Michael Burry Stock Portfolio: Top 8 Stock Picks in 2026

5. Alibaba Group Holding Limited (NYSE:BABA)

In early April, Michael Burry revealed to his followers on Substack that he had bought shares in Alibaba Group Holding Limited (NYSE:BABA), Burry said, ““I bought shares in JD.com and Alibaba today. JD is a significant add, and Alibaba is a new position, a little over 6%. JD is a bit more than that.” He added that the recent weakness in the shares provided “an attractive entry point.” Previously, Burry had bought a stake in the stock in the second quarter of 2025, per 13F filings for his hedge fund, Scion Asset Management. This position comprised 250,000 shares. However, filings for the third quarter of 2025 showed that he sold it off completely.

The Burry bet on Alibaba Group Holding Limited (NYSE:BABA) can be understood in context of the nature of investing. Burry is a value investor who looks for market mispricings where the downside is strictly limited, but the upside is asymmetric. Due to years of geopolitical tensions, regulatory crackdowns in China, and general international investor flight, Alibaba has traded at historically low valuation multiples. Burry views the company as one of the most compressed, mispriced mega-cap value trades in modern market history. By buying in when the stock experiences steep pullbacks, Burry capitalizes on an entry point where the business is valued at a deep discount relative to massive free cash flow generation.

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