Warren Buffett sits on a record $397B in cash while Michael Burry shorts AI for $1B, betting it's 1999 all over again

58 minutes ago 1

While investors determination into the market, riding the updraft of wildly palmy artificial quality stocks, 2 men hold for it each to travel crashing down. These men are Warren Buffett, 1 of the astir palmy investors, and Michael Burry, who predicted the 2008 lodging crash. And neither capitalist is impressed by today’s market.

“We’ve ne'er had radical successful a much gambling temper than now,” Buffett told CNBC (1). “Absolutely non-stop AI. Nobody is talking astir thing other each day,” said Burry successful a caller Substack post.

Must Read

Thanks to Jeff Bezos, you tin present go a landlord for arsenic small arsenic $100 — and no, you don't person to woody with tenants oregon hole freezers. Here's how
Robert Kiyosaki says this 1 plus volition surge 400% successful a twelvemonth and begs investors not to miss this ‘explosion’
Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake — here’s however to hole it ASAP

Both billionaires are putting their wealth wherever their rima is. Berkshire Hathaway, wherever Buffett remains chairman, has refused to crockery retired its monolithic currency pile, which has risen to astir $400 billion. In 2025, Burry reportedly shorted the AI roar for $1 cardinal by purchasing puts against Nvidia and Palantir (2). What bash they spot that the remainder of the marketplace can’t?

It’s boomtown successful bust region

Both investors deliberation the marketplace is successful for a atrocious time.

Buffett is notorious for sitting connected piles of cash. Unlike galore wealth managers, the longtime Berkshire Hathaway person is contented to bash thing erstwhile the marketplace is going up. He told CNBC that of the sixty years he’s been successful business, lone 5 person offered juicy opportunities to bargain (3). When the accidental isn’t there, Buffett doesn’t buy.

Meanwhile, Burry compared the existent marketplace to the 1999-2000 dot com bubble.

“Stocks are not up oregon down due to the fact that of jobs oregon user sentiment,” Burry wrote (4). “They are going consecutive up due to the fact that they person been going consecutive up.”

SEC filings bespeak Burry’s fund, Scion Asset Management, bought $187.6 cardinal successful puts connected Nvidia, on with $912 cardinal successful puts connected Palantir, successful 2025 (2). Both stocks person been monolithic beneficiaries of the AI wave, skyrocketing successful valuation (5). And optimism remains high; arsenic of writing, Palantir’s trailing twelve-month price-to-earnings ratio is implicit 150 (6).

What this means for investors: 2 of the world's astir palmy investors deliberation a marketplace clang is inevitable, and AI stocks whitethorn beryllium smashed the hardest.

Read More: Non-millionaires tin present hoard spot similar the 1% — however to commencement with arsenic small arsenic $100