Why Is Michael Burry Investing In Water?


Why is Michael Burry investing in water - can someone explain?


This has been gone through in detail in these posts:

But I will outline it here and if you want more information, look up previous posts…

The world is rapidly running out of water. The cost of building infrastructure to transport water is incredibly high. You have a number of options:

-de-salinisation involves pumping water from the sea. The cost of building de-salinisation plants is enormous and they do not provide enormous amounts of water. To put this in perspective, the EU’s water commission recommended de-salinisation as the final solution…

-transport water via ships. Transporting water demands huge costs making it incredibly inefficient.

If the typical family in a western country (in this case Ireland) uses 383 litres per day:

If the average tanker carries 33,690 litres, then one truck would only provide water for one household for less than 1,000 days. How would you use this method to give an entire population water?

Burry’s thesis is that country’s with rapidly declining water supplies can import water intensive commodities and use the domestic supply of water for drinking water.

Most of the world’s water is groundwater and most groundwater (90%) is used for farming. By importing the goods it typically farms, a country can use its domestic ground water as drinking water.

This process would cost very little to implement:

-the infrastructure for food transport already exists…

If burry’s bet on water proves right, the value of farmland will increase exponentially - especially farmland with water on-site!

Do your own research, however fire a question if you want to clear something up - there are a lot of people on the forum interested in this topic too…