Michael Burry Exits Berkshire Hathaway (BRK.B): Loses Confidence in Post-Buffett Era
Key Takeaways
- The ‘Big Short’ investor Michael Burry declared Berkshire Hathaway no longer appealing as an investment opportunity
- Burry’s primary worry centers on whether Greg Abel possesses Warren Buffett’s trademark patience for exceptional investments
- Under Abel’s leadership, Berkshire authorized $4.5 billion in stock repurchases during the second quarter of 2026
- The company’s cash reserves stood at $365.5 billion at Q2’s close, reflecting approximately a 2% decline from 2025 year-end
- Year-to-date performance shows Berkshire’s Class B stock climbing only 3.8%, lagging behind the S&P 500’s 13.3% gain
The legendary investor who famously forecasted the 2008 financial crisis has soured on Berkshire Hathaway. Michael Burry declared via X over the weekend that the conglomerate no longer represents an appealing investment opportunity following Warren Buffett’s retirement from leadership.
Berkshire Hathaway Inc., BRK-B
For years, Burry expressed apprehension about Berkshire’s post-Buffett future. His primary anxiety centered on whether any replacement could replicate Buffett’s extraordinary patience—his ability to wait indefinitely for what he famously termed a “fat pitch” investment opportunity.
Buffett borrowed this concept from baseball icon Ted Williams. The phrase represents an investment opportunity so compelling, with minimal risk and exceptional upside potential, that it warrants aggressive action.
Burry’s Assessment of the New Leadership
In his X post, Burry stated: “My biggest fear for Berkshire Hathaway was that Warren Buffett’s eventual successor would lack Buffett’s patience and discipline to wait for the right fat pitch. I believe this fear has come true.”
He continued: “I do not find Berkshire an attractive investment going forward.”
Greg Abel assumed the CEO position from Buffett in January 2026. Having completed two full quarters at the helm, Abel’s management of Berkshire’s substantial cash holdings has become a focal point for market observers.
Abel has begun allocating capital more actively. During Q2 2026, the company repurchased $4.5 billion worth of its own shares. This represents a dramatic increase from the modest $234.2 million buyback in Q1—the first such transaction since the previous May.
Substantial Cash Reserves Remain
Even with recent deployment activities, Berkshire maintained $365.5 billion in liquid assets—including cash, equivalents, and short-term securities—at the conclusion of Q2. This figure represents only a modest decrease from the position when Buffett transferred control at 2025’s end.
Burry recognized the substantial remaining reserves. He characterized Abel’s actions as “look to be more framing moves than investment moves,” implying he interprets these decisions as strategic positioning rather than high-conviction deployments.
Berkshire reported impressive quarterly financial results. Second-quarter earnings surged more than twofold, propelled by portfolio gains and robust performance across industrial and retail operations.
Despite solid fundamentals, the stock has lagged market benchmarks. Berkshire’s Class B shares have appreciated merely 3.8% during 2026. By comparison, the S&P 500 index has advanced 13.3% in the identical timeframe.
Trading activity on Monday showed Class B shares at $534.47, representing an intraday gain of approximately 2.43%.
Burry’s social media commentary generated more than 1,500 responses. His criticism carries particular weight considering Berkshire’s longstanding reputation as a conservative, dependable holding rather than a speculative bet.
The fundamental issue Burry highlights is whether Berkshire merits the valuation premium investors have traditionally granted it now that its architect no longer guides the organization.