Michael Burry Bets on Fine Wines as Hedge Against Dollar Decline

Michael Burry, known for his role in the movie 'The Big Short,' has turned to fine wines as an investment opportunity. He believes that fine wines can serve as a hedge against the decline of the US dollar and potential AI disasters. According to Burry, every bottle of wine consumed reduces the inventory of that exact asset, making it a unique form of supply destruction.

Burry pointed out that fine wines have delivered an annual net real return of 4.1% between 1900 and 2012. He predicts that investors who buy into fine wines now can make four or five times their money over the next 20 years, as they're buying into a depressed market and could profit from a weakening dollar.

Burry cited a study showing that European fine wines show virtually no correlation to the S&P 500 over the last 25 years. He emphasized that investors should 'wait for the best wines at the best prices,' noting that he considered around 700 wines this year but only bought around 40.