Ryan Cohen Plans to Save GameStop By Becoming Warren Buffett

shares of GameStop tumbled 5% after CEO Ryan Cohen proposed using his company’s $900 million in cash to buy stocks.

It’s “one of the most inane moves we have ever seen,” criticized Wedbush analyst Michael Pachter. “GameStop’s management believes it will achieve better returns by buying equities aside from its own.”

But behind this “inane” decision is a cold calculation. Cohen knows he owns a struggling business in a fast-shrinking industry. 90% of all video games are now sold digitally, and selling gaming collectibles won’t make up the difference. As a Master Yoda bobblehead might say, a dying enterprise, GameStop is. $GameStop(GME.US)$ $AMC Entertainment(AMC.US)$