Post #129 by Said on the Living Abroad board

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it's hard to reconcile Berkshire sitting at an all time high with the extreme concerns that you and others have raised in this thread. Mr. Market is a collection of global market participants of all political persuasions and takes all risks into account. Mr. Market obviously knows that Berkshire doesn't exist in a vaccum and its fortunes are inextricably linked with the US economy. If it were true that US government and economy have materially taken a turn for the worse to the point where the US economy is "too risky or too unpredictable or beyond the pale", one would think Mr. Market would recognize this and assign a much lower price to Berkshire.

Another interpretation of what's happening, inverting your thinking: Mr. Market does recognize and because(!) of that assigns such a historically high price to what is seen as a last resort of stability - explaining why Berkshire´s price this year so often went up when the market did fall and lately went higher and higher while the market did not. It makes perfect sense, while with your line of reasoning this phenomenon is still unexplained.

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