Michael Burry Deems Berkshire Hathaway 'Unattractive' Under New Leadership

Michael Burry, the investor famed for his prescient bet against the subprime mortgage market, has issued a stark warning about Berkshire Hathaway (NYSE: BRK.A, BRK.B), calling the conglomerate an "unattractive investment" under its new leadership. In an August 10 post on X, Burry argued that CEO Greg Abel does not possess the patient capital discipline that was a hallmark of his predecessor, Warren Buffett.

"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. "I believe this fear has come true."

A Shift in Capital Allocation

Burry's critique centers on Berkshire's recent activity, which marks a significant acceleration in capital deployment. The company's Q2 2026 results show a sharp departure from its recent cash-hoarding strategy:

• Cash Deployed: Berkshire's cash and Treasury bill holdings fell for the first time in four years, declining by roughly 4% to approximately $364.7 billion from a record $397.4 billion in the prior quarter.
• Equity Purchases: The firm made nearly $20 billion in net equity purchases, including a new $10 billion stake in Alphabet (NASDAQ: GOOGL).
• Acquisitions: It completed a $6.8 billion acquisition of homebuilder Taylor Morrison Home Corp.
• Share Repurchases: Buybacks surged to $4.5 billion, a substantial increase from just $235 million in the first quarter.

This aggressive deployment contrasts with Buffett's long-standing strategy of waiting for deeply discounted opportunities, or "fat pitches," particularly in turbulent markets. Burry suggests Abel is putting capital to work in an expensive market, potentially eroding Berkshire's long-term competitive edge.

Wall Street's Divided Reaction

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The market's reaction to Abel's strategy is mixed. Paul Lountzis of Lountzis Asset Management echoed some of Burry's caution, telling the Wall Street Journal, "It's very hard to want Greg to be making big deals in an ebullient market like now," which he described as "kind of silly."

However, others view the cash deployment as a positive development. Bill Stone, CIO of The Glenview Trust Company, told CNBC the activity shows "early evidence that Greg Abel is actively putting Buffett's cash hoard to work while maintaining Berkshire's long-standing discipline."

This bullish sentiment is shared by UBS analyst Brian Meredith, who maintained a Buy rating on the stock. "We continue to view Berkshire as an attractive defensive investment, supported by a strong balance sheet... and deployment of excess cash into accretive acquisitions and/or share repurchases," Meredith wrote, raising his price target on the company's Class A shares.

What to Watch Next

Investors will be watching for two key data points that could clarify Abel's strategic direction. Berkshire Hathaway's upcoming 13-F filing, due by mid-August 2026, will provide a complete picture of its equity portfolio changes during the second quarter.

Following that, the company's third-quarter earnings report, expected in early November, will reveal whether the aggressive pace of investment and buybacks has continued. These disclosures will offer the most concrete evidence yet of whether Berkshire's capital allocation philosophy has fundamentally changed in the post-Buffett era.