Michael Burry's Bold Molina Healthcare Bet: What Investors Should Know

The Contrarian Investor Sees Hidden Value

When Michael Burry—the legendary short-seller immortalized in “The Big Short”—turns bullish on a stock, markets listen. On the final trading days of 2025, Molina Healthcare (NYSE: MOH) experienced a notable rally, climbing nearly 5% as Burry publicly endorsed the insurer on social media, calling it a potential “generational buy.”

The rally underscores a critical shift in how Wall Street’s most prominent contrarian thinkers are positioning themselves in the healthcare sector. For investors familiar with Burry’s reputation for identifying mispricings before major market moves, his recent commentary on Molina demands closer examination.

From Skeptic to Believer: Burry’s Investment Timeline

Burry’s endorsement didn’t emerge overnight. In November 2025, he first disclosed a long position in Molina Healthcare stock through social media posts. His conviction deepened significantly when he doubled down on his positive outlook yesterday, publicly comparing the company’s investment profile to Warren Buffett’s historic acquisition of Geico.

The comparison carries weight among seasoned investors. Both situations involve insurance companies trading at depressed valuations relative to their intrinsic value, according to Burry’s analysis. He’s suggested that Molina could become an attractive acquisition target for a larger financial conglomerate if the stock price remains suppressed.

By mid-day trading at 12:35 p.m. ET, Molina shares had climbed 3.8% as traders digested Burry’s commentary on the company’s fundamentals. This movement reflects how individual investor conviction, particularly from someone with Burry’s track record of identifying turning points, can influence market sentiment.

The Opportunity: Healthcare at a Discount

Molina Healthcare’s 40% decline throughout 2025 has created a substantial valuation gap, according to industry observers. For investors seeking expanded exposure to the healthcare insurance sector, Burry’s analysis presents a thesis worth evaluating: a market-beaten insurer with solid fundamentals trading below its true economic value.

The question facing individual investors is whether Burry’s conviction represents the beginning of a broader revaluation in healthcare insurance stocks, or if his analysis has identified a specific anomaly unique to Molina’s circumstances.

Important Investment Considerations

Before making any investment decisions based on high-profile endorsements, it’s crucial to conduct independent research. Even analysts with exceptional track records—such as those who identified Netflix’s potential on December 17, 2004 (when $1,000 would have grown to $507,744) or Nvidia on April 15, 2005 (which would have appreciated to $1,153,827)—can’t guarantee future outcomes.

Professional investment teams emphasize that thorough due diligence remains essential, regardless of a prominent investor’s public stance. The healthcare sector contains multiple dynamics worth understanding before committing capital.

Burry’s Molina Healthcare position represents his personal conviction about value and opportunity in the insurance market. Whether this translates into broad-based portfolio gains remains an open question for investors to evaluate through their own analytical frameworks.

*Historical returns referenced as of December 30, 2025.