Subject: Re: Berkshire’s cash and next crash
>>Agree the Mag 7 doesn’t compare to .com
However, caution is warranted perhaps.

The AI capex is not going through the P&L accounts, or operating cashflow and is being depreciated over quite long time frames. See Meta’s cash burn.

Also see Microsoft’s declining margins.<<

Couldn't agree more. Great points. Caution is extremely warranted. The better comparison is the Nifty 50 of the 70s. Which is today a Nifty 7 version. Many of those Nifty 50 stocks were good businesses for decades. But the stock investments collectively in that era were clunkers for a long time. The extent to which AI extrapolations are a significant part of THESE valuations today adds even more fundamental risk going forward.