Like every Newcastle fan, Shearer was disappointed, but not totally surprised, that the controversial businessman was unable to buy a new striker, and has still to properly invest all of the £35m raised by the sale of Andy Carroll to Liverpool.
Shearer told the Daily Mail: "It didn't surprise me. When you look at it and what's going on and how they're operating the club now that's up to them and certainly I'm not going to sit here and say that's not right.
"They want to establish themselves in the Premier League without spending ridiculous money, They're running the club that way and everyone has to respect that. It might be a while before you see a £20m-25m player at Newcastle again. Whether you agree with that or not, that's the fact.
"When you compare Newcastle to other clubs I think they will be alright. They're not going to get into the top six but it's anyone's guess below that, there's nothing between seventh and bottom. The difference is maybe getting a goal scorer who is going to score 22-23 goals a seasons that might get you into seventh or eighth.
"I can understand the manager's frustration. People were maybe looking for a marquee signing because of Andy Carroll leaving, but in fairness to the other guys they've started the season well. Maybe the owner and the manager have looked at that and thought that's the way they're going to go. Only time will tell whether that's the right way or the wrong way."