Great call.Berkshire has lots of cash which would be a great asset.Warren Buffett is also diversifying into other asset classes.He has a large position in the Brazilian real which was the best performing currency in 2008 and is bearish on the dollar.He said that the US is facing stagflation so his investments will be directed with that in mind.Besides buying a good business with an impregnable moat at a discount to its book value will work in good times or bad.I read an argument of a short seller that there are many hedge funds out there with very smart people so there may not be as many opportunities as before.But the problem there are going to face is the lack of cash to fund their brilliant ideas.Credit deflation has just begun.As for the succession issue Buffett has come out and said that there are apt candidates he had in mind.The insurance will take a hit as global warming triggered weather events will play havoc,consumer slowdown etc.But the group is widely diversified and would end up wiping out the competition in the process.Make no mistake this bear market will end eventually and then the US markets will be the biggest bull in stock history.This is because the survivors will be the best as the conditions in the states are going to be extreme.It will be like the BUD/S of stocks.
This is the great candidate to average down,buy and hold.
$4003.0 (06/27/08)
