Without Warren Buffett, Berkshire Hathaway is no longer an attractive investment: ‘Big Short’ fame Michael Burry
Veteran investor Michael Burry said Berkshire Hathaway has lost its investment appeal after Warren Buffett’s succession, arguing that Greg Abel may lack Buffett’s patience for major opportunities. Burry also flagged concerns over Berkshire’s large cash pile, saying its recent moves appear more strategic than investment-focused.
Veteran American investor Michael Burry, famous for correctly predicting the 2008 financial crisis, has expressed his concern that without Warren Buffett, Berkshire Hathaway is no longer an attractive investment. In a recent blog post, Burry stated that his greatest fear is that Berkshire's successor, CEO Greg Abel, will lack the patience for Berkshire's "fat pitch" due to Abel's potential age and inexperience.
Burry noted that Berkshire's large cash pile has not been significantly spent, but the recent moves made by Abel seem more like framing moves than actual investments. During the April-June quarter, Berkshire Hathaway spent around $4.5 billion on share buybacks and acquired approximately $20 billion worth of equities, including a significant $10 billion investment in Alphabet stock.
Berkshire's cash pile decreased to $364.7 billion by the end of June, down from $380.2 billion three months earlier. However, the company reported a strong increase in its quarterly operating profit, rising 16% to $12.98 billion, and net income more than doubled to $25.67 billion. Warren Buffett admitted that he initiated Berkshire's investment in Alphabet, but he acknowledged that Abel is the final decision-maker.
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