Famed investor Michael Burry has sharply criticized Berkshire Hathaway Inc.‘s (NYSE:BRK) new CEO, Greg Abel, claiming he lacks predecessor Warren Buffett‘s renowned discipline and “patience for the fat pitch.”
The rebuke follows Berkshire’s recent multi-billion-dollar spending spree, leading Burry to declare the conglomerate is no longer an appealing investment.
The ‘Cassandra’ Critique
Taking to X on Aug. 10, Burry directly responded to news of Berkshire’s aggressive capital deployment. “My biggest fear for Berkshire Hathaway was that when Warren finally stepped down, the successor would be too old and otherwise not Warren, so would not have his patience for the fat pitch,” Burry wrote.
Pointing to the recent acquisitions under the new leadership, he bluntly added, “I believe this fear has come true. I do not find Berkshire an attractive investment going forward.”
A Massive Capital Deployment
Burry’s comments come just days after Berkshire Hathaway reported its second-quarter earnings, which revealed a significant reduction in its massive cash reserves.
Under Abel, who took over as CEO in January 2026, the company’s cash and Treasury bills fell 4% to $364.7 billion. This marked the first sequential decline for the cash pile in four years.
During the quarter, Berkshire deployed roughly $4.5 billion on share repurchases. The conglomerate also made major moves in the equity markets, including a $10 billion investment in Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and a $6.8 billion acquisition of homebuilder Taylor Morrison Home Corp.
Strong Earnings vs. Market Valuations
Despite Burry’s skepticism regarding Abel’s investment strategy, Berkshire’s financial engine remains robust. The company reported that second-quarter net income more than doubled to $25.67 billion.
Operating earnings also climbed 16.3% to $12.98 billion. However, some shareholders share concerns about deploying capital in current conditions.
“It’s very hard to want Greg to be making big deals in an ebullient market like now,” noted Paul Lountzis of Lountzis Asset Management, told The Wall Street Journal, adding that public markets are currently “kind of silly.”
How Has BRK Performed In 2026?
BRK Class B shares rose 3.81% year-to-date, 3.53% over the last month, and 13.07% over the year. It closed 0.54% lower at $521.80 per share on Friday, and it was up 0.39% in overnight trading.
Benzinga’s Edge Stock Rankings indicate that BRK maintains a strong price trend in the short, long, and medium terms, with a poor quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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