Originally posted by: mshan
He's a long term investor with a lot of market moving capital to invest (even if he wanted to, he couldn't invest that nimbly because market would see his moves and pile on, increasing his cost basis to return killing levels).
He's not a momentum growth investor; he invests at depressed prices when there is blood on the streets.
He's probably doing now what he did in the 1970s, and is seeding outsize long term returns, despite his massive asset base, down the road.
One of the mutual funds I own,
Longleaf Partners fund, recently said that their price to intrinsic value ratio was about 50%. If the market realizes that value in 2 years, annual return is about
50%. If it takes 5 years to realize that value, it is still
15% average annual returns, even if you have to wait 5 years to get it.
Warren Buffet's projection about length and depth of recession were in his recent Charlie Rose interview; you can watch it for yourself at the Charlie Rose website.