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Berkshire clearly thinks the risks are on the downside and they act on this thesis. Whether it will prove genious risk management or failure to appreciate the "
by openrisk 2y ago
Berkshire clearly thinks the risks are on the downside and they act on this thesis. Whether it will prove genious risk management or failure to appreciate the "new normal" will transpire sooner or later.
- tim333 2y agoBuffett had a long term policy to compare discounted cash flow type valuations for stocks bonds and businesses. For example see his 1992 letter https://www.berkshirehathaway.com/letters/1992.html https://www.berkshirehathaway.com/letters/1992.html and ^F for "Burr". So I guess it's more that he think stocks are expensive relative to bonds than a prediction of a crash.