Mar

1

Periodically, financial markets will become divorced from reality – you can count on that. More Jimmy Lings will appear. They will look and sound authoritative. The press will hang on their every word. Bankers will fight for their business. What they are saying will recently have "worked." Their early followers will be feeling very clever. Our suggestion: Whatever their line, never forget that 2+2 will always equal 4. And when someone tells you how old-fashioned that math is– zip up your wallet, take a vacation and come back in a few years to buy stocks at cheap prices….

The bad news is that Berkshire's long-term gains – measured by percentages, not by dollars – cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won't be great.

Ed Stewart writes: 

Some time ago I began to consider to what degree the inheritance tax as we know it is actually a round about, but understood rule to unduly force private businesses into large corporations or financial owners. Ive tried to find related material but no luck so far. It seems highly likely that a similar scheme has been used before, say in Europe or more ancient times. It would be very amusing if the measure to supposedly prevent great wealth consolidation was in fact one of its largest causes yet in a way most people can't recognize.


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