3 Best Stocks to Buy According to Michael Burry

In this article, we discuss 3 best stocks to buy according to Michael Burry. If you want to read our detailed analysis of these stocks, go directly to 6 Best Stocks to Buy According to Michael Burry. 

3. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 36 

General Dynamics Corporation (NYSE:GD) operates as an aerospace and defense firm. The company is the third-largest holding in the Scion Asset Management portfolio. It is a new addition to the portfolio. During the fourth quarter of 2021, Burry bought 80,000 shares of General Dynamics Corporation (NYSE:GD) at an average price of $201.93 per share. The stake is worth $16.6 million and represents 22.39% of the portfolio. 

At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in General Dynamics Corporation (NYSE:GD), compared to 37 in the preceding quarter worth $6.2 billion. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Longview Asset Management is a leading shareholder in General Dynamics Corporation (NYSE:GD), with 30 million shares worth more than $6.2 billion. 

In its Q1 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and General Dynamics Corporation (NYSE:GD) was one of them. Here is what the fund said:

“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”