This Is the Most Expensive Stock Market Ever

U.S. stocks are now more expensive than almost any point in history — and the last time valuations got this close, the S&P 500 fell 49% while the Nasdaq 100 crashed 78%. That alone should make any investor pause.

Additionally, U.S. households are more loaded up on stocks than ever before. When everyday investors pack their portfolios with equities, they often push valuations beyond sustainable levels.

That sets the stage for long periods of weak returns — and sudden, “panicky” sell-offs. We’re already seeing those sharp one-day swings creep back into the market.

This portfolio looks nothing like the S&P 500 — and almost every position is cheaper than the market. With the S&P 500 trading at a forward P/E of 30.13, nearly every holding he owns sits at a meaningfully lower multiple.

Li Lu, often called “China’s Warren Buffett,” is the man who introduced Buffett and Munger to BYD, one of their most successful investments ever.

After graduating from Columbia with three degrees, he launched Himalaya Capital, which managed $14B by 2023 and compounded at an incredible 30% per year since 1998.

The man who called the 2008 crash just shut down Scion Asset Management. Despite his legendary status, Burry’s long-term performance hasn’t kept up with the broader market.

Since 2017, the S&P 500 gained roughly 299%, while Scion delivered around 240% — respectable, but not enough to beat a simple index. This week, Burry officially announced he’s liquidating the firm.

Below are his final words.

“With a heavy heart, I will liquidate the funds and return capital — but for a small audit/tax holdback — by year’s end.

My estimation of value in securities is not now, and has not been for some time, in sync with the markets.

With heartfelt thanks, but also with apologies, I wish you well in your future investments.

I do suggest investors contact my associate PM Phil Clifton regarding his coming endeavors. He can be reached at [email protected] and at (240) 447-6688.

Phil is a tremendous young talent in the field of investment — and the most prodigious thinker I have ever encountered.

Sincerely,
Michael Burry
Portfolio Manager

Four of the most respected investors on the planet just revealed their biggest Q3 2025 moves.

Seth Klarman — Deep Value Discipline

Klarman keeps hunting mispriced quality. New buys: $QSR, $ELV, $UNP — durable businesses trading below intrinsic value. No hype, just value.

David Tepper — Macro Opportunist

Tepper treats markets like a battlefield. Adds $WHR, $NVDA, $KD — a mix of cyclical recovery + tech momentum. Always aiming at major shifts.

Howard Marks — Credit & Distressed

Marks is a master of market cycles. Picks $VNOM, $TDS, $TLN — cash-flow strength and rock-solid balance sheets. Stability over speed.

Chuck Akre — Compounding Machines

Akre wants decades of compounding. Buys $FICO, $CPRT, $CCC — high-moat, high-return companies that grow quietly.

Since 2020, these names have quietly posted some of the strongest earnings growth in the entire market — and most investors still have no idea what they actually do. Here’s the breakdown.

$ZS — Zscaler provides cloud-based cybersecurity that protects organizations as they move to zero-trust architecture.

ANET — Arista Networks builds high-performance networking hardware and software for data centers and cloud giants.

FCNCA — First Citizens BancShares operates a major regional U.S. bank known for buying distressed competitors.

XYZ — Block builds tools that let people send, spend, and invest money across its ecosystem, including Square, Cash App, and Afterpay.

FTNT — Fortinet delivers enterprise cybersecurity solutions, including firewalls and secure networking.

CELH — Celsius sells fitness-focused energy drinks with explosive brand loyalty and distribution growth.

SMCI — Super Micro Computer designs high-performance servers optimized for AI, cloud, and data workloads.

FANG — Diamondback Energy produces oil and gas from the Permian Basin with a low-cost drilling model.

APP — AppLovin provides software that helps app developers grow, monetize, and optimize their mobile apps.

ZM — Zoom offers cloud-based video communication and collaboration tools for businesses.

🚀 Nvidia reports earnings tomorrow.

🎬 Disney earnings showed 2 major problems.

💥 Oracle suffers a -25% meltdown.

🧢 Michael Saylor finally answers short-sellers.

📊 Ray Dalio reveals his biggest Q3 moves.