Ryan Cohen Is The Next Warren Buffett? Michael Burry Thinks So

Comparisons between Ryan Cohen and Warren Buffett have moved from the dark corners of Reddit to the center of mainstream financial discussions, fueled by Michael Burry‘s recent observations. 

Burry sees GameStop Corp. (NYSE:GME) as more than a struggling retailer— he sees a massive $4 billion war chest led by a visionary and waiting for its Berkshire Hathaway moment.

The Berkshire Blueprint

Burry’s thesis rests on the historical precedent of Berkshire Hathaway itself. Originally a failing textile mill, Buffett used the company’s capital to pivot into insurance and high-yield acquisitions. 

According to Burry, Cohen is following Warren Buffett’s script. 

“Ryan is making lemonade out of lemons. He has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business,” Burry said, per Reuters. 

Cohen has amassed a multi-billion-dollar liquidity position through strategic share offerings by using GameStop’s notoriety as the original meme stock. 

Burry believes Cohen is waiting patiently and hunting for a “growing cash cow business” to acquire and house within GameStop’s corporate shell.

“I think he [Ryan] is doing what Warren Buffett did and what I am doing. Essentially, waiting patiently. Unlike me, he is doing it with a public company, which, by all prior evidence, is very hard,” Burry said.

A Harder Path

Interestingly, Burry points out that Cohen’s path is actually more difficult than Buffett’s was. Buffett built much of his empire through private partnerships and during an era with less regulatory and social media scrutiny.

Cohen is attempting the transformation under the microscope of a highly volatile public company. He must balance the fiduciary duties of a retail-heavy shareholder base with the cold, calculated patience required for value investing. 

Burry acknowledged this difficulty, noting that maintaining such a strategy in the public eye is difficult. 

The Verdict

While skeptics see a dying mall shop, Burry sees a holding company in its infancy. If Cohen successfully deploys GameStop’s capital into a high-growth, cash-generative industry, the Buffett comparison could become a reality.

Burry said he has been buying GameStop shares and sees an attractive risk-reward set-up with Cohen at the helm. 

“Being long GameStop is almost as asymmetric as it gets these days in U.S. common stocks,” Burry said.

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