No. of Recommendations: 27
Arguably there is a meaningful difference between timing the market and pricing the market.
Timing the market (a weakness of mine) is primarily about trying to have an edge in predicting whether prices will go up or down next. Pricing the market, on the other hand, is mainly about merely refusing to be invested in things you consider overvalued, which may not involve having any opinion at all about how soon that might change, or even in what direction.
It seems to me Berkshire is pricing the market, on the very general assumption that some sort of better opportunity will come along at some point. It's good to remember that all price rises above true fair value are transient. Transient things end.
Jim
