Michael Burry disclosed new purchases in several undervalued companies, warning that the AI boom is creating market distortions similar to the dot-com era.
Burry added to MercadoLibre, bought at around $1,500, calling it a clean long-term winner at a discount due to international exposure.
He also increased positions in Adobe, PayPal, and Zoetis, and established a full stake in Lululemon.
Burry said these stocks are overlooked as capital flows into AI. He drew parallels to 1999 when old economy stocks were abandoned for tech.
Data from Apollo's Torsten Slok shows 87% of venture capital goes to AI. AI borrowers represent nearly half of investment-grade bond issuance and 38% of high-yield debt.
Burry compared this to the dot-com period when internet and telecom dominated. Over $100 billion of investment-grade debt issued in 1999-2000 was later downgraded to junk.
Burry called the current situation an asset bubble.
