I believe what has happened is Berkshire has placed all of its eggs in anticipation of a severe market correction. It has hoarded cash and been a net seller of stocks for many years.

A crash will eventually occur. It always does. But as we all know, sitting on the sidelines for years and waiting for a crash is often not the best strategy. The longer you wait, the harder the market needs to crash for an overall benefit.

And then we have the unknown. Will Greg actually be a good stock picker? No one really knows. Will he pull the trigger during a market panic? Even Buffett himself remained way too fearful during the Covid crash and didn’t take advantage of the situation. And other than Apple, the stock picks for the last 10 years or so have been horrendous.

So for the time-being, Berkshire is acting like a cash hoarding fund and will be treated like one. It will go up when there is fear and down when there is optimism.