MICHAEL BURRY JUST FIRED A SHOT AT BERKSHIRE HATHAWAY.
He says Berkshire has lost the “Buffett edge” under Greg Abel.
The criticism is simple:
Berkshire is deploying too much cash while markets remain expensive.
And that matters because Buffett’s legendary advantage was never just buying great companies.
It was knowing when NOT to buy.
Cash gave Berkshire optionality.
When markets became irrational, Buffett could move billions while everyone else was forced to sell.
Burry’s argument is that Berkshire may be giving up that advantage by putting capital to work too aggressively at elevated valuations.
But there’s another side.
Berkshire still has one of the strongest balance sheets in corporate America, powerful operating earnings and a long history of disciplined capital allocation.
So the real debate isn’t whether Greg Abel can run Berkshire.
It’s whether he can preserve Buffett’s most valuable trait:
PATIENT CAPITAL.
Because Berkshire’s biggest competitive advantage may not be what it owns.
It may be the firepower it keeps waiting on the sidelines.
The market will eventually test whether Abel has Buffett’s patience.
And that could be the most important test of Berkshire’s next era.
#BerkshireHathaway #WarrenBuffett #MichaelBurry #Investing #StockMarket
He says Berkshire has lost the “Buffett edge” under Greg Abel.
The criticism is simple:
Berkshire is deploying too much cash while markets remain expensive.
And that matters because Buffett’s legendary advantage was never just buying great companies.
It was knowing when NOT to buy.
Cash gave Berkshire optionality.
When markets became irrational, Buffett could move billions while everyone else was forced to sell.
Burry’s argument is that Berkshire may be giving up that advantage by putting capital to work too aggressively at elevated valuations.
But there’s another side.
Berkshire still has one of the strongest balance sheets in corporate America, powerful operating earnings and a long history of disciplined capital allocation.
So the real debate isn’t whether Greg Abel can run Berkshire.
It’s whether he can preserve Buffett’s most valuable trait:
PATIENT CAPITAL.
Because Berkshire’s biggest competitive advantage may not be what it owns.
It may be the firepower it keeps waiting on the sidelines.
The market will eventually test whether Abel has Buffett’s patience.
And that could be the most important test of Berkshire’s next era.
#BerkshireHathaway #WarrenBuffett #MichaelBurry #Investing #StockMarket