Subject: Re: Why I sold my entire Berkshire stake
Let's assume the price goes nowhere for 1-2 years. With profitable operating businesses it then will be again in the lower half of it's typical range of price versus value. So you may buy again.

But what do you do with the proceeds from your sales in the meantime? Ok, Jim spends them for a nice Amp. But otherwise? Will you invest them in a clearly overvalued S&P? Are you a talented stockpicker who knows equally surefire investments which are undervalued (if so: Congrats!). Or will you simply wait and receive some % from bonds during those 1-2 years? And does the latter really matter in the grand scheme of things if you are in for another 20+ years?

Holding cash to wait for a good opportunity to present itself can create major boosts to returns. Note: This is not "timing the market" (at least how I define it); but rather waiting for good ideas to arise. I am very confident that at least 3 or 4 good opportunities (better than holding BRK at current levels) will be available in the next 18-24 months.

tecmo
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