Late on August 9, the famous ‘Big Short’ trader Michael Burry seemingly hardened his generally contrarian stance by declaring he no longer considers Berkshire Hathaway (NYSE: BRK.A, BRK.B) ‘an attractive investment.’
According to the famed investor, he has been fearful ever since the Oracle of Omaha announced his retirement that the new CEO ‘would be too old and otherwise not Warren.’
These factors would prove adverse, per Burry’s Sunday X post, because they would mean the new leadership would lack Buffett’s characteristic patience.
The ‘Big Short’ trader presented the fact that Berkshire Hathaway made a notable reduction to its cash pile during the second quarter (Q2) of 2026 as proof that his ‘fear has come true.’
Why Michael Burry no longer sees Berkshire as ‘an attractive investment’
Notably, Warren Buffett refrained from purchasing stocks at scale and was instead growing his cash pile during his final years at the helm because he estimated there were few worthwhile investments in the mid 2026s.
The Oracle of Omaha’s decisions can generally be interpreted as bearish regarding big tech, both due to the prevailing artificial intelligence (AI) narrative and his stated preference for not holding much in cash.
Simultaneously, the trend meant that Burry and Buffett were broadly aligned.
In recent years, the ‘Big Short’ trader placed multiple bets against the AI ‘boom,’ with a particular focus on the semiconductor industry.
Furthermore, he not only holds a short position against Nvidia (NASDAQ: NVDA) but unveiled new bearish wagers against Oracle (NYSE: ORCL) and the neocloud Nebius (NASDAQ: NBIS) as recently as August 6.
Berkshire stock trails the S&P500 in 2026 but is closing the gap
Meanwhile and in stark contrast to the longer timeframes, Berkshire Hathaway stock has been trailing behind the broader stock market in 2026 and after Warren Buffett officially retired as CEO on January 1.
Specifically, BRK.B is up 5.02% year-to-date (YTD), and the benchmark S&P 500 index is up 13.11% within the same timeframe.
Still, investors appear to have taken Berkshire leadership’s latest steps far better than Michael Burry, and the company’s equity has been closing the gap relative to the market with a 6% rally since late July.
