GameStop CEO Ryan Cohen could be the next Warren Buffett, says Michael Burry
Is GameStop’s CEO the Next Warren Buffett?
A pet-supplies entrepreneur turned video-game retailer CEO, nicknamed the “Meme King,” is an unusual candidate for the next Warren Buffett. However, Michael Burry of “The Big Short” fame sees GameStop CEO Ryan Cohen as Buffett’s spiritual successor. The reason is Cohen’s approach to business and investing mirrors that of Buffett, who retired as Berkshire Hathaway’s CEO last year.
Parallel Paths: Cohen and Buffett
The successful Substack writer Michael Burry, previously known for running a hedge fund, parallels Cohen and Buffett. This suggests implementing the Berkshire playbook to GameStop. In a 2019 call with Cohen, Burry noted the CEO’s patience, indicating a similar temperament to Buffett. Cohen’s attitude towards long-term investments might make him a successor to the investment guru.
The Buffett Influence
Cohen has acknowledged the influence of Buffett on his professional life. He credits the legendary investor with shaping his business approach – thinking independently, being greedy when others are fearful, and disciplined capital allocation. After selling Chewy for over $3 billion in 2017, Cohen invested his wealth in Berkshire favorites: Apple and Wells Fargo.
Embracing Activist Investing and Meme Stocks
Following his departure from Chewy, Cohen transitioned to activist investing. After buying a stake in GameStop in 2020, he secured a board seat in early 2021. This move, along with Burry’s support of the stock, catalyzed the transformation of GameStop into the first meme stock.
GameStop’s Transformation
Under Cohen’s leadership, GameStop’s investor-relations page now mimics the minimalist design of Berkshire’s website. Cohen’s emphasis on frugality and significant investment in GameStop shares aligns him with Buffett’s values and investment strategies. He’s also gained the trust of shareholders, much like Buffett, enabling
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