The tragedy of Berkshire is that it assumed a level of long-term rationality in the market that the last 20 years shows is just not there. The Berkshire model stops working when IQs fall so much that P/Es of 40x are just accepted as normal by almost everyone and memecoin pump-and-dumps are the highest-EV thing the average man can invest in.
>>62219808buffet doesnt care about stock price. he buys profitable businesses
>>62219830A stock is only so profitable relative to what you had to pay to get a share of those produts.
>>62219837correct. so as long as he bought them at a fair price its all good
>>62219808Valuation ratios don't really have any relevance when we live in a world with global capital inflows to markets, as well as central bank funny money (aka money printing).No shit stuff is gonna look expensive when you print away the currency.
oh no, whatever will they do with their hundreds of billions of dollars? it's over...
>>62219948It's all relative, anon. You think they're happy not beating the market anymore? They've become a defensive investment option not by choice.
>>62219808This is true, profitability does not matter in stock prices anymore. Their investment strategies only work today if they go for dividend stocks, otherwise in the current climate if you buy a stock that isn't memed enough, they can make a lot of money it won't get you anything, stock price will just stay low. Prices are not currently connected to the underlying companies
