Benzinga reminds Warren said the market valuation at 140% of GDP is “playing with fire”.

As we proceed at valuations much higher than THAT—cash equal to stocks seems a pretty rational. I would suspect cash will continue to build here.

I remember 1999 very well. I felt like a complete idiot holding this stock. Everyone around me was seemingly getting rich and the headlines everywhere: Warren’s old & out of touch. Does he know the Internet is the future..not soft drinks and razor blades? That’s right 25 years ago Warren was too old and out of touch!

Now, with a BitCoin lover heading the SEC, meme stocks, free trades etc we may be in midst of a prolonged drunken party—that we sit out. Back in 1999, I survived this by turning to every very smart long term investor I knew. TexIrish here was among that group. We all shook our heads—and I sat tight because the people I truly respect— confirmed I/we were doing the right thing. When it blew up, Berkshire surged. We made a ton of money in a terrible market. But it was very challenging and lonely.

Prepare for the tough part of this exercise. Remember Charlie Munger reminded us of the brilliance and difficulty of his demand “Just hold the GD stock”. Much more difficult than you think. Few can do it.

Berkshire Hathaway FAQ

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