Can't manage without Buffett? Michael Burry loses faith in Berkshire
Famous investor Michael Burry says that Berkshire Hathaway is no longer an attractive investment in his eyes, following Warren Buffett's retirement as CEO and the transition of leadership to Greg Abel.
Although Berkshire has begun to deploy part of its massive cash pile under its new CEO, the stock is currently struggling to keep pace with the broader market. Since the beginning of 2026, the company's shares have risen by only about 3%, trailing significantly behind the gains seen in the S&P 500 and the Dow Jones.
Warren Buffett retired as CEO at the end of 2025, after decades of transforming Berkshire into one of the world's largest and most closely watched investment firms. Now, under the management of Greg Abel, investors are reassessing the company's ability to continue generating excess returns and successfully allocate capital without Buffett at the helm.
However, Michael Burry remains unconvinced by the new direction.
The investor, who gained fame through the movie "The Big Short," wrote that his primary fear was that Buffett's successor would be "too old and not Warren," lacking the patience Buffett possessed to wait for exceptional investment opportunities.
"I believe this fear has materialized," wrote Burry, adding that he no longer views Berkshire as an attractive investment moving forward.
In a post on Substack, Burry noted that while Berkshire has begun to utilize part of its cash pile under Greg Abel, he views the new CEO's initial steps as more of a statement of intent than significant investment action. According to Yahoo Finance, he pointed out that the company's massive cash reserves remain largely unused.
First cash pile reduction in 4 years
These remarks follow Berkshire's report last week that it ended the second quarter with $365.5 billion in cash and short-term US government bonds, a decrease of about 8% from the record $397.4 billion held in the previous quarter. This marks the first time in four years that Berkshire's cash pile has shrunk quarter-over-quarter, signaling that the company has become a net buyer of stocks for the first time in a long period.
Berkshire purchased shares totaling $23.5 billion, compared to sales of only $3.7 billion. Notable moves included a $10 billion investment in Alphabet, alongside a share buyback of Berkshire stock totaling $4.5 billion.
