Q1 2024, AAP shares surged 36% YTD, securing a $3 million gain for the investor. However, a shocking shift occurred, leading to a nearly 50% drop over Q2 and early Q3. Fortunately, Burry sold his entire stake before the decline.
How Much Did Burry Save?
Had Burry sold his shares in early April, he might have avoided losses up to $3 million when AAP shares were valued at $80. Presently, AAP is priced at $47.67, demonstrating the impact of his timely decision. Even selling at Q2's end could have spared him $1 million in losses post-earnings report.
Profitability of Burry’s Investment in AAP
Burry's sale was not just an act of avoiding losses but likely a strategic profit move. When Scion Asset Management acquired AAP shares in Q4 2023, prices fluctuated between $48 and $65. Despite uncertainties surrounding his exact purchasing and selling points, Burry's actions underscore a savvy approach in today's volatile financial markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.