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Michael Burry questions Berkshire’s appeal amid $400B cash concerns
Berkshire has begun deploying its near $400 billion cash pile under CEO Greg Abel, including topping up Alphabet and buying Taylor Morrison for $6.8 billion, but Burry says the early moves look more like positioning than investing.
Billionaire investor Michael Burry said he no longer finds Berkshire Hathaway an attractive investment going forward, pointing to concerns around the company’s massive cash pile after Warren Buffett’s exit.
According to LiveMint Markets, Berkshire’s stock rose 4.6% over the past month as of Aug. 11, helped by steps CEO Greg Abel has started taking to put cash to work. Burry, writing on Substack, argued that Abel is not Buffett and that the successor may not have the patience for what Buffett called the “fat pitch.”
Berkshire’s cash pile was described as reaching almost $400 billion at the end of the first quarter, and Burry said the early actions under the new CEO appear more like “framing moves” than investment moves.
LiveMint Markets also cited specific uses of capital so far: Abel has increased Berkshire’s equity position in Alphabet, Berkshire announced a $6.8 billion acquisition of Taylor Morrison Homes in the second quarter, and it repurchased about $4.5 billion of its own stock.