Michael Burry Portfolio: Top 10 Stock Picks

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#4 Fiserv, Inc. (NASDAQ: FISV)

Fiserv is a financial technology company providing payment processing and related services to banks, merchants and financial institutions.

Burry reportedly continued to favor Fiserv in October even as the company’s shares experienced substantial volatility. According to recent media reports, he maintained the investment and saw potential for annualized returns in the low teens over time.

His bullish argument centers on valuation. Fiserv is an established payments business, but investor concerns about growth, competition and technology-related risks have pressured its stock price. Burry reportedly believes the valuation offers an opportunity for attractive future returns.

Unlike some of his other October changes, the Fiserv update described a continuing long-term investment rather than a conversion into call options. However, his reported return expectation is a forecast, not a guaranteed outcome.

Fiserv stock fell in August after the company reported second-quarter results. Revenue dropped 4%, adjusted operating margin fell to 31.8% from 39.6%, and the company cut its 2026 earnings guidance. Bulls say most of the drop came from one-time, high-margin fees in its bank software business, such as payments from clients that ended their contracts early.

Fiserv trades at a forward P/E of about 6.6. The median P/E of its sector is about 11, and Fiserv’s own five-year average forward P/E is about 15. Analyst consensus has earnings per share falling 16% in 2026 and growing 10% in 2027. If earnings grow 10% a year after 2026, the P/E falls to about 6 in one year and about 5.4 in two years. The stock costs much less than its sector and much less than it has in the past.

Payments stocks are getting attention from other big investors too. Visa hit an all-time high in mid-October after eight straight winning sessions, and it is a common pick of billionaire Bill Ackman, President Trump, and Claude’s AI portfolio. Click to read the full story.

#3 JD.com, Inc. (NASDAQ: JD)

Chinese e-commerce company JD.com has featured in Burry’s recent trading activity as he looks for investment opportunities outside US technology stocks.

Earlier in 2026, Burry reportedly shifted some of his Chinese e-commerce exposure away from Alibaba toward JD.com. His investment case focused on JD.com’s valuation and cash-generation prospects, particularly in comparison with Alibaba’s spending plans and financing decisions.

The bullish stance received a more recent update in October. According to an October 5 Stocktwits report, Burry added long-dated JD.com call options expiring in 2029.

The options position indicates that he was willing to maintain exposure to a potential increase in JD.com’s share price over several years. However, Chinese e-commerce investments remain exposed to competition, consumer spending conditions and regulatory risks.

JD.com second-quarter revenue fell 2.9% from a year earlier. Management said the decline came from a high comparison base, because revenue grew 22.4% in the second quarter of 2025 when government subsidies pushed people to buy appliances and other goods. Revenue for the first half of 2026 rose just 0.7%, so growth has already stalled.

JD.com’s biggest product category is electronics and home appliances, such as phones, laptops, refrigerators, and TVs. These are expensive items that shoppers buy less often, so a slowdown in this one category can pull down total sales.

Profit is the bigger problem. JD.com buys products from brands and sells them itself, so it books the full price of every sale as revenue. That leaves it with very little profit. Its operating margin was 0.2% in 2025, down from 3.3% in 2024. In the first half of 2026 it was 1.3%, below 1.5% a year earlier. The company is spending heavily on new businesses like food delivery and Jingxi, and those costs hold margins down.

E-commerce stocks are drawing attention beyond Burry’s picks. We ranked the 10 best e-commerce stocks to buy as global online sales hit records. See the full list here.

#2 Deckers Outdoor Corporation (NYSE: DECK)

Deckers Outdoor, the company behind HOKA and UGG footwear, became part of Burry’s investment strategy in early October.

According to several media reports, Burry sold his Lululemon position and bought Deckers as part of a tax-loss-harvesting transaction. The move allowed him to realize losses on Lululemon while maintaining exposure to another footwear and apparel business.

Burry had warned that investors might intensify selling of stocks already suffering substantial losses toward the end of the year. By replacing Lululemon with Deckers, he could continue participating in a potential recovery in consumer-related stocks without immediately repurchasing the same shares.

However, the purchase should not necessarily be interpreted as a permanent preference for Deckers over Lululemon. Reports indicated that Burry planned to reconsider Lululemon after the applicable wash-sale period.

Deckers Outdoor sales are slowing, and the U.S. market is the main reason. Direct-to-consumer comparable sales fell 6.4% in the fiscal second quarter, after rising 6.8% in the first quarter. Management said promotions increased through the quarter and shoppers now wait for discounts. Deckers sells at full price, so it loses sales when rivals cut prices. Nike and On also reported weak sales.

#1 MercadoLibre, Inc. (NASDAQ: MELI)

MercadoLibre is one of the clearest examples of Burry reaffirming an existing bullish investment view in October.

The Latin American e-commerce and financial technology company’s shares declined sharply on October 26 as Brazilian markets reacted to the country’s presidential election. The stock fell nearly 8%, but Burry reportedly regarded the selloff as an investment opportunity rather than a reason to abandon his earlier thesis.

According to an October 27 Stocktwits report citing comments on his Substack, Burry suggested the decline created an opportunity because he did not see a corresponding deterioration in MercadoLibre’s fundamentals.

His interest in MercadoLibre was already established. In September, media reports described him as adding to the company as part of his search for undervalued businesses outside the AI trade.

The October comments matter because they provide a fresh indication that Burry remained positive on the company even after another significant price decline. However, the report did not confirm that he purchased additional shares on October 26.

MercadoLibre’s businesses span online retail, payments and other financial services across Latin America. Its growth opportunities remain substantial, but currency volatility, competition and economic conditions across the region present risks.

City Different Investments highlighted MercadoLibre in its second-quarter 2026 investor letter and wrote about what it calls the MercadoLibre paradox. Read the full letter here.

While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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