Warren Buffett could wait forever. His successor may not be so patient.

Is the wait yet complete astatine Berkshire Hathaway?

Warren Buffett spent overmuch of his past decade arsenic CEO hoarding phenomenal amounts of cash, arsenic he waited for stocks, acquisitions, and moreover buybacks to go inexpensive capable to fulfill his hunger for bargains.

Greg Abel, who succeeded the legendary investor astatine the move of the year, mightiness not person rather truthful overmuch patience, based connected Berkshire's second-quarter net report connected Saturday.

Michael Burry, the worth investor of "The Big Short" fame and a longtime Buffett disciple, said successful a Substack note connected Sunday that his "biggest fear" for Berkshire was that Buffett's successor couldn't defy swinging earlier the "fat pitch" arrives.

"I judge this fearfulness has travel true," Burry wrote, adding that while only a small of Berkshire's cash hoard has been spent, "these first steps look to beryllium much framing moves than finance moves."

Burry's interest appears to beryllium that Abel is deploying Berkshire's rate not based connected fundamentals, but because he wants to reassure shareholders that he's the correct man for the occupation and Berkshire is connected the correct track.

Abel and Burry didn't instantly respond to requests for remark from Business Insider.

Cash is flowing out

Berkshire's net revealed that its rate heap shrank from a grounds $380 cardinal to $365 cardinal successful the 3 months ended June 30.

A cardinal driver was Berkshire spending a nett $20 cardinal connected stocks, investing $23.5 cardinal while trading only $3.7 billion. It had been a net seller of stocks for 14 consecutive quarters, and the past clip it spent this overmuch connected stocks was successful the first 4th of 2022.

Abel besides repurchased $4.6 cardinal of Berkshire stock, marking the company's largest quarterly buyback since 2021. Buffett refrained from immoderate repurchases during his past six quarters arsenic CEO.

Moreover, Berkshire spent different $3.4 cardinal aliases truthful connected buybacks betwixt July 1 and July 29, based connected its mean banal value and really overmuch its stock count declined during that period. That puts it connected way for different engaged 4th for buybacks, contempt Berkshire banal marching to all-time highs successful recent days.

Abel has besides been progressive connected the woody beforehand this year. Berkshire closed its takeover of OxyChem for astir $9.4 cardinal successful rate connected January 2 and its acquisition of Taylor Morrison for $6.8 cardinal successful rate connected July 24.

Berkshire erstwhile again being a nett purchaser of stocks, ramping up its buybacks to multi-year highs, and closing a mates of sizable acquisitions is notable. But it doesn't needfully mean Abel has kicked the institution into high gear.

Buffett kept busy

For one, Buffett told CNBC successful July that he "initiated" the purchase of Alphabet banal past year. That could mean he's besides responsible for Berkshire purchasing different $10 cardinal of Alphabet banal successful a backstage placement successful June, astatine astir a 6% discount to the marketplace price.

Following the purchase, Berkshire holds a roughly $29 cardinal liking successful the Big Tech titan and cardinal subordinate successful the AI boom, assuming it hasn't altered its position. It listed Alphabet arsenic 1 of the apical 5 holdings successful its banal portfolio astatine the extremity of June.

Buffett was besides CEO erstwhile the OxyChem woody was struck past year, and he's made different acquisitions successful caller years, including Alleghany and Pilot.

Meanwhile, Abel has pledged to travel Buffett's strategy of disciplined superior allocation, and indicated that he consults pinch Buffett — who remains Berkshire's president — connected each awesome decision.

It's safe to presume that Buffett, who turns 96 connected August 30, will proceed to person a beardown power connected Berkshire while he's still alive.

After all, he transformed it from a failing textile mill into a $1 trillion conglomerate complete six decades. He did truthful by acquiring businesses specified arsenic Geico and BNSF Railway, and building immense stakes successful companies specified arsenic Apple, Coca-Cola, and American Express.

Berkshire still had a larger rate heap astatine the extremity of June than it did a twelvemonth earlier, showing that Abel only made a mini dent successful the money mountain.

Without the $10 cardinal Alphabet deal, Berkshire's banal purchases would person been little than successful the first quarter, suggesting that Abel wasn't scooping up stocks near and correct past quarter.

On the different hand, Berkshire sold an unusually ample $24 cardinal of stocks successful the first 4th arsenic it was offloading Todd Combs' positions aft he departed his role arsenic 1 of Buffett's 2 finance managers.

It mightiness person been a nett purchaser of stocks that 4th successful the absence of those disposals, which would person made past 4th look for illustration little of a oversea change.

Abel is starting to make his mark, but he'll person to deploy a full batch much rate to move the needle astatine Berkshire.

It remains an unfastened mobility whether he's forging a different way than Buffett, and whether Burry is correct that he's little diligent and much pandering than his predecessor.