Now Reading: Michael Burry says Berkshire no longer attractive on $400B cash pile
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Michael Burry says Berkshire no longer attractive on $400B cash pile
Michael Burry says Berkshire no longer attractive on $400B cash pile
Michael Burry, the investor famed for betting against subprime mortgages, has declared Berkshire Hathaway unattractive under new CEO Greg Abel. In a Substack post reported by livemint, Burry said his fear that…
The Story in Brief
Michael Burry, the investor famed for betting against subprime mortgages, has declared Berkshire Hathaway unattractive under new CEO Greg Abel. In a Substack post reported by livemint, Burry said his fear that the successor would lack Warren Buffett’s patience for a 'fat pitch' has come true, even as Berkshire sits on nearly $400 billion in cash. He called Abel’s initial spending 'framing moves' rather than genuine investments.
Berkshire’s stock has risen 4.6% in the past month as Abel begins deploying the cash pile. He increased Berkshire’s stake in Alphabet, acquired homebuilder Taylor Morrison for $6.8 billion in the second quarter, and repurchased $4.5 billion of its own stock, more than in all of 2024 or 2025. The company also became a net buyer of stocks after 14 straight quarters of net selling. Yet Burry remains unconvinced, and the market will watch whether Abel can match Buffett’s legendary discipline.
The Indian Opinion
The narrative that Berkshire Hathaway is doomed without Warren Buffett is overstated. Greg Abel has barely begun, and his early moves, buying Alphabet shares, acquiring Taylor Morrison, and repurchasing stock, are sensible. Michael Burry’s fear that Abel lacks Buffett’s legendary patience may prove correct, but it is too soon to judge. The real test will come in the next year: will Abel deploy the cash pile into a genuine 'fat pitch' or keep making safe, small bets? That number will settle the debate.
Source: livemint.com
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