alt Hacker NewsBuffet's strategy assumes a rational market, so I wouldn't expect it to work as well in an environment where stock market valuations are increasingly vibes-based and often wildly inflated by circumstances that should be illegal (like selling X to xAI to generate a voodoo valuation).
Arguably the entire market is heavily overvalued now, though, so while his strategies are probably no longer optimal, they'll probably continue to work out well enough at least until the next big correction.
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> Buffet's strategy assumes a rational market
The public stuff, sure, in the short term. The wholly-owned stuff, however, is pure private equity: their cash flows should cash flow irrespective of financing conditions.
Some people suggest this is a function of too much wealth centred in too few people, causing a high demand for assets. If that is true, maybe that is where we should focus?
“in the short run, the market is a voting machine… but in the long run, the market is a weighing machine.”
Ben Graham