Michael Burry, the investor who became a household name by predicting the 2008 housing crisis, just placed a bet against one of America’s most iconic industrial companies.
Caterpillar shares dropped between 4.4% and 6.65% on July 1 after Burry disclosed on his Substack newsletter, “Cassandra Unchained,” that he had initiated a short position in the stock at $1,060.98. The decline pulled CAT back from record territory, where it had been sitting comfortably after an 86% surge during the first half of 2026.
A surprising target from an unlikely bear
Burry acknowledged that CAT has historically been a strong performer in his portfolio as a long position. He said the company’s current price was “not supported by the actual business.” Its price-to-sales ratio had climbed to multi-decade highs.
Caterpillar closed June at approximately $1,064.90, meaning Burry entered his short almost exactly at the top.
