End of an Era? (Patreon)

All good things come to an end. Sad to say but true.

Berkshire Hathaway — downgraded to sell. Of course we know cash is trash and he is nearly 40% cash,.... but what is going on?

Warren Buffett’s favorite indicator — the one he said was the best measure of stock valuations — has hit an all-time high. It now shows 225.3%.

• Total U.S. Stock Market Value: $67.8 trillion

• Total U.S. Economy (GDP): $29.65 trillion

For him this is extreme alarm bell territory. But what he misses is how AI impacts the economy.

We are entering a new era. It does not compute w WB! The market is betting that Artificial Intelligence will boost productivity. WB does not understand AI (or tech) so cannot wrap his head around this. Just like how he couldn’t grasp Microsoft as an investment decades ago — it was $10 a share back then. Despite being friends with Gates, he missed out on a 55x return and left hundreds of billions on the table.