Michael Burry says he only invests in ‘three-legged dogs’ — though five legs would be even better

Famed investor Michael Burry seeks more than one reason to back an investment, likening his approach to owning "three-legged dogs." Burry gained notoriety for betting against the U.S. housing market prior to the 2008 financial crisis, as depicted in Michael Lewis's The Big Short. He recently explained his interest in fine wine after prices plummeted from 2022 levels.

This approach consists of three core factors: valuation, unique economics, and potential as a hedge against a weakened dollar or digital system disruptions. Each factor acts as an independent leg, increasing the likelihood of a successful investment. Burry's strategy emphasizes having multiple reasons for owning an asset, rather than depending on a single prediction, to minimize risk.